New Zealand Official Yearbook 2008

Te Pukapuka Houanga Whaimana o Aotearoa 2008

Statistics New Zealand

For further information about statistics, and for help finding or using the statistical information available on the Statistics New Zealand website, contact the information centre:

Email info@stats.govt.nz

Phone toll-free 0508 525 525

Phone +64 4 931 4600

Fax +64 4 931 4610

Website www.stats.govt.nz

Acknowledgements

The New Zealand Official Yearbook 2008 was produced by Statistics New Zealand, with the assistance of many individuals and the organisations listed in the ‘Contributors and related websites’ section at the end of each chapter. The department thanks them and the following:

Statistics New Zealand

Project editor Sarah Brazil

Senior editors Jan Schrader, Sarah Brazil

Editors Heather McLay, Désirée Patterson

Production editor Heather McLay

Illustrations editor and photographer Jarrad Mapp

Technical support Shirley Dixon

Other

Graphics and typesetters Totem Communications Ltd

Cover Shelley Watson/Sublime Design

Indexer Jill Gallop

Liability

Statistics New Zealand has made every effort to obtain, analyse, and edit the information and statistics used in the New Zealand Official Yearbook 2008. However, Statistics New Zealand gives no warranty that the information or data supplied contains no errors, and will not be liable for any loss or damage caused by the use, directly or indirectly, of material contained in the Yearbook.

Publication materials

This Yearbook is printed on 9lives satin paper, which is manufactured from 55 percent recycled fibre (made up of 30 percent pre-consumer and 25 percent post-consumer recycled fibre) and 45 percent virgin fibre from Forest Stewardship Council (FSC) certified, well managed forests, and is elemental chlorine free (ECF) bleached. The paper mill holds an FSC chain of custody certificate and is both ISO 14001 and ISO 9001 accredited. The ink used in this publication is 100 percent vegetable based, mineral oil free, and based on 100 percent renewable resources.

New Zealand Official Yearbook 2008
ISSN 0078-0170
ISBN 978-1-86953-717-3

This book is copyright. Except for the purpose of fair review, no part may be stored or transmitted in any form or by any means, electronic or mechanical, including recording or storage in any information retrieval systems, without permission in writing from the publisher. No reproduction may be made, whether by photocopying or by any other means, unless a licence has been obtained from the publisher or their agent.

Copyright © Statistics New Zealand 2008.

Published in 2008 by David Bateman Ltd, 30 Tarndale Grove, Rosedale, North Shore City 0632, New Zealand.

Printed by PrintLink, Wellington, New Zealand.


Table of Contents

List of Figures

    1.01.
    3.01.
    3.02.
    3.03.
    4.01.
    4.02.
    5.01.
    5.02.
    5.03.
    5.04.
    5.05.
    5.06.
    5.07.
    5.08.
    5.09.
    5.1.
    6.01.
    6.02.
    6.03.
    6.04.
    6.05.
    8.01.
    8.02.
    8.03.
    8.04.
    8.05.
    9.01.
    9.02.
    9.03.
    10.01.
    10.02.
    10.03.
    11.01.
    11.02.
    11.03.
    12.01.
    14.01.
    15.01.
    15.02.
    16.01.
    16.02.
    16.03.
    16.04.
    16.05.
    16.06.
    17.01.
    17.02.
    17.03.
    17.04.
    17.05.
    17.06.
    17.07.
    17.08.
    17.09.
    17.1.
    18.01.
    19.01.
    19.02.
    21.01.
    22.01.
    22.02.
    22.03.
    22.04.
    22.05.
    23.01.
    23.02.
    23.03.
    23.04.
    23.05.
    24.01.
    24.02.
    26.01.
    26.02.
    26.03.
    27.01.
    27.02.
    27.03.
    27.04.

List of Tables

Preface

The New Zealand Official Yearbook has provided a comprehensive statistical picture of life in New Zealand for more than 100 years. The 106th edition celebrates and continues this tradition, providing a wide-ranging picture of New Zealand society in 2008, based on the latest information available.

Recent Yearbooks have carried a theme, and the 2008 edition has an environmental focus, with conserving the natural environment as the unifying theme throughout the Yearbook. This theme provides a common thread for many of the sidebar stories, which enhance the main content of the Yearbook by elaborating or highlighting significant related events, achievements, or trends.

This environmental focus is timely – 2008 is the United Nations' International Year of Planet Earth, and on 5 June 2008 New Zealand hosted World Environment Day, in partnership with the United Nations' Environment Programme.

There is growing public interest in the state of our natural environment and the importance of conservation issues generally. People, organisations, and governments are working individually and collectively to reduce our impact on the planet.

The 2008 Yearbook is printed on ‘9lives paper’, a Forest Stewardship Council certified paper, manufactured with a 55 percent recycled fibre content. The inks used in printing the Yearbook are vegetable-based.

Internationally there is a rising expectation for improved environmental statistics and reporting. In late 2007 the Ministry for the Environment released the second national state of the environment report Environment New Zealand 2007.

Statistics New Zealand has been an active contributor over the past two years to the Joint UNECE/OECD/Eurostat working group on Statistics for Sustainable Development. The working group's Report on Measuring Sustainable Development will provide a base for statistical reporting in this area in coming years. This framework will be used to update Statistics New Zealand's Monitoring Progress Towards a Sustainable New Zealand, to be published again in mid-2009.

On behalf of Statistics New Zealand, I thank the nearly 300 businesses, government departments, non-government organisations, academic institutions and individuals for their time, effort and goodwill in providing and updating contributions to the New Zealand Official Yearbook 2008. Their high level of cooperation with the Yearbook, along with the contributions from respondents to all our surveys, ensures the continuing high quality of New Zealand's official statistics.

Geoff Bascand
Government Statistician

The New Zealand flag

The New Zealand flag is the symbol of the realm, government and people of New Zealand. The flag features, on a royal blue background, a Union Jack in the first quarter and four five-pointed red stars of the Southern Cross on the fly. The stars have white borders. The flag's royal blue background represents the blue sea and clear sky surrounding New Zealand, while the stars of the Southern Cross emphasise New Zealand's location in the South Pacific Ocean. The Union Jack gives recognition to New Zealand's historical foundations and the fact that the country was once a British colony and dominion. The flag, previously known as the New Zealand Ensign, was declared the National Flag of New Zealand under the Flags, Emblems and Names Protection Act 1981.

Te Hakituatahi o Aotearoa – 1835
The First Flag of New Zealand

The flag features, on a white field, a red St George's Cross. In the upper quarter next to the staff, on a blue field, a smaller St George's Cross is depicted in red, severed from the blue by a narrow border (fimbriation) of black half the width of the red, and, in the centre of each blue quarter, a white eight-pointed star. For a detailed history of Te Hakituatahi o Aotearoa, see chapter 3: Government.

The New Zealand coat of arms

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. Before then, the United Kingdom coat of arms (featuring a lion and a unicorn on either side of a shield and crown) was used. This design still adorns the top of the pediment on the Old Government Buildings in Lambton Quay, Wellington.

The 1911 coat of arms was revised in 1956, following further constitutional changes when the country became the ‘Realm of New Zealand’ instead of the ‘Dominion of New Zealand’. The British lion holding aloft the Union Jack was replaced by St Edward's Crown, which was worn by Queen Elizabeth II at her coronation. At the 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 with ‘New Zealand’.

The shield itself remained unchanged. The first quarter features four stars, representing the Southern Cross. The three ships in the centre of the shield symbolise the importance of New Zealand's sea trade. In the top right quarter, a fleece represents the farming industry. The wheat sheaf in the third quarter represents the agricultural industry, while the crossed hammers in the fourth quarter represent the mining industry. Supporters on either side of the shield are a Māori chieftain holding a taiaha (Māori war weapon) and a European woman holding the New Zealand flag. Above the arms is the St Edward's Crown. The crown symbolises the fact that the Queen is Queen of New Zealand under the New Zealand Royal Titles Act 1953.

The New Zealand Coat of Arms is protected under the Flags, Emblems and Names Protection Act 1981. Use of the coat of arms is restricted to the government and may not be used by private individuals or organisations.

The Clutha River, in Central Otago, looking from Luggate toward Tarras.

Chapter 1. Geography

New Zealand's mountain chains have been built by the folding and displacement of the earth's crust along faults. This photo looks back towards the Southern Alps from the West Coast, over Omoeroa Bluff and the Omoeroa River mouth.

Physical features

New Zealand lies in the south-west Pacific Ocean and consists of two main and a number of smaller islands. Their combined area of 267,707 square kilometres is similar in size to Japan or the British Isles. Table 1.01 gives the size of the islands that make up New Zealand.

The main North and South Islands are separated by Cook Strait, which, at its narrowest point, is 20 kilometres wide.

The North and South Islands lie on an axis running from north-east to south-west, except for the low-lying Northland peninsula.

The administrative boundaries of New Zealand extend from 33 degrees to 53 degrees south latitude and from 160 degrees east to 173 degrees west longitude.

In addition to the main and nearby islands, New Zealand also includes the small outlying Chatham Islands (two of which are inhabited), 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.

Table 1.01. Land area of New Zealand(1)

 Size (sq km)

(1) Includes all internal waterways (lakes and rivers).

(2) Includes all offshore islands 20 square kilometres or larger, except those listed separately.

Source: Land Information New Zealand

North Island114,154
South Island150,416
Stewart Island/Rakiura1,681
Chatham Islands963
Raoul Island34
Campbell Island/Motu Ihupuku113
Offshore islands(2)346

New Zealand is more than 1,600 kilometres long, 450 kilometres across at its widest part, and has a long coastline (more than 18,000 kilometres) for its area. The coast is very indented in places, providing many natural harbours.

The country is also very mountainous, with about three-quarters of the land 200 metres or more above sea level.

In the North Island, the main ranges run generally north-east to south-west, parallel to the coast, from East Cape to Cook Strait, with further ranges and four volcanic peaks to the north-west.

The South Island is much more mountainous than the North Island, with the Southern Alps, a massive mountain chain, running nearly 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. New Zealand has at least 223 named peaks higher than 2,300 metres. Table 1.02 lists the highest mountains and peaks in both the North and South Islands.

There are 360 glaciers in the Southern Alps. The largest are, on the east, the Tasman (29 kilometres in length), Murchison (13 kilometres), Mueller (13 kilometres), Godley (13 kilometres) and Hooker (11 kilometres), and on the west, the Fox (15 kilometres) and the Franz Josef (13 kilometres).

New Zealand's rivers (see table 1.03) are mainly swift and difficult to navigate. They are important as sources of hydroelectric power, and artificial lakes have been created as part of major hydroelectric schemes.

New Zealand's artificial lakes created by the South Island's hydroelectric schemes are included in table 1.04, which lists the country's principal lakes.

Table 1.02. Principal mountains and peaks

Mountain or peakElevation (metres)Mountain or peakElevation (metres)

(1) Taranaki or Egmont was gazetted by the New Zealand Geographic Board in 1986 as the mountain's dual name.

(2) GNS Science photogrametrically confirmed the height of Aoraki/Cook as 3,754 metres after a slip from the peak in 1991.

Source: Land Information New Zealand

North Island
Ruapehu2,797Lendenfeld Peak3,194
Taranaki or Egmont(1)2,518Graham3,184
Ngāuruhoe2,287Torres Peak3,160
Tongariro1,967Sefton3,151
  Haast3,114
South IslandElie De Beaumont3,109
Aoraki/Cook(2)3,754La Perouse3,078
Tasman3,497Douglas Peak3,077
Dampier3,440Haidinger3,070
Silberhorn3,300Minarets3,040
Malte Brun3,199Aspiring/Tititea3,033
Hicks (St Davids Dome)3,198Glacier Peak3,002

Table 1.03. Principal rivers(1)

North Island riversLength (km)South Island riversLength (km)

(1) More than 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

Flowing into the Pacific OceanFlowing into Cook Strait
Rangitaiki193Wairau169
Waihou175  
Mōhaka172Flowing into the Pacific Ocean
Ngāruroro154Clutha/Mata-Au322
  Taieri288
Flowing into the Tasman SeaClarence209
Waikato425Waitaki209
Whanganui290Waiau169
Rangitīkei241Waimakariri161
Manawatū182  
Whangaehu161Flowing into Foveaux Strait
Mōkau158Mataura240
  Waiau217
  Ōreti203
  Flowing into the Tasman Sea
  Buller177

Table 1.04. Principal lakes(1)

 Maximum depth (metres)Area (sq km) Maximum depth (metres)Area (sq km)

(1) Greater than 20 square kilometres in area.

Symbol:.. not available.

Sources: NIWA (depths) and Land Information New Zealand (areas)

North Island
Taupō (Taupō Moana)163606Manapōuri444139
Rotorua4581Hāwea384152
Wairarapa377Tekapō12096
Waikaremoana24850Benmore (artificial)12075
Tarawera8741Hauroko46271
Rotoiti9434Ōhau12959
Waikare234Poteriteri..44
   Brunner (Moana)10941
South IslandColeridge20037
TeĀnau417344Monowai16132
Wakatipu380295Aviemore (artificial)6228
Wānaka311201Dunstan (artificial)7027
Ellesmere (Te Waihora)2197Rotoroa15224
Pukaki99172McKerrow/Whakatipu Waitai12123

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 and the Pacific plates runs through New Zealand, and processes from their collisions have had a profound effect on New Zealand's size, shape and geology.

Landscape

Mountain building in New Zealand between about six million years ago and the present is primarily responsible for the landscape of today.

Mountain chains have been built by the folding and displacement of the earth's crust along faults, or by the flexing of crustal plates, due to sediment loading and unloading. As a result of this activity, well-preserved tilted blocks bounded by fault scarps (steep faces hundreds or even thousands of metres high) are visible in the landscape of some regions.

Ongoing movement of the Pacific and Indo-Australian plates is responsible for continued earth strain in New Zealand, and this results in periodic rupture of faults, with several of these causing major earthquakes in the last hundred years.

Coastal erosion is visible at Cape Turnagain in the Wairarapa. Erosion, enhanced by climate, has transformed the landscape, carving detailed patterns of peaks, ridges, valleys and gorges.

Erosion, enhanced by climate, has transformed the landscape, carving detailed patterns of peaks, ridges, valleys and gorges. Deposits of debris have built up to create alluvial plains, shingle fans and other constructed forms.

At the coast, waves have eaten back headlands and built beaches, spits and bars. Glaciers have carved the sea-filled valleys of Fiordland and have occupied most valleys of the South Island, many of which now have lakes held in by terminal moraines. Sea level changes accompanied the formation, and later the melting, of global glacial ice. These changes affected the erosion and the formation of rivers, and were responsible for the creation of many prominent river terraces.

Volcanic activity during the past few million years has played an important part in shaping the landscape of the central North Island. 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, all of which are ‘active’, include Ruapehu, Tongariro, Ngāuruhoe, White Island, and Taranaki or Egmont.

Other major volcanoes are less obvious, but have even more dramatic impacts on the landscape. These are the caldera-forming volcanoes that are now occupied by large central North Island lakes. Lakes Taupō, Rotorua and Tarawera can be thought of as upside-down volcanoes.

Small volcanic cones, such as One Tree Hill, Mt Eden and Rangitoto, are an important part of the Auckland landscape. These are dormant, but the volcanic field is still regarded as posing a significant hazard.

Earthquakes

Living in New Zealand means living with earthquakes. There is an almost continuous belt of earthquake activity around the edge of the Pacific Ocean that affects the geological stability of many countries on the Pacific Rim, particularly New Zealand, the west coast of the United States, Chile, Peru, Japan and the Philippines.

New Zealand's level of earthquake activity is similar to that of California, but slightly lower than that of Japan. A shallow magnitude 8 earthquake occurs in New Zealand about once a century, a shallow magnitude 7 earthquake about once a decade, and a shallow magnitude 6 earthquake about once a year.

New Zealand has many earthquakes because it straddles the boundary between two of the earth's great tectonic plates – the Pacific plate in the east and the Indo-Australian plate in the west. These two plates are converging obliquely at different rates – about 30 millimetres a year in Fiordland, increasing to about 50 millimetres a year at East Cape in the North Island.

The plates converge in different ways. In the North Island and the northern South Island, the Pacific plate sinks below the Indo-Australian plate. Earthquakes originating within the subducting Pacific plate are less than 60 kilometres deep along the eastern coast and become deeper westward. In Fiordland and the region to the south, the Indo-Australian plate subducts beneath the Pacific plate, so earthquake sources are shallow in the west and become deeper eastward.

Between these two subduction zones, the crust of both plates is too buoyant to subduct, so convergence is accommodated by uplift, which has created the Southern Alps, and horizontal movement along the Alpine Fault. This has resulted in parts of Nelson and western Otago, adjacent five million years ago, now being 450 kilometres apart.

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

In the Taupō volcanic zone, from White Island to Ruapehu, swarms of small earthquakes of similar magnitude are common, and are associated with the area's active volcanism. Although the number of such shocks can be alarming, they rarely cause major damage.

Earthquake risk The worst disaster in New Zealand that can reasonably be expected within a generation is a 7.5 magnitude earthquake on the segment of the Wellington fault within the city. It has a 12 percent probability of occurring within the next 30 years and would affect 200,000 residential properties, from Palmerston North to Nelson, as well as roads, bridges and dams, and services such as electricity, water and sewerage.

GNS Science runs national and regional earthquake and volcano monitoring networks. A major upgrade of monitoring equipment began in 2001 with the Earthquake Commission providing core funding over 10 years. The project, known as GeoNet, is being undertaken by GNS Science on a not-for-profit basis for the national good. GeoNet equipment at sites throughout New Zealand is linked to GNS Science data centres via satellite, cellular and radio networks, permitting more rapid and reliable determinations of the location and magnitude of all significant earthquakes and volcanic activity within the New Zealand region. GeoNet information is made available to civil defence and emergency management authorities and international earthquake centres, and also underpins current and emerging research on geological hazards.

New Zealand scientists undertake a large body of research aimed at improving the understanding of, and ways to mitigate, seismic and volcanic risk in New Zealand. Mitigation measures include improved engineering design of buildings and infrastructure, better prepared communities, and better regional planning.

The GeoNet website (www.geonet.org.nz) provides public access to information about hazards, including earthquake bulletins and volcano alerts. It also provides access to fundamental datasets, such as GPS Rinex files, earthquake hypocentres and instrument waveform data. This data is freely available to the research community.

Volcanic hazards

The New Zealand region is characterised by both a high density of active volcanoes and a high frequency of eruptions. Volcanic activity in the New Zealand region occurs within the North Island and offshore to the north-east in the Kermadec Islands. In the past 150 years, more people have been killed by volcanoes than by earthquakes, yet the scale and style of historically-recorded volcanic activity is dwarfed by events known to have occurred in the past 2,000 to 5,000 years.

Volcanism in New Zealand is confined to five areas in the North Island – the Bay of Islands, Whangarei, Auckland, a zone extending from White Island to Ruapehu, and Taranaki or Egmont. The area from White Island to Ruapehu is known as the Taupō Volcanic Zone and is by far the most frequently active. There are three major types of volcano in New Zealand:

  • Volcanic fields, such as Auckland, where each eruption builds a single small volcano (eg Mt Eden), that does not erupt again. The next eruption in the field occurs at a different place, the site of which cannot be predicted until the eruption is imminent.

  • Cone volcanoes, such as Taranaki or Egmont and Ruapehu, where a succession of small eruptions occurs from roughly the same point on the earth's surface. The products of successive eruptions accumulate close to the vent to form a large cone, which is the volcano itself. The site of future eruptions can generally be predicted.

  • Caldera volcanoes, such as Taupō and Rotorua. Eruptions at these volcanoes are occasionally so large that the ground surface collapses into the ‘hole’ left behind. For example, Lake Taupō infills a caldera formed in two episodes about 1,800 and 26,000 years ago.

The Taupō Volcanic Zone contains four frequently active cone volcanoes (Ruapehu, Tongariro, Ngāuruhoe and White Island) and two of the most productive caldera volcanoes (Taupō and Ōkataina) in the world.

Casualties Deaths due directly or indirectly to volcanic activity (and associated hydrothermal explosions) represent the biggest single source of fatalities from natural disasters in New Zealand since 1846.

Table 1.05 lists deaths in volcanic areas of New Zealand since 1846. Economic loss due to volcanism, however, has been low compared with that from earthquakes or flooding. The cost of the 1995 and 1996 eruptions of Ruapehu has been estimated at $130 million.

An assessment of the size and style of volcanic eruptions in the geologically recent past, coupled with consideration of the economic development of New Zealand, especially in the central North Island, shows that the record since 1846 represents only a fraction of the type and size of hazard posed by New Zealand volcanic activity.

Table 1.05. Deaths in volcanic areas since 1846(1)

YearLocation (eruption)Cause/hazardFatalities

(1) Information about death in volcanic areas before 1846 is not available.

(2) Estimate.

(3) Explosion caused by the heating and expansion of underground water.

Source: GNS Science

1846Waihi (Lake Taupō)Debris avalanche/mudflow from thermal area60(2)
1886Tarawera RiftLarge volcanic eruption108
1903Waimangu (Tarawera)Hydrothermal explosion4
1910Waihi (Lake Taupō)Debris avalanche/mudflow from thermal area1
1914White IslandDebris avalanche from crater wall11
1917Waimangu (Tarawera)Hydrothermal explosion2
1953Tangiwai (Ruapehu)Lahar and flood from crater lake151
2006Raoul IslandPhreatic explosion(3)1
 Total 338

Surveillance All the active volcanoes in New Zealand are monitored as part of the GeoNet project funded by the Earthquake Commission. This provides a near real-time understanding of volcanoes.

Volcanologists use three primary techniques to establish the status of an active volcano:

  • Monitoring of volcanic earthquakes This is done using closely-spaced networks of seismometers, designed to detect movement of magma (molten rock) below the surface and allow assessment of the possible onset and timing of eruptive activity. There are five volcano-seismic networks in New Zealand (Auckland, Bay of Plenty-Rotorua, Taranaki, Tongariro and Taupō). The Auckland and Taranaki networks are operated by regional councils.

  • Monitoring of ground deformation This is done using precise geodetic surveys. The concept is that if magma is moving upwards before an eruption it will cause the volcano to swell (ie the ground surface to rise) and this swelling can be detected. Most of this work is done using continuous GPS installations on the volcanoes. The lakes at Taupō and Tarawera are also used as giant spirit levels to detect height changes.

  • Monitoring of volcanic gases Magma at depth in the earth contains gases (carbon dioxide, together with various compounds of sulphur, chlorine and fluorine) dissolved in it. As the magma rises to shallow levels before an eruption, these gases are released and come to the surface via fumaroles. The temperatures and the abundance of the gases and their relative proportions give information on the state of the magma and how close to the surface it is.

In a volcanic crisis, practical steps can be taken to mitigate risk and lessen the threat to life, but this requires accurate recognition of the onset of a crisis.

This recognition in turn depends on a knowledge of the background or ‘normal’ levels of seismicity, ground movement and gas flux at the volcano, coupled with real-time determination of any significant changes from normal levels of activity.

The GeoNet active volcano surveillance programme helps define these background levels.

Climate

Summaries of New Zealand's climate extremes compiled by the National Institute of Water and Atmospheric Research Ltd (NIWA) contain detailed descriptions of the most extreme weather events recorded in the country.

The maps in Figure 1.01 (page 9) show mean annual figures struck over a 30-year period, to create what are referred to as ‘climate norms’. The next ‘normal’ period for calculating mean annual figures will be 1981 to 2010.

The climate of New Zealand is largely influenced by:

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

  • its surrounding ocean environment

  • its mountains, especially the main mountain chain, which modify weather systems as they pass eastwards, and which also provide a sheltering effect on the leeward side.

Day-to-day weather is mostly determined by a series of anticyclones and troughs of low pressure in the westerlies. Consequently, New Zealand's weather is changeable, typically with short periods 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, the Southern Alps, 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. This contrast is much greater than north-south climatic differences. Surrounding oceans have a moderating effect on temperatures in most northern and western regions. However, inland and eastern areas can experience large temperature variations.

As part of a Global Day of Action on climate change, the ‘Be The Change’ campaign hosted a Climate Rescue Carnival, which involved over 350 of those who visited the carnival spelling out “Climate SOS” at Western Park in Auckland on 8 December 2007.

High temperatures usually occur in the east in warm, north-westerly wind conditions. These high temperatures are often followed by sudden falls in temperature, as cold fronts move up the east coast of both islands. Many parts of New Zealand are subject to extremes of wind, occasionally causing damage to buildings and forests, and rain, as depressions with their fronts pass close to, or over, the country. The rugged terrain is an important factor in enhancement of wind strength and/or rainfall.

Climate change

The Fourth Assessment Report of the Intergovernmental Panel on Climate Change (IPCC) in 2007 concluded that “warming of the climate system is unequivocal”. Evidence includes increases in global average air and ocean temperatures, widespread melting of snow and ice, and a rising global mean sea level. The 2007 report said it is “very likely” (more than 90 percent likely) that most of the global warming since the mid-20th century is due to rising greenhouse gas concentrations from human activities. This is a stronger conclusion than in 2001 when the IPCC used the word “ikely” (more than 66 percent likely).

The Fourth Assessment Report predicted increases in global mean temperatures in the period 1990–2100 of between 1.1 and 6.4 degrees Celsius, and global mean sea level increases of between 18 and 59 centimetres. It said that even if greenhouse gas emissions cease entirely, the global average temperature will rise by another 0.6 degrees Celsius. Projected sea level changes do not include the effects of rapid dynamic changes in ice sheet flow from Greenland and Antarctica.

The report said changes could also be expected in some extreme weather and climate events, including “very likely” increases in the frequency of hot extremes, heatwaves, and heavy rainfall. What the warming climate will mean in detail for New Zealand and the South Pacific is still the subject of investigation by scientific researchers.

The report found that the most vulnerable sectors for New Zealand are natural ecosystems, water security, and coastal communities. The main impacts are:

  • Projected climate changes Temperatures in New Zealand are likely to increase faster in the North Island than in the South Island, but generally less than global average temperatures. Annual rainfall is projected to increase in the west of the country and to decrease in many eastern regions.

    In the long term, rising seas are expected to increase erosion of vulnerable beaches and breach coastal protection structures more often. By 2050, there is very likely to be increasing loss of high-value land, faster road deterioration, degrading of beaches, and loss of landmarks of cultural significance.

  • Primary production Up to about 2050, enhanced growing conditions from higher carbon dioxide concentrations, longer growing seasons and less frost risk are likely to benefit agriculture, horticulture, and forestry over much of New Zealand, provided adequate water is available. But by 2050, agriculture and forestry production is likely to be reduced over parts of eastern New Zealand due to increased drought and fire. The range and incidence of many pests and diseases are likely to increase, and areas suitable for particular crops are projected to change.

    Figure 1.01.

  • Native ecosystems The structure, function, and species composition of many natural ecosystems are very likely to change. The impacts of climate change are likely to be significant by 2020, and are virtually certain to exacerbate existing stresses such as invasive species and habitat loss. The projected rate of climate change is very likely to exceed the rate of evolutionary adaptation in many species. The IPCC identified alpine zones in the Southern Alps as a ‘hotspot’ where vulnerability to climate change (eg loss of plant and animal species, glacier shrinkage, reduced snow cover) is likely to be high by 2050.

  • Urban environment, transport and energy The main threat to the urban environment comes from possible increases in heavy rainfall, which would put pressure on drainage and stormwater systems and increase the risk of flooding in some areas. Warmer conditions would substantially reduce home heating costs, leading to reduced electricity demand during the peak winter season, but possibly increased demand for air conditioning during summer. Wetter conditions on the West Coast could eventually increase hydroelectricity production in winter.

  • Health Higher temperatures are expected to reduce winter illnesses and lead to higher death rates during summer. Warmer temperatures and increased rainfall variability are likely to increase the intensity and frequency of summertime food-borne and water-borne diseases.

The year's weather in 2007

New Zealand's weather for 2007 was marked by too much rain in many places, and record low rainfalls in some locations.

Rainfall during the year was less than 60 percent of average rainfall in parts of Marlborough, Canterbury and Central Ōtago, with some places experiencing their driest year on record. Parts of the south and east, Bay of Plenty and Wellington had one of their sunniest years on record too.

Table 1.06. Projected changes in annual mean temperature and precipitation(1)
Between 1980–1999 and 2080–2099

RegionTemperature (°C)Precipitation (%)

(1) Projected changes encompass the range of results from 12 global climate models for six greenhouse gas emission scenarios.

Source: NIWA

Northland, Auckland+0.6-+5.9-28-+9
Western North Island from Waikato to Wellington+0.6-+5.6-11-+15
Eastern North Island from Bay of Plenty to Wairarapa+0.6-+5.5-22-+11
Nelson, Marlborough, Canterbury plains+0.6-+5.1-14-+16
Canterbury foothills, West Coast, Otago, Southland+0.7-+5.0-12-+34

There were numerous heavy rainfall events during 2007, nine of which produced floods. Here, a tractor is rescuing equipment from storm water at Maraekākaho, near Hastings in July 2007.

Table 1.07. Summary of New Zealand climate extremes
At 31 December 2007

Source: NIWA
Rainfall
PeriodAmount (mm)LocationDate
Highest
10 minutes34Tauranga17 April 1948
1 hour109Leigh30 May 2001
12 hours473Colliers Creek (Hokitika catchment)22 January 1994
24 hours682Colliers Creek (Hokitika catchment)21–22 January 1994
48 hours1,049Waterfall, Cropp River (Hokitika catchment)12–13 December 1995
1 calendar month2,927Waterfall, Cropp River (Hokitika catchment)December 1995
1 calendar year16,617Waterfall, Cropp River (Hokitika catchment)January-December 1998
365 days18,442Waterfall, Cropp River (Hokitika catchment)29 October 1997–1998
Lowest
3 months9Cape CampbellJanuary-March 2001
6 months52Cape CampbellNov 2000-April 2001
12 months167AlexandraNov 1963-Oct 1964
Longest rainless period
71 days0Wai-iti, MarlboroughFrom 8 Feb 1939
Temperature
 Temperature (°C)LocationDate
Highest air temperature
North Island39.2Ruatōria7 February 1973
South Island42.4Rangiora7 February 1973
Lowest air temperature
North Island-13.6Chateau Tongariro7 July 1937
South Island-21.6Ophir3 July 1995
Lowest grass minimum-21.6Lake Tekapō4 August 1938
Sunshine
 HoursLocationDate
Highest in one year
North Island2,588Napier1994
South Island2,711Nelson1931
Highest in one month
North Island335TaupōJanuary 1950
South Island336NelsonDecember 1934
Lowest in one year
North Island1,357Palmerston North1992
South Island1,333Invercargill1983
Lowest in one month
North Island27TaumarunuiJune 2002
South Island35InvercargillJune 1935
Wind gusts
 Speed (km/h)LocationDate
North Island248Hawkins Hill, Wellington6 November 1959 and 4 July 1962
South Island250Mt John, Canterbury18 April 1970

The national average temperature of 12.7 degrees Celsius during 2007 was close to normal. This was a result of some warm months being offset by some cooler months. For New Zealand as a whole, there were five warmer than normal months (March, May, July, August and December), and five cooler than normal months (January, April, June, October and November). All other months had mean temperatures close to the climatological average. May had a mean temperature of 12.4 degrees Celsius (1.7 degrees above normal) and was the warmest nationally since reliable records began in the 1860s.

In 2007 there was a swing from an El Niño to a La Niña climate pattern. The start of the year was dominated by a weakening El Niño in the equatorial Pacific. From September onwards La Niña conditions had developed in the tropical Pacific, with a noticeable increase in the frequency and strength of westerlies over New Zealand in October, and then a significant drop in windiness from November. Moderate to strong La Niña conditions had developed by the end of the year. Overall more anticyclones (highs) occurred over New Zealand.

Notable weather features in various parts of the country were: disastrous floods in Northland; drought conditions in the east of the North Island (with the exception of one storm that caused major flooding in Hawke's Bay on 17–18 July); an unprecedented swarm of tornadoes in Taranaki; destructive windstorms in Northland and in eastern New Zealand in October; and hot spells.

There were numerous heavy rainfall events during 2007, nine of which produced floods. Notable snowfall events occurred on relatively few occasions. There were 14 damaging tornado events for New Zealand during the year. Other features were early autumn and late spring hot spells, two severe hailstorms, and seven damaging electrical storms.

Wildlife and vegetation

The islands of New Zealand separated from their nearest neighbours more than 80 million years ago. They stretch across 24 degrees of latitude from the subtropical to the subantarctic, making New Zealand a slender archipelago with an extraordinary natural heritage, born from its biological and geological isolation.

Some of the original inhabitants endured times of turbulent change and violent upheaval, evolving and adapting to become part of a unique natural biota (animal and plant life of a 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 mainly 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.

Fauna

The pre-human environment was notable for the absence of snakes, land mammals (apart from three species of bat) and many of the flowering plant families. Whole orders and families were found only in New Zealand, including tuatara, moa and kiwi, all of the native lizards, and nearly 200 species of native earthworms.

Many remarkable plants, insects and birds evolved to fill ecological niches normally occupied by mammals. Others diversified to fill 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 size. Moa (11 species, some up to three metres tall) became extinct in pre-European times, but many other large flightless birds still remain, including kiwi, the nocturnal kākāpō (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 species of the cricket like weta, found only in New Zealand.

New Zealand, with 84 species, has the most diverse seabird fauna of any country. Nearly half of all native bird species depend on the ocean for food – the feeding zones of some extending as far south as the Antarctic continent. New Zealand's extensive coastline and many islands offer a huge range of habitat, from estuaries and mud-flats, to rocky cliffs and boulder banks.

The ocean is marvellously rich. There are well over 1,200 different species of fish in the waters around New Zealand, and as many as 15 more are discovered every year as a result of research in previously unsampled areas. There are also various species of seals, dolphins and porpoises. Twenty-nine species of whale have been recorded, and three of the largest (sperm, humpback and right) regularly migrate to New Zealand waters in spring and autumn.

Flora

The most widespread and complex type of forest in New Zealand is a podocarp (conifer) broadleaf association. It is generally found at lower altitudes and is characterised by a variety of species, a stratified canopy, and an abundance of vines and epiphytic plants.

Beech and kauri forests, by contrast, are much simpler in structure. New Zealand's beech species have close relatives in Australia and South America, and the five different types of species in New Zealand 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 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 alpine plants are found only in New Zealand, compared with 80 percent for the rest of the higher plant species. Snow tussock herbfields are one of the most distinctive elements in this cold, windswept environment. Remarkably long-lived, some larger specimens may be several centuries old. Like beech trees, they seed infrequently, but in profusion.

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

Toroa – Māori for albatross – was the sooth royal albatross chick to hatch at Taiaroa Head/Pukekura on the Otago Peninsula, the only mainland breeding colony of albatross in the southern hemisphere. He hatched on 26 January 2007 and is the first chick to be formally named by the Minister of Conservation.

Introduced vegetation and wildlife

The arrival of people in New Zealand heralded times of rapid change.

Introduction of exotic plants and animals (intentionally or accidentally) and modification of habitat radically affected native species' populations.

In the pre-1800 period, following the arrival and expansion of Māori, forest cover was reduced and 34 species became extinct, including moa, the adzebill and the flightless goose.

In the much shorter post-1800 period of European settlement, the forest area was further reduced to around 25 percent of the land, nine more bird species became extinct, and many more were threatened.

Since 1840, more than 80 new species of mammals, birds and fish, and more than 1,800 plant species have been introduced, in many places totally changing the landscape and ecology.

Time zone

One uniform time is kept throughout mainland New Zealand. This time is 12 hours ahead of Co-ordinated Universal Time and is called New Zealand Standard Time. It is an atomic standard maintained by the Measurement Standards Laboratory (MSL), part of Industrial Research Ltd, Lower Hutt.

In November 1868, New Zealand became one of the first countries in the world to adopt standard time – 11.5 hours ahead of Greenwich Mean Time. In 1941, as a wartime measure, clocks were advanced half an hour and this was made permanent in 1945 by the Standard Time Act, which set time at 12 hours ahead of GMT or Universal Time. A new time scale based on the readings of atomic clocks, known as Co-ordinated Universal Time (UTC), was adopted internationally in 1972.

New Zealand Standard Time (NZST) is currently defined in the Time Act 1974 as meaning 12 hours in advance of UTC, with the time for the Chatham Islands set 45 minutes in advance of NZST.

One hour of daylight saving, called New Zealand Daylight Time (NZDT), which is 13 hours ahead of UTC, is observed during the summer months. Chatham Islands time is always 45 minutes ahead of that kept in New Zealand.

Contributors and related websites

Department of Conservation – www.doc.govt.nz

Department of Internal Affairs – www.dia.govt.nz

GNS Science – www.gns.cri.nz

Industrial Research Ltd – www.irl.cri.nz

Land Information New Zealand – www.linz.govt.nz

Metservice – www.weather.co.nz

New Zealand Speleological Society – caves.org.nz

NIWA – www.niwa.cri.nz

Chapter 2. History

Pai Māirire (Hauhau) supporters determine the fate of their prisoners through karakia (prayer). Formed in 1862, this first organised expression of Māori Christianity, founded on the principle of pai mārire (goodness and peace), grew from conflict over land in Taranaki. Painting by Herbert Meade, 1865.

A brief history of New Zealand

Discovery and migration

New Zealand has a shorter human history than any other country. The precise date of settlement is a matter of debate, but current understanding is that the first arrivals came from East Polynesia in the 13th century. It was not until 1642 that Europeans became aware the country existed.

The original Polynesian settlers discovered the country on deliberate voyages of exploration, navigating by ocean currents, winds and stars. The navigator credited in some traditions with discovering New Zealand is Kupe. Some time later, the first small groups arrived from Polynesia. Now known as Māori, these tribes did not identify themselves by a collective name until the arrival of Europeans when, to mark their distinction, the name Māori, meaning ‘ordinary’, came into use.

The early settlers lived in small hunting bands. Seals and the large flightless moa bird were their main prey, until moa were hunted to extinction.

In the South Island, hunting and gathering remained the main mode of survival, but the kūmara (sweet potato) and yams the Polynesians brought with them grew well in the warmer North Island. Extensive kūmara gardens supported relatively large settlements. But even in the north, birds, fish and shellfish were important in the Māori diet. In some northern areas, larger populations put pressure on resources. The Polynesian dog and rat came with the early arrivals, but the domestic pigs and chickens of the islands did not, for reasons not fully understood.

In favourable conditions, Māori lived reasonably well. Their life expectancy was low by modern standards, but probably comparable with that of Europeans in the same era. The Māori population before European contact may have reached 100,000.

Māori passed on rich and detailed history and legends orally. Society was organised around groups that traced their descent from common ancestors. Reciting whakapapa (genealogies) was an important way to communicate knowledge. The concepts of mana (status) and utu (reciprocity) were central to the culture, and led to widespread warfare. But the violence was usually episodic. For most of the time, Māori lived not in fortified pa, but in unprotected settlements or seasonal camps.

The greatest achievements of Māori material culture were carving wood for important buildings and canoes, and fashioning stone into tools and ornaments. Warfare did not inhibit regular trade in desirable stones and foods, and was itself a means by which resources were appropriated.

An engraving by Frederik Ottens, from drawings made by Isaac Gilsemans on Tasman's voyage to New Zealand in December 1642. Abel Tasman's ships the Zeehaen and the Heemskerck are close to Three Kings Islands, with two Māori men against the skyline.

European discovery

In 1642, Dutch explorer Abel Tasman made the first confirmed European discovery of New Zealand. He charted the country's west coast from about Hokitika up to Cape Maria van Diemen. Subsequently, a Dutch map maker gave the name Nieuw Zeeland to the land Tasman had discovered. A surprisingly long time (127 years) passed before another European reached New Zealand.

James Cook visited New Zealand in 1769, on the first of three voyages. He circumnavigated and mapped both main islands and returned to Britain with reports about the country's inhabitants and resources.

For 50 years after Sydney was founded in 1788, New Zealand was an economic and cultural outpost of New South Wales, and most of the earliest European settlers came from Sydney. In the late 18th century, sealers and whalers began visiting, and by the early 19th century some began to settle, some to farm. During these years, New Zealand was part of a Pacific-wide trade system and New Zealand goods were sold in China.

The first European ‘town’ grew at Kororāreka when whalers began calling into the Bay of Islands for food and water. From the 1790s, Māori produced pork and potatoes for this trade. The other main area of early interaction between Māori and others was the Foveaux Strait sealing grounds. The presence of traders drew Māori to particular locations. Having a European living among them gave some tribal groups an advantage in the race to acquire European goods, especially firearms.

A Sydney chaplain, Samuel Marsden, founded the first Christian mission station in the Bay of Islands in 1814. By 1840, more than 20 stations had been established. From missionaries, Māori learnt not just about Christianity, but also about European farming techniques and trades, and how to read and write. The missionaries also transcribed the Māori language into written form. In the 1830s, French missionaries brought Catholicism to Māori.

Christianity would become important for Māori, but they were slow to convert. Muskets, traded for flax and potatoes, had a greater impact in the 1820s and 1830s than religion, and escalated killings in tribal conflicts. The Ngā Puhi tribe, led by Hongi Hika, devastated southerly tribes, and Ngāti Toa, under Te Rauparaha, attacked Ngai Tahu in the South Island. But diseases introduced by Europeans caused more fatalities than firearms did.

British sovereignty

In the 1830s, the British Government came under increasing pressure to curb lawlessness in New Zealand to protect British traders, and to forestall the French, who also had imperial ambitions. The missionaries, for their part, wanted to protect Māori from the effects of European settlement.

In 1833, James Busby was sent to the Bay of Islands as British Resident. At Busby's instigation, northern chiefs adopted a flag in 1834 and signed a declaration of independence in 1835. Seven years after Busby's arrival, at Waitangi on 6 February 1840, William Hobson, New Zealand's first governor, invited assembled Māori chiefs to sign a treaty with the British Crown. The treaty was taken all round the country, as far south as Foveaux Strait, for signing by local chiefs, and eventually more than 500 signed.

Under the treaty, Māori ceded powers of government to Britain in return for the rights of British subjects and guaranteed possession of their lands and other ‘treasures’. In later years, differences of interpretation between the English and Māori texts complicated efforts to redress breaches of the treaty.

British sovereignty was proclaimed over New Zealand on the basis of Māori consent, though the South Island was initially claimed on the basis of discovery.

In the 19th century, the British and the French were rivals in the Pacific. The French had only minor interests in New Zealand, but the myth persists that the South Island escaped being French only because in the scramble to colonise Akaroa the British got there first. By the time the French settlers and their naval escort reached New Zealand, the whole country was securely British. Governor Hobson, learning the French were heading for Akaroa, did send Captain Stanley of the Britomart to demonstrate British sovereignty. However, there was never any chance Cook Strait would become, like the English Channel, a passage between English and French-speaking regions.

Even before the Treaty of Waitangi had been signed, the New Zealand Company, inspired by the colonial promoter Edward Gibbon Wakefield, had despatched British settlers to Wellington. In the next two years, the company also founded Wanganui, Nelson and New Plymouth. Otago was founded in 1848 and Canterbury in 1850, both by New Zealand Company affiliates. Auckland, capital of the new Crown colony, grew independently.

By the 1850s, most of the interior of the North Island had been explored by Europeans. Māori guides usually showed European explorers the way and New Zealand's first Anglican bishop, George Selwyn, travelled widely. Much of the mountainous interior of the South Island was not explored until gold miners arrived in the 1860s.

When British settlers sought self-government, the British Parliament passed the New Zealand Constitution Act of 1852, setting up a central government with an elected House of Representatives and six provincial governments. The settlers soon won the right to responsible government (with an executive supported by a majority in the elected assembly). But the governor, and through him the Colonial Office in London, retained control of ‘native’ policy.

War, expansion, depression

In the 1840s, there were clashes between Māori and Pākehā (Europeans). In Marlborough's Wairau Valley in 1843, a dispute over land erupted, leading to bloodshed. The war in the north (1845–46) began when Hone Heke cut down the flagpole flying the British flag at Russell. There were also troubles in the 1840s over land in Wellington and Wanganui. In the 1850s, disputes between Māori over the sale of land to Europeans kept Taranaki in ferment.

Until the late 1850s, the government managed to purchase enough land to meet settler demands. But many Māori became increasingly reluctant to sell their land, which tribes owned collectively. The Māori King movement, under the leadership of Wiremu Tamihana, grew in part out of Māori resistance to land sales. Potatau Te Wherowhero was elected the first Māori King in 1858. The flashpoint was Taranaki. The refusal of Wiremu Kingi Te Rangitake to sell land at Waitara led to war in 1860. The efforts of Māori to retain their land were depicted by the settlers as a challenge to British sovereignty.

Māori resistance was effectively crushed after Governor George Grey took war to the Waikato in 1863–64. Two chiefs, Te Kooti and Titokowaru, prolonged war through the 1860s, but by 1872 the wars over land had ended. Large areas of land were confiscated from ‘rebellious’ tribes. A Native Land Court gave land titles to individual Māori, to facilitate sales to Pākehā.

After the wars, many Māori drew back from contact with European settlers. Most lived in isolated rural communities. Māori land continued to pass into Pākehā hands, usually by sale through the Native Land Court. In the 1870s, the village of Parihaka became the centre of a peaceful protest, led by the prophet Te Whiti-o-Rongomai, against occupation of confiscated land in Taranaki. In 1881, government forces invaded Parihaka in an attempt to crush this resistance.

While progress in the North Island was held back by war, the South Island forged ahead on the proceeds of wool and gold. Sheep were turned loose on South Island grasslands, and after gold had been discovered in Otago in 1861, and then on the West Coast, settlers flooded in. Six years later, the discovery of gold at Thames boosted the town of Auckland. Wool ensured that Canterbury became the wealthiest province, and gold made Dunedin the largest town.

Towards the end of the 1860s, gold production fell and wool prices slipped. A new boost to growth came in 1870 when Colonial Treasurer Julius Vogel proposed a loans-funded programme of public works, including the building of railways, and assisted immigration.

The population increased dramatically. The 1871 Census (non-Māori) recorded a total of about 250,000; 10 years later this had grown to half a million. Vogel's policies, like those of Wakefield before him, were based on a belief that New Zealand would grow only if people and capital could be attracted. This stimulated a sense of a single nation rather than separate settlements, and led to the abolition of the provinces in 1876.

The aftermath of Vogel's borrowing was an economic depression that lasted into the 1890s. Despite a brief boom in wheat, prices for farm products sagged and the market for land became depressed. Hard times led to urban unemployment and sweated labour in industry. The country lost people through emigration, mostly to Australia.

Scarcely had depression gripped the country than future prosperity was anticipated with the first successful shipment of frozen meat to England in 1882. Exporting meat (frozen) and butter and cheese (chilled) became possible. After dealing with initial setbacks in refrigerated shipping, New Zealand became a British farm. With an economy based on agriculture, the landscape was transformed from forest to farmland.

Liberal to Labour

The watershed election of 1890 put the Liberals, New Zealand's first ‘modern’ political party, into power. From 1893 to 1906, the government was headed by ‘King Dick’ Seddon. The Liberals cemented in place New Zealand's ‘family farm’ economy by subdividing large estates, buying Māori land in the North Island, and offering advances to settlers. Buoyant markets for New Zealand's farm products ensured the success of these policies. The Minister of Lands, John McKenzie, championed the family farm. Farming progressed, especially in the north, and by 1901, more than half the European population was living north of Cook Strait for the first time since the 1850s.

The Liberal Government reinforced an established pattern of State involvement in the economy and regulation of society. Its old-age pensions and workers' dwellings anticipated the welfare state. In 1893, after campaigns led by women like suffragist Kate Sheppard, New Zealand became the first country in the world to give women the vote.

Frozen meat exports to Britain started in 1882, from Dunedin. These labels are from tinned meat, exported from Wellington's Gear Meat Company, 1890–1920.

Wellington's Oriental Bay around 1922.

New Zealand's close economic ties with Britain reinforced the loyalty of New Zealanders to an empire that secured their place in the world. The loyalty found expression in the despatch of troops to fight for Britain in South Africa in 1899. A self-confident nationalism was also evident, and New Zealand declined to join the Australian Federation of 1901.

Liberal rule ended in 1912, when William Massey led the Reform Party to power, promising State leaseholders they could freehold their land.

When World War I broke out, New Zealand rallied to England's aid. Thousands of New Zealanders served, and died, overseas. The 1915 landing at Gallipoli in Turkey was a coming of age for the country and established the potent tradition of ANZAC (Australian and New Zealand Army Corps) – a pride in New Zealand's military achievement and its special relationship with Australia. New Zealand troops also fought and died on the Western Front.

After some prosperous years in the later 1920s, the worldwide Great Depression hit New Zealand hard. Export prices collapsed. Farmers faced difficulties over their mortgages and urban unemployment soared. Discontent erupted in riots. A coalition government, dominated by Gordon Coates, failed to lift the country out of depression.

Organised labour flexed its muscle in the 1890 maritime strike, and in the Waihi and watersider strikes of 1912–13. Setbacks on the industrial front turned the labour movement towards political action. The Labour Party, founded in 1916, made uneven gains through the 1920s, then was swept into power under Michael Joseph Savage in 1935 by an electorate disillusioned with how the conservative coalition government had handled the depression. When Savage died in 1940, Peter Fraser became prime minister.

In power, the Labour Party, aided by an economic recovery already underway when it was elected, revived the economy further by pragmatic rather than doctrinaire socialist policies. The Reserve Bank of New Zealand was taken over by the State in 1936, spending on public works increased and a State housing programme began. The Social Security Act 1938 dramatically extended the welfare state.

With the outbreak of World War II, New Zealand troops again fought overseas in support of the United Kingdom. The fall of Singapore shook New Zealanders' confidence that Britain could guarantee the country's security. During the war in the Pacific, the United States protected New Zealand against Japan. Labour remained in power through World War II and in 1945, Peter Fraser played a significant role in the conference that set up the United Nations. But the party had lost the reforming zeal of the previous decade and its electoral support ebbed after the war.

In the early 1950s, New Zealand troops fought in Korea. Later, in the 1960s, concern to keep on side with this new protector prompted the National Government of Keith Holyoake to send troops to Viet Nam, despite popular protests.

The later 20th century

After Labour lost power in 1949, the conservative National Party ruled the country until 1984, interrupted by two single-term Labour governments, in 1957–60 and 1972–75. National Party Prime Minister Sidney Holland used the bitter 1951 waterfront strike to consolidate his power by calling a snap election.

Crowds line Wellington's Lambton Quay to welcome the crew of HMS Achilles in 1940.

New immigrants, still mainly British, flooded in while New Zealand remained prosperous by exporting farm products to Britain. The country's culture remained based on Britain's. In 1953, New Zealanders took pride that countryman Edmund Hillary gave Queen Elizabeth II a coronation gift by reaching the summit of Mt Everest.

Britain joined the European Economic Community in 1973. New Zealand had already diversified its export trade, but the loss of an assured market for farm products was a blow.

The first oil shock of 1973 contributed to the fall of the Labour Government in 1975, led by Norman Kirk until his death. After the second oil shock of 1978, the National Government of Robert Muldoon tried to keep New Zealand prosperous by so-called ‘think big’ industrial and energy projects, and farm subsidies. The economy faltered as the fall of oil prices in the early 1980s made these schemes unsound. Inflation and unemployment mounted.

The fourth Labour Government was elected in 1984. The Minister of Finance, Roger Douglas, was an ardent advocate of economic liberalisation. He removed most controls over the economy, privatised many State enterprises and called aspects of the welfare state into question. Many saw these measures as an assault on New Zealand's egalitarian traditions. In foreign affairs, Labour's anti-nuclear policy ruptured relations with the United States.

The National Government of 1990–99 pursued similar policies to Labour's, passing the controversial Employment Contracts Act, which opened up the labour market and diminished the power of trade unions. The Government also mounted a more sustained attack on the welfare state, most obviously by cutting benefits.

From 1996, under a new voting system (mixed member proportional representation), minority or coalition governments became the norm but National and Labour remained the major parties.

Māori in the 20th century

Most Māori continued to live in remote rural communities until World War II. But Māori society was dynamic. The Kotahitanga movement of the late 19th and early 20th centuries was evidence of Māori resilience. So were the land development work of Apirana Ngata and the revitalisation of the Māori King movement by Te Puea Herangi. In the early 1920s, Wiremu Ratana founded the Ratana Church.

Post-World War II Māori migration into the cities, together with Māori anger at their economic deprivation and concern about loss of mana (status) and continuing loss of land, pushed race relations and the place of the Treaty of Waitangi into the forefront of national life.

For many, sporting contacts with apartheid South Africa became a touchstone of race relations. During the 1981 Springbok rugby tour, New Zealand experienced divisive unrest. After the tour, attention turned to domestic race relations and to the need for New Zealanders to have a better understanding of the Treaty of Waitangi.

Māori became more assertive. Some, alleging breaches of the Treaty of Waitangi, wished to reclaim Māori sovereignty. The Waitangi Tribunal was set up in 1975 to consider their claims and to address grievances. In 1985, the tribunal was empowered to look at breaches of the treaty since 1840, rather than since 1975.

A Māori cultural renaissance, including efforts to foster the Māori language in the early 1980s, increased awareness that New Zealand society was bicultural. At the same time, more immigrants were arriving. Almost before it had been properly acknowledged that New Zealand was bicultural, it became multicultural – first in the composition of its population, more slowly in how it ran its national life. The country's new Pacific island and Asian citizens were testament to the fact that it was no longer, culturally or economically, the offshore island of Europe it had seemed to earlier generations.

Cartoonist Nevile Lodge's comment on the Government's introduction of stickers for carless days in 1979 after significant oil price increases.

Chronology of New Zealand events

c1300Archaeological evidence indicates Polynesian settlement of New Zealand established by this date.
1642Dutch explorer Abel Janszoon Tasman discovers a land he calls Staten Landt, later named Nieuw Zeeland.
1769British explorer James Cook makes first of three visits to New Zealand, taking possession of the country in the name of King George III.
1790sSealing, deep-sea whaling, flax and timber trading begins, with some small temporary settlements. First severe introduced epidemic among Māori population.
1791First visit by a whaling vessel, the William and Ann, to Doubtless Bay.
1806First Pākehā (European) women arrive in New Zealand.
1814British missionary Samuel Marsden makes first visit to New Zealand. Anglican mission station established. Sheep, cattle, horses and poultry introduced.
1815First Pākehā child, Thomas Holloway King, born in New Zealand.
1819Raids on Taranaki and Te Whanganui-a-Tara regions by Ngā Puhi and Ngāti Toa people led by chiefs Patuone, Nene, Moetara, Tuwhare and Te Rauparaha.
1820Ngā Puhi chief Hongi Hika visits England, meets King George IV and secures supply of muskets.
1821Musket wars begin with raids by Hongi Hika and Te Morenga on southern iwi and continue throughout the decade.
1822Ngāti Toa migration south to Cook Strait region, led by Te Rauparaha, begins.
1823Wesleyan Missionary Society mission established. First Church of England marriage between Pākehā and Māori – Phillip Tapsell and Maria Ringa.
1824Te 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.
1827Te Rauparaha's invasion of the South Island from Kapiti begins.
1831Whaling stations established at Tory Channel and Preservation Inlet.
1833James Busby arrives in the Bay of Islands to take up appointment as British Resident in New Zealand.
1834United Tribes' flag adopted by some 25 northern chiefs at Busby's suggestion.
1835Declaration of Independence by the ‘United Tribes of New Zealand’ signed by 34 northern chiefs.
1837New Zealand Association formed in London, becoming the New Zealand Colonisation Society in 1838 and the New Zealand Company in 1839, under the inspiration of Edward Gibbon Wakefield. William Colenso completes printing the New Testament in Māori, the first book printed in New Zealand.
1838Bishop Pompallier founds Roman Catholic mission at Hokianga.
1839William 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 settlement.
1840Treaty of Waitangi signed at Bay of Islands and later around most of the country. British sovereignty proclaimed. Hobson becomes first governor and sets up executive and legislative councils. New Zealand Company settlers arrive at Port Nicholson, Wellington. French settlers land at Akaroa. Local Māori initially provide food for these and later settlements.
1841European settlements established at New Plymouth and Wanganui. Capital shifted from Russell to Auckland.
1842Main body of settlers arrive at Nelson.
1843Twenty-two European settlers and four Māori killed at a confrontation at Tua Marina, near Wairau, in Marlborough. Robert FitzRoy becomes governor.
1844New Zealand Company suspends colonising operations due to financial difficulties.
1845Hone Heke begins war in the north. George Grey becomes governor. Half of all adult Māori are at least partly literate.
1846War in the north ends with capture of Ruapekapeka. Fighting between Māori and Pākehā around Wellington. Te Rauparaha captured by Grey. First New Zealand Constitution Act passed. Heaphy, Fox and Brunner begin exploring the West Coast. First steam vessel, HMS Driver, arrives in New Zealand.
1848Settlement founded by Scottish Otago Association. Provinces of New Ulster and New Munster established. Coal discovered at Brunner on the West Coast. Earthquake centred in Marlborough damages most Wellington buildings.
1850Canterbury settlement founded.
1852Second New Zealand Constitution Act passed creating general assembly and six provinces with representative government.
1853Idea of a Māori King canvassed by Tamihana Te Rauparaha and Matene Te Whiwhi. Many Māori agree not to sell any more land – 32 million acres have been bought by the government in the past five years.
1854First session of general assembly opens in Auckland.
1855Governor Thomas Gore Browne, appointed in 1854, arrives. Severe earthquake both sides of Cook Strait.
1856Henry Sewell forms first ministry under responsible government and becomes first premier. Edward Stafford forms first stable ministry.
1858New Provinces Act passed. Te Wherowhero installed as first Māori King, taking name Pōtatau I.
1859First session of new Hawke's Bay and Marlborough provincial councils. Gold discovered in Buller River.

An ink drawing by William Fox showing Port Lyttelton with Canterbury's first four ships, and emigrants landing from the Cressy, December 1850.

Two men outside the chicken coop they took shelter in during the 1886 eruption of Mt Tarawera.

1860Waitara dispute develops into general warfare in Taranaki. Te Wherowhero dies and is replaced as Māori King by his son, Tawhiao. Kohimaramara Conference of Chiefs.
1861Grey begins second governorship. Gold discovered at Gabriel's Gully and Otago goldrushes begin. First session of Southland provincial council. Bank of New Zealand incorporated at Auckland.
1862First electric telegraph line opens – from Christchurch to Lyttelton. First gold shipment from Dunedin to London.
1863War 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.
1864War in the Waikato ends after battle of Orakau. Māori defeat British at Gate Pa, Tauranga. 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 Pākehā to cross what becomes known as Arthur's Pass.
1865Seat of government transferred from Auckland to Wellington. Native Land Court established. Māori resistance continues. Auckland streets lit by gas for first time.
1866Cook Strait submarine telegraph cable laid. Cobb and Co coaches start running from Canterbury to the West Coast.
1867Thames goldfield opens. Four Māori seats established in Parliament. Lyttelton railway tunnel completed. Armed constabulary established.
1868Māori resistance continues through campaigns of Te Kooti Arikirangi and Titokowaru. New Zealand's first sheep breed, the Corriedale, developed.
1869New Zealand's first university, the University of Otago, established.
1870Last imperial forces leave New Zealand. Julius Vogel's public works and immigration policy begins. New Zealand University Act passed, establishing a federal system that lasts until 1961. Vogel announces national railway construction programme; more than 1,000 miles constructed by 1879. First rugby match in New Zealand played at Nelson. Auckland to San Francisco mail service begins.
1871Deer released in Otago.
1872Te Kooti retreats to the King Country and Māori armed resistance ceases. Telegraph communication links Auckland, Wellington and southern provinces.
1873New Zealand Shipping Company established.
1876Abolition of the provinces and establishment of local government by counties and boroughs. New Zealand-Australia telegraph cable established.
1877Education Act passed, establishing national system of primary education.
1878Completion of Christchurch to Invercargill railway.
1879Triennial Parliaments Act passed. Vote is given to every male aged 21 and over. Kaitangata mine explosion, 34 people die. Annual property tax introduced.
1881Parihaka 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.
1882First shipment of frozen meat leaves Port Chalmers for England on the SS Dunedin.
1883Te Kooti pardoned; Te Whiti and other prisoners released. Direct steamer link established between New Zealand and Britain.
1884King Tawhiao visits England with petition to Queen Victoria 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.
1886Mt Tarawera erupts and Pink and White Terraces destroyed, 108 people die. Oil discovered in Taranaki.
1887New 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.
1888Birth of writer Katherine Mansfield.
1889Abolition of non-residential or property qualification to vote. The first New Zealand-built locomotive completed at Addington.
1890Maritime strike involves 8,000 unionists. ‘Sweating’ commission on employment conditions reports. First election on a one-man one-vote basis.
1891John McKenzie introduces the first of a series of measures to promote closer land settlement. John Ballance becomes premier of first Liberal Government.
1892First meeting of national Kotahitanga Māori Parliament. The Kingitanga sets up its own Kauhanganui Parliament.
1893Right to vote extended to women. Richard John Seddon succeeds Ballance. Liquor licensing poll introduced. Elizabeth Yates becomes New Zealand's first woman mayor, of Onehunga. Banknotes become legal tender.
1894Compulsory arbitration of industrial disputes and reform of employment laws. Advances to Settlers Act. Clark, Fyfe and Graham are the first to climb Mt Cook.
1896Brunner mine explosion, 67 people die. Census measures national population as 743,214.
1897First of series of colonial, and later imperial, conferences in London.
1898Old Age Pensions Act passed. First cars imported to New Zealand.
1899New Zealand army contingent sent to South African war. First celebration of Labour Day.
1900Māori Councils Act passed. Public Health Act sets up Department of Public Health in 1901.
1901Cook and other Pacific islands annexed. Penny postage first used.
1902Pacific cable begins operating between New Zealand, Australia and Fiji.
1903Richard Pearse achieves semi-controlled flight near Timaru.
1905The ‘Originals’ rugby team tours Britain and becomes known as the All Blacks.
1906Seddon dies and is succeeded by William Hall-Jones as prime minister.
1907New Zealand constituted as a dominion. Fire destroys Parliament Buildings.
1908Auckland to Wellington main trunk railway line opens. Ernest Rutherford awarded 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.
1912William Massey becomes first Reform Party prime minister. Waihi miners strike. Malcolm Champion New Zealand's first Olympic gold medallist (as a member of the Australasian 200 metre freestyle relay swimming team).
1913Waterfront strikes in Auckland and Wellington.
1914World War I begins and German Samoa occupied. New Zealand Expeditionary Forces despatched to Egypt. Huntly coal mine disaster, 43 people die.
1915New Zealand forces take part in Gallipoli campaign. Reform and Liberal form National War Cabinet. Britain announces its intention to purchase all New Zealand meat exports during war.
1916New Zealand troops transfer to Western Front. Conscription introduced. Labour Party formed.
1917Battle of Passchendaele – about 1,000 New Zealanders die. Six o'clock public house closing introduced.
1918World War I ends. Influenza epidemic kills an estimated 8,500. Prohibition petition (242,001 signatures) presented to Parliament.
1919Women eligible for election to Parliament. Massey signs Treaty of Versailles. First official airmail flight from Auckland to Dargaville.
1920Anzac Day established. New Zealand gets League of Nations mandate to govern Western Samoa. First aeroplane flight across Cook Strait.
1921New Zealand division of Royal Navy established.
1923Otira tunnel opens. Ross Dependency proclaimed. Katherine Mansfield dies.
1926National public broadcasting begins under auspices of Radio Broadcasting Co Ltd.
1928United Party wins general election. Kingsford-Smith completes first trans-Tasman flight.
1929Depression deepens. Earthquake in Murchison-Karamea district, 15 people die. First health stamps issued.
1930Unemployment Board set up to provide relief work.
1931Newly formed coalition under George Forbes wins general election. Hawke's Bay earthquake, 261 die. Substantial reductions in public service wages and salaries.
1932Compulsory arbitration of industrial disputes abolished. Unemployed riot in Auckland, Dunedin and Christchurch. Reductions in old age and other pensions.
1933Elizabeth McCombs becomes first woman MP. Distinctive New Zealand coins first issued.
1934First trans-Tasman airmail.
1935First Labour Government elected under Michael Joseph Savage. Air services begin across Cook Strait.
1936Reserve Bank of New Zealand 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. Jean Batten's record flight from England. Standard working week reduces from 44 to 40 hours for many workers.
1937Federation of Labour unifies trade union movement. Royal New Zealand Air Force set up as separate branch of armed forces.
1938Social Security Act establishes revised pensions structure and the basis of a national health service. Import and exchange controls introduced.
1939World War II begins. Second New Zealand Expeditionary Force formed; Māori Battalion organised on tribal lines. Bulk purchases of farm products by Great Britain. HMS Achilles, on loan to New Zealand, takes part in Battle of the River Plate.
1940Savage dies and is succeeded by Peter Fraser. Sidney Holland becomes leader of opposition. Conscription for military service. German mines laid across Hauraki Gulf.
1941Japan enters the war. Māori War Effort Organisation set up. Pharmaceutical and general practitioner medical benefits introduced.
1942Economic stabilisation. New Zealand troops in Battle of El Alamein. Food rationing introduced. Women mobilise for essential work.
1943New Zealand troops take part in invasion of Italy.
1944Australia-New Zealand Agreement provides for cooperation in the South Pacific.
1945War in Europe ends 8 May; in the Pacific on 15 August. New Zealand signs United Nations charter. Māori Social and Economic Advancement Act passed. National Airways Corporation founded.
1946Family benefit of £1 a week becomes universal. Bank of New Zealand nationalised.
1947Statute of Westminster adopted by New Zealand Parliament. First public performance by National Orchestra. Mabel Howard the first woman cabinet minister. Fire in Ballantyne's department store, Christchurch, 41 die.
1948Protest campaign against exclusion of Māori players from 1949 rugby tour of South Africa. Polio epidemic closes schools. Mts Ruapehu and Ngāuruhoe erupt. Meat rationing ends.
1949Referendum supports compulsory military training. National Government elected. New Zealand gets first four navy frigates.
1950Naval and ground forces sent to Korean War. Legislative Council abolished. Wool boom. Empire Games in Auckland.
1951Prolonged waterfront dispute – state of emergency proclaimed. ANZUS Treaty signed by United States, Australia and New Zealand. Māori Women's Welfare League established.
1952Population passes 2 million.
1953First tour by a reigning monarch, Queen Elizabeth II. Edmund Hillary and Sherpa Tensing Norgay first to climb Mt Everest. Railway disaster at Tangiwai, 151 die. World sheep-shearing record set by Godfrey Bowen.
1954New Zealand signs South-east Asia Collective Defence Treaty. New Zealand gains seat on United Nations Security Council. Social Credit gets 10 percent of vote in general election, but no seat in Parliament.

Auckland Harbour Bridge under construction in 1958. The bridge opened in 1959.

1955Pulp and paper mill opens at Kawerau. Rimutaka rail tunnel opens.
1956New Zealand troops deployed in Malaya.
1957Walter Nash leads second Labour Government. Last hanging. Scott Base established in Antarctica. Court of Appeal constituted. Dairy products gain 10 years unrestricted access to Britain. Compulsory military training abolished.
1958‘Pay as you earn’ tax introduced. Arnold Nordmeyer's ‘Black Budget’. First geothermal electricity generated at Wairakei.
1959Antarctic Treaty signed with other countries involved in Antarctic scientific exploration. Auckland's harbour bridge opens.
1960Regular television programmes begin in Auckland. National Government elected. Government Service Equal Pay Act passed.
1961New Zealand joins the International Monetary Fund. Capital punishment abolished.
1962Western Samoa becomes independent. Sir Guy Powles becomes first ombudsman. New Zealand Māori Council established. Cook Strait rail ferry service begins. Taranaki gas well opens. Olympic gold medallist Peter Snell establishes mile and half-mile world athletic records.
1964Marsden Point oil refinery opens near Whangarei. Cook Strait power cables laid.
1965Free trade (NAFTA) agreement negotiated with Australia. New Zealand combat forces support United States troops in Viet Nam amid public protests. Self-government for Cook Islands.
1966International airport officially opens at Auckland. Te Atairangikaahu becomes first Māori Queen.
1967Referendum 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.
1968Inter-island ferry Wahine sinks in Wellington Harbour, 51 die. Inangahua earthquake, three die.
1969Vote extended to 20-year-olds. National Government wins fourth election in a row. First output from Glenbrook steel mill.
1970Natural gas from Kapuni supplied to Auckland.
1971New 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 communications station opens.
1972Labour Government led by Norman Kirk elected. Equal Pay Act passed.
1973Great Britain becomes member of European Economic Community (EEC). Naval frigate protests against French nuclear testing in Pacific. New Zealand's population is 3 million. Rugby tour by South Africa cancelled. Colour television introduced.
1974Prime Minister Norman Kirk dies. Commonwealth Games held in Christchurch. Vote given to 18-year-olds.
1975National wins election; Robert Muldoon becomes prime minister. Māori march against land loss. Waitangi Tribunal established.
1976Matrimonial Property Act passed. Pacific island overstayers deported. EEC quotas for New Zealand butter set until 1980. Metric system of weights and measures introduced. Subscriber toll dialling begins.
1977New Zealand's 200-mile exclusive economic zone established. Bastion Point occupied by Māori land protesters.
1978National Government re-elected.
1979Air New Zealand plane crashes on Mt Erebus, Antarctica, 257 die. Car-less days introduced to reduce petrol use.
1980Saturday trading partly legalised. Eighty-day strike at Kinleith pulp and paper mill.
1981South African rugby team's tour brings widespread disruption.
1982Closer Economic Relations (CER) agreement signed with Australia. First kōhanga reo established. Wage, price and rent freeze imposed – lasts until 1 984.
1983Visit by nuclear-powered United States Navy frigate Texas sparks protests. Official Information Act replaces Official Secrets Act. New Zealand Party founded.
1984Labour Party wins snap general election. Finance Minister Roger Douglas begins deregulating economy. 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.
1985Anti-nuclear policy means visit by American warship USS Buchanan refused. Greenpeace vessel Rainbow Warrior bombed by French agents in Auckland harbour. New Zealand dollar floated. Author Keri Hulme wins Booker Prize for The Bone People. First case of locally-contracted AIDS reported. Waitangi Tribunal given power to hear Māori land grievances back to 1840.
1986Homosexual Law Reform Bill passed. Royal Commission favours MMP electoral system. Soviet cruise ship, the Mikhail Lermontov, sinks in Marlborough Sounds. Goods and services tax (GST) introduced. First visit to New Zealand by a pope.
1987Share prices plummet 59 percent in four months. Labour wins general election. Māori Language Act makes Māori an official language. Anti-nuclear legislation enacted. First Lotto draw. New Zealand's first heart transplant performed. New Zealand wins first rugby World Cup.
1988More than 100,000 unemployed. Bastion Point land returns to Māori ownership. Electrification of North Island's main trunk line completed. New Zealand Post closes 432 post offices. Fisheries quota package announced for Māori iwi.
1989Prime Minister David Lange suggests formal withdrawal from ANZUS. Jim Anderton founds New Labour Party. Lange resigns; Geoffrey Palmer becomes prime minister. Reserve Bank Act sets bank's role to maintain price stability. Sunday trading begins. Māori Fisheries Act passed.
1990New Zealand celebrates its sesqui-centennial. Māori leaders inaugurate National Congress of Tribes. Dame Catherine Tizard becomes first woman governor-general. National Party has landslide victory; Jim Bolger becomes prime minister. One and two cent coins withdrawn. Commonwealth Games in Auckland. Telecom sold for $4.25 billion. Welfare payments cut.
1991Welfare payments cut further. Alliance Party formed. Employment Contracts Act passed. Number of unemployed exceeds 200,000. New Zealand troops join multi-national force in Gulf War. Avalanche reduces Aoraki/Mt Cook's height by 10.5 metres.
1992Government and Māori negotiate Sealord fisheries deal. Public health system reformed. State housing commercialised. New Zealand has seat on United Nations Security Council.
1993New Zealand First Party launched. National wins election without majority; Opposition MP Peter Tapsell becomes Speaker of the House, giving National a majority. Referendum favours MMP electoral system.
1994Government commits 250 soldiers to peacekeeping in Bosnia. Government proposes $1 billion cap for final settlement of Treaty of Waitangi claims. New Zealand's first casino opens in Christchurch. First fast-ferry passenger service begins across Cook Strait.
1995Team New Zealand wins yachting's America's Cup. Occupation of Moutua Gardens, Wanganui. Renewed French nuclear testing results in New Zealand protest flotilla and navy ship Tui sailing for Mururoa Atoll. Commonwealth Heads of Government meeting in Auckland. New Zealand soldiers return from Bosnia.
1996First MMP election brings National/New Zealand First coalition government. First legal sports betting through Totalisator Agency Board.
1997Government signs $170 million settlement with Ngai Tahu. Prime Minister Bolger resigns after National Party coup while he is overseas; replaced by New Zealand's first woman prime minister, Jenny Shipley.
1998Auckland city businesses hit by month-long power cut. New Zealand women's rugby team, the Black Ferns, become world champions. Coalition government dissolved; National becomes minority government.
1999New Zealand sends peacekeepers to East Timor. Auckland hosts APEC world leaders' conference. Former prime minister Mike Moore becomes World Trade Organisation head. Labour forms government in coalition with Alliance party and with support of the Greens, who enter Parliament for the first time with seven seats. Legal drinking age lowered – from 20 to 18 years.

Protesters against the 1981 Springbok rugby tour clash with supporters outside Eden Park in Auckland.

2000Air New Zealand gains ownership of Ansett Australia. Team New Zealand beats Italy's Prada 5–0 to retain the America's Cup. Labour Government abolishes knighthoods. Dr Alan MacDiarmid wins Nobel Prize for Chemistry for his part in the discovery and development of conductive polymers.
2001New Zealand's largest company, Fonterra, forms from New Zealand Dairy Group and Kiwi Dairies. Qantas New Zealand and Ansett collapse. Government injects $550 million to keep Air New Zealand flying following a $1.4 billion loss – the largest in New Zealand's corporate history. Government disbands RNZAF combat wing. Bill English becomes leader of the National Party. Yachtsman Sir Peter Blake murdered by pirates on the Amazon.
2002Labour wins election; forms coalition government with Progressive Coalition, and a special arrangement with United Future. Rakiura, New Zealand's 14th national park covering about 85 percent of Stewart Island, opens. Three New Zealanders among 185 killed in Bali terrorist bombing. The Fellowship of the Ring, first film in The Lord of the Rings trilogy directed by New Zealand's Peter Jackson, wins four Oscars.
2003New Zealand loses America's Cup to Swiss challenger Alinghi, skippered by Russell Coutts, previously of Team New Zealand. Population reaches 4 million. National elects Don Brash as leader.
2004The Return of the King film wins 11 Oscars. Controversial Foreshore and Seabed Act passed following a hikoi (march) of thousands of protestors. Tariana Turia resigns as Labour MP; re-elected eight weeks later as Māori Party's first MP. Supreme Court replaces London-based Privy Council as New Zealand's court of final appeal. Unknown World War I warrior from Somme battlefield returned, to rest at Wellington's National War Memorial.
2005Titahi Bay golfer Michael Campbell wins US Open. Former Prime Minister David Lange dies. Labour has one-seat election night lead; forms Government in coalition with Jim Anderton's Progressives, and United Future. Green Party co-leader Rod Donald dies. Naval frigate Wellington scuttled off Wellington's south coast, as a diving attraction. New Zealand wins right to host 2011 rugby World Cup.
2006Dame Te Ātairangikaahu, Māori Queen for 40 years, dies; her son becomes King Tūheitia. Lowest road toll (391) since 1960. Icebergs float past Otago. Trade Me online auction site sold to media company. John Key topples Don Brash as National Party leader. Government regulates to ‘unbundle’ the telecommunications copper-wire network. Canterbury has heaviest snowfall since 1945; Wellington's spring is windiest in 40 years.
2007Government introduces 20 hours free early childhood education, four weeks annual leave for workers, and KiwiSaver. Lowest unemployment level since late 1970s; oil prices and the dollar at highest levels. Country debates ‘smacking’ children before the Crimes (Substituted Section 59) Amendment Bill passes. Willie Apiata is first New Zealander awarded Victoria Cross since World War II. South Island population passes 1 million. Nation ‘mourns’ sporting ‘almost-but-not-quite’ experiences – the yachting America's Cup, netball World Championship, and rugby and cricket world cups.

The casket carrying the Māori Queen Dame Te Ātairangikaahu travels by waka down the Waikato river to Taupiri mountain for burial. Dame Te Ata was the sixth monarch of the Kingitanga movement, and ruled for 40 years.

Contributors and related websites

Archives New Zealand – www.archives.govt.nz

Dictionary of New Zealand Biography – www.dnzb.govt.nz

History Group, Ministry for Culture and Heritage – www.nzhistory.net.nz

National Library of New Zealand – www.natlib.govt.nz

New Zealand Archaeology – www.nzarchaeology.org

New Zealand Electronic Text Centre – www.nzetc.org

Statistics New Zealand – www.stats.govt.nz

Te Ara – The Encyclopedia of New Zealand – www.teara.govt.nz

Treaty of Waitangi – www.treatyofwaitangi.govt.nz

Chapter 3. Government

A member of the public uses one of the new recycling bins installed outside Wellington's railway station in 2008. The Ministry for the Environment is working with local government to trial public-place recycling bins in the Far North, Wellington, Kaikoura, and Christchurch.

Constitution

New Zealand is a constitutional monarchy and has had a parliamentary government since 1856. Queen Elizabeth II has the title Queen of New Zealand. The constitution is concerned with the establishment and composition of the legislative, executive and judicial branches of government, their powers and duties, and the relationship between these branches.

New Zealand's constitutional history can be traced back to the signing of the Treaty of Waitangi in 1840. The treaty was an agreement between the British Crown and Māori in which Māori gave the Crown rights to govern, and the Crown guaranteed Māori full protection of their interests and status, and full citizenship rights.

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 a Declaration of Independence.

New Zealand's Constitution Act 1986 brought together important statutory constitutional provisions and clarified rules relating to the governmental hand-over of power. Other sources of New Zealand's constitution include the Electoral Act 1993, the Imperial Laws Application Act 1988 (which lists United Kingdom statutes still in force in New Zealand), Standing Orders of the House of Representatives, constitutional conventions, New Zealand legislation, and decisions of the courts.

Table 3.01 lists the Sovereigns of New Zealand since the signing of the Treaty of Waitangi in 1840.

The Crown and the governor-general

The Governor-General of New Zealand is the Crown's representative in New Zealand, and exercises the royal powers derived from statute and the general law.

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. One of the governor-general's main constitutional functions 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. However, the governor-general is required 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 a government is intending to act unconstitutionally.

Table 3.01. Sovereigns of New Zealand

MonarchAccessionDiedAgeReigned (years)

(1) Queen Victoria became New Zealand's queen in 1840.

(2) Abdicated; reigned 325 days.

Symbol: ... not applicable

Source: Statistics New Zealand

House of Hanover
Victoria1837(1)19018163
House of Saxe-Coburg
Edward VII19011910689
House of Windsor
George V191019367025
Edward VIII(2)1936197277 
George VI193619525615
Elizabeth II1952.........

This is known as the reserve power. The Sovereign appoints the governor-general on the prime minister's recommendation, normally for a term of five years. Table 3.02 lists the vice-regal representatives of New Zealand since the signing of the Treaty of Waitangi.

Table 3.02. Vice-regal representatives of New Zealand

Representative(1)Assumed officeRetired

(1) Honours are specified only if held on retirement from office.

Symbol: ... not applicable

Source: Government House

Dependency
Lieutenant-governor
Captain William Hobson, RN30 Jan 18403 May 1841
Crown colony
Governor
Captain William Hobson, RN3 May 184110 Sep 1842
Captain Robert Fitzroy, RN26 Dec 184317 Nov 1845
Captain George Grey18 Nov 184531 Dec 1847
Governor-in-chief
Sir George Grey, KCB1 Jan 18487 Mar 1853
Self-governing colony
Governor
Sir George Grey, KCB7 Mar 185331 Dec 1853
Colonel Thomas Gore Browne, CB6 Sep 18552 Oct 1861
Sir George Grey, KCB4 Dec 18615 Feb 1868
Sir George Ferguson Bowen, GCMG5 Feb 186819 Mar 1873
Rt Hon Sir James Fergusson, Bt14 Jun 18733 Dec 1874
Marquess of Normanby, GCB, GCMG, PC9 Jan 187521 Feb 1879
Sir Hercules George Robert Robinson, GCMG17 Apr 18798 Sep 1880
Hon Sir Arthur Hamilton Gordon, GCMG29 Nov 188023 Jun 1882
Lieutenant-General Sir William Francis Drummond Jervois, GCMG, CB20 Jan 188322 Mar 1889
Earl of Onslow, GCMG2 May 188924 Feb 1892
Earl of Glasgow, GCMG7 Jun 18926 Feb 1897
Earl of Ranfurly, GCMG10 Aug 189719 Jun 1904
Lord Plunket, GCMG, KCVO20 Jun 19047 Jun 1910
Dominion
Lord Islington, KCMG, DSO, PC22 Jun 19102 Dec 1912
Earl of Liverpool, GCMG, MVO, PC19 Dec 191227 Jun 1917
Governor-general
Earl of Liverpool, GCB, GCMG, GBE, MVO, PC28 Jun 19177 Jul 1920
Admiral of the Fleet Viscount Jellicoe, GCB, OM, GCVO27 Sep 192026 Nov 1924
General Sir Charles Fergusson, BT, GCMG, KCB, DSO, MVO13 Dec 19248 Feb 1930
Viscount Bledisloe, GCMG, KBE, PC19 Mar 193015 Mar 1935
Viscount Galway, GCMG, DSO, OBE, PC12 Apr 19353 Feb 1941
Marshal of the Royal Air Force Sir Cyril Louis Norton Newall, GCB,OM, GCMG, CBE, AM22 Feb 194119 Apr 1946
Realm
Lieutenant-General the Lord Freyberg, VC, GCMG, KCB, KBE, DSO17 Jun 194615 Aug 1952
Lieutenant-General the Lord Norrie, GCMG, GCVO, CB, DSO, MC2 Dec 195225 Jul 1957
Viscount Cobham, GCMG, TD5 Sep 195713 Sep 1962
Brigadier Sir Bernard Fergusson, GCMG, GCVO, DSO, OBE9 Nov 196220 Oct 1967
Sir Arthur Espie Porritt, BT, GCMG, GCVO, CBE1 Dec 19677 Sep 1972
Sir (Edward) Denis Blundell, GCMG, GCVO, KBE, QSO27 Sep 19725 Oct 1977
Rt Hon Sir Keith Jacka Holyoake, KG, GCMG, CH, QSO26 Oct 197727 Oct 1980
Hon Sir David Stuart Beattie, GCMG, GCVO, QSO, QC6 Nov 198010 Nov 1985
Rt Rev Hon Sir Paul Alfred Reeves, GCMG, GCVO, QSO20 Nov 198529 Nov 1990
Hon Dame Catherine Anne Tizard, GCMG, GCVO, DBE, QSO13 Dec 19903 Mar 1996
Rt Hon Sir Michael Hardie Boys, GNZM, GCMG, QSO21 Mar 199621 Mar 2001
Hon Dame Silvia Cartwright, PCNZM, DBE, QSO4 April 20014 Aug 2006
Hon Anand Satyanand, PCNZM, QSO23 Aug 2006...

Parliamentary tradition

Since 1856, New Zealand has been a constitutional monarchy with a parliamentary system of government. The government cannot act effectively without Parliament, because it cannot raise or spend money without parliamentary approval. For most categories of expenditure, this approval takes the form of an annual vote of funds to the government. Parliament has to be assembled regularly and has the opportunity to hold the government to account.

Electoral system

Since 1996, New Zealand has had a mixed member proportional (MMP) electoral system. Voters have two votes – one electorate vote and one party vote.

Electorate votes are used to elect Members of Parliament (MPs) to represent local areas. Party votes are used to allocate extra seats to political parties so that the make-up of Parliament reflects the support for these parties across the country.

Electorate officer Sue Skelt stands on the boundary between the Clutha-Southland and Waitaki electorates, in the middle of the Roaring Meg river.

For the 2005 election, New Zealand was divided geographically into 62 general and seven Māori electorates. The political parties were subsequently allocated 52 party seats after party votes were counted, and the number of seats in Parliament increased by one to 121. Table 3.03 shows seats won by each political party since 1949, and the total number of seats available, at general elections.

Table 3.03. Seats held by political parties after general elections

ElectionNationalLabourNZ FirstAllianceACTGreenUnited FutureOtherTotal

(1) Social Credit/Democrats.

(2) New Labour.

(3) United.

(4) Progressive Coalition.

(5) Progressive 1 seat, Māori 4 seats.

Symbol: ... not applicable

Source: Office of the Clerk of the House of Representatives

19494634...............080
19515030...............080
19544535...............080
19573941...............080
19604634...............080
19634535...............080
19664435...............1(1)80
19694539...............084
19723255...............087
19755532...............087
19785140...............1(1)92
19814743...............2(1)92
19843756...............2(1)95
19874057...............097
19906729...............1(2)97
1993504522.........099
1996443717138......1(3)120
1999394951097...1(3)120
200227521309982(4)120
20054850702635(5)121

Electorate boundaries are redrawn by the Representation Commission after each population census. The number of electorates can change as the population increases or decreases.

The Māori electoral option follows every census and gives people of Māori descent the opportunity to choose whether to be on the Māori, or the general, electoral roll. Once electors have chosen which roll to be on, they cannot change until the next Māori electoral option takes place.

The New Zealand electoral system is set out in the Electoral Act 1993. This Act is the only statute in New Zealand with entrenched provisions. This means that either 75 percent of MPs, or a majority of voters in a referendum of all registered voters, must agree to make changes to these provisions. Normally, a simple majority of MPs is all that is required to make changes to legislation.

House of Representatives debating chamber. Speaker Hon Margaret Wilson presides, while Deputy Prime Minister Hon Dr Michael Cullen addresses the house.

Parliament

House of Representatives

The power to make laws lies at the heart of New Zealand's parliamentary system. This power is vested in the Parliament of New Zealand by the Constitution Act 1986.

Parliament consists of the Crown (normally represented by the governor-general) and an elected House of Representatives. The principal functions of Parliament are to enact laws, to supervise the government's administration, to vote for the supply of funds, to provide a government, and to redress grievances by way of petition.

The Constitution Act 1986 forbids the Crown from taxing citizens without express parliamentary approval. Under standing orders, private members are also able to initiate proposals involving expenditure or taxation. However, the government has an absolute right to veto such proposals if they would have more than a minor impact on the government's finances.

Perhaps the most important privilege of the House of Representatives is that of freedom of speech, guaranteed by the Bill of Rights 1688 and claimed by the speaker after the governor-general has confirmed office.

A session of Parliament is the period during which the house sits, usually the full parliamentary term of three years. The house meets after an election 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. The session is terminated by the governor-general bringing Parliament to an end, usually just before a general election.

Unless there is a new session in the second and third years of the parliamentary term, the prime minister's statement at the start of business 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. The speaker maintains order in proceedings and ensures standing orders are complied with. The speaker is assisted by the clerk of the House of Representatives, who records all proceedings of the house and of any committee of the house, and provides advice on parliamentary law and custom.

The first session of the 48th New Zealand Parliament was called following the general election on 17 September 2005, and began sitting on 7 November 2005.

Salaries and allowances of parliamentarians are set by the Remuneration Authority and are shown in table 3.04.

Role of parties Until 1993, under the first past the post (FPP) system of electoral representation, the House of Representatives was characterised by the presence of two large dominant parties, with the majority party forming the government and the minority party the opposition. This has given way to multi-party representation under the mixed member proportional (MMP) system of electoral representation, adopted after two referendums, one indicative (1992) and one binding (1993).

Table 3.04. Parliamentary salaries and allowances

PositionYearly salary payable from 1 July 2007 ($)
Source: Remuneration Authority
Members of the executive
Prime minister375,000
Deputy prime minister264,500
Cabinet minister233,000
Minister with portfolio outside cabinet195,700
Minister without portfolio169,400
Parliamentary under-secretary150,000
Officers of the House of Representatives
Speaker of the House of Representatives233,000
Deputy speaker162,750
Assistant speaker139,000
Chairperson of a select committee139,000
Deputy chairperson of a select committee130,300
Leaders of non-government parties
Leader of the opposition233,000
Other party leaders (depending on number of MPs)139,000 +
Deputy leader of party with 25 MPs or more (depending on number of MPs)160,400 +
Whips
Senior government whip (depending on number of MPs)143,120 +
Other whips (depending on number of MPs)139,000 +
Junior whip of party with 25 MPs or more139,000
Other members of Parliament
Member of Parliament126,200
Expenses allowance
Prime minister19,000
Speaker17,750
Other members of Parliament14,280

The four general elections held since 1996 have indicated that under MMP it is unlikely that a single party can command an absolute majority in the house and form a government on its own account. The party caucus (a meeting of each party's members of Parliament in closed session at regular intervals) has become a primary means of developing policies and tactics.

Party representation The general election on 17 September 2005 resulted in the formation of a Labour-led minority coalition government. The Labour Party entered into a coalition agreement with the Progressive Party, which included the leader of the Progressive Party being a Cabinet minister.

Agreements were also made between the minority coalition government and two other parties – United Future and New Zealand First. Both parties promised to provide confidence and supply to the Labour/Progressive government for the term of the Parliament. It was also agreed that the leaders of United Future and New Zealand First would be appointed to ministerial positions outside Cabinet.

The new ministry was sworn in on 19 October 2005. A cooperation agreement was entered into by the Government with the Green Party, which provided for consultation on the broad outline of the legislative programme, on key legislative measures on which support was needed, on major policy issues, and on broad budget parameters.

The fourth House of Representatives elected under MMP in 2005 consisted of:

  • Labour – 50 seats (31 electorate, 19 party list)

  • National – 48 seats (31 electorate, 17 party list)

  • New Zealand First – 7 seats (7 party list)

  • Green – 6 seats (6 party list)

  • Māori – 4 seats (4 electorate)

  • United Future – 3 seats (1 electorate, 2 party list)

  • ACT New Zealand – 2 seats (1 electorate, 1 party list)

  • Progressive – 1 seat (1 electorate).

An overhang of one seat resulted from the Māori Party winning more seats from electorate votes than was representative of its share of all party votes.

Table 3.05 (overleaf) lists members of the 48th Parliament House of Representatives, the party they belong to, their previous occupation, and whether they are list or electorate members.

Table 3.05. House of Representatives, 48th Parliament

Prime MinisterRt Hon Helen Clark
Leader of the OppositionDr Don Brash; John Key (from 27 November 2006)
SpeakerHon Margaret Wilson
Deputy SpeakerHon Clem Simich
Clerk of the HouseD G McGee (until 1 November 2007); Mary Harris (since 10 December 2007)
Member(1)Year of birthPrevious occupationElectorate/listParty

(1) Names are given by which individual members prefer to be addressed.

(2) Resigned 16 February 2007.

(3) Resigned 6 February 2007.

(4) Replaced Jim Sutton 1 August 2006.

(5) Independent member from 16 May 2007.

(6) Died 6 November 2005.

(7) Resigned 14 February 2008.

(8) Independent member from 14 February 2007.

(9) Resigned 28 February 2008.

(10) Replaced Brian Donnelly 16 February 2008.

(11) Replaced Nandor Tanczos 1 July 2008.

(12) Replaced Don Brash 8 February 2007.

(13) Replaced Dianne Yates 1 April 2008.

(14) Replaced Georgina Beyer 20 February 2007.

(15) Resigned 30 July 2006.

(16) Replaced Rod Donald 15 November 2005, resigned 26 June 2008.

(17) Replaced Ann Hartley 1 March 2008.

(18) Resigned 28 March 2008.

Source: Office of the Clerk of the House of Representatives

Anderton, Hon Jim1938Company directorWigramProgressive
Ardern, Shane1960FarmerTaranaki-King CountryNational
Auchinvole, Chris1945ManagerListNational
Barker, Hon Rick1951Trade unionistListLabour
Barnett, Tim1958Voluntary sector managerChristchurch CentralLabour
Bennett, David1970FarmerHamilton EastNational
Bennett, Paula1969ManagerListNational
Benson-Pope, Hon David1950TeacherDunedin SouthLabour
Beyer, Georgina(2)1957MayorListLabour
Blue, Dr Jackie1956Medical practitionerListNational
Blumsky, Mark1957MayorListNational
Borrows, Chester1957Police officer, lawyerWhanganuiNational
Bradford, Sue1952Community development workerListGreen
Brash, Dr Don(3)1940Governor of Reserve Bank of New ZealandListNational
Brown, Peter1939Company directorListNZ First
Brownlee, Gerry1956TeacherIlamNational
Burton, Hon Mark1956Community education organiserTaupoLabour
Carter, Hon Chris1952Electorate secretaryTe AtatūLabour
Carter, Hon David1952Businessman, farmerListNational
Carter, John1950Local government officerNorthlandNational
Chadwick, Steve1948Nurse, midwifeRotoruaLabour
Chauvel, Charles(4)1969LawyerListLabour
Choudhary, Dr Ashraf1949University lecturerListLabour
Clark, Rt Hon Helen1950University lecturerMt AlbertLabour
Clarkson, Bob1939Commercial property developerTaurangaNational
Coleman, Dr Jonathan1966Medical practitionerNorthcoteNational
Collins, Judith1959LawyerClevedonNational
Connell, Brian1956FarmerRakaiaNational
Copeland, Gordon(5)1943Financial administratorListIndependent
Cosgrove, Hon Clayton1969Public relations executiveWaimakaririLabour
Cullen, Hon Dr Michael1945University lecturerListLabour
Cunliffe, Hon David1963Management consultantNew LynnLabour
Dalziel, Hon Lianne1960Trade unionistChristchurch EastLabour
Dean, Jacqui1957Professional actorOtagoNational
Donald, Rod(6)1960Voluntary sector administratorListGreen
Donnelly, Hon Brian(7)1949School principalListNZ First
Dunne, Hon Peter1954Deputy chief executive officerŌhariu-BelmontUnited Future
Duynhoven, Hon Harry1955TeacherNew PlymouthLabour
Dyson, Hon Ruth1957Employment consultantBanks PeninsulaLabour
English, Hon Bill1961FarmerClutha-SouthlandNational
Fairbrother, Russell1944LawyerListLabour
Fenton, Darien1954Trade unionistListLabour
Field, Taito Phillip(8)1952Trade unionistMāngereLabour
Finlayson, Christopher1956LawyerListNational
Fitzsimons, Jeanette1945Organic farmer, consultantListGreen
Flavell, Te Ururoa1955LecturerWaiārikiMāori
Foss, Craig1963BankerTukitukiNational
Gallagher, Martin1952TeacherHamilton WestLabour
Goff, Hon Phil1953University lecturerMt RoskillLabour
Goodhew, Jo1961NurseAorakiNational
Gosche, Hon Mark1955Trade unionistMaungakiekieLabour
Goudie, Sandra1952FarmerCoromandelNational
Groser, Tim1949DiplomatListNational
Guy, Nathan1970FarmerListNational
Harawira, Hone1955ManagerTe Tai TokerauMāori
Hartley, Ann(9)1942Real estate agentListLabour
Hawkins, Hon George1946TeacherManurewaLabour
Hayes, John1948DiplomatWairarapaNational
Henare, Hon Tau1960Advisory officerListNational
Hereora, Dave1956Trade unionistListLabour
Hide, Rodney1956Economic consultantEpsomACT
Hobbs, Hon Marian1947TeacherWellington CentralLabour
Hodgson, Hon Pete1950VeterinarianDunedin NorthLabour
Horomia, Hon Parekura1950FarmerIkaroa-RāwhitiLabour
Hughes, Darren1978Executive secretaryŌtakiLabour
Hutchison, Dr Paul1947Medical practitionerPort WaikatoNational
Jones, Dail(10)1944LawyerListNZ First
Jones, Shane1959ManagerListLabour
Kedgley, Sue1948Author, city councillorListGreen
Key, John1961Investment bankerHelensvilleNational
King, Colin1951Shearer, managerKaikōuraNational
King, Hon Annette1947Chief executive officerRongotaiLabour
Laban, Hon Winnie1955Family therapistManaLabour
Locke, Keith1944Bookshop managerListGreen
Mackey, Moana1974BiochemistListLabour
Maharey, Hon Steve1953University lecturerPalmerston NorthLabour
Mahuta, Hon Nanaia1970Archivist librarianTainuiLabour
Mallard, Hon Trevor1954Executive assistantHutt SouthLabour
Mapp, Dr Wayne1952University law lecturerNorth ShoreNational
Mark, Ron1954Businessman, army officerListNZ First
McCully, Hon Murray1953Public relations consultantEast Coast BaysNational
Moroney, Sue1964Trade unionistListLabour
Norman, Russell(11)1967Executive secretaryListGreen
O'Connor, Hon Damien1958Tourism operatorWest Coast-TasmanLabour
Okeroa, Hon Mahara1946Regional directorTe Tai TongaLabour
Paraone, Pita1945Public servantListNZ First
Parker, Hon David1960Biotechnology businessmanListLabour
Peachey, Allan1949TeacherTāmakiNational
Peters, Rt Hon Winston1945LawyerListNZ First
Pettis, Jill1952Education administratorListLabour
Pillay, Lynne1950Trade unionistWaitakereLabour
Power, Simon1969LawyerRangitikeiNational
Rich, Katherine1967BusinesswomanListNational
Ririnui, Hon Mita1951Minister of religionListLabour
Robertson, H V Ross1949Industrial engineerManukau EastLabour
Roy, Eric1948FarmerInvercargillNational
Roy, Heather1964Gallery contractorListACT
Ryall, Hon Tony1964AccountantBay of PlentyNational
Samuels, Hon Dover1939Company directorListLabour
Shanks, Katrina(12)1969AccountantListNational
Sharples, Dr Pita1941University lecturerTāmaki MakaurauMāori
Simich, Hon Clem1939General managerListNational
Sio, Su'a William(13)1960City councillorListLabour
Smith, Hon Dr Lockwood1948Managing directorRodneyNational
Smith, Hon Dr Nick1964EngineerNelsonNational
Soper, Lesley(14)1954Trade unionistListLabour
Stewart, Barbara1952Training and development managerListNZ First
Street, Maryan1955Teacher, trade unionistListLabour
Sutton, Hon Jim(15)1941FarmerListLabour
Swain, Hon Paul1951Trade unionistRimutakaLabour
Tanczos, Nandor(16)1966Business owner/directorListGreen
Te Heuheu, Hon Georgina1942Consultant, advocate Treaty issuesListNational
Tisch, Lindsay1947Management consultantPiakoNational
Tizard, Hon Judith1956Electorate secretaryAuckland CentralLabour
Tolley, Anne1953Bed and breakfast operatorEast CoastNational
Tremain, Chris1966BusinessmanNapierNational
Turei, Metiria1970LawyerListGreen
Turia, Tariana1944Iwi development workerTe Tai HauāuruMāori
Turner, Judy1956TeacherListUnited Future
Wagner, Nicky1953Company directorListNational
Wall, Louisa(17)1972Programme managerListLabour
Wilkinson, Kate1957LawyerListNational
Williamson, Hon Maurice1951Planning analystPakurangaNational
Wilson, Hon Margaret1947University lecturerListLabour
Wong, Pansy1955AccountantListNational
Woolerton, R Doug1944FarmerListNZ First
Worth, Dr Richard1948LawyerListNational
Yates, Dianne(18)1943Education officerListLabour

Legislative procedure The legislative procedure in New Zealand starts when proposed laws are presented to the House of Representatives in the form of draft laws known as ‘bills’. The classes of bills are:

  • Government bills – introduced by a minister and dealing with matters of public policy

  • Members' bills – introduced by a Member of Parliament who is not a minister and dealing with matters of public policy

  • Local bills – promoted by local authorities to give them special powers or to validate actions they may have taken, and which affect particular localities

  • 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 to be ‘read’ three times. A local bill or a private bill must also comply with prescribed preliminary procedures, which include advertising the bill before it is introduced into the house. The number of members' bills that may be introduced and proceed at any one time to first reading is limited to four. These are chosen by ballot.

Under standing orders, the leader of the house informs the clerk of the house that the government intends to introduce a government bill. A member's bill or a local bill is introduced after notice has been given and announced to the house. A private bill is introduced by presenting a petition for the bill to the house. The bill is then set down for first reading on the third sitting day following.

Debate on the first reading is limited to 12 speeches of up to 10 minutes in the case of a government bill, while for a member's bill, private bill or local bill there may be two 10-minute speeches and eight five-minute speeches, with the member in charge having a five-minute right of reply.

After its first 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. The consideration of bills by a select committee provides an opportunity for the public and interested bodies to make submissions. Committees also scrutinise estimates, financial reviews and petitions. A committee must finally report to the house on a bill within six months of the bill being referred to it (unless the business committee 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. After the select committee's report is presented, the bill is set down for a second reading on the third sitting day following.

The second reading of a bill is directed to the principles and objects of the bill. At the conclusion of debate, the house decides whether to accept the amendments that only a majority in the select committee recommended. (Unanimous recommendations are automatically accepted when a bill passes its second reading.) The house then votes on whether the bill should be read a second time.

The bill is set down for consideration in a committee of the whole house on the next sitting day (unless the business committee decides that the bill does not require consideration in committee). In committee, the bill is considered in detail, normally part by part. Once a bill has been fully considered by the committee, it is reported to the house with any amendments. 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. At the third reading stage, the bill is voted on for the final time. A 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.

Nelson City councillor, Mark Holmes, hands over a 40,000+ signature petition (to extend the hours of daylight saving) to United Future leader Peter Dunne. The petition was successful – daylight saving was extended three weeks by the New Zealand Daylight Time Order 2007.

Executive government

The executive functions of government in New Zealand are carried out by ministers of the Crown. All ministers are members of the Executive Council, and most ministers are members of Cabinet. By constitutional convention, ministers are responsible to the House of Representatives for their official actions, and are required by the Constitution Act 1986 to be a Member of Parliament (MP).

New Zealand's head of state, Queen Elizabeth II, has delegated her executive authority to the governor-general, who is her representative in New Zealand. The governor-general plays an important role in many of the formal procedures associated with government.

After a general election, a government is formed by the party or grouping of parties that has the confidence of the House of Representatives. The governor-general invites the leader to become prime minister and lead a government. On the advice of the prime minister, the governor-general appoints a number of MPs as members of the Executive Council and as ministers. Ministers are generally responsible for certain areas of government administration (portfolios).

Cabinet and the Executive Council

The Cabinet and the Executive Council have separate functions. The Executive Council is a formal body with formal functions, whereas Cabinet is an informal body with deliberative functions. All ministers are members of the Executive Council, but not all ministers are members of Cabinet.

The Cabinet is the highest decision-making body of government. It is the main vehicle by which major policy issues, legislative proposals, and government appointments are considered and decided on. It also coordinates the work of ministers.

The Cabinet has a system of committees that examine subjects in detail before they are considered by the full Cabinet.

Proceedings of Cabinet are informal and confidential, and decisions are usually made by consensus. Members of Cabinet accept collective responsibility for decisions. This convention ensures that decisions are usually supported publicly by all members of Cabinet.

Orders in council, made by the governor-general on the advice and with the consent of the Executive Council, are the main vehicles for law-making by the executive. In particular, authority to make statutory regulations is delegated by Parliament to the governor-general, in council.

The governor-general presides over, but is not a member of, the Executive Council. He or she takes formal actions, such as making regulations or significant appointments, on the basis of a recommendation tendered by a minister, and consented to by the Executive Council.

The Cabinet Office provides support services for the Cabinet and its committees. The secretary of the Cabinet is also clerk of the Executive Council.

The makeup of the Executive Council at 5 November 2007 is shown in table 3.07 (overleaf).

Table 3.06. Premiers and prime ministers of New Zealand

Premier/Prime minister(1)Political partyTerm(s) of office

(1) Honours are specified only if held on retirement from office.

Symbol:... not applicable

Source: Cabinet Office

Premiers
Henry Sewell...7 May 1856–20 May 1856
William Fox...20 May 1856–2 Jun 1856
Edward William Stafford...2 Jun 1856–12 Jul 1861
William Fox...12 Jul 1861–6 Aug 1862
Alfred Domett...6 Aug 1862–30 Oct 1863
Frederick Whitaker, MLC...30 Oct 1863–24 Nov 1864
Frederick Aloysius Weld...24 Nov 1864–16 Oct 1865
Edward William Stafford...16 Oct 1865–28 Jun 1869
William Fox...28 Jun 1869–10 Sep 1872
Edward William Stafford...10 Sep 1872–11 Oct 1872
George Marsden Waterhouse, MLC...11 Oct 1872–3 Mar 1873
William Fox...3 Mar 1873–8 Apr 1873
Sir Julius Vogel, KCMG...8 Apr 1873–6 Jul 1875
Daniel Pollen, MLC...6 Jul 1875–15 Feb 1876
Sir Julius Vogel, KCMG...15 Feb 1876–1 Sep 1876
Sir Harry Albert Atkinson, KCMG...1 Sep 1876–13 Oct 1877
Sir George Grey, KCB...13 Oct 1877–8 Oct 1879
John Hall...8 Oct 1879–21 Apr 1882
Frederick Whitaker, ML...21 Apr 1882–25 Sep 1883
Sir Harry Albert Atkinson, KCMG...25 Sep 1883–16 Aug 1884
Sir Robert Stout, KCMG...16 Aug 1884–28 Aug 1884
Sir Harry Albert Atkinson, KCMG...28 Aug 1884–3 Sep 1884
Sir Robert Stout, KCMG...3 Sep 1884–8 Oct 1887
Sir Harry Albert Atkinson, KCMG...8 Oct 1887–24 Jan 1891
John BallanceLiberal24 Jan 1891–d 27 Apr 1893
Rt Hon Richard John SeddonLiberal1 May 1893–d 10 Jun 1906
Prime ministers
William Hall-JonesLiberal21 Jun 1906–6 Aug 1906
Rt Hon Sir Joseph George Ward, Bt, KCMGLiberal6 Aug 1906–28 Mar 1912
Thomas MacKenzieLiberal28 Mar 1912–10 Jul 1912
Rt Hon William Ferguson MasseyReform10 Jul 1912–10 May 1925
Sir Francis Henry Dillon Bell, GCMG, KC, MLCReform14 May 1925–30 May 1925
Rt Hon Joseph Gordon Coates, MCReform30 May 1925–10 Dec 1928
Rt Hon Sir Joseph George Ward, Bt, KCMGUnited10 Dec 1928–28 May 1930
Rt Hon George William ForbesUnited28 May 1930–22 Sep 1931
Coalition22 Sep 1931–6 Dec 1935
Rt Hon Michael Joseph SavageLabour6 Dec 1935–d 27 Mar 1940
Rt Hon Peter Fraser, CHLabour1 Apr 1940–13 Dec 1949
Rt Hon Sidney George Holland, CHNational13 Dec 1949–20 Sep 1957
Rt Hon Sir Keith Jacka Holyoake, GCMG, CHNational20 Sep 1957–12 Dec 1957
Rt Hon Walter Nash, CHLabour12 Dec 1957–12 Dec 1960
Rt Hon Sir Keith Jacka Holyoake, GCMG, CHNational12 Dec 1960–7 Feb 1972
Rt Hon John Ross MarshallNational7 Feb 1972–8 Dec 1972
Rt Hon Norman Eric KirkLabour8 Dec 1973–d 31 Aug 1974
Rt Hon Wallace Edward RowlingLabour6 Sep 1974–12 Dec 1975
Rt Hon Sir Robert David Muldoon, GCMG, CHNational12 Dec 1975–26 Jul 1984
Rt Hon David Russell LangeLabour26 Jul 1984–8 Aug 1989
Rt Hon Geoffrey Winston Russell PalmerLabour8 Aug 1989–4 Sep 1990
Rt Hon Michael Kenneth MooreLabour4 Sep 1990–2 Nov 1990
Rt Hon James Brendan BolgerNational2 Nov 1990–12 Oct 1996
Coalition12 Oct 1996–8 Dec 1997
Rt Hon Jennifer Mary ShipleyCoalition8 Dec 1997–10 Dec 1999
Rt Hon Helen Elizabeth ClarkLabour/Alliance10 Dec 1999–15 Aug 2002
Labour/Progressive15 Aug 2002–19 Oct 2005
Labour/Progressive19 Oct 2005-

Table 3.07. New Zealand Executive Council
At 5 November 2007

Source: Cabinet Office

Governor-general

His Excellency the Honourable Anand Satyanand, PCNZM, QSO

Executive Council

The Executive Council comprises all ministers. The governor-general presides over meetings of the council, unless he or she is unavailable.

The Cabinet

  1. Rt Hon Helen Clark, Prime Minister, Minister for Arts, Culture and Heritage, Minister responsible for Ministerial Services, Minister in Charge of the New Zealand Security Intelligence Service, Minister Responsible for the Government Communications Security Bureau.

  2. Hon Dr Michael Cullen, Deputy Prime Minister, Minister of Finance, Attorney-General (includes responsibility for the Serious Fraud Office) Minister in Charge of Treaty of Waitangi Negotiations, Leader of the House.

  3. Hon Jim Anderton, Minister of Agriculture, Minister for Biosecurity, Minister of Fisheries, Minister of Forestry, Minister Responsible for the Public Trust, Associate Minister of Health, Associate Minister for Tertiary Education.

  4. Hon Phil Goff, Minister of Defence, Minister of Corrections, Minister of Trade, Minister for Disarmament and Arms Control, Associate Minister of Finance.

  5. Hon Annette King, Minister of Justice, Minister of Police, Minister of Transport, Minister Responsible for the Law Commission.

  6. Hon Pete Hodgson, Minister for Economic Development, Minister for Tertiary Education, Minister of Research, Science and Technology.

  7. Hon Parekura Horomia, Minister of Māori Affairs, Associate Minister for Social Development and Employment, Associate Minister of Education, Associate Minister of State Services, Associate Minister of Fisheries.

  8. Hon Chris Carter, Minister of Education, Minister Responsible for the Education Review Office, Minister for Ethnic Affairs.

  9. Hon David Cunliffe, Minister of Health, Minister for Communications and Information Technology.

  10. Hon Trevor Mallard, Minister for the Environment, Minister of Labour, Minister of Broadcasting, Minister for State Owned Enterprises, Associate Minister of Finance.

  11. Hon Ruth Dyson, Minister for Social Development and Employment, Minister for Senior Citizens, Minister for the Community and Voluntary Sector, Minister for Disability Issues.

  12. Hon Lianne Dalziel, Minister of Commerce, Minister for Food Safety, Associate Minister of Justice.

  13. Hon David Parker, Minister of State Services, Minister of Energy, Minister for Land Information, Minister Responsible for Climate Change Issues.

  14. Hon Nanaia Mahuta, Minister of Customs, Minister of Local Government, Minister of Youth Affairs, Associate Minister for the Environment, Associate Minister of Tourism.

  15. Hon Clayton Cosgrove, Minister of Immigration, Minister for Sport and Recreation, Minister for Small Business, Minister for the Rugby World Cup, Associate Minister of Finance, Associate Minister of Justice.

  16. Hon Rick Barker, Minister of Internal Affairs, Minister of Civil Defence, Minister for Courts, Minister of Veterans' Affairs, Associate Minister of Justice.

  17. Hon Damien O'Connor, Minister of Tourism, Minister for Rural Affairs, Associate Minister of Health.

  18. Hon Steve Chadwick, Minister of Conservation, Minister of Women's Affairs, Associate Minister of Health.

  19. Hon Maryan Street, Minister for Accident Compensation Corporation, Minister of Housing, Associate Minister for Economic Development, Associate Minister for Tertiary Education.

  20. Hon Shane Jones, Minister for Building and Construction, Associate Minister in Charge of Treaty of Waitangi Negotiations, Associate Minister of Immigration, Associate Minister of Trade.

    Ministers outside Cabinet

  21. Hon Judith Tizard, Minister of Consumer Affairs, Minister Responsible for Archives New Zealand, Minister Responsible for the National Library, Associate Minister for Arts, Culture and Heritage, Associate Minister of Commerce, Associate Minister of Transport.

  22. Hon Harry Duynhoven, Minister for Transport Safety, Associate Minister of Energy.

  23. Hon Mita Ririnui, Minister of State, Associate Minister of Corrections, Associate Minister in Charge of Treaty of Waitangi Negotiations, Associate Minister of Forestry, Associate Minister of Health.

  24. Hon Luamanuvao Winnie Laban, Minister of Pacific Island Affairs, Associate Minister for Social Development and Employment, Associate Minister of Trade, Associate Minister for Economic Development.

  25. Hon Mahara Okeroa, Minister of State, Associate Minister for Social Development and Employment, Associate Minister for Arts, Culture and Heritage, Associate Minister of Conservation.

  26. Hon Darren Hughes, Minister of Statistics, Deputy Leader of the House, Associate Minister for Social Development and Employment.

Ministers outside Cabinet from other parties with confidence and supply agreements

Rt Hon Winston Peters, Minister of Foreign Affairs, Minister for Racing, Associate Minister for Senior Citizens.

Hon Peter Dunne, Minister of Revenue, Associate Minister of Health.

Shortland Street actor, Adam Rickitt, encourages Auckland University students to enrol to vote. Eligible voters must be listed on the electoral roll to be allowed to vote in a general or local body election.

Parliamentary elections

People 18 years and over have the right to vote in New Zealand's parliamentary elections. Enrolment as an elector is compulsory, but voting is not. To qualify for enrolment a person must:

  • be at least 18 years old

  • be a New Zealand citizen or permanent resident

  • have lived continuously in New Zealand for at least a year at some time

  • have lived continuously for one month or more in the electorate in which they want to enrol.

Māori and people of Māori descent may choose to enrol for either a Māori, or a general electorate, but may make the choice at certain times only. Māori may make the choice the first time they enrol, or at the five-yearly Māori electoral option exercise. The most recent Māori electoral option was in 2006.

Electoral rolls are maintained by the Electoral Enrolment Centre, a division of New Zealand Post.

The Chief Electoral Office, a division of the Ministry of Justice, is responsible for conducting parliamentary elections and referendums. Returning officers are responsible for arranging voting facilities and staff, and conducting elections in their electorates. In an election year, a returning officer is appointed for each electorate.

Only people enrolled before an election are qualified to vote. Voting is by secret ballot. Most electors cast their vote at a polling place in their electorate on polling day, but they may cast a special vote at a polling place outside their electorate if necessary.

Electors can also cast their vote at an advance-voting place or by post if they are unable to attend a polling place on election day due to illness, or if they will be travelling outside their electorate, or because of their religious beliefs.

Voters overseas can cast their vote by downloading their voting papers from the Internet and faxing or posting them back to New Zealand.

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 counted. Voting patterns in recent general elections are shown in table 3.08.

There were 2,847,396 electors on the master roll for the 2005 general election. A total of 2,304,005 votes were cast, representing a turnout of 80.92 percent. This was an increase on the 2002 election, where turnout was 76.98 percent. The highest turnout in recent elections was 93.71 percent in 1984. Figure 3.01 shows the percentage of enrolled voters voting in general elections.

Electoral boundaries

The boundaries of electorates are revised every five years, based on electoral population figures from the Census of Population and Dwellings. The new boundaries come into effect at the end of the parliamentary term during which the revision is finalised.

Table 3.08. Voting patterns 1981–2005

YearVote typeElectors on master rollValid votesInformal votes(1)Special votes disallowed(2)Percentage of electors who voted

(1) A vote that doesn't clearly indicate the voter's intention.

(2) Because they voted in the wrong electorate, 18,133 voters in 2002 and 25,520 voters in 2005 had their electorate votes disallowed, but their party vote allowed.

Symbols:.. figure not available ... not applicable

Source: Chief Electoral Office

1981...2,034,7471,801,3038,99850,26391.4
1984...2,111,6511,929,2017,56542,03293.7
1987...2,114,6561,831,77711,18440,43389.1
1990...2,202,1571,824,09210,18042,84385.2
1993...2,321,6641,922,79611,36443,93285.2
1996party2,418,5872,072,3598,18354,63388.3
electorate...2,061,74618,796....
1999party2,509,3652,065,49419,88741,88484.8
electorate...2,047,47337,908....
2002party2,670,0302,031,6178,63115,15677.0
electorate...1,995,58626,52933,289..
2005party2,847,3962,275,62910,56117,81580.9
electorate...2,235,86924,80143,335..

Figure 3.01.

Electoral boundaries are defined by the Representation Commission, which consists of 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 boundaries for Māori electoral districts, the commission is joined by the chief executive officer of Te Puni Kōkiri, and two Māori representatives nominated by Parliament to represent the government and the opposition. After proposed boundaries have been drawn up and published, objections and counter-objections are considered by the commission, which then makes a decision on final boundaries.

Under the Electoral Act 1993, the South Island is allocated 16 general electorates. The number of general electorates for the North Island and the number of Māori electorates are then calculated so that their electoral populations are approximately the same as those for South Island general electorates.

The commission is required to consider community relationships, communication facilities, topographical features, and any projected variation in the general electoral population of the electorates when determining boundaries.

Based on the South Island population, the South Island general electorate quota for the 2008 general election was 57,562, resulting in 47 North Island general electorates (quota 57,243), and seven Māori electorates (quota 59,583).

Figure 3.02.

All electorates are allowed 5 percent above or below their electoral population quota. Figures 3.02, and 3.03 show Māori and general electoral districts for the 2008 general election.

Figure 3.03.

State sector

State sector is the common term for all organisations whose financial situation and performance is reported in the annual financial statements of the government.

The state sector includes all state services – Crown-owned or Crown-controlled agencies – through which executive government carries out many of its roles and functions.

State services includes: all public service departments; other departments not part of the public service; Crown entities (except tertiary education institutions); organisations listed in schedule 4 of the Public Finance Act 1989; and the Reserve Bank of New Zealand.

In addition to state services, the state sector includes tertiary education institutions, offices of parliament, state-owned enterprises, and some departments that are not part of the state services.

Courts Minister, Rick Barker, with 40 reams of paper – the quantity saved every week by Police and councils now filing infringement notices electronically.

State services

Public-service departments are those departments listed in schedule 1 of the State Sector Act 1988. At 31 October 2007, there were 35 public-service departments (these are called ‘departments’ in terms of the Act, irrespective of their individual label of department, ministry or any other title):

  • Archives New Zealand – www.archives.govt.nz

  • Crown Law Office – www.crownlaw.govt.nz

  • Department of Building and Housing – www.dbh.govt.nz

  • Department of Conservation – www.doc.govt.nz

  • Department of Corrections – www.corrections.govt.nz

  • Department of Internal Affairs – www.dia.govt.nz

  • Department of Labour – www.dol.govt.nz

  • Department of the Prime Minister and Cabinet – www.dpmc.govt.nz

  • Education Review Office – www.ero.govt.nz

  • Government Communications Security Bureau – www.gcsb.govt.nz

  • Inland Revenue Department – www.ird.govt.nz

  • Land Information New Zealand – www.linz.govt.nz

  • Ministry for Culture and Heritage – www.mch.govt.nz

  • Ministry for the Environment – www.mfe.govt.nz

  • Ministry of Agriculture and Forestry – www.maf.govt.nz

  • Ministry of Defence – www.defence.govt.nz

  • Ministry of Economic Development – www.med.govt.nz

  • Ministry of Education – www.minedu.govt.nz

  • Ministry of Fisheries – www.fish.govt.nz

  • Ministry of Foreign Affairs and Trade – www.mfat.govt.nz

  • Ministry of Health – www.moh.govt.nz

  • Ministry of Justice – www.justice.govt.nz

  • Ministry of Māori Development – www.tpk.govt.nz

  • Ministry of Pacific Island Affairs – www.minpac.govt.nz

  • Ministry of Research, Science and Technology – www.morst.govt.nz

  • Ministry of Social Development – www.msd.govt.nz

  • Ministry of Transport – www.transport.govt.nz

  • Ministry of Women's Affairs – www.mwa.govt.nz

  • National Library of New Zealand – www.natlib.govt.nz

  • New Zealand Customs Service – www.customs.govt.nz

  • New Zealand Food Safety Authority – www.nzfsa.govt.nz

  • Serious Fraud Office – www.sfo.govt.nz

  • State Services Commission – www.ssc.govt.nz

  • Statistics New Zealand – www.stats.govt.nz

  • The Treasury – www.treasury.govt.nz

At 30 June 2007, the number of full-time-equivalent staff employed in public-service departments was 42,047, compared with 38,032 at 30 June 2005, and 33,118 at 30 June 2003. When reform of the state sector began in the 1980s, about 70,000 people were permanent employees in government departments. Many of these have shifted to Crown entities, state-owned enterprises or the private sector. The public service today is characterised by relatively small departments, which have defined roles in policy advice, service delivery, regulatory or funding functions. Some bigger departments perform a combination of roles.

Non-public-service departments are agencies which are departments in terms of the Public Finance Act 1989, but are not listed in schedule 1 of the State Sector Act 1988. Consequently they are not part of the public service. At 31 October 2007, there were four such departments:

  • New Zealand Defence Force – www.nzdf.mil.nz

  • New Zealand Police – www.police.govt.nz

  • New Zealand Security Intelligence Service – www.nzsis.govt.nz

  • Parliamentary Counsel Office – www.pco.parliament.govt.nz.

Crown entities are organisations included in one of the five categories defined in section 7 of the Crown Entities Act 2004: Statutory entities (further subdivided into Crown agents, autonomous Crown entities, and independent Crown entities), Crown entity companies, Crown entity subsidiaries, and school boards of trustees. The fifth category is tertiary education institutions, which are Crown entities but are not included in the state services.

Crown entities make up a significant part of the state services and include a wide variety of corporations, Crown companies, and subsidiaries. The Crown Entities Act 2004 provides for the establishment and accountability of Crown entities, their operations, and reporting and financial obligations. At 31 October 2007, Crown entities in the state services included:

  • 83 statutory entities – 46 Crown agents, 21 district health boards, 22 autonomous Crown entities, and 15 independent Crown entities

  • 12 Crown entity companies, including nine Crown research institutes

  • approximately 200 Crown entity subsidiaries

  • approximately 2,465 school boards of trustees.

Organisations listed in schedule 4 of the Public Finance Act 1989 are those agencies included in the state services for which the full governance, accountability and reporting obligations of the Crown Entities Act 2004 would not be suitable. They include reserves boards, fish and game councils, and a small number of trusts and other organisations.

Reserve Bank of New Zealand is a stand-alone organisation included in the state services. It does not come under any other specific category or type of organisation within the state services.

Other state sector organisations

Non-state-service departments Two departments are considered to be outside the state services because their roles are supportive of the legislative branch of government, rather than of executive government. They are part of the state sector as departments under the Public Finance Act 1989:

  • Office of the Clerk of the House of Representatives – www.clerk.parliament.govt.nz

  • Parliamentary Service – www.ps.parliament.govt.nz.

Offices of Parliament The Office of the Ombudsmen, the Office of the Controller and Auditor-General, and the Office of the Parliamentary Commissioner for the Environment are not part of the executive branch of government, as their primary function is to provide a check on executive use of power and resources.

Tertiary education institutions These institutions are one of the five categories of Crown entities defined in the Crown Entities Act 2004, but are explicitly excluded from the definition of state services in the State Sector Act 1988. At 30 October 2007, there were 31 tertiary education institutions: eight universities, 20 polytechnics/institutes of technology, and three wānanga (Māori tertiary institutions).

State-owned enterprises (SOE) These are companies listed in schedule 1 of the State-Owned Enterprises Act 1986, that operate on commercial lines and are companies under the Companies Act 1993. Their objective is to be as profitable and as efficient as a comparable business not owned by the Crown, and to be socially responsible. The government may purchase services from SOEs, but generally will do so on the same basis as other purchasers. The government's interest in SOEs is substantially in their ownership. The government's interest in SOEs is supported by the Crown Company Monitoring Advisory Unit, a unit attached to the Treasury. At 31 October 2007, there were 17 state-owned enterprises:

  • Airways Corporation of New Zealand Ltd – www.airways.co.nz

  • Animal Control Products Ltd – www.pestoff.co.nz

  • AsureQuality Ltd – www.asurequality.co.nz

  • Electricity Corporation of New Zealand Ltd

  • Genesis Power Ltd – www.genesisenergy.co.nz

  • Kordia Group Ltd – www.kordiasolutions.com

  • Landcorp Farming Ltd – www.landcorp.co.nz

  • Learning Media Ltd – www.learningmedia.co.nz

  • Meridian Energy Ltd – www.meridianenergy.co.nz

  • Meteorological Service of New Zealand Ltd – www.metservice.com

  • Mighty River Power Ltd – www.mightyriverpower.co.nz

  • New Zealand Post Ltd – www.nzpost.co.nz

  • New Zealand Railways Corporation – www.nzrailcorp.co.nz

  • Quotable Value Ltd – www.qv.co.nz

  • Solid Energy New Zealand Ltd – www.coalnz.com

  • Timberlands West Coast Ltd – www.timberlands.co.nz

  • Transpower New Zealand Ltd – www.transpower.co.nz

Air New Zealand Limited (www.airnewzealand.co.nz) is also included in the annual financial statements of the government, for disclosure purposes, as if it were a state-owned enterprise.

State services commissioner

The state services commissioner is central to New Zealand's politically neutral public service. The commissioner is appointed by the governor-general on the recommendation of the prime minister.

The commissioner has two separate roles. As holder of a statutory office, the commissioner acts independently in a range of matters concerning the operation of the public service, state services and the wider state sector. As chief executive of the State Services Commission, the commissioner is also responsible to the Minister of State Services for the commission's functions and duties, capability, and performance.

The office of state services commissioner follows on from the Public Service Commission, which was established in 1912 to employ all public servants, and to protect the public service from political interference, preserving its political neutrality. The commissioner no longer employs all public servants, but still employs the chief executives of public service departments, and so continues to act as a buffer between ministers and the public service. The commissioner also undertakes a variety of functions relating to departmental performance. These include:

  • promoting and developing policies and standards for personnel administration and equal employment opportunities in the public service

  • promoting and developing senior leadership and management capability in the public service

  • providing advice on management systems, structures and organisations within the public service and Crown entities

  • setting minimum standards of integrity and conduct for the public service, most Crown entities, and some other agencies

  • advising the government on the structure of the state sector, including the allocation of functions among agencies.

The State Services Commission, with the support of other central agencies and the government, launched development goals for New Zealand's state services in March 2005. The goals were developed following new state sector legislation, and they focus on performance and quality within the state services as a whole. The commission is responsible for driving the goals' work programmes following on from the goals.

Crown Company Monitoring Advisory Unit

The Crown Company Monitoring Advisory Unit (CCMAU) was formed in 1993 to provide commercially-oriented advice on the Crown's ownership-interest in limited liability companies.

CCMAU advises and supports the Minister for State Owned Enterprises and the Minister for Crown Research Institutes. Other ministers also receive advice from CCMAU regarding the Crown's ownership interest in Crown entities such as Television New Zealand Ltd, Radio New Zealand Ltd, Animal Control Products Ltd, and three airport companies. Advice to the Minister of Finance is provided by the Treasury directly, while the Treasury and CCMAU also prepare joint reports for ministers.

One of CCMAU's primary functions is to provide advice on corporate intent targets and to monitor the performance of Crown companies against those targets. Other functions include providing advice on company restructuring, expansion, diversification and divestment plans; managing ownership issues; and identifying prospective directors and promoting best corporate governance practice of Crown companies. CCMAU, while independent for advice purposes, is attached to the Treasury for administrative purposes.

Controller and auditor-general

The controller and auditor-general (the auditor-general) is an officer of Parliament, appointed by the governor-general under the Public Audit Act 2001. The position is independent of the executive government and only the governor-general, on advice from the House of Representatives, can end the auditor-general's tenure.

The constitutionally important ‘controller’ function, as set out in the Public Finance Act 1989, provides independent assurance to Parliament that the expenses and capital expenditure of government departments and offices of Parliament have been incurred for lawful purposes, and are within the scope, amount, and period of the appropriations or other authority granted by Parliament.

The auditor-general audits the financial statements of government departments, local authorities, and most government-controlled corporations, boards and companies, and plays a key part in ensuring adequate accountability by these public entities.

The auditor-general also conducts performance audits to assess whether public entities are carrying out their activities effectively and efficiently, and are complying with their statutory obligations. If shortcomings are discovered during an audit, the principal recourse of the auditor-general is to report to the management of the entity, to a minister, or to Parliament and its select committees.

Official information

The Official Information Act 1982 requires the government to release official information when asked, whether or not that information is damaging to the government. Some information is exempted under the provisions of the Act.

The Act is based on the principle that information should be made available unless there is good reason for withholding it. The purpose of the Act is to:

  • increase the availability of official information

  • ensure corporations can access official information relating to themselves (access by individuals to their information is now governed by the Privacy Act 1993)

  • protect official information when it is in the public interest and preserve individual privacy.

With the exception of the Parliamentary Counsel Service, the Official Information Act 1982 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.

Criteria to be considered when deciding whether information should be withheld include:

  • 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.

Protection of personal privacy may be overturned if it is in the public interest to make the information available.

New Zealand parliamentary ombudsmen are able to investigate and review decisions made about a request for official information. If the request has been unreasonably refused, an ombudsman can order that the information be released.

Ombudsmen

The New Zealand parliamentary ombudsmen are impartial and independent authorities that review government. Parliament has implemented initiatives to strengthen and protect the independence of ombudsmen and to help the ombudsmen to gain credibility with the public. These initiatives are:

  • ombudsmen have the special status of ‘officer of Parliament’

  • ombudsmen are appointed by the governor-general, on the recommendation of the House of Representatives, not by the government

  • ombudsmen and their staff are not public servants

  • ombudsmen may report directly to Parliament

  • a special multi-party committee of Parliament (Officers of Parliament Committee) that considers and recommends, directly to Parliament, the names of prospective ombudsman appointees, and the financial requirements of the ombudsmen's office.

Ombudsmen investigate and form opinions on complaints about an act, omission, decision or recommendation – relating to a matter of administration – by any central, regional or local government department or organisation. An ombudsman may also initiate an investigation.

A committee of the House of Representatives can refer a petition to an ombudsman to investigate and report on. The prime minister can, with the consent of the chief ombudsman, refer any matter (other than a matter concerning a judicial proceeding) to an ombudsman for investigation and report.

Ombudsmen provide information and guidance on the application of the Protected Disclosures Act 2000 to an employee who has made, or is considering making, a protected disclosure.

On 21 June 2007 the ombudsmen became responsible for examining and monitoring the conditions and treatment of people detained in prisons, in health and disability places of detention, in youth justice residences, and those detained under the Immigration Act 1987.

Table 3.09 shows the results of complaints to the ombudsmen.

Table 3.09. Complaints to the ombudsmen
By outcome
Year ending 30 June 2007

OutcomeOmbudsmen Act 1975Official Information Act 1982Local Government Official Information and Meetings Act 1987
Source: Office of the Ombudsmen
Declined, no jurisdiction8450
Declined under ombudsman's discretion2675817
Discontinued, inquiry not warranted2694923
Resolved in course of investigation24918070
Sustained, recommendation made551
Sustained, no recommendation made25102
Not sustained16017114
Formal investigation not undertaken, but explanation, advice or assistance given6,22629469
Complaints transferred to
      Privacy Commissioner11277
      Health and Disability Commissioner400
      Police Complaints Authority010
Administration closed210
Still under investigation at 30 June53628959
Total7,7541,090262
Total 20068,293754172

Privacy commissioner

The Office of the Privacy Commissioner Te Mana Matapono Matatapu is independent of the executive and of Parliament. One of the main purposes of the office is to promote and protect individual privacy.

The Privacy Act 1993 establishes 12 information privacy principles and four public-register privacy principles. The principles apply to both the public and private sectors, but do not overrule other laws governing the use of personal information.

Information privacy principles cover the collecting, securing, using and disclosing of personal information; access to and correction of personal information; and assigning and using unique identifiers. Public-register privacy principles place some controls on the availability of public register information and its subsequent use.

The privacy commissioner observes, and reports on, issues that affect the way personal information is handled. The commissioner examines new legislation, and appears before parliamentary select committees that are considering new bills.

The privacy commissioner has the power to issue codes of practice that modify privacy principles. These codes replace the principles in particular contexts. Two major industry codes issued by the commissioner are the Health Information Privacy Code 1994, and the Credit Reporting Privacy Code 2004.

The commissioner oversees the operation of public sector information-matching programmes that government agencies use to compare databases of personal records (to establish, for example, entitlement to services, or instances of benefit fraud). The Act requires that an affected individual be given notice before adverse action is taken as a result of a match.

The Office of the Privacy Commissioner investigates complaints about breaches of privacy. If a complaint cannot be settled, or parties reconciled, using low-level dispute resolution, the commissioner may refer it to the Director of Human Rights Proceedings, who may bring proceedings before the Human Rights Review Tribunal. In the year ending 30 June 2007, the privacy commissioner referred 15 complaints to the Director of Human Rights Proceedings. Alternatively, aggrieved people may bring proceedings before the tribunal on their own behalf. The tribunal has the power to award remedies, including declarations, orders, damages and costs.

The Official Information Act 1982 and the Local Government Official Information and Meetings Act 1987 require the ombudsmen to consult with the commissioner on official information access requests where privacy is a possible ground for withholding information. In the year ending 30 June 2007, 25 formal consultations under the two acts were completed. Table 3.10 (overleaf) details complaints made to the privacy commissioner in recent years.

Former All Blacks captain Tana Umaga receiving the insignia of a Companion of the Queen's Service Order in 2006.

Table 3.1. Complaints to the privacy commissioner
Year ending 30 June

 20032004200520062007
Source: Office of the Privacy Commissioner
New complaints received928934721636640
Complaints current at start of year1,0391,052818569455
Number of complaints under process1,9671,9861,5391,2051,095
Number of complaints closed during year9151,168970752701
No jurisdiction2356402615
Complaints resolved without final opinion747848683500524
Final opinion145264247220140

Bill of rights

The New Zealand Bill of Rights Act 1990 is intended to provide minimum standards to which public decision making must conform. It emphasises New Zealand's formal commitment to fundamental civil and political rights, and affirms New Zealand's obligations under the International Convention on Civil and Political Rights.

The Act is designed to protect individuals and corporations from the actions of the State. It specifically applies to any acts by the legislative, executive and judicial branches of government; or by a person or body performing a public function, power or duty.

The attorney-general is required to notify the House of Representatives about any provision in any bill introduced into the house that appears to be inconsistent with the Act. The Ministry of Justice advises departments on the consistency of policy proposals and government bills with New Zealand's human rights laws, and advises the attorney-general on a bill's consistency with the Act. The Crown Law Office is responsible for providing advice to the attorney-general on bills from the Ministry of Justice.

An individual or legal body can go to court if they believe the Act has been breached. The Act has no remedy provision, but under common law the courts have provided remedies for infringement of the rights and freedoms identified in the Act.

The Human Rights Act 1993 provides for a publicly-funded complaints process in respect of breaches of the right to be free from discrimination section of the New Zealand Bill of Rights Act 1990. Individuals can lodge a complaint with the United Nations Human Rights Committee if the domestic options for a human rights complaint have been exhausted.

Human rights

The Human Rights Act 1993 makes it unlawful to discriminate in: employment; access to places, vehicles and facilities; provision of goods and services; provision of land, housing and other accommodation; and access to education.

Other forms of discrimination made unlawful by the Act include racial disharmony, racial harassment, sexual harassment, and victimisation. Both the public and private sectors are subject to the Act. There are 13 prohibited grounds of discrimination – sex, marital status, religious belief, ethical belief, colour, race, ethnic or national origin, disability, age, political opinion, employment status, family status, and sexual orientation. The Act also defines a number of circumstances where discrimination is not unlawful.

The Human Rights Commission, which from 2002 has included the former Office of the Race Relations Conciliator, is an independent Crown entity. Its primary functions are to:

  • promote respect for, and an understanding and appreciation of, human rights

  • encourage harmonious relations between individuals and among the diverse groups in New Zealand society

  • mediate disputes relating to unlawful discrimination.

The commission has developed a national plan of action for human rights. The commission also promotes a better understanding of the human rights aspects of the Treaty of Waitangi, and their relationship with domestic and international human rights law.

The Tuhoe hikoi (walk) arrives at Parliament to protest against the Police raids carried out on 15 October 2007 under anti-terror legislation.

Human rights complaints about government activities that are taken to the commission – other than employment, and sexual and racial harassment – are tested against the anti-discrimination standard set out in the Act. This provides that government or public sector activities that discriminate will be exempt if they are reasonable, lawful, and demonstrably justifiable in a free and democratic society.

Complaints of discrimination about government activities may also be taken to court under the New Zealand Bill of Rights Act 1990.

The commission acts as a first contact for those who wish to make a discrimination complaint, and assists parties to resolve complaints, using either mediation or other low-level means of resolving disputes.

The commission works with parties to try to reach a settlement, which may include an apology, an agreement not to discriminate in the future and/or compensation.

If lower-level dispute resolution is not appropriate or possible, a complainant may approach the Director of Human Rights Proceedings for possible litigation assistance. Complainants may also take their own litigation, or engage their own legal counsel and take their case to the Human Rights Review Tribunal.

If the tribunal upholds a complaint, a wide range of remedies is available, such as damages, and orders of specific performance. The remedies vary according to whether the complaint is about private sector activities, or government policy or practices.

When a complaint concerns legislation or validly-made regulations (and is not about the discriminatory application of legislation), and the complaint is upheld, the sole remedy available is a declaration of inconsistency. While this does not invalidate the legislation, the responsible minister is required to bring the tribunal's declaration to the attention of the House of Representatives, along with the Executive Council's response.

Parties can appeal to the High Court to overturn tribunal decisions.

Parliamentary commissioner for the environment

The parliamentary commissioner for the environment (PCE) is an independent officer of Parliament with wide-ranging powers to investigate environmental concerns. The office was set up under the Environment Act 1986. The PCE has discretion to:

  • review the system of agencies and processes established by the government to manage New Zealand's natural and physical resources

  • investigate public authorities' environmental planning and management, and advise them on remedial action

  • investigate any matter where the environment may be or has been adversely affected

  • at Parliament's request, report on any petition, bill, or other matter that may have a significant effect on the environment

  • at Parliament's direction, inquire into any matter that has had or may have a substantial and damaging effect on the environment

  • undertake and encourage collection and reporting of information about the environment

  • encourage preventive measures and remedial actions to protect the environment.

In investigating and reporting on environmental matters, the PCE can obtain information (protecting the confidentiality of that information where appropriate), report findings, and make recommendations. However, the PCE does not have the power to make any binding rulings or to reverse decisions made by public authorities.

Major reports released during the year 2006/07 included Get smart, think small: Local energy systems for New Zealand; Wind power, people, and place; Healthy, wealthy and wise on the links between energy use and health and well-being; and Changing behaviour: Economic instruments in the management of waste.

In the year ending 30 June 2007, the PCE responded on 217 occasions to requests for information and advice, and to issues of concern raised by individuals and groups.

Table 3.11. Reports and papers by the parliamentary commissioner for the environment
Year ending 30 June

 20032004200520062007
Source: Parliamentary Commissioner for the Environment
Investigation reports8190929288
Information transfer papers or presentations147185155123185
Total228275247215273

Public Trust

The Public Trust Office is a Crown entity, founded in 1873 to provide a stable, independent and impartial trustee organisation. Its purpose is to help New Zealanders take care of their interests through the provision of trustee and financial services.

Public Trust also cares for overseas assets and property under various statutes, acts as trustee-guardian for minors and protected persons, and acts as a trustee of last resort. Its key priorities are:

  • administering estates of deceased people

  • wills and enduring powers of attorney advice and preparation

  • establishing and administering trusts

  • agency and asset management services

  • providing financial and investment products and services

  • corporate and other trustee services

  • managing investment funds.

Local government

New Zealand's system of local government is largely separate from central government. Local government has a subordinate role in the constitution – its powers are conferred by Parliament.

Under the Local Government Act 2002, the purpose of local government is to enable democratic local decision-making and action, to promote the social, economic, environmental and cultural well-being of communities.

Local authorities fall into three categories: regional, territorial and special purpose authorities. Boundaries of regions, cities and districts are usually defined by the Local Government Commission or the Minister of Local Government. Many territorial authorities contain communities administered by community boards, but these are not separate local authorities. Six special purpose authorities are constituted under their own acts.

Local authorities have their own sources of income, independent of central government, with the main source (other than income from trading activities) being local taxes on land property – rates. Rates are set by local authorities themselves, subject to the Local Government (Rating) Act 2002.

Laws that apply to local authorities, and a range of other public bodies, include the Local Government Act 2002, the Local Government Official Information and Meetings Act 1987, the Local Authorities (Members' Interests) Act 1968, and the Local Electoral Act 2001. Local authorities derive their functions and powers not only from local government legislation, but also from numerous other acts, such as the Resource Management Act 1991, the Transit New Zealand Act 1989 and the Building Act 2004.

Local authorities can promote legislation to government about matters affecting their local area that they are not already empowered to deal with. When permanent or major additional powers are sought, a local bill must be prepared for Parliament to consider. If this is enacted, it becomes a local act, and applies only to the body or bodies that promoted it.

Local authorities are required to give public notice and receive public submissions before making certain important decisions. They may also come under the scrutiny of ombudsmen, the auditor-general and the parliamentary commissioner for the environment. Any decision by a local authority may be reviewed by appeal to the High Court. Decisions made under the Resource Management Act 1991 can be appealed to the Environment Court.

The Minister of Local Government may appoint a review authority when it is considered there has been serious mismanagement by a local authority, and can require the local authority to implement the review authority's recommendations.

Local government organisation

New Zealand has 12 regional councils, 73 territorial authorities, 143 community boards, and six special authorities. Table 3.12 (overleaf) lists regional councils, territorial authorities and numbers of councillors.

The Local Government Act 2002 recognises the diverse communities in New Zealand, their separate identities and values. It encourages participation by local people in local government. Local authorities are required to conduct their affairs in an open and proper manner, and to adequately inform local communities of their activities. Emphasis is placed on setting objectives and measuring performance.

Local authorities must separate their regulatory and non-regulatory activities. Local authorities are permitted to privatise their trading activities and may put the delivery of services out to competitive tender as an alternative to using in-house business units.

The Act lets regional councils and territorial authorities carry out activities they consider appropriate for their region or district in the context of the purpose of local government. Prior to 2002, local authorities were permitted to carry out only those activities specifically allowed by statute.

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

  • the Resource Management Act 1991 and the Soil Conservation and Rivers Control Act 1941

  • the control of pests and noxious plants

  • harbour regulations and marine pollution control

  • regional aspects of civil defence

  • an overview of transport planning

  • control of passenger transport operators.

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

Territorial authorities in New Zealand include 16 city councils, 56 district councils and the Chatham Islands Council. Territorial authorities 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 and litter control, reading, water supply, sewage reticulation and disposal, rubbish collection and disposal, parks and reserves, libraries, land subdivision, pensioner housing, health inspection, liquor licensing, building consents, parking controls, and civil defence.

New cities can either be constituted by an Order in Council giving effect to a decision of the Local Government Commission, or be constituted by a reorganisation scheme that forms a new district with a population of at least 50,000, that is predominantly urban, is a distinct entity, and is a major centre of activity within the region.

Table 3.12. Territorial authorities and councillors
At 30 November 2007

City/districtNumber of councillors(1)Council type

(1) Figures include mayors.

(2) Unitary authority (city or district council and regional council responsibilities).

(3) Trading name of Manawatu/Wanganui Regional Council.

Source: Local Government New Zealand

Ashburton13District
Auckland20City
Auckland13Regional
Buller11District
Carterton9District
Central Hawke's Bay9District
Central Otago11District
Chatham Islands9Council
Christchurch14City
Clutha15District
Dunedin15City
Environment Bay of Plenty13Regional
Environment Canterbury14Regional
Environment Southland12Regional
Environment Waikato12Regional
Far North10District
Franklin13District
Gisborne(2)15District
Gore12District
Greater Wellington13Regional
Grey9District
Hamilton13City
Hastings15District
Hauraki14District
Hawke's Bay9Regional
Horizons(3)12Regional
Horowhenua11District
Hurunui11District
Hutt City13City
Invercargill13City
Kaikoura8District
Kaipara9District
Kapiti Coast12District
Kawerau9District
Mackenzie7District
Manawatu11District
Manukau18City
Marlborough(2)14District
Masterton11District
Matamata-Piako12District
Napier13City
Nelson(2)13City
New Plymouth15District
Northland8Regional
North Shore16City
Opotiki7District
Otago11Regional
Otorohanga8District
Palmerston North16City
Papakura9District
Porirua14City
Queenstown-Lakes11District
Rangitikei10District
Rodney13District
Rotorua13District
Ruapehu12District
Selwyn11District
Southland13District
South Taranaki13District
South Waikato11District
South Wairarapa10District
Stratford10District
Taranaki11Regional
Tararua9District
Tasman(2)14District
Taupo11District
Tauranga11City
Thames-Coromandel9District
Timaru11District
Upper Hutt11City
Waikato14District
Waimakariri11District
Waimate9District
Waipa13District
Wairoa7District
Waitakere15City
Waitaki9District
Waitomo7District
Wanganui13District
Wellington15City
West Coast7Regional
Western Bay of Plenty13District
Westland11District
Whakatane11District
Whangarei14District

Unitary authorities are territorial authorities that also have regional powers. Legislation in 1989 prevented any unitary authorities being established, other than in Gisborne. However, an amendment in 1992 not only created three more unitary authorities (Marlborough District, Tasman District and Nelson City), but made it possible for others to be created by submitting proposals to the Local Government Commission.

Community boards advocate for the community and are a way for the territorial authority to consult with the community. Community board powers are delegated by the territorial authority. Those powers cannot include levying rates, appointing staff, or owning property. Community boards can be partly elected by the community and partly appointed by the territorial authority from among its own members, or be entirely elected. Community boards can be established anywhere in New Zealand to serve any number of inhabitants. They may be established on the initiative of a given number of electors of the territorial authority, through a reorganisation scheme. Community boundaries often coincide with those of wards (divisions of the district for electoral purposes). Boards have between four and 12 members.

Special purpose local authorities were greatly reduced in number following local government reform in 1989. Catchment boards, harbour boards, pest destruction boards, and land drainage boards disappeared, with their functions reallocated either to regional councils or, to a lesser extent, territorial authorities.

Categories remaining include scenic and recreation boards. There are also some unique authorities, such as the Aotea Centre Board of Management, the Canterbury Museum Trust Board, the Council of the Auckland Institute and Museum, the Otago Museum Trust Board, the Masterton Lands Trust, and the Greytown Lands Trust.

Peter Salmon QC, chairman of the Royal Commission on Auckland Governance, with hundreds of submissions about how the Auckland region should be governed in the future.

Local government elections

All regional council, territorial authority, special purpose local authority, and community board elections, as well as those for district health boards, are conducted at the same time. Local government elections are held on the second Saturday in October every third year. The next elections will be in 2010.

Electorates are known as ‘wards’ in the case of territorial authorities and ‘constituencies’ in the case of regions. Territorial authorities can decide whether members will be elected by the electors of wards, from the district as a whole, or a mixture of both. Regions must be divided into constituencies.

At least once every six years, in the year before an election, regional and territorial authorities are required to review the number of council or board members, the number and size of their electorates, and whether or not community boards should be established. The purpose of the review is to give effective representation to communities, and fair representation to electors. The review process provides for objections and appeals by the public. When necessary, final decisions are made by the Local Government Commission.

Voting procedures Although postal voting is now universal, a territorial authority may decide whether an election is to be conducted by attendance at a polling booth or by post. The method of casting a vote is similar to that for 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. The voting system currently used is ‘first past the post’, except for district health boards, and nine local authorities, which use the single transferable vote (STV) system – in which voters rank candidates in the order of preference. Other local authorities have the option of using STV at future elections.

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. Ratepayers who are not residents are entitled to enrol and vote in any region, district or community that they pay rates in. Rolls are compiled by territorial authorities. 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 Any person who is a New Zealand citizen and a parliamentary elector may be elected to a regional council, 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 on the timing of the vacancy.

Remuneration Most boards and councils pay their chairperson or mayor an annual salary, while other members are paid a combination of a meeting allowance and an annual salary. Maximum and minimum salary and allowance levels are set by the Remuneration Authority. The council or board decides the actual rate within those limits.

Local Government Commission

The Local Government Commission consists of three members, including a chairperson appointed by the Minister of Local Government.

The commission hears and determines:

  • appeals against local authority decisions on proposed boundary alterations

  • appeals and complaints relating to a local authority's ward and membership proposals following a representation review

  • proposals for the constitution of communities.

The commission considers and processes proposals to join or create districts or regions. The commission may also carry out investigations of particular matters affecting local government and report on them to the Minister of Local Government.

The commission is required to review and report to the Minister of Local Government on the operation of the Local Government Act 2002, and the Local Electoral Act 2001. It must report to the minister as soon as practicable after local elections.

Local government finance

Most of New Zealand's local authorities separate their activities into regulatory-type functions and trading activities. To support this, councils have set up business units that compete with outside businesses for council contracts, such as those involving roading, works and maintenance, and refuse collection.

In addition to business units, councils often have a shareholding in electricity supply companies, as well as companies which operate ports, airports and bus transport.

The total value of the non-trading activities of all local authorities is shown in table 3.13.

Table 3.13. Local authority statistics – non-trading activities(1)
Year ending 30 June

 20022003200420052006
$(million)

(1) Covers all activities of local authorities not classified as trading activities, eg local government administration, provision of water supply, roading, parks and reserves, town planning and regulation.

Note: Figures may not add up to stated totals due to rounding.

Source: Statistics New Zealand

Rates2,3012,4402,6202,7793,010
Regulatory income and petrol tax227242275302310
Government grants and subsidies444483556661684
Investment income420279302307308
Sales of goods and services and all other income7488098749481,056
Total operating income4,1404,2524,6264,9965,367
Employee costs8849511,0301,0981,174
Interest paid141141142158184
Depreciation7708298909571,075
Purchases and other expenditure1,9972,1062,3092,5342,787
Total operating expenditure3,7924,0264,3704,7475,220
Surplus before non-operating items348225256249148
Additions to fixed assets1,5981,7251,9382,1342,323
Disposal of fixed assets97235125235177

Contributors and related websites

Cabinet Office – www.dpmc.govt.nz/Cabinet

Chief Electoral Office – www.elections.govt.nz

Crown Company Monitoring Advisory Unit – www.ccmau.govt.nz

Department of the Prime Minister and Cabinet – www.dpmc.govt.nz

Government House – www.gov-gen.govt.nz

Honours Secretariat – www.dpmc.govt.nz/honours

Local Government Commission – www.lgc.govt.nz

Local Government New Zealand – www.localgovtnz.co.nz

Ministry for Culture and Heritage – www.mch.govt.nz

Ministry for the Environment – www.mfe.govt.nz

Ministry of Justice – www.justice.govt.nz

Office of the Clerk of the House of Representatives – www.parliament.govt.nz

Office of the Controller and Auditor-General – www.oag.govt.nz

Office of the Ombudsmen – www.ombudsmen.govt.nz

Office of the Parliamentary Commissioner for the Environment – www.pce.govt.nz

Office of the Privacy Commissioner – www.privacy.org.nz

Parliamentary Counsel Office – www.pco.parliament.govt.nz

Parliamentary Service – www.parliament.govt.nz

Prime Minister's Office – www.primeminister.govt.nz

Public Trust – www.publictrust.co.nz

State Services Commission – www.ssc.govt.nz

Statistics New Zealand – www.stats.govt.nz

Wellington City Council – www.wellington.govt.nz

Chapter 4. International relations and defence

Timor-Leste children at a local orphanage in Dili chat with Private Tai. Since 1999, New Zealand has provided strong support for the development of an independent and stable Timor-Leste, through peacekeeping, development assistance, and diplomacy.

Relations with other countries

The New Zealand Government began stationing diplomatic representatives overseas in 1943. Today, New Zealand has 50 overseas posts, with multiple accreditations allowing New Zealand representatives to cover 119 countries. The most recently opened overseas posts are an embassy in Cairo, Egypt, set up in October 2006, and a consulate-general in Guangzhou, China, which opened on 26 April 2007.

The government interacts with other governments and international institutions through the Ministry of Foreign Affairs and Trade Manatū Aorere (MFAT). The ministry's mission is to advance and protect New Zealand's security and prosperity interests abroad. MFAT is responsible for providing the government with policy advice on New Zealand's foreign affairs, trade and security interests. It represents and advocates for New Zealand's views and positions to other countries and in international institutions and negotiations, and manages New Zealand's foreign affairs and trade relations with other countries. It also provides consular services to New Zealanders abroad.

The ministry is formally responsible for the administration of Tokelau, although Tokelauan institutions have had administration powers since 1994. MFAT also manages New Zealand's constitutional relationships with the Cook Islands and Niue. These relationships involve New Zealand's residual responsibilities for the external affairs and defence of both states, when requested, and providing necessary economic and administrative assistance to Niue.

New Zealand's International Aid and Development Agency (NZAID) is a semi-autonomous body within the ministry. It was established in 2002 and is responsible for managing the delivery of New Zealand's official development assistance programme.

MFAT consults and works closely with other government departments and agencies in pursuing New Zealand's interests abroad. It coordinates a whole-of-government approach for advancing national interests and national identity abroad.

A key area of collaboration is in the area of furthering economic transformation, where MFAT works to strengthen international connections and increase trade by encouraging the flow of investment, skills and technology to New Zealand. New Zealand Trade and Enterprise (NZTE) is a particularly important partner in promoting the government's external policies for economic transformation and sustainability.

MFAT operates and administers a network of 50 diplomatic and consular posts to represent and pursue New Zealand's interests overseas. People at these posts perform services on behalf of all government departments, and provide a platform to support their overseas activities. Around 112 staff from other government departments and agencies currently work alongside ministry staff at overseas posts. NZTE also operates nine consular offices in conjunction with the ministry.

The ministry's overseas posts offer assistance to New Zealanders overseas, whether travelling in official or private capacities. MFAT maintains a website, www.safetravel.govt.nz, which provides travel advice and other consular information for New Zealanders.

Figure 4.01.

Figure 4.01 shows where the Ministry of Foreign Affairs and Trade has diplomatic and consular representation. Cities where New Zealand has a diplomatic mission are numbered and listed in bold. Countries listed under a mission are accredited to that mission – the head of the mission is New Zealand's representative to that country also.

The Pacific

New Zealand enjoys a close association with Pacific island nations. New Zealand has 10 diplomatic missions and consulates in the region and accreditation to a further six states and territories.

Special relationships exist between New Zealand and the Cook Islands, Niue and Tokelau. Cook Islanders, Niueans and Tokelauans are New Zealand citizens. The Cook Islands became a self-governing state in free association with New Zealand in 1965 and Niue followed in 1974. Tokelau is a non-self-governing territory of New Zealand.

Trade with Pacific countries is important to New Zealand. Exports totalled $1,056 million in the year ending 30 June 2007. Imports totalled $218 million, an increase of 36 percent on the previous year, largely as a result of increased oil imports from Papua New Guinea.

Imports from Pacific countries have duty-free access on a non-reciprocal basis to both New Zealand and Australian markets under the South Pacific Regional Trade and Economic Cooperation Agreement. Efforts are being made to promote imports from the Pacific, with increased NZAID support for the Pacific Islands Trade and Investment Commission, based in Auckland.

Pacific Islands Forum New Zealand has developed extensive links with Pacific regional organisations. It was a founding member of the South Pacific Forum, formed in 1971 to promote regional cooperation, particularly in trade and economic development. Renamed the Pacific Islands Forum in 1999, it now comprises 16 Pacific countries and provides an opportunity to discuss regional and international issues of interest to the region, such as regional security, environmental issues, fisheries, and economic development. Pacific Islands Forum countries meet annually at heads of government level, with meetings throughout the year at ministerial and official levels to consider specific issues.

An important aspect of the forum's work is the annual Forum Economic Ministers' Meeting. 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. Forum trade ministers also meet at least once every two years to advance regional trade initiatives.

The Pacific Agreement on Closer Economic Relations covers all Pacific Islands Forum countries, including Australia and New Zealand. It aims to develop closer trade and economic integration arrangements in the Pacific region.

The Pacific Island Countries Trade Agreement is a free trade agreement among Pacific Islands Forum countries. It came into force in 2003, but only became operational from 2007. As a result of the delays, the schedule to eliminate tariffs on intra-regional trade now extends out to 2021.

Fisheries management The importance of fisheries as an economic resource in the Pacific led to the September 2000 completion of the Convention on the Conservation and Management of Highly Migratory Fish Stocks in the Western and Central Pacific Ocean. Work is currently underway on a further multilateral agreement, the South Pacific Regional Fisheries Management Agreement, which will cover non-highly migratory fish species in the region. Pacific leaders also recognised the significance of fisheries for the region by issuing the Vava'u Declaration on Pacific Fisheries Resources at the 2007 Pacific Islands Forum in Tonga.

Other regional organisations that New Zealand is a member of include:

  • the Forum Fisheries Agency – assists members with management and conservation of the region's marine resources

  • the Secretariat of the Pacific Community – helps promote economic and social development in the region through work in agriculture, marine resources, health, socio-economic and statistical services, and community education

  • the South Pacific Regional Environment Programme – focuses on protection and management of environmental resources

  • the Pacific Forum Line – facilitates regional trade through improved shipping links

  • the South Pacific Applied Geoscience Commission – assists in assessment, exploration and development of mineral and other non-living resources.

New Zealand has other links with the Pacific that cover official development assistance, defence, and disaster coordination. The France, Australia, and New Zealand arrangement (FRANZ) is an important element in the provision of rapid emergency assistance to the region in the event of natural disasters, such as tropical cyclones.

Aid The Pacific is also the area of New Zealand's primary aid focus. About $205 million – approximately half of NZAID's budget – goes towards development assistance in the Pacific region.

NZAID has extensive relationships with countries in the Pacific and provides significant support for regional organisations, such as the Secretariat of the Pacific Community and the University of the South Pacific. Under its current Pacific strategy, regional programmes are divided into broad themes of:

  • strengthening governance

  • achieving broader-based growth and improved livelihoods

  • improving health and education

  • reducing vulnerability.

Security issues in the Pacific, security issues are characterised by internal and external security challenges stemming from factors including ethnic differences, economic disparities, land disputes, and transnational crime. New Zealand has been involved extensively in regional efforts to resolve these security challenges, especially in Bougainville and the Solomon Islands. In Bougainville, New Zealand committed personnel to the Peace Monitoring Group (1998–2003) and the Bougainville Transitional Team (2003). New Zealand also contributes police and military personnel, as well as civilian staff, to the Regional Assistance Mission to the Solomon Islands.

Regional cooperation in security matters has been centred on the Pacific Islands Forum and its regional security committee. The Biketawa Declaration, made by forum leaders in 2000, assigned the forum's secretary-general a specific role in monitoring possible sources of conflict, and in developing methods of dispute settlement and conflict avoidance to prevent them from developing into open conflict.

Australia

New Zealand's closest partnership is with Australia. The relationship is central to New Zealand's trade and economic interests, its defence, security and foreign policy interests, and to the country's overall economic and social well-being. New Zealand is represented in Australia by a high commission in Canberra and consulates-general in Sydney and Melbourne.

The political framework for managing the relationship includes regular dedicated meetings between the New Zealand and Australian prime ministers, meetings between the ministers of foreign affairs, finance, and defence, and the annual Closer Economic Relations Ministerial Forum for key trade and economic ministers.

Complementing these meetings, around 80 business and community leaders from both countries – including relevant senior ministers and opposition spokespeople – meet annually at the Australia New Zealand Leadership Forum.

Trans-Tasman travel arrangement (TTTA) This arrangement enables New Zealand citizens to travel, live and work in Australia, and Australian residents to receive similar access to New Zealand. A social security agreement negotiated with Australia, covering superannuation and severe disability, has been in effect since 2002. This preserves the ability of New Zealanders to live and work in Australia (and vice versa) under the TTTA, while allowing both governments to determine their own policies regarding access to all other social welfare benefits. More than 469,000 New Zealanders live in Australia and about 62,000 Australians live in New Zealand. More than a million New Zealanders and 900,000 Australians cross the Tasman on short-term visits each year.

Trade Australia is New Zealand's most important trading partner. New Zealand is Australia's number one market for highly-manufactured goods and the fifth-largest individual export market.

The Australia New Zealand Closer Economic Relations (CER) trade agreement, signed in 1983, and its associated arrangements and agreements, governs most trade and economic relations between the two countries. CER agreements on free trade on goods and a protocol on services provide for free trade in nearly all service sectors.

The CER also addresses a range of non-tariff trade matters, such as customs requirements, standards, business law regulations, and occupational registration requirements. The CER includes mutual recognition principles relating to the sale of goods and the registration of occupations, and an ‘open skies’ aviation market agreement. An Australia New Zealand Food Standards Code has been in effect since 2002. In August 2007, the Government announced that it would initiate World Trade Organization dispute settlement proceedings to address the long-running issue of access for New Zealand apples to the Australian market.

A major focus in the relationship now is on creating a seamless trans-Tasman business environment. Significant progress on this includes an agreement to coordinate business law, signed in 2000 and updated in 2005, and a cooperation protocol signed on 31 July 2007 between the New Zealand Commerce Commission and the Australian Competition and Consumer Commission on competition and consumer policy issues.

Security Australia is also New Zealand's closest and most important security partner. The alliance with Australia remains central to New Zealand's defence policies. Both governments are committed to achieving the highest possible level of cooperation with each other, while acknowledging the need for each to meet its own defence priorities. Australia and New Zealand have worked together closely and effectively in deployments in Timor-Leste, Bougainville and the Solomon Islands.

New Zealand Red Cross delegate, Peter Cameron, distributes aid to people displaced by severe flooding in Jakarta, Indonesia, in February 2007.

Asia

New Zealand invests considerable resources in developing closer political relations with Asian neighbours and it is represented by a network of offices in Bangkok, Beijing, Dili, Guangzhou, Ha Noi, Ho Chi Minh City, Hong Kong, Jakarta, Kuala Lumpur, Manila, New Delhi, Seoul, Singapore, Shanghai and Tokyo.

Cultural ties have grown rapidly. New Zealanders are coming into increasingly close and frequent contact with Asia and its people, through short-term visitors (tourists, students and business people) and through immigration from the region to New Zealand. New Zealanders of Asian ethnicity make up 9 percent of the total population and many ethnic communities maintain active links and connections with Asia.

The Government's ‘Seriously Asia’ fund aims to build links with rising Asian leaders and those well placed to influence public opinion. Long term, the trend towards closer integration in the Asian region and the possibility of a future East Asia community is of particular significance to New Zealand. New Zealand's intentions to strengthen its engagement with Asia have been outlined in the Government's white paper on New Zealand's relations with Asia, Our Future with Asia.

Trade New Zealand's economic links with the region have grown rapidly. In the year ending 30 June 2007, Asia was home to 11 of New Zealand's top 20 markets for goods exports. The region takes nearly 40 percent of New Zealand's exports by value, totalling more than $11.7 billion for the June 2007 year.

Trade in tourism and education services has been increasing rapidly, especially with the large economies of North Asia. Japan remains New Zealand's most important market in Asia, but China has emerged as a significant economic player in its own right and is now New Zealand's fourth-largest trading partner. South and South-East Asia represent emerging markets for New Zealand. There are also significant flows of direct investment between Asia and New Zealand.

New Zealand has finalised trade agreements with Singapore, Thailand and Brunei and signed a free trade agreement with China in April 2008. It is presently negotiating a bilateral trade agreement with Malaysia and, along with Australia, has been jointly negotiating with the Association of South-East Asian Nations.

Aid Asia is currently New Zealand's second priority for official development assistance (after the Pacific). Assistance is channelled directly through a variety of programmes such as English language training, human resources development and capacity building, and disaster relief, as well as through regional agencies.

Asia New Zealand Foundation This organisation helps to promote closer ties with Asia by supporting a broad range of cultural, academic and business engagement, including an extensive research programme. It receives funding from the New Zealand Government and corporate donors.

Association of South-East Asian Nations (ASEAN) New Zealand already has a long-standing relationship with ASEAN (Malaysia, Indonesia, the Philippines, Singapore, Thailand, Brunei Darussalam, Laos, Viet Nam, Myanmar and Cambodia). In 1975, New Zealand was one of the first countries to enter a ‘dialogue partner’ relationship with ASEAN, and New Zealand participates annually in the ASEAN Post-Ministerial Conference, where key international and regional issues are discussed. In 2005, New Zealand formally acceded to the ASEAN Treaty of Amity and Cooperation, signalling a commitment to closer engagement with ASEAN, and with Asia more generally.

New Zealand's participation in the inaugural East Asia Summit in Malaysia in 2005 was a further step towards building a deeper, more inclusive relationship with the region. The summit is made up of the 10 ASEAN nations, plus China, Japan, the Republic of Korea, New Zealand, Australia and India. Although it is one of the newest groupings in Asia, its annual leaders' summit has already become a major event in the regional calendar. Within the summit countries, a comprehensive economic partnership for East Asia has been proposed.

Asia Pacific Economic Cooperation (APEC) New Zealand is an active player in APEC, a grouping formed in 1989 that draws together 21 economies from around Asia and the Pacific rim. APEC summits are held annually at leaders' level and its trade facilitation efforts enjoy wide support. Some APEC members are promoting an Asia-Pacific free-trade region.

Security The ASEAN Regional Forum provides ministers from throughout the Asia-Pacific region with an opportunity to focus collectively on regional security issues. New Zealand is also a member of the Five Power Defence Arrangements, which brings together Malaysia, Singapore, the United Kingdom, Australia and New Zealand.

An important component of New Zealand's contribution to security in the region is its longstanding commitment to assist Timor-Leste, the youngest nation in the Asia-Pacific region. Since 1999 New Zealand has provided strong support for the development of an independent and stable Timor-Leste, through peacekeeping, development assistance and diplomatic efforts.

Americas

United States Shared values between New Zealand and the United States underpin close government and private sector contacts across a broad range of bilateral, regional and multilateral activities. The United States is one of New Zealand's key economic partners. It is one of New Zealand's three most important export markets and a major source of imports and investment. In multilateral trade discussions, the two countries advocate similar open market philosophies.

There is close cooperation in Antarctica and on Antarctic and Southern Ocean issues, including safeguarding the environment, supporting the Antarctic Treaty system, and scientific research into key issues like climate change. In the Pacific, New Zealand and the United States are working increasingly closely on issues of stability, security and governance. Both countries have common interests in countering terrorism and its proliferation in the Asia-Pacific region and elsewhere.

Canada New Zealand and Canada enjoy a positive and close relationship, based on shared Commonwealth, United Nations, Asian and Pacific interests. The two countries cooperate closely on a range of issues, including disarmament, international peacekeeping and security, policies in the Asia-Pacific region, and international economic matters. Canada is also an important market for New Zealand's agricultural products.

Latin America New Zealand aims to increase links between New Zealand and Latin America in three broad areas – political and diplomatic, economic and trade, and cultural – and focuses on six priority countries: Argentina, Brazil, Chile, Mexico, Peru and Uruguay.

New Zealand has a Trans-Pacific Strategic Economic Partnership agreement with Chile (as well as Singapore and Brunei), signed in July 2005. A report by the New Zealand-Mexico joint experts group, presented in November 2006, identified ways to advance trade and economic liberalisation between the two countries.

Working holiday agreements with Chile, Argentina, Uruguay and Mexico have increased cultural links considerably. Latin American countries also cooperate with New Zealand in a range of multilateral areas, including trade, the environment, Antarctica, disarmament and fisheries.

Cuba established an embassy in Wellington in October 2007. Argentina, Brazil, Chile, Mexico and Peru also have embassies in New Zealand, while Guatemala, Uruguay and Venezuela are cross-accredited to New Zealand.

Caribbean New Zealand's relationship with the Caribbean is based largely on membership of the Commonwealth, of which many Caribbean states are members. Beyond this, New Zealand's relationship with the Caribbean is supported by direct cultural links, such as tourism.

European Union

The European Union (EU) is a major political and economic entity and a significant player in world affairs. It accepted two more countries in January 2007, to become a community of 27 member states.

New Zealand's relationship with the EU was given renewed encouragement with the adoption of the Joint Declaration on Relations and Cooperation between the EU and New Zealand in September 2007. The declaration sets out the directions in which the relationship has moved, and establishes new areas of cooperation, including trade talks, increased cooperation on environment and climate change issues, science and technology cooperation, and research and educational exchanges.

New Zealand, the EU, and its member states, cooperate on many international issues, particularly at the multilateral level. Political consultations are held twice a year, at ministerial level, with the revolving EU presidency and the European Commission. Contact with the European Commission in Brussels, and also with the European Parliament, is critical to maintaining New Zealand's profile in Europe.

New Zealand also has important relationships with the EU's individual member states, including strong historical ties with the United Kingdom. Enlargement of the EU in May 2004 and January 2007 to encompass states in Eastern Europe has resulted in increased contacts between New Zealand and these countries.

New Zealand has accreditations to all 27 member states. A New Zealand embassy was opened in Warsaw in January 2005 in order to further support development of relationships with new member states in central Europe. New Zealand has eight bilateral embassies/high commissions in EU countries: in Berlin, Brussels, The Hague, London, Madrid, Paris, Rome and Warsaw. There are consulates in Hamburg and Milan, and a number of honorary consulates in other European cities.

Trade The EU is New Zealand's second-largest trading partner. It is the largest market for a broad range of primary produce, including sheepmeat, wool, butter, kiwifruit, apples and venison. Successful negotiations in the Uruguay round on the General Agreement on Tariffs and Trade improved the volume and overall stability of New Zealand's access to the EU market.

Russia and the Commonwealth of Independent States

New Zealand cooperates with Russia on a range of international issues in multilateral and regional bodies such as the United Nations, the Asia Pacific Economic Cooperation organisation, and the Association of South-East Asian Nations Regional Forum. It is heavily involved in negotiations for Russia to join the World Trade Organization. New Zealand has an embassy in Moscow, which is also accredited to Kazakhstan, the Kyrgyz Republic, Turkmenistan, Ukraine and Uzbekistan. An honorary consulate in Vladivostok covers New Zealand's interests in the Russian far-east.

Middle East and North Africa

Developments centred on the Middle East continue to have global strategic implications. Al Qa'ida's attacks on the United States on 11 September 2001 prompted the US-led invasion and occupation of Afghanistan and the US-led invasion and occupation of Iraq.

New Zealand has embassies in Egypt (Cairo), Saudi Arabia (Riyadh), Turkey (Ankara) and Iran (Tehran), with cross accreditations to Afghanistan, Bahrain, Israel, Jordan, Kuwait, Oman, Qatar and the United Arab Emirates. The New Zealand consulate-general in Dubai is also the regional office for New Zealand Trade and Enterprise. In North Africa, New Zealand is accredited to Morocco from its embassy in Madrid, and to Algeria from its embassy in Paris.

Revenues from buoyant oil prices, boosted by continuing strong world demand, continue to feed investment in infrastructure development, and demand for goods and services in the region.

Culverts are delivered for water supply reconstruction in Afghanistan. The New Zealand Defence Force has been involved in security and development in Afghanistan since 2001.

Trade and economic interests New Zealand's trade with the Middle East and North Africa has been boosted in recent years, on the back of high oil and food prices. The region is a valuable market for dairy, meat, wool, manufactured goods and services, and an important source of crude oil, polymers and fertilisers.

In the year ending 30 June 2007, New Zealand's exports to the Middle East totalled $1.187 billion, while imports for the same period were $1.870 billion. In North Africa, New Zealand's exports for the year ending 30 June 2007 totalled $455.58 million, while imports for the same period were $191 million. The growing importance and potential of trade in the region is reflected by the opening of negotiations towards a free trade agreement with the Cooperation Council of the Arab Gulf States. The demand for New Zealand education services has grown significantly. The region remains a major potential source and site for investment.

Security New Zealand personnel have served with the United Nations Truce Supervisory Organization in Israel, Egypt, Jordan, Lebanon and Syria since 1954 and with the Multinational Force and Observers in the Sinai since 1981. New Zealand Defence Force personnel also serve with the International Security Assistance Force in Afghanistan and with United Nations (UN) missions in Afghanistan, Iraq and Lebanon.

Afghanistan New Zealand maintains a strong commitment to restoring peace and security in Afghanistan. New Zealand supported the Bonn Process under which Afghanistan was returned to constitutional democratic government, and continues to support the partnership between the Afghanistan Government and the international community under the Afghanistan Compact. It has been involved in security and development efforts in Afghanistan since late 2001, supporting both the NATO-led International Security Assistance Force (ISAF) and Operation Enduring Freedom. New Zealand helps provide security to Bamyan Province (200 kilometres west of Kabul) through command of the provincial reconstruction team there. It also contributes officers to ISAF headquarters and the UN Assistance Mission in Afghanistan. Police training and mentoring is provided in Bamyan, and army training in Kabul. NZAID runs a mix of national and provincial assistance programmes, with a focus on human rights, alternative rural livelihoods, education and health care. New Zealand assistance for 2001–07, both military and development, totals more than $160 million. The deployment has been extended to September 2009.

Arab-Israeli conflict New Zealand continues to strongly support efforts to find a lasting solution to the Arab-Israeli conflict. New Zealand takes a balanced and constructive approach, encouraging dialogue, and supporting efforts towards a just, enduring and comprehensive peace settlement. New Zealand continues to advocate for an Israeli and a Palestinian state, coexisting side-by-side in peace and security, in line with relevant UN Security Council resolutions. New Zealand contributes $1 million annually to the UN Relief and Works Agency for Palestinian Refugees in the Near East (UNRWA). In 2007 NZAID also contributed $1 million to UNRWA's emergency appeal.

Iraq New Zealand did not support the 2003 military invasion of Iraq, but along with many other members of the international community, it backs UN-mandated processes to restore stability, security and able government to Iraq. New Zealand has contributed emergency humanitarian relief and other assistance (total value to 2007 was $24 million) to Iraq, mostly in recent years through the UN Development Programme trust fund, but also through the 2003–04 deployment of an New Zealand Defence Force light engineering group to carry out humanitarian and reconstruction tasks near Basra. In addition, New Zealand contributed $1 million in 2007 for UN relief assistance to Iraqi refugees, and another $700,000 to the International Red Cross.

Sub-Saharan Africa

New Zealand's official relations with Sub-Saharan Africa are mainly with the Commonwealth countries of southern and eastern Africa, with South Africa being the most significant.

New Zealand has one diplomatic mission in Sub-Saharan Africa – the New Zealand High Commission in Pretoria, South Africa. This is accredited to 10 other southern and eastern African countries: Botswana, Kenya, Lesotho, Mauritius, Mozambique, Namibia, Swaziland, Tanzania, Zambia and Zimbabwe. The New Zealand High Commission in London is responsible for relations with Nigeria.

Aid There is a strong humanitarian focus to many of New Zealand's relationships in Sub-Saharan Africa. New Zealand has a long-standing involvement in development in Africa through its official development assistance programme, which focuses on primary and non-formal education, rural development, and primary health care.

There is also provision for short-term technical assistance and support for New Zealand non government organisations, including Volunteer Service Abroad. During 2006, $20 million was spent in the region on development assistance, including scholarships.

Security As part of peace-building operations in Africa, New Zealand has three defence force personnel at the United Nations mission in Sudan.

Trade Sub-Saharan Africa accounts for only a small proportion of New Zealand's global trade. Exports to the region were valued at around $516 million in the year ending 30 June 2007. Among major exports to the region were dairy, fish, and other food products, casein, and electrical equipment. South Africa and Mauritius were New Zealand's most important markets in the region. Imports in the year ending 30 June 2007 totalled $314 million, with petroleum products, iron and steel, vehicles and parts, tobacco, coffee, and wine the major items.

Red Cross nurse Wendy Hetrick at the Juba Teaching Hospital in southern Sudan, where the International Red Cross is phasing out support as the region transitions to peace. Resources will then be concentrated in Darfur and other areas of Sudan where communities remain under threat from violence and armed conflict.

Assistance to developing countries

NZAID

New Zealand's Agency for International Development (NZAID) Nga Hoe Tuputupu-mai-tawhiti is the agency responsible for delivering New Zealand's official development assistance. It also advises ministers on development assistance policy and operations.

Reflecting the government's commitment to being a good international citizen and neighbour, NZAID aims to help eliminate poverty through development partnerships. NZAID's geographical focus is the Pacific region where New Zealand has close historic and cultural links. The agency also works in Asia, Africa and Latin America.

Established in 2002, NZAID places a high priority on building strong partnerships. It concentrates its development assistance on activities that contribute to eliminating poverty by creating safe, just and inclusive societies; fulfilling basic needs; and achieving environmental sustainability and sustainable livelihoods.

NZAID is a semi-autonomous body within the Ministry of Foreign Affairs and Trade. Its management is tailored to its core business and it has separate government funding.

NZAID's total budget allocation in the 2007/08 financial year takes New Zealand's expected overseas development aid to 0.3 percent of gross national income, with a commitment to move this to 0.35 percent by 2010/11. Table 4.01 (overleaf) shows NZAID's spending on programmes for 2006/07.

Pacific programme

While poverty is a global problem, development indicators show significant challenges in the Pacific region. Just over half of primary-school aged children go to school in the Solomon Islands; 20 percent of the population in Vanuatu have no access to health care services; and Papua New Guinea has the lowest living standards of any country in the Pacific, with many basic needs not met.

New Zealand is a Pacific nation and links with its neighbours are long standing and far reaching. As a small island nation, New Zealand understands many of the issues faced by its neighbours and by spending over half its aid in the Pacific, New Zealand is in a position to play a significant role in assisting Pacific countries address their development challenges.

NZAID's Pacific programme is focused where the need is greatest, with prioritised programmes in Vanuatu, Papua New Guinea and the Solomon Islands, where poverty is more severe and pervasive. NZAID also has major development partnerships with Fiji, Samoa, Tonga, Cook Islands, and Kiribati, and provides assistance to Niue and Tokelau that reflects New Zealand's constitutional commitments and close social ties.

Table 4.01. Spending on NZAID programmes
Year ending 30 June 2007

ProgrammeSpending $(million)Percent of total

Note: Figures may not add up to stated totals due to rounding.

Source: NZAID

Pacific162.4349
Global80.4224
International agencies64.1719
New Zealand agencies23.217
Total330.23100

NZAID supports the work of key regional agencies in the Pacific, including the Pacific Islands Forum Secretariat, the University of the South Pacific, the Secretariat for the Pacific Community, the Pacific Applied Geoscience Commission, the Pacific Regional Environment Programme, the Forum Fisheries Agency, and the South Pacific Board for Educational Assessment.

Asia programme

Asia is home to two-thirds of the world's poorest people. New Zealand's programmes in the region are targeted where they can make the greatest difference. South-East Asia is NZAID's major geographic focus outside the Pacific. The agency focuses on sustainable rural livelihoods in the region, including a strong emphasis on trade and development, and human resources development. Programmes in South-East Asia are closely aligned to partner government priorities and are delivered through direct support to government agencies and multilateral organisations. In 2006/07 close to $50 million was targeted to six bilateral partners – Indonesia, Viet Nam, Timor-Leste, Philippines, Cambodia, Laos – and linked regional programmes.

Latin America programme

NZAID's engagement in Latin America focuses on rural livelihoods and indigenous peoples in the central Andean Highlands and rural development in Central America. The main development partners are United Nations agencies, local and New Zealand non-government organisations (NGOs). NZAID also supports small local governance initiatives in Argentina, Chile and Brazil.

Africa programme

As well as providing support through international agencies and NGOs, to address development and humanitarian needs throughout Africa in 2006/07, NZAID managed a targeted development programme in southern Africa, covering South Africa, Tanzania, Zambia, Zimbabwe, Kenya, Mozambique, Namibia and Swaziland. The priority focus was youth oriented HIV/Aids healthcare, basic education and governance initiatives, working mainly through UN agencies and local NGOs on the ground.

Humanitarian assistance

Crises can arise for many reasons including natural disasters, conflict, or collapse of governmental systems. NZAID's first priority in humanitarian crises is to save lives, reduce suffering, and maintain human dignity, during and in the aftermath of the emergency.

The principals that NZAID follows when taking humanitarian action involve:

  • following international humanitarian law and international human rights conventions

  • ensuring that it assists longer-term development opportunities

  • ensuring that assistance is fair and equitable

  • working together with the local government and partners to make sure that decisions are reached in a participatory way

  • strengthening local capacity and ownership

  • monitoring how effective the action is, in order to improve future actions.

New Zealand agencies

NGOs play a crucial role in sustainable development and addressing humanitarian needs worldwide. NZAID provides support to the work carried out by New Zealand NGOs and their partners overseas through two major programmes – the Humanitarian Action Fund and Kaihono-hei-Oranga-Hapori o te Ao Partnerships for International Community Development (KOHA-PICD). NZAID also provides core funding for the Council for International Development (the umbrella body for New Zealand development NGOs), Volunteer Service Abroad, the Development Resource Centre and Trade Aid.

International agencies

NZAID engages with the multilateral system in collective action aimed at eliminating poverty and realising human rights for all. New Zealand support for international development bodies, including UN agencies and financial organisations such as the Asian Development Bank and the World Bank, is delivered under NZAID's multilateral programmes.

New Zealand contributes funding to UN agencies to enable development and humanitarian assistance for poor people in countries outside of the Asia/Pacific region. The assistance focuses on reproductive and sexual health, women's and children's issues, supporting refugees, and helping countries to meet basic needs.

NZAID's support prioritises engagement with 10 key agency partners that share New Zealand's priorities and policy settings. NZAID also prioritises certain issues for discussion in international meetings. These issues include gender, human rights, HIV/Aids, and aid effectiveness.

Involvement in international organisations

United Nations

New Zealand was a founding member of the United Nations (UN) in 1945 and successive New Zealand governments have continued to strongly support it. The UN is the major global forum for maintaining peace and security, strengthening relations among countries, encouraging international cooperation aimed at solving economic and social problems, establishing and strengthening an international legal framework, and promoting respect for human rights.

The range and complexity of the functions of the UN and its specialised agencies have grown steadily during the years. New Zealand concentrates on areas where it can play a useful role in matters directly affecting New Zealand interests, and where it can support efforts to secure lasting peace and security.

New Zealand is a strong advocate of international law and is actively engaged in the global debate on peace and security issues, disarmament, conflict prevention, sustainable development, the environment and the promotion of human rights, decolonisation, and reform of the UN organisation itself.

Contributions to the UN Each member's contribution is based on its capacity to pay. In 2006/07, New Zealand contributed $7.6 million in annual dues to the UN plus $16.9 million for the peacekeeping budget and $ 1 million for international tribunals. New Zealand's contribution for 2007 was 0.256 percent of the UN budget. Contributions to the UN's specialised agencies vary, according to scales agreed to by members of each agency.

Human rights During the 62nd session of the General Assembly in 2007, New Zealand played a pivotal role as a co-author of a resolution on the death penalty. It worked with other strongly abolitionist countries from all regions of the world to produce a resolution that calls on countries to implement a global moratorium on executions as a concrete step towards the total abolition of the death penalty. New Zealand also co-sponsored country-specific resolutions at the 2007 assembly relating to human rights situations of particular concern. These included Iran, the Democratic People's Republic of Korea, and Myanmar.

During 2007, New Zealand submitted its fifth periodic report under the Convention Against Torture, and its fifth report under the International Covenant on Civil and Political Rights. New Zealand also presented its seventeenth report to the Committee on the Elimination of Racial Discrimination and its sixth report to the Committee on the Elimination of All Forms of Discrimination Against Women in August 2007 (these two reports were first submitted in 2006).

The Convention on the Rights of Persons with Disabilities was adopted at the 61st session of the General Assembly in December 2006. New Zealand played a lead role in negotiating this convention and signed it on 30 March 2007.

In 2006, New Zealand announced that it was standing for the UN Human Rights Council for the period 2009–12.

The International Court of Justice This is the principal judicial organ of the UN. Its function is to decide, in accordance with international law, cases that are submitted to it by states. A New Zealand judge, Sir Kenneth Keith, was the first New Zealander to be elected to it as one of its 15 members, in November 2005.

Specialised agencies and related intergovernmental organisations Many subsidiaries, specialised agencies, and related agencies, work with the UN and each other to achieve shared goals. New Zealand is a member of the major specialised agencies, including:

  • the Food and Agricultural Organization (FAO) – aims to raise nutrition levels and improve food production and distribution, thereby contributing towards an expanding world economy and humanity's freedom from hunger

  • the International Labour Organization (ILO) – seeks to achieve important advances in working and living conditions

  • the World Health Organization (WHO) – aims to advance international health

  • UN Educational, Scientific and Cultural Organization (UNESCO) – seeks to develop the interconnected fields of education, science and culture.

In October 2007, New Zealand completed a term on the UNESCO World Heritage Committee, which is responsible for implementing the World Heritage Convention for the protection of natural and cultural heritage. New Zealand is a member of the WHO Executive Board, for the 2007–10 term.

New Zealand fully participates in the work of the International Atomic Energy Agency, which promotes the development and transfer of peaceful nuclear technologies, builds and maintains a global nuclear safety regime, and assists in global efforts to prevent the proliferation of nuclear weapons. It is similarly active in the Comprehensive Nuclear-Test-Ban Treaty Organization, and the Organisation for the Prohibition of Chemical Weapons.

World Trade Organization

The World Trade Organization (WTO) is the only international organisation that deals with rules of trade among nations. It acts as a single institutional framework over the General Agreement on Tariffs and Trade (which has been in force since 1948), and over the multilateral agreements that resulted from the Uruguay round of trade negotiations between 1986 and 1994.

The WTO provides a code of rules and a forum in which its 152 member countries can discuss trade problems, and negotiate and enlarge world trading opportunities. It is based on principles that the trading system should be:

  • Without discrimination – WTO members must treat all members as favourably as 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). Imported products must not be treated less favourably than domestic products with respect to internal taxes, regulations and other requirements.

  • Freer – barriers such as tariffs should come down progressively through negotiations.

  • Predictable – businesses should be confident that trade barriers, including tariffs, non-tariff barriers and other measures, will not be raised arbitrarily. This is achieved by members making binding commitments not to raise trade barriers beyond current levels.

  • Transparent – the WTO discourages less transparent instruments, such as quotas and import licensing, in favour of protection in the form of tariffs.

  • More competitive – the WTO discourages unfair practices, such as export subsidies, and dumping products below cost to gain market share.

  • More beneficial to less developed countries – developing countries are allowed more time to adjust, with greater flexibility and special privileges to help them in their development objectives.

The highest decision-making level in the WTO is the ministerial conference, which meets every two years. The 2002 ministerial conference in Doha, Qatar, launched a new round of negotiations with the aim of concluding them by 1 January 2005. The new round was termed the Doha Development Agenda, to acknowledge the importance of development issues to the achievement of further trade liberalisation.

Key provisions in the Doha declaration included agreement to improve market access for agricultural and non-agricultural products and services, new mandates to negotiate to reduce fishing subsidies, and recognition of the relationship between WTO trade rules and multilateral environmental agreements. The declaration also referred to the work of the International Labour Organization, and to avoiding mandates that could weaken critical WTO disciplines, such as the Sanitary and Phytosanitary Agreement.

Real progress on the Doha Round was not evident until the first half of 2004, when a political process produced breakthroughs in agriculture that led to a ‘framework’ agreement being adopted in Geneva in July 2004. This included advances on export subsidy elimination in agriculture. and progress across a range of other issues. The declaration did not meet the 2005 deadline for completion but intensive negotiations continued.

Talks among the so-called G6, the United States, EU, Brazil, India, Japan and Australia, broke down in mid 2006 and the WTO Director General suspended Doha negotiations. Negotiations were restarted following an informal meeting among trade ministers in the margins of the World Economic Forum meeting in Davos, Switzerland, in January 2007, and have continued since then. In July 2007, enough progress had been made to allow the chairs of the key negotiating groups on agriculture and non-agricultural market access to issue draft negotiating texts.

Commonwealth

The 53 member countries of the Commonwealth represent close to two billion people (about 30 percent of the world's population), from a broad range of cultures, faiths and traditions. The capacity of this diverse association to speak with a single voice on shared Commonwealth values – including a strong commitment to democracy, good governance and the rule of law – makes it a unique voice in world affairs.

Meetings of the Commonwealth Heads of Government (CHOGM), every two years, set the direction of the Commonwealth, with routine activities performed by the Commonwealth secretariat in London. The secretary-general and the secretariat, based in London, pursue the Commonwealth's twin goals of democracy and development.

New Zealand was a founding member of the Commonwealth in 1931, and in the 2007/08 year was the sixth-largest contributor to the Commonwealth Secretariat budget. New Zealand actively promotes the Commonwealth's core beliefs and principles.

The Commonwealth Games have been held in New Zealand three times, and New Zealand hosted the 1995 CHOGM in Auckland. A key achievement of the Auckland CHOGM was the establishment of the Commonwealth Ministerial Action Group (CMAG), which acts as the Commonwealth's watchdog on democracy and governance. New Zealand served on CMAG from 1995–99, and was again appointed as one of the nine members of CMAG at Kampala CHOGM in November 2007.

Former New Zealand Minister of Foreign Affairs and Trade, Rt Hon Don McKinnon, was appointed Commonwealth Secretary-General in 1999 and was re-elected for a second term in 2003. When his term concluded in March 2008, he was succeeded by H E Kamalesh Sharma of India.

Since 1992, New Zealanders have participated in numerous missions to observe elections in member countries, including Zimbabwe in 2000 and 2002, Pakistan in 2002, Nigeria in 2003, Sri Lanka in 2004, the Solomon Islands in 2004, Bougainville in 2005 and Lesotho in 2006.

Organisation for Economic Co-operation and Development

New Zealand joined the Organisation for Economic Co-operation and Development (OECD) in 1973. The OECD is a forum for democratic and market-oriented economies to study and develop economic, social, environment and development policies, with the ultimate aim of fostering prosperity and sustainable development.

The OECD works on almost all of the key economic, social and development issues on the international agenda. Its work programme includes projects on growth and innovation, agricultural policy reform, employment and social inclusion, sustainable development, ageing populations, education, information and communications technology, health care issues, and global trade liberalisation. Its staff are among the world's leading authorities in many of these areas.

Based in Paris, the OECD has 30 members: Australia, Austria, Belgium, Canada, the Czech Republic, Denmark, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Italy, Japan, Republic of Korea, Luxembourg, Mexico, Netherlands, New Zealand, Norway, Poland, Portugal, the Slovak Republic, Spain, Sweden, Switzerland, Turkey, the United Kingdom and the United States. In May 2007, the OECD invited Chile, Estonia, Israel, Russia and Slovenia to begin negotiations towards becoming members of the OECD. The OECD has extensive cooperation programmes with key non-member countries, including Brazil, China, India, Indonesia, and South Africa, and regionally focused programmes, including the Middle East and Africa.

Also of central importance is its programme of outreach with non-government organisations, to explain how the OECD's goals and activities are designed to promote the economic well-being of all citizens in both developed and developing countries.

New Zealand is a member of the International Energy Agency, an autonomous body within the OECD framework. The primary focus of the agency is oil security among members, but its programme embraces a wide range of energy issues. New Zealand is also a member of the Financial Action Task Force, an independent body housed in the OECD, dedicated to combating money laundering and terrorist financing.

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 1,466 (2006 Census). The central atoll, Nukunonu, is 92 kilometres from Atafu and 64 kilometres from Fakaofo. It is 480 kilometres north of Samoa.

The British Government transferred administrative control of Tokelau (then known as the Union Islands) to New Zealand in 1926. 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. In practice, no New Zealand legislation is extended to Tokelau without consent.

Governance Tokelau is listed as a non-self-governing territory and is on the schedule of territories under supervision of the United Nations Special Committee on Decolonisation. The Administrator of Tokelau 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 has been re-defined and expanded. In 1994, the administrator's powers were formally delegated to the General Fono (National Parliament), and the Council of Faipule (now the Council for Ongoing Government) when the General Fono is not in session.

In 1996, the formal step of devolving legislative power was taken. The Tokelau Amendment Act 1996, by the New Zealand Parliament, allowed the General Fono to exercise rule-making power. This power has been used primarily to manage major economic activities in Tokelau and for financial management of Tokelau's accounts.

The faipule are leaders of their respective villages (one on each atoll), and the ministerial portfolios they hold represent an extension of their formal responsibility. Traditionally, each village has been largely autonomous. The Tokelau Village Incorporation Regulations 1986 gave legal recognition to each village and granted it independent law-making power.

The ballot box arrives on the atoll of Atafu. Tokelau, for the 2006 referendum on self-governance.

In 2004, as part of the Modern House of Tokelau project, the administrator's powers were transferred from the General Fono to the three village councils (taupulega). The aim was to put in place a governance system that was functional in the local setting, blending the modem with the traditional. The challenge was to devise a structure which properly established the village as the focus of social and economic activities, that delivered services within the village, and that integrated traditional decision-making processes with modern advice and support.

In October 2003, the General Fono instituted a number of constitutional and law changes, which included renaming the Council of Faipule to Tokelau Council for Ongoing Government. The new council has six members, the three faipule and the three pulenuku (village mayors). The position of Ulu 0 Tokelau (leader of Tokelau) will continue to rotate on a yearly basis among the three faipule.

Public services A review of Tokelau public services carried out in 2003/04 shifted responsibility for public services away from the national office in Apia, Samoa, back to the three atolls. The office in Apia has been restructured to enhance its capability to deliver services on a national basis, and to provide a liaison point for international issues.

Finance Tokelau runs its own budget, and although it is currently heavily dependent on New Zealand for economic support, Tokelau has its own trust fund (now standing at just over $28.3 million). It is looking at ways of increasing its own revenue-earning capacity in areas such as fisheries licensing, handicrafts, tourism, and stamps and coins.

Self-determination Tokelau has in recent years been moving steadily towards an act of self-determination based on the Niue and Cook Islands form of self-government in free association with New Zealand. With the administrative powers formerly exercised by New Zealand having been transferred progressively to Tokelau, it is, in most practical respects, self-governing.

In 2005, New Zealand and Tokelau completed a draft Constitution for Tokelau and a draft Treaty of Free Association that could form the basis for a formal act of self-determination. In February 2006, Tokelau, under United Nations (UN) supervision, voted on whether to become self-governing in free association with New Zealand or retain its current status. Sixty percent of registered voters were in favour of self-government, but the vote did not produce the required two-thirds majority – the benchmark set by the General Fono. In October 2007, Tokelau held a second referendum, under UN supervision, and again the vote failed to produce the two-thirds majority required for a change in Tokelau's status.

Ross Dependency

The Ross Dependency consists of the land, permanent ice-shelf, and islands of Antarctica below 60 degrees south and between 160 degrees east and 150 degrees west. New Zealand's Antarctic territory includes the Ross Ice Shelf, the Balleny Islands, Scott Island, and the landmass and islands within these longitudes to the point where they meet at the South Pole.

The land is almost entirely covered by ice and is uninhabited except for the people who are conducting or supporting scientific research programmes. New Zealand operates a permanent scientific research station, Scott Base, on Ross Island in the dependency.

New Zealand has exercised jurisdiction over the dependency since 1923, when an Imperial Order-In-Council, made by the King in Executive Council in London, granted executive and legislative power to the New Zealand Governor-General in respect of the dependency.

New Zealand actively participates in the Antarctic Treaty System, which consists of the 1959 Antarctic Treaty and associated agreements. The treaty system serves to coordinate relations between states with respect to Antarctica, and its primary purpose is to ensure Antarctica is used for peaceful purposes only and that it does not become the scene or object of international discord. It designates Antarctica as “a natural reserve, devoted to peace and science”; promotes international scientific cooperation; and bans mining, nuclear testing and the dumping of nuclear waste, and the deployment of military personnel (except in support of peaceful purposes) in Antarctica.

Membership of the treaty system has grown from the 12 original signatories of the Antarctic Treaty (of which New Zealand was one) to 46 parties, 28 of which have consultative or decision-making status. Treaty parties meet regularly to consider issues within its framework, such as scientific and logistical cooperation and environmental protection measures, as well as the regulation of human activities in Antarctica, such as tourism.

People or groups going to the Ross Dependency, or who are departing for Antarctica from New Zealand (whatever their nationality), are required to submit an Environmental Impact Assessment under the Antarctica (Environmental Protection) Act 1994 to the Minister of Foreign Affairs. Permits must also be obtained for certain Antarctic activities. Official expeditions of governments that are parties to the Antarctic Treaty are exempt from these requirements.

Fishing in the Ross Sea must be consistent with conservation measures adopted by the Commission for the Conservation of Antarctic Marine Living Resources, based in Hobart, Australia. New Zealand has conducted exploratory fishing for toothfish in the Ross Sea since 1997.

Defence

The Governor-General of New Zealand is commander-in-chief in and over New Zealand. Authority over New Zealand's armed forces, however, is vested in the government – responsibility for defence matters within the government is held by the Minister of Defence.

The defence portfolio encompasses both the Ministry of Defence Manatū Kaupapa Waonga and the New Zealand Defence Force Te Ope Kaatua o Aotearoa. The chief of the defence force and the secretary of defence (the chief executive of the Ministry of Defence) are both accountable to the Minister of Defence.

The Ministry of Defence is responsible for policy, and advice on funding for defence activities, major capability procurement and repair. The secretary of defence is the government's principal civilian adviser on defence policy matters. The ministry also conducts evaluations of the performance of the New Zealand Defence Force.

New Zealand's armed forces consist of the Royal New Zealand Navy, the New Zealand Army, and the Royal New Zealand Air Force. These regular forces, together with territorial, reserve and civilian personnel, constitute the New Zealand Defence Force.

The chief of the defence force is both the commander and chief executive of the New Zealand Defence Force and is the government's principal military adviser on defence matters. The chief of defence force is responsible for the New Zealand Defence Force's management of resources, the general conduct of the New Zealand Defence Force, and chairs the meetings of the executive leadership team and chiefs of service committee.

The role of the chiefs of the navy, army, and air force, is to raise, train and maintain their respective services.

The commander of the joint forces in New Zealand exercises operational control of forces assigned to the headquarters of the joint forces, and commands all New Zealand Defence Force operations and exercises, as directed by the chief of the defence force.

The military and civilian advisory roles are complementary, with considerable overlap on defence, security, and capability issues. Close cooperation and consultation is required between the Ministry of Defence and the New Zealand Defence Force. The office of chief executives brings the secretary of defence and the chief of defence force together to discuss policy issues of mutual interest. The executive governance boards oversee major New Zealand Defence Force capital equipment and infrastructure projects.

The government funds defence through the Ministry of Defence and the New Zealand Defence Force. The two organisations' expenditure is consolidated in table 4.02 (overleaf).

Table 4.03 compares New Zealand's defence expenditure with international expenditure for 2000–06. Table 4.04 shows defence force personnel numbers 1998–2007.

Table 4.02. Defence expenditure
Year ending 30 June

Item2004200520062007
$(000)

(1) Non-cash technical adjustments.

(2) Non-departmental expenditure for social development activities (not included in the table) was: in 2004, $12,311; in 2005, $9,850; in 2006, $10,153; in 2007, $10,283.

(3) Funds recovered by New Zealand Defence Force for long-term working capital.

Sources: New Zealand Defence Force, Ministry of Defence

Personnel costs561,887576,119616,823649,744
Operating costs461,666443,561492,849532,538
Depreciation229,678232,669235,801290,608
Capital charge289,139281,894316,264346,845
Total output expenses1,542,3701,534,2431,661,7371,819,735
Other expenses(1)72,000-3,26601,665
Remeasurement expenses(1)00090,484
Total expenses(2)1,614,3701,530,9771,661,7371,911,884
Less
   Other revenue(17,202)(17,037)(16,552)(17,339)
   Profit on sale of assets(3)(25,483)(40,762)0(1,765)
   Net operating surplus/(deficit)(46,296)63,46861(85,968)
Revenue Crown-provided1,525,3891,536,6461,645,2461,806,812

Table 4.03. International comparison of defence expenditure
As proportion of gross domestic product

Country2000200120022003200420052006
Percent

(1) Year ending 30 September; US budget definition differs from NATO definition.

(2) Year ending 31 March.

(3) Year ending 30 June.

(4) Using NATO definition, excluding GST, capital charge and war pensions.

Source: New Zealand Defence Force

United States(1)3.23.13.43.84.04.03.8
United Kingdom(2)2.52.42.42.42.32.52.3
Australia(3)1.81.92.32.32.61.91.9
Sweden(3)2.22.91.91.81.71.51.4
Canada(2)1.21.11.21.21.21.21.2
New Zealand(4)1.01.01.00.91.10.91.0

Table 4.04. Defence personnel
At 30 June

YearRegular forceCivilians (NZDF and Ministry of Defence)
NavyArmyAir ForceTotal
Sources: New Zealand Defence Force, Ministry of Defence
19982,1044,4312,9919,5262,195
19992,0804,4172,8859,3821,912
20001,9674,5132,7869,2661,936
20011,8934,5802,6249,0971,877
20021,9114,4922,1948,5971,879
20031,9694,3882,2458,6021,923
20041,9534,4792,2498,6812,025
20051,9104,4382,2668,6142,092
20061,9984,5632,3888,9492,253
20072,0344,5802,4379,0512,321

Defence policy

The Government's defence policy is to have a modern, professional, and well-equipped defence force with the military capabilities to meet New Zealand's objectives. The five key objectives for New Zealand's defence policy are to:

  • defend New Zealand and to protect its people, land, territorial waters, exclusive economic zone, natural resources, and critical infrastructure

  • meet New Zealand's alliance commitments to Australia by maintaining a close defence partnership in pursuit of common security interests

  • assist in the maintenance of security in the South Pacific and to provide assistance to New Zealand's Pacific neighbours

  • play an appropriate role in the maintenance of security in the Asia-Pacific region, including meeting New Zealand's obligations as a member of the Five Power Defence Arrangements

  • contribute to global security and peacekeeping through participation in the full range of United Nations operations, and other appropriate multilateral peace support and humanitarian relief operations.

While New Zealand may not face a direct military threat from another country in the foreseeable future, the security of the country and its citizens is threatened by non-military groups, such as terrorists, international criminals, and resource poachers.

Deployment of New Zealand Defence Force personnel to trouble spots around the world demonstrates New Zealand's commitment to international peace and security. Since 2002/03, defence force personnel have been deployed to Afghanistan, and the Arabian Gulf region, in the international fight against terrorism. Hundreds of other defence force personnel are deployed to Timor-Leste and the Solomon Islands.

New Zealand Defence Force personnel were also deployed to longer-standing commitments in the Middle East, the Balkans, North-East and South-East Asia, and Africa.

Disarmament

New Zealand's voice on disarmament and arms control is listened to with respect, due to its role in creating the United Nations (UN), its opposition to nuclear testing, the establishment of a nuclear-free New Zealand, and practical contributions to UN peacekeeping and de-mining operations.

New Zealand also cooperates with other like-minded countries to exert influence. An example is its membership of the New Agenda Coalition (Brazil, Egypt, Ireland, Mexico, New Zealand, South Africa and Sweden) – a strong advocate for multilateral progress towards nuclear disarmament. New Zealand is also deeply involved with international efforts to stop the illicit arms trade, and to regulate conventional weapons.

The Ministry of Foreign Affairs and Trade's international security and disarmament division is responsible for policy and treaty implementation. It prepares advice for the Minister for Disarmament and Arms Control, represents New Zealand at international meetings, and ensures that New Zealand's international legal obligations are implemented at the national level. The division is also responsible for issuing export permits for items on New Zealand's list of strategic goods.

Overseas-based ministry officers, including an ambassador for disarmament, are involved in negotiations and activities with disarmament organisations, mainly in Geneva, Vienna, New York and The Hague.

The government values the views of New Zealand's non-government peace and disarmament groups, whose representatives join official delegations to international meetings to contribute their advice and perspective on the pursuit of New Zealand's disarmament goals.

New Zealand Defence Force personnel discuss how to disarm a smoke projectile near the village of Bint Jubayl on the Israeli/Lebanese border in February 2008.

A statutory body, the Public Advisory Committee on Disarmament and Arms Control, was established under the New Zealand Nuclear Free Zone, Disarmament and Arms Control Act 1987 to:

  • advise the Minister of Foreign Affairs and Trade on disarmament and arms control

  • advise the prime minister on implementation of the Act

  • publish reports on disarmament and arms control matters and on implementation of the Act

  • make recommendations for grants from the Peace and Disarmament Education Trust, established from Rainbow Warrior compensation funds, and grant funding from the UN Disarmament and Education Implementation Fund.

The committee has nine members, including the Minister for Disarmament and Arms Control, who is the chair. The other eight are appointed by the Minister of Foreign Affairs and Trade for three-year terms.

Royal New Zealand Navy

The chief of the Royal New Zealand Navy Te Taua Moana o Aotearoa exercises full command of the navy. The operational elements of the fleet are commanded by the commander of joint forces in New Zealand through the maritime-component commander, based at the headquarters of the joint forces, at Trentham. The deputy chief of navy, based in Wellington, is responsible to the chief of the navy for the navy's ‘raise, train and maintain’ functions.

The naval base at Devonport, Auckland, (known as HMNZS Philomel), consists of the navy's main naval barracks, wharf facilities, and administrative units; the naval hospital; and the naval supply and armament depots. The base also contains the naval dockyard, an engineering and support facility managed by a private company under contract. HMNZS Wakefield is the administrative unit in the Wellington area. There are four Royal New Zealand Naval Volunteer Reserve units in the main centres: HMNZS Ngapona in Auckland, HMNZS Olphert in Wellington, HMNZS Pegasus in Christchurch and HMNZS Toroa in Dunedin. There is also a port headquarters in Tauranga (attached to HMNZS Ngapona).

Table 4.05 lists the navy's ships and helicopters, while table 4.06 shows navy personnel.

Figure 4.02.

Royal New Zealand Navy sailors perform a haka as the project protector vessel, HMNZS Otago, is launched at a Melbourne shipyard in November 2006. The ship will be involved in patrolling, surveillance, search and rescue, humanitarian and peacekeeping assistance, and training.

Table 4.05. Navy vessels
2007

Ship/helicopter typeNameForce
Source: New Zealand Defence Force
ANZAC-class frigatesTe KahaNaval combat
 Te Mana 
Multi-role vesselCanterburyNaval support
Logistics (fleet replenishment)EndeavourNaval support
Offshore patrol vesselsOtagoNaval patrol
 Wellington 
Inshore patrol vesselsRotoitiNaval patrol
 Pukaki 
 Taupo 
 Hawea 
Survey shipResolutionHydrographic support
Diving support shipManawanuiDiving support
Training tenderKahuSea training
Mine counter measures support vesselKiwiTraining, mine countermeasures
Kaman Super Seasprite SH-2G (NZ) helicopter (x5)SeaspriteNaval aviation

Table 4.06. Navy personnel
At 30 June

Category2001200220032004200520062007
Source: New Zealand Defence Force
Regular force (all ranks)1,8931,9181,9781,9531,9101,9982,034
Volunteer reserve (all ranks)385357354317327291287
Total uniformed2,2782,2752,3322,2702,2372,2892,321
Civilian employees43444444143640387378
Total navy2,7122,7192,7732,7062,2772,6762,699

New Zealand Army

The New Zealand Army Ngati Tumatauenga is organised, equipped, and trained to respond to lower-level contingencies in the Asia-Pacific region, or contribute to a collective force, including a United Nations force. It can provide a flexible range of units and sub-units for deployments of up to a battalion group in size.

The chief of the army, under the chief of the defence force, has full command of the army. The chief of army is assisted in discharging his statutory command requirements by the army general staff. The army general staff has both a policy formulation and a policy implementation role.

The land-component commander, under the commander of the joint forces in New Zealand, commands the operational elements of the army. The land-component commander is assigned operational command of the second land force group, primarily based at Linton, and the third land force group, primarily based at Burnham. This position also commands all regular and territorial force units, except for those elements assigned to the land training and doctrine group. The land training and doctrine group, primarily based in Waiouru, reports directly to the army general staff and is responsible for most of the individual training conducted within the army.

Army specialist units, based at Auckland and Trentham, include a special air service group and a military police company, and are commanded by the land-component commander.

Table 4.07 lists army headquarters and units and table 4.08 shows army personnel.

Table 4.07. Army headquarters and units
2007

Headquarters/unitLocationRole
Source: New Zealand Defence Force
Auckland and Northland battalion groupAucklandTerritorial force
New Zealand special air service groupAucklandSpecial forces
Hauraki battalion groupTaurangaTerritorial force
Army depotWaiouruTraining
Headquarters – Army training groupWaiouruCommand
Land operations training centreWaiouruTraining
Officer cadet schoolWaiouruTraining
Wellington and Hawke's Bay battalion groupNapierTerritorial force
Wellington, West Coast and Taranaki battalion groupWanganuiTerritorial force
Battalion Royal New Zealand infantry regimentLintonCombat
Engineer regimentLintonCombat support
Field regimentLintonCombat support
Headquarters – Land force groupLintonCommand
Health services battalionLintonCombat service support
Logistics battalionLintonCombat service support
Signals squadronLintonCombat support
Force intelligence groupTrenthamCombat support
Force military police companyTrenthamCombat service support
Trentham regional support centreTrenthamStatic support
Army general staffWellingtonCommand
Battalion Royal New Zealand infantry regimentBurnhamCombat
Canterbury, Nelson, Marlborough and West Coast battalion groupBurnhamTerritorial force
Field troopBurnhamCombat support
Headquarters – Land force groupBurnhamCommand
Logistics battalionBurnhamCombat service support
Queen Alexandra's mounted riflesBurnhamCombat
Signals squadronBurnhamCombat support
Otago and Southland battalion groupDunedinTerritorial force

Table 4.08. Army personnel
At 30 June

Category2001200220032004200520062007
Source: New Zealand Defence Force
Officers742735732729746775804
Other ranks3,8383,7573,6563,7503,6923,7883,712
Total regular force4,5804,4924,3884,4794,4384,5634,516
Territorial force (all ranks)2,1592,1582,0311,8561,8881,9121,826
Total uniformed6,7396,6506,4196,3356,3266,4756,342
Civilians643779687684706745693
Total army7,3827,4297,1067,0197,0327,2207,035

Royal New Zealand Air Force

The Royal New Zealand Air Force (RNZAF) provides a maritime patrol force, a fixed wing transport force, and a rotary wing transport force. The chief of the air force, supported by the air staff, commands the air force.

The air-component commander within the headquarters of the joint forces commands the RNZAF's deployable operational units. The broad range of activities carried out to raise, train and maintain the operational units of the air force is provided under the direction of the air staff. Operational flying units are based at the Auckland and Ohakea RNZAF bases. The Ohakea base also hosts primary and advanced flying training, while most ground training is done at the Woodbourne base, near Blenheim.

RNZAF logistics services are coordinated by the air staff, with specific aircraft maintenance and supply support performed by operational squadrons and base logistics units. Much of the depot level repair and overhaul work is contracted to private companies in New Zealand and overseas. Air force training aircraft are maintained and supported by private contractors.

Table 4.09 lists air force aircraft, and table 4.10 shows air force personnel for 2001–07.

Table 4.09. Air force aircraft
2007

AircraftRNZAF baseForce
Source: New Zealand Defence Force
P-3K Orions (x6)AucklandMaritime patrol force
Boeing 757–2005 (x2)AucklandFixed wing transport force
C-130H Hercules (x5)AucklandFixed wing transport force
SH-2G (NZ) Super Seasprites (x5)AucklandNaval helicopter force
Bell UH-1H Iroquois (x14)OhakeaRotary wing transport force
Bell 47G Sioux (x5)OhakeaFlying training
CT-4E Air Trainers (x13)OhakeaFlying training
Beechcraft King Air B2005 (x5)OhakeaFlying training

Table 4.1. Air force personnel
At 30 June

Category2001200220032004200520062007
Source: New Zealand Defence Force
Officers571509508523541577600
Other ranks2,0531,7141,7181,7261,7251,8111,837
Total regular force2,6242,2232,2262,2492,2662,3882,437
Territorial force (all ranks)176157155322825191
Total uniformed2,8002,3802,3812,2812,2942,4132,628
Civilians411390412402376408379
Total air force3,2112,7702,7932,6832,6702,8213,007

International defence relationships

The Five Power Defence Arrangements Concern about security arrangements in South-East Asia led to the establishment, in 1971, of the Five Power Defence Arrangements (FPDA), involving New Zealand, Australia, Singapore, Malaysia and the United Kingdom. The arrangements are consultative and aim to contribute to the security of Malaysia and Singapore and to the long-term stability of the region. Members take part in exercise programmes that increase the ability of the five countries' armed forces to operate with each other. Defence ministers and defence chiefs meet regularly and there is a range of other exchanges.

The exercises and contacts which New Zealand has with FPDA partners are an important part of the New Zealand Defence Force's training programme and has expanded significantly in recent years. The FPDA continues to evolve to meet the challenges of the changing security environment, with attention now being given to combating non-traditional threats such as maritime terrorism, piracy, and people smuggling. Scenarios based around these threats are being introduced into exercises.

Mutual assistance programme Most South Pacific countries, some members of the Association of South-East Asian Nations (ASEAN), and Timor-Leste participate in the New Zealand Defence Force's mutual assistance programme. Through training cooperation and advisory assistance, the programme contributes to the effectiveness of defence forces and law enforcement agencies in the South Pacific region. From time to time, the programme also supports development projects in the South Pacific by using the engineering and trade skills of the armed forces. Training is provided in New Zealand, and training and technical teams are deployed overseas. Military instructors are attached to other armed forces in the Cook Islands, Samoa, Tonga, Vanuatu, and Malaysia, for up to two years.

Australia A close defence relationship with Australia in support of common interests for a secure and peaceful region is a key policy objective for the government. Both countries share a strong commitment to the security and stability of the Asia-Pacific region, as reflected in combined efforts in recent years in Bougainville, Timor-Leste, and the Solomon Islands. The security relationship between Australia and New Zealand is embodied by the policy of closer defence relations, adopted in 1991 and realised through a programme of cooperative activities designed to give the relationship practical effect.

Air Loadmaster Sergeants McQueen and Hodges launch a package over the drop zone during Exercise Skytrain. New Zealand and New Caledonian aircraft were involved in this RNZAF tactical low-level flying exercise, based out of Napier airport in January 2007.

ANZUS The ANZUS security treaty between Australia, New Zealand and the United States came into force in 1952. The United States, however, is unwilling to accept restrictions on access to New Zealand ports for nuclear-powered or nuclear-armed ships of the United States Navy and the ANZUS Council has not met since 1984.

Other military liaisons To facilitate exchanges on military matters, defence representatives are posted to many of New Zealand's overseas diplomatic missions, with some accredited to more than one country. New Zealand has defence representatives in Australia; Canada; China; Fiji/Samoa/Tonga; Indonesia/Timor-Leste; Malaysia/Brunei; Cook Islands/Niue; Papua New Guinea/Vanuatu/Solomon Islands; Philippines; Japan; Korea; Saudi Arabia/Qatar/Bahrain/United Arab Emirates/Oman/Kuwait/Afghanistan; Singapore; Thailand/Laos/Cambodia/Viet Nam; United Kingdom/Germany/France/Belgium/Italy/Ireland; and the United States.

Military representatives are also accredited to multilateral bodies, including New Zealand's United Nations New York mission, and the headquarters of the Integrated Area Defence System in Malaysia. A representative in the United Kingdom is accredited to the European Union and the North Atlantic Treaty Organisation. In addition, a number of countries have military representatives attached to their diplomatic missions in Wellington, or accredited to, but not resident in, New Zealand.

Armed forces overseas at 31 August 2007

United Nations Truce Supervisory Organization (UNTSO) New Zealanders have been serving as UN military observers with UNTSO since 1948. UNTSO was formed to supervise the various truces stemming from the first Arab-Israeli War. These days the main purpose of the organisation is to monitor the various armistices and peace agreements, and use its positive influence to mediate between the disputing parties.

Groups of UNTSO observers are also attached to the UN Disengagement Force on the Golan Heights and the UN Interim Force in Lebanon. NZDF personnel are mainly based in Damascus, Tiberias, Nahariya, and at UNTSO headquarters in Jerusalem. They usually work at observation posts between frontline regular forces on both sides of international borders. They are not normally involved with the continuing clashes between Israeli and Palestinian forces in the occupied territories of the Gaza Strip and the West Bank.

New Zealand observers are drawn from all three services and may include female and territorial force officers. The Cabinet reviews New Zealand's contribution to this mission periodically.

East Timor/Timor-Leste In 1999, the Indonesian Government agreed to hold a vote in East Timor to decide its future. New Zealand military personnel and civilian police have participated in various UN missions in East Timor since then to halt violence and to support stability in the region. Most troops were withdrawn in 2002.

A mutual assistance programme with Timor-Leste was established in 2005, to provide a framework for training assistance in the longer term. Following unrest in 2006, New Zealand recommitted a large number of personnel, together with Australia, to a combined joint task force. Currently, 180 NZDF personnel are deployed to Timor-Leste.

Afghanistan In the Afghanistan summer, 122 New Zealand Defence Force personnel are deployed as the New Zealand provincial reconstruction team in the province of Bamyan in central Afghanistan; approximately 80 are deployed during the winter. Three other personnel are attached to the International Security Assistance Force headquarters in Kabul. Another defence force officer works as a military liaison officer to the UN Assistance Mission to Afghanistan. Two personnel serve at the headquarters of the Combined Forces Command Afghanistan and Coalition Joint Task Force 76. Two more New Zealand Defence Force personnel assist in training the Afghan National Army as part of the Kabul-based United Kingdom Afghan National Army training team. Three staff officers are based at central command headquarters in Florida to provide planning advice and support for the New Zealand personnel contributing to Operation Enduring Freedom in Afghanistan. Contingents drawn from the New Zealand special air service group were deployed to Afghanistan, but the last returned in 2005.

Regional Assistance Mission to the Solomon Islands (RAMSI) The mission was deployed following a request from Solomon Islands' Prime Minister Kanaleeza in July 2003 for assistance in restoring security, particularly on the islands of Guadalcanal and Malaita. RAMSI is an Australian led mission comprising Australian, Papua New Guinean, Fijian, New Zealand and Tongan officials, elements of the Australian and New Zealand defence forces and police officers from Australia, New Zealand and Pacific countries. New Zealand initially contributed 230 personnel to RAMSI, although the mission was later scaled down. The New Zealand Defence Force deployed a 30-strong platoon and a three-person National Support Element between November 2004 and February 2005, and another infantry platoon in 2006. Currently, there are 44 defence force personnel in the Solomon Islands.

Multinational Force and Observers (MFO) This force, in Sinai, was established in 1981 to verify compliance with the terms of the 1979 peace treaty between Egypt and Israel. Eleven countries contribute to the MFO, including New Zealand, whose 26-strong contingent provides a training and advisory team, a heavy transport section, engineers, and staff officers.

Arabian Gulf Six New Zealand Defence Force personnel are based in the Arabian Gulf to provide logistical support to defence force operations in the region.

The Republic of Korea Three New Zealand officers serve with the UN Command Military Armistice Commission in the Republic of Korea.

Sudan Two New Zealand military observers and one staff officer are serving with the UN Mission in Sudan.

Iraq After the return to New Zealand in September 2004 of the 61 New Zealand Defence Force personnel attached to a British Engineer Regiment in Basra, only one officer remains in Iraq, as a military liaison adviser with the UN Assistance Mission in Iraq.

Former Yugoslavia The New Zealand Defence Force deployed personnel to different parts of the former Yugoslavia for peacekeeping for many years. One officer remains in Kosovo (at the Headquarters of the UN Mission in Kosovo), but all other missions have finished.

Casualties There have been five fatalities among New Zealand Defence Force personnel serving in UN observer and peacekeeping missions since the defence force began participating in such missions.

Community assistance

New Zealand Cadet Forces Community-based youth groups, the cadet forces include the Sea Cadet Corps, the New Zealand Cadet Corps and the Air Training Corps. In 2006/07, the New Zealand Defence Force supported 103 cadet units with a total strength of 3,671 cadets and 330 officers. These groups receive assistance from the New Zealand Defence Force and support from the Sea Cadet Association of New Zealand, the Cadet Corps Association of New Zealand, the Air Training Corps Association of New Zealand, community organisations, and the Royal New Zealand Returned and Services Association.

Limited Service These volunteer training courses have been run by the army since 1995; additional staffing support has been provided by the navy and air force since 1998. The programme offers 144 positions on five courses each year, and provides unemployed volunteers, between the ages of 17 and 25, with six weeks of residential motivational training in a military cultural environment, teaching outdoor activities and general life skills.

Disaster relief The New Zealand Defence Force provides assistance to civil authorities following natural disasters in New Zealand, the Pacific and South-East Asia. Assistance can include surveying damage; transporting relief, food and medical supplies; and providing medical, engineering and communications services.

Assistance was provided during the civil defence emergency declared during the floods in Northland in July 2007 (and also during the 2004 and 2005 floods in Eastern Bay of Plenty, Manawatu/Rangitikei, and Tauranga).

The defence force can also be called on for post-cyclone damage assessment, and delivery of supplies in the Pacific and in Asia (for example, following the Boxing Day 2004 tsunami). Army engineers, usually working through New Zealand's Agency for International Development, may be used for limited reinstatement of some infrastructure.

Ship navigator Lieutenant Rendall plots coordinates on HMNZS Te Kaha. Te Kaha is one of two ANZAC class frigates, which patrol New Zealand waters and the South Pacific region and participate in naval exercises with New Zealand's military partners.

Fisheries protection New Zealand's 200-mile exclusive economic zone is patrolled by the air force's P-3K Orions and navy vessels. Information from surveillance patrols is passed to the Ministry of Fisheries, and fisheries officers are sometimes carried on board aircraft or ships when patrols are conducted. The air force conducted numerous patrols in the New Zealand and South Pacific exclusive economic zones during 2006/07 and also patrolled the Southern Ocean. Navy fisheries protection and border surveillance patrols are expected to increase as two new offshore and four new inshore patrol vessels are introduced into/service.

Search and rescue All three New Zealand defence force services maintain a search and rescue capability. Naval and air units are on 24-hour standby, and provide personnel and advice to Rescue Coordination Centre New Zealand when needed. The navy and air force assist in sea searches, while the army and the air force assist the New Zealand Police in land searches and rescues. The air force also carries out emergency medical evacuations throughout New Zealand, the South Pacific and Antarctica. In 2006/07, the air force recorded 176 Orion and Iroquois search and rescue flight hours, which was less than half the 373 hours flown in 2005/06.

Operation Antarctica New Zealand Defence Force personnel support Operation Antarctica in terminal and logistic support operations. Up to 70 personnel are based at Harewood in Christchurch, and at McMurdo Station and Scott Base in Antarctica for varying periods during the Antarctic summer season from September to February. In 2006/07, RNZAF aircraft carried 110 passengers and more than 101,000 kilograms of freight to Antarctica.

Border surveillance The navy and air force support the New Zealand Customs Service in maintaining border security and reducing the risks that may arise as a result of the movement of people, goods and craft into and out of New Zealand. On request, the defence force will also patrol the exclusive economic zones of other South Pacific Forum countries.

Patrol flights in the South Pacific are carried out for military surveillance and economic-zone protection purposes. Unclassified results of these flights are shared with Pacific island countries and the Forum Fisheries Agency. Seats on these flights are frequently made available for Pacific island governments to allocate. All patrols are coordinated with Australian and French military authorities.

The New Zealand Defence Force's liaison with the New Zealand Customs Service will increase in importance as the navy's new offshore and inshore patrol vessels are introduced into service.

Other assistance The New Zealand Defence Force provides assistance to other government agencies and to the community. Assistance includes mail drops for Department of Conservation staff on outlying islands, ceremonial support for state occasions, helicopter and logistic support to the New Zealand Police, assistance with fire fighting, and explosive ordnance disposal.

Inspector-general of intelligence and security

The inspector-general of intelligence and security helps the prime minister oversee and review the Security Intelligence Service and the Government Communications Security Bureau. The inspector-general's focus is on the lawfulness of each organisation's activities, and that any complaints are independently investigated. The inspector-general is appointed by the governor-general on the recommendation of the prime minister following consultation with the leader of the opposition.

The New Zealand Security Intelligence Service

The New Zealand Security Intelligence Service (NZSIS) provides the government with intelligence and advice on national security issues within the terms of the New Zealand Security Intelligence Service Act 1969. The service is a civilian organisation governed by statute. The director of security, appointed by the governor-general, is responsible to the Minister in Charge of the New Zealand Security Intelligence Service for its efficient and proper working.

The NZSIS:

  • obtains and evaluates intelligence relevant to security (this includes collecting and assessing domestically focused security intelligence, and the provision of foreign intelligence reports to meet New Zealand's foreign intelligence requirements)

  • communicates the intelligence to those whom the director considers appropriate, in the interests of security

  • advises the government about matters relevant to security

  • cooperates with other organisations in New Zealand and overseas that can assist the service

  • makes security-related recommendations on immigration and citizenship matters

  • conducts enquiries and makes recommendations on security clearances for particular individuals

  • gives advice on protective measures relevant to security.

Security involves protecting New Zealand from acts of espionage, sabotage, and subversion, whether or not the acts are directed from, or intended to be committed in, New Zealand. Security also involves protecting New Zealand from activities of foreign organisations or people that are clandestine, deceptive, threaten the safety of anyone, or have a negative impact on New Zealand's international or economic well-being.

The service aims to identify foreign capabilities, intentions or activities, within or relating to New Zealand, that impact on New Zealand's international or economic well-being; and to prevent any terrorist act or activity.

The NZSIS may not enforce security, or investigate people only because they take part in legal protest activities or disagree with the government of the day, nor can it do anything for the purpose of harming or furthering the interests of any political party.

The inspector-general of intelligence and security may enquire into any matter relating to the service's compliance with the law. The inspector-general may enquire into a complaint by any New Zealand person who considers that they have been adversely affected by any act, omission, practice, policy or procedure of the NZSIS. The service is also overseen by the Intelligence and Security Committee of Parliament.

Government Communications Security Bureau

The Government Communications Security Bureau (GCSB) provides information, advice and assistance to the New Zealand Government, government departments and organisations. The GCSB is responsible to the prime minister.

The operations of the GCSB are governed by the Government Communications Security Bureau Act 2003. The GCSB is subject to oversight and review by the inspector-general of intelligence and security.

The GCSB protects information that is processed, stored, or communicated by electronic or similar means. The GCSB formulates communications security and computer security policy. It promotes standards and provides material, advice, and assistance to government departments and authorities (including the New Zealand armed forces), on matters relating to the security and integrity of official information – the loss or compromise of which could adversely affect national security.

The GCSB provides advice to government departments and authorities about official information that, although unrelated to national security, requires protection for privacy, safety, and commercial reasons, or to protect the functions of government. It also provides technical security services to defend against eavesdropping and other forms of technical attack against New Zealand Government premises worldwide.

The GCSB warns, guides, and coordinates the national response to information-technology-based threats to New Zealand's critical infrastructure (ie power, telecommunications, emergency services, banking and finance, transport, and government).

GCSB collects 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, at Tangimoana, near Palmerston North, and Waihopai, near Blenheim.

External Assessments Bureau

The External Assessments Bureau produces intelligence assessments of events and trends overseas that are likely to influence New Zealand's foreign relations and external interests. Part of the Department of the Prime Minister and Cabinet, the bureau supports informed decisionmaking by the government.

The bureau employs about 30 staff, who 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.

Table 4.11 shows annual expenditure on the three intelligence and security agencies.

Table 4.11. Expenditure on intelligence and security agencies
Year ending 30 June

YearExternal Assessments BureauNew Zealand Security Intelligence ServiceGovernment Communications Security Bureau
$(000)
Sources: External Assessments Bureau, New Zealand Security Intelligence Service, Government Communications Security Bureau
19962,1219,96419,498
19972,2169,96818,496
19982,27410,51418,506
19992,28710,58319,083
20002,29211,50021,289
20012,46210,95619,327
20022,54111,69020,116
20032,70913,37623,216
20043,12915,65529,154
20053,07917,20629,754
20063,05822,43337,977
20073,16228,39942,077

Contributors and related websites

Department of the Prime Minister and Cabinet – www.dpmc.govt.nz

Government Communications Security Bureau – www.gcsb.govt.nz

Ministry of Defence – www.defence.govt.nz

Ministry of Foreign Affairs and Trade – www.mfat.govt.nz

New Zealand Army – www.army.mil.nz

New Zealand Defence Force – www.nzdf.mil.nz

New Zealand Security Intelligence Service – www.nzsis.govt.nz

NZAID – www.nzaid.govt.nz

Office of the Inspector General of Intelligence and Security

Royal New Zealand Air Force – www.airforce.mil.nz

Royal New Zealand Navy – www.navy.mil.nz

Statistics New Zealand – www.stats.govt.nz

Volunteer Service Abroad – www.vsa.org.nz

Chapter 5. Population

The ethnic mosaic of New Zealand's population is changing, with the Māori, Asian and Pacific populations making up a growing proportion of the overall population. Some pupils from Aorangi Primary School in Christchurch in 2008 – Samantha Jory-Smart (left), 7, Hassain Raja, 9, Poutiriao McDowell, 6, Fatima Zawari, 10, Chris Choi, 8, and Diana Elisara, 10.

Population growth

The population of New Zealand reached 500,000 in 1880, boosted by the introduction of government-assisted immigration. The first million mark was passed in 1908, following economic recovery from the depression of the 1880s and 1890s. In the aftermath of World War II, the growth rate climbed dramatically, compared with stagnation in the early 1930s, as the baby boom and increased immigration took effect.

The second million was reached in 1952, 44 years after the first million, and the third was reached only 21 years later, in 1973. Nearly 20 percent of the population growth during this period came from net migration. New Zealand's estimated resident population reached 4 million 30 years later in 2003. Nearly all the population growth between 3 and 4 million was due to natural increase (an excess of births over deaths), with migration not contributing significantly.

Figure 5.01 (overleaf) tracks New Zealand's historical and projected population and growth from 1961 to 2061.

Future demographic trends

Future population trends are uncertain because demographic changes affect, and in turn are influenced by, social, economic, political and other circumstances. Despite the inherent uncertainty, demographic projections provide relatively robust and useful information for several reasons.

Firstly, despite the range of influences that can impact on it, population change is fundamentally driven by births, deaths and net migration (arrivals minus departures).

Secondly, birth and death rates are generally consistent over several years, especially for larger geographical areas, barring major catastrophes, wars or epidemics.

Thirdly, three-quarters of people who will live in New Zealand in 20 years time have already been born. With the uncertainty of the births component removed, only migration or death can change the existing population.

Some broad future trends and structural changes can be identified. For example, population ageing and sub-replacement fertility in New Zealand have raised the prospect of slower population growth in coming decades. Sub-replacement fertility means that the population will not replace itself in the long-run, without migration.

The Dhue family has seven boys – lesse (left), 14, Presley, 4, Taylor, 11, Bodhi, 12, Dylan, 16, Staeski, 7 months, with father Spencer Dhue, and Britten, 2, with mother Tina Dhue. At the time of the 2006 Census, 20, 556 women stated that they had given birth to seven or more children.

Figure 5.01.

The entry of large baby boom cohorts into retirement ages from 2011 will result in an increasing number of people aged 65 years and over. New Zealand's workforce will take on an older profile.

Projections also point to greater ethnic diversity in the future, with the broad Māori, Pacific and Asian populations all expected to increase their share of the New Zealand population.

Within the national scene, there will be contrasting population changes, with further concentration of population likely in the northern North Island. Given the narrowing gap between births and deaths, more and more areas will be relying on migration from other areas of New Zealand, or from overseas, if they want to maintain (let alone increase) their population. For many areas, this would require a reversal of recent migration flows.

Fertility has been below replacement level for most of the past few decades and is likely to remain so. However, New Zealand's population will continue to grow steadily but slowly for some time. This is because the current age structure has a built-in momentum for further growth, while international migration generally contributes more arrivals than departures. Slow growth aside, there will be profound shifts in population composition, including further ageing of the population, a burgeoning population aged 65 years and over, growing ethnic diversity, and geographic redistribution of the population.

Table 5.01. New Zealand population By census

Year(1)(2)Census datePopulationIncrease from previous censusAverage annual increase (percent)
NumberPercent

(1) Omits censuses of 1851, 1861, 1864, 1867 and 1871 as censuses of the Māori population were not taken in these years.

(2) Figures from 1981 onwards are census usually resident population counts, replacing census night population counts used previously.

Note: All figures are randomly rounded to base 3.

Symbol:... not applicable

Source: Statistics New Zealand

185824 December115,461.........
18741 March344,985.........
18783 March458,007113,02232.767.33
18813 April534,03076,02316.605.10
188628 March620,45186,42116.183.06
18915 April668,65248,2017.771.50
189612 April743,21474,56211.152.13
190131 March815,86272,6489.771.90
190629 April936,309120,44714.762.75
19112 April1,058,313122,00413.032.52
191615 October1,149,22590,9128.591.50
192117 April1,271,667122,44210.652.27
192620 April1,408,140136,47310.732.06
193624 March1,573,812165,67211.771.13
194525 September1,702,329128,5178.170.83
195117 April1,939,473237,14413.932.37
195617 April2,174,061234,58812.102.31
196118 April2,414,985240,92411.082.12
196622 March2,676,918261,93310.852.11
197123 March2,862,630185,7126.941.35
197623 March3,129,384266,7549.321.80
198124 March3,143,307.........
19864 March3,263,283119,9763.820.76
19915 March3,373,926110,6433.390.67
19965 March3,618,303244,3777.241.41
20016 March3,737,277118,9743.290.65
20067 March4,027,947290,6707.781.51

Projected population

A number of population projection series are produced to illustrate a range of possible population scenarios. Projections given in this chapter draw on series 5 of the 2006-base national population projections released in October 2007. Series 5 assumes that: New Zealand women will average 1.9 births each in the long-run (below the 2.1 births required for the population to replace itself without migration); life expectancy at birth will increase to reach 84.5 years for males and 88.0 years for females in 2061; and there will be a long-run net migration gain of 10,000 people annually from 2010.

Given this scenario, the New Zealand population is projected to reach 5.09 million in 2031 and 5.57 million in 2061. The 5 million population mark is projected to be reached in 2028.

The pace of growth is not likely to be uniform. The New Zealand population grew at an average rate of 1.4 percent a year between 1951 and 2006. The population is projected to grow by an average of 1.0 percent a year between 2006 and 2011. Growth is expected to slow during the remainder of the projection period – to 0.6 percent in 2031 and to 0.1 percent in 2061.

The age structure of New Zealand's population is undergoing significant changes as a result of changing fertility patterns and increasing longevity. Overall, the population will take on an older profile. The median age (half the population is older, and half younger, than this age) of New Zealand's population increased from 26 years in 1971 to 36 years in 2006. According to projection series 5, half the population will be 40 years and older by 2027, and half the population will be 44 years and older by 2061.

Population ageing can be regarded as an inevitable dimension of the ‘demographic transition’ – the shift from high fertility rates and high mortality rates to low mortality rates and low fertility rates. Population ageing is often wrongly attributed to the post-war baby boom. The changes in fertility rates, birth numbers and the age structure during the baby boom have delayed the general ageing of New Zealand's population, although these changes will also make population growth among older age groups more pronounced after 2011.

Table 5.02 (overleaf) shows New Zealand's projected population according to series 5 (a mid-range scenario), and figure 5.02 shows the historical and projected age distribution of the population.

Figure 5.02.

Table 5.02. New Zealand population projections(1) (2006-base)

 2006201120212031204120512061

(1) 2006-base projections released October 2007, series 5.

(2) Half the population is younger, and half older, than this age.

(3) The number of people aged 0–14 years per 100 people aged 15–64 years.

(4) The number of people aged 65+ years per 100 people aged 15–64 years.

(5) The number of people aged 0–14 and 65+ years per 100 people aged 15–64 years.

Note: Figures may not add up to stated totals, due to rounding.

Source: Statistics New Zealand

Population by age group (years) at 30 June(000)
All ages4,1854,3934,7715,0905,3255,4815,571
0–14888895918903903910907
15–391,4641,4811,5391,5761,5831,5811,583
40–641,3211,4321,4981,5191,5681,6371,640
65+5125858171,0911,2721,3531,441
Components of population change (year ending 30 June)(000)
Births58615959605959
Deaths27303441505762
Net migration11101010101010
Annual population change5141352820127
 Years
Median age(2) (at 30 June)36373941434444
Dependency ratio (at 30 June)Per 100 people aged 15–64
0–14(3)32313029292828
65+(4)18202735404245
0–14 and 65+(5)50515764697073

Age groups

The number of children (those aged 0–14 years) is expected to increase from 890,000 in 2006 to 900,000 in 2013, and then remain relatively stable between 900,000 and 920,000 over subsequent decades (under projection series 5). The small projected fluctuations will reflect birth numbers in preceding years.

As a result, children will account for only 16 percent of the population by 2061, compared with 21 percent in 2006.

By contrast, the population aged 65 years and over is projected to almost double from 510,000 in 2006 to 1 million in the late 2020s, and continue increasing to reach 1.44 million in 2061.

In the mid-2020s, the number of people aged 65 years and over is expected to surpass the number of children. From the late 2040s, over 25 percent of the population will be aged 65 years and over, compared with 12 percent in 2006 (see figure 5.02).

Within the 65-and-over age group, there will be about 360,000 people aged 85 years and over in 2061, more than six times the 2006 total of 58,000 people.

Allan, 89, and Hazel, 86, Hagan of Waikouaiti celebrate their 60th wedding anniversary. In 2061, it is projected that there will be about 360,000 people aged 85 years and over, more than six times the 2006 total of 58,000 people.

The working-age population (those aged 15–64 years) is projected to increase from 2.78 million in 2006 to 3.08 million in 2026, before increasing more slowly to 3.22 million in 2061. Most of the increase will be in the older half of this age group (40–64 years), as the large number of people born during the 1950s to early 1970s move through these ages. In 2006, the population aged 15–39 was 11 percent larger than the population aged 40–64. After 2010, the younger and older working-age groups will be similar in number.

In 2006, there were 5.4 people in the working-age group for every person aged 65 years and over. This ratio is expected to drop substantially to 3.2 people in 2026 and to 2.2 people in 2061. In the mid-1960s, the ratio was 7.1 people.

Educational ages The population in the various educational age groups is projected to fluctuate, as it has in the past. The fluctuations mainly reflect changes in births in preceding years, and although the number of future births is uncertain, the fluctuations have potentially significant impact on the demand for teachers and other educational resources. The projected numbers below refer to the New Zealand resident population in each age group, rather than the numbers in primary, secondary and tertiary education.

The primary-school-age population (5–12 years) peaked in 1975 at about 500,000 and then dropped to 400,000 in 1989. By 2006 the population had reached 475,000. It is projected to drop to 466,000 in 2009–10, before increasing to about 500,000 in 2018–19.

The trend in the secondary-school-age population (13–17 years) is similar to that for the primary-school-age population, except that the peaks and troughs lag behind those of the primary-school-age population by about six years. The secondary-school-age population is projected to drop from 320,000 in 2006–07 to about 300,000 in the late 2010s. By the mid-2020s, the numbers are expected to return to 320,000.

Peaks and troughs in the tertiary-age population (18–22 years) lag those of the secondary-school-age population by about five years. The tertiary-age population is projected to increase from about 300,000 in 2007 to peak at 326,000 in 2012. A similar peak will be reached again around 2029.

Figure 5.03.

Ethnic and cultural diversity

Ethnic population information presented in this chapter is based on the concept of self-identification. Each ethnic group includes people who identify with that ethnic group, either solely or in conjunction with other ethnic groups. It excludes people who have ancestry but do not identify with that ethnic group. Some people identify with two or more ethnic groups, so the broad European, Māori, Pacific and Asian populations are not mutually exclusive.

New Zealand has been ethnically and culturally connected to Polynesia for at least 1,000 years. Its population and cultural heritage 200 years ago was wholly that of Polynesia, but it is now dominated by cultural traditions that are mainly European, especially those from the United Kingdom.

In 2006, about 77 percent of New Zealanders identified with a European ethnicity and/or ‘New Zealander’. The indigenous Māori ethnic group makes up the next-largest group of the population (about 15 percent in 2006). The other main ethnic groups are Asian and Pacific peoples, who made up 10 and 7 percent, respectively, of the estimated resident population in 2006.

Jaquintin Putaura, 9 (left), Metusela Robati, 2, TC Robati, 9, and Enuake Robati, 10, a cultural group from the northern Cook Islands, perform at the festival of the elements in Porirua as part of 2008 Waitangi celebrations. New Zealand's Pacific and Māori populations are projected to have higher growth rates, due to higher fertility rates and numbers in the main childbearing ages.

The ethnic and cultural composition of New Zealand has been shaped and reshaped by three main demographic processes – international migration, natural increase and intermarriage. Of these processes, international migration has had the most pronounced effect.

All four broad ethnic populations are projected to experience growth between 2006 and 2026. Under a mid-range scenario, the Asian population is projected to have the largest growth over this period, an increase of 380,000 (3.4 percent a year).

The Pacific and Māori populations will experience increases of 180,000 (2.4 percent a year) and 190,000 (1.4 percent a year), respectively, while the European population will increase by 220,000 (0.3 percent a year).

The higher Asian growth rate is mainly driven by the assumed levels of net migration. By comparison, the higher Māori and Pacific growth, relative to the New Zealand population overall, is largely driven by higher fertility rates and numbers of people in the main childbearing ages.

The European/‘New Zealander’ share of the New Zealand population is projected to fall to 69 percent by 2026 – a reflection of the slower growth rate of the European population compared with the growth rate of the total New Zealand population.

By contrast, the share of the population belonging to the Māori, Asian and Pacific ethnic groups is projected to increase, to 17, 16 and 10 percent, respectively, by 2026. Diversity in fertility and migration patterns means the various ethnic groups will follow different paths to population ageing in future decades.

Table 5.03. Ethnic population projections(1)
Proportion of New Zealand population by broad age group

Age group (years)European(2)MāoriAsianPacific
Percent

(1) People who identify with more than one ethnic group are included in each ethnic population, so percentages add up to more than 100.

(2) European or Other (including New Zealander) ethnic group.

(3) Estimated resident population of each ethnic group at 30 June 2006.

(4) 2006-base ethnic population projections released April 2008, series 6, compared with 2006-base New Zealand population projections released October 2007, series 5.

Source: Statistics New Zealand

2006(3)
Under 157324912
15–397117138
40–64811085
65+91542
All ages7715107
2026(4)
Under 1564291818
15–3965191812
40–646912177
65+827103
All ages69171610

With a median age of 38 years in 2006, the European population has a much older age structure than the Māori (23 years) and Pacific (22 years) populations. Despite ageing, the median age of the Māori (25 years) and Pacific populations (23 years) in 2026 will still be lower than the median age of the total New Zealand population (40 years).

Table 5.03 shows projected changes in New Zealand's population proportions by ethnicity and age group, and table 5.04 shows ethnic population projections for 2026.

Table 5.04. Ethnic populations and projections(1)(2)
2006–2026

 European(3)MāoriAsianPacificTotal New Zealand

(1) People who identify with more than one ethnic group are included in each ethnic population, so figures do not add up to stated totals.

(2) 2006-base ethnic population projections released April 2008, series 6, and 2006-base New Zealand population projections released October 2007, series 5.

(3) European or Other (including New Zealander) ethnic group.

(4) Estimated resident population of each ethnic group at 30 June 2006.

(5) Half the population is older, and half younger, than this age.

Source: Statistics New Zealand

Population(000)
2006(4)3,2136244043024,185
20263,4298187884824,939
Average annual population changepercent
2006–20260.31.43.42.40.8
Median age(5)years
20063823282236
20264325362340

Regional populations

Under the medium (mid-range) projection series, 12 of New Zealand's 16 regional council areas (regions) will be home to more people in 2031 than in 2006. Ten regions will experience population growth throughout the entire projection period.

The populations of Hawke's Bay and Manawatu-Wanganui are projected to increase between 2006 and 2026, and then decrease for the remainder of the projection period. The Gisborne region is projected to increase between 2006 and 2021 and then decrease, so that its population in 2031 will be similar to that in 2006. The population of Taranaki is projected to increase between 2006 and 2016 before decreasing.

The West Coast and Southland are projected to have fewer residents in 2031, compared with 2006.

The low projection series for each region results in 7 of New Zealand's 16 regions having more people in 2031 than in 2006. With the high projection series, all 16 of New Zealand's regions will be home to more people in 2031 than in 2006.

Population growth is projected to slow in all 16 regions between 2006 and 2031, in the low, medium and high projection series. This slowing of growth is due to declining natural increase (births minus deaths).

Births are projected to decline in most regions, reflecting the assumed decrease in fertility rates combined with fewer women in the childbearing ages. In contrast, deaths are projected to increase in all regions, as the population in the older ages increases.

The Auckland region is projected to account for 62 percent of New Zealand's population growth between 2006 and 2031, with an increase of 560,000 people (from 1.37 million to 1.93 million (medium series)). The Auckland region would then be home to 38 percent of New Zealand's population in 2031, compared with 33 percent in 2006.

Natural increase is projected to account for almost two-thirds of the growth, with the remainder due to net migration gains. Under the low, medium and high projection series, Auckland's annual population growth will average 1.0, 1.4 and 1.7 percent, respectively.

There is considerable variation likely in population growth rates within the cities and districts of each region, largely because of differences in age structures, fertility levels, and migration patterns.

Figure 5.04 shows projected regional population changes by regional council area between 2006 and 2031 under the low, medium and high projection series.

Figure 5.04.

Distribution of population

There has been a trend in the geographic distribution and redistribution of New Zealand's population in the past 150 years towards an increasing degree of urbanisation and, in particular, a concentration of people in the main urban centres.

North Island and South Island distribution

Following the end of the gold boom in the South Island in the 1870s, the proportion of people living in the South Island began to steadily decrease. From the 1896 Census onward, the census night population of the North Island has exceeded that of the South. Since that time, the North Island's population has continued to grow at a greater rate, and its share of the New Zealand total population has continued to increase.

At the time of the 1956 Census, 69 percent of New Zealanders lived in the North Island. This rose to more than 72 percent by 1976, and in 2006 it had risen to 76 percent.

Many influences have contributed to the population difference between the islands – for example, the North Island has had a higher birth rate and most overseas migrants choose to settle in the North Island.

Table 5.05 shows the estimated population of New Zealand from 1885 to 2007, while table 5.06 lists the North Island, the South Island, and total New Zealand populations from 1858 to 2006.

Table 5.05. Estimated population
1885–2007

YearAt 31 DecemberMean for year ended 31 December
Estimated de facto population

(1) Population estimates for 1991 onwards are based on the resident population concept, replacing the de facto population concept previously used. Resident population estimates are not strictly comparable with census usually resident population counts, as they include adjustments for census undercount and New Zealand residents temporarily overseas.

Source: Statistics New Zealand

1885619,300613,900
1886631,400624,300
1887645,300638,300
1888649,300647,300
1889658,000653,700
1890667,500662,700
1891676,100671,800
1892692,400684,200
1893714,300703,300
1894728,100721,200
1895740,700734,400
1896754,000746,300
1897768,900761,500
1898783,300776,100
1899796,400789,800
1900808,100802,200
1901830,800821,100
1902851,100840,900
1903875,600863,400
1904900,700888,200
1905925,600913,100
1906956,500943,300
1907977,200966,800
19081,008,400992,800
19091,030,7001,019,500
19101,050,4001,040,500
19111,075,3001,063,900
19121,102,5001,088,900
19131,134,5001,118,500
19141,145,8001,140,200
19151,152,6001,149,200
19161,150,2001,149,200
19171,147,4001,148,900
19181,158,1001,152,800
19191,227,2001,192,700
19201,257,6001,242,400
19211,292,7001,276,700
19221318,9001,305,100
19231,343,0001,328,200
19241,370,4001,352,600
19251,401,2001,384,400
19261,429,7001,413,700
19271,450,4001,439,000
19281,467,4001,456,100
19291,486,1001,473,400
19301,506,8001,493,000
19311,522,8001,514,200
19321,534,7001,527,100
19331,547,1001,539,600
19341,558,4001,551,500
19351,569,7001,562,200
19361,584,6001,575,200
19371,601,8001,590,000
19381,618,3001,606,800
19391,641,6001,628,500
19401,633,6001,637,300
19411,631,2001,630,900
19421,636,4001,639,500
19431,642,0001,635,600
19441,676,3001,655,800
19451,727,8001,694,700
19461,781,2001,759,600
19471,817,5001,798,300
19481,853,9001,834,700
19491,892,1001,871,700
19501,927,7001,909,100
19511,970,5001,947,600
19522,024,6001,996,200
19532,074,7002,048,800
19542,118,4002,094,900
19552,164,8002,139,000
19562,209,2002,182,800
19572,262,8002,232,500
19582,316,0002,285,800
19592,359,7002,334,600
19602,403,6002,377,000
19612,461,3002,426,700
19622,515,8002,484,900
19632,566,9002,536,900
19642,617,0002,589,100
19652,663,8002,635,300
19662,711,3002,682,600
19672,745,0002,727,700
19682,773,0002,753,500
19692,804,0002,780,100
19702,852,1002,819,600
19712,898,5002,864,200
19722,959,7002,915,600
19733,024,9002,977,100
19743,091,9003,041,800
19753,143,7003,100,100
19763,163,4003,131,800
19773,166,4003,142,600
19783,165,2003,143,500
19793,163,9003,137,800
19803,176,4003,144,000
19813,194,5003,156,700
19823,226,8003,180,800
19833,264,8003,221,700
19843,293,0003,252,800
19853,303,1003,271,500
19863,313,5003,277,000
19873,342,1003,303,600
19883,345,2003,317,000
19893,369,8003,330,200
19903,410,4003,362,500
Estimated resident population(1)
19913,516,0003,495,800
19923,552,2003,533,000
19933,597,9003,573,600
19943,648,2003,621,600
19953,706,7003,675,800
19963,762,3003,733,900
19973,802,6003,782,600
19983,829,2003,815,800
19993,851,2003,837,300
20003,873,0003,860,100
20013,916,2003,887,000
20023,989,5003,951,200
20034,061,6004,027,700
20044,114,3004,088,700
20054,161,0004,136,000
20064,211,4004,186,900
20074,252,6004,230,700

Table 5.06. New Zealand's population(1)
By census(2)

CensusNorth Island(3)South Island(4)Total population

(1) Figures from 1981 onwards are census usually resident population counts, replacing the census night population counts previously used.

(2) Omits censuses of 1851, 1861, 1864, 1867 and 1871 as censuses of the Māori population were not taken in these years.

(3) Includes the population of Kermadec Islands and people on oil rigs.

(4) Includes the populations of the Chatham Islands and Campbell Island.

Note: All figures randomly rounded to base 3.

Source: Statistics New Zealand

185887,15028,311115,461
1874155,472189,513344,985
1878199,524258,483458,007
1881234,648299,382534,030
1886290,010330,441620,451
1891321,246347,403668,652
1896377,955365,259743,214
1901431,472384,390815,862
1906521,898414,411936,309
1911610,599447,7141,058,313
1916695,397453,8281,149,225
1921791,919479,7511,271,667
1926892,680515,4601,408,140
19361,018,038555,7741,573,812
19451,146,315556,0141,702,329
19511,313,871625,6021,939,473
19561,497,363676,6982,174,061
19611,684,785730,2002,414,985
19661,893,327783,5942,676,918
19712,051,364811,2692,862,630
19762,268,393860,9913,129,384
19812,306,667836,6433,143,307
19862,412,660850,6233,263,283
19912,520,348853,5783,373,926
19962,718,189900,1143,618,303
20012,829,801907,4763,737,277
20063,059,427968,5204,027,947

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 significant movement between regions.

In addition to affecting the size of the population, inter-regional migration also influences age structures, fertility levels and population growth rates within regions.

Table 5.07 shows population movements in to and out of regions between the 2001 and 2006 Censuses.

Table 5.07. Migration between regions
2001–2006

RegionPopulation(1)Migration inMigration outNet migration

(1) Census usually resident population count of all people aged five years and over, 2006.

Note: Confidentiality rules have been applied to all cells in this table, including randomly rounding to base 3.

Source: Statistics New Zealand

Northland138,19818,72617,1721,554
Auckland1,209,16559,30475,966-16,662
Waikato355,04447,75442,2285,526
Bay of Plenty239,11234,70128,8215,880
Gisborne40,8484,8846,405-1,521
Hawke's Bay137,34315,16815,957-789
Taranaki97,2639,26711,520-2,253
Manawatu-Wanganui207,66626,90129,571-2,670
Wellington418,57839,51938,946573
Tasman41,7278,7606,9991,761
Nelson40,3657,9689,531-1,563
Marlborough40,1887,1796,813366
West Coast29,4304,7495,175-426
Canterbury489,36940,46732,3648,103
Otago183,16526,23821,7564,482
Southland84,8378,91311,268-2,355

Urban and rural distribution

New Zealand is a highly urbanised country, with 86 percent of the census usually resident population count living in urban areas at the time of the 2006 Census.

Table 5.08. Urban and rural populations(1)

Census(2)UrbanRural
NumberPercentNumberPercent

(1) From 1881–1921, ‘urban’ is based on boroughs and cities, and ‘rural’ is based on counties (including town districts). From 1926–2006, ‘urban’ is based on urban areas and towns with over 1,000 people, and ‘rural’ is the remainder.

(2) Figures from 1981 onwards are census usually resident population counts, replacing census night population counts used previously.

Note: Confidentiality rules have been applied to all cells in this table, including randomly rounding to base 3.

Source: Statistics New Zealand

Non-Māori population
1881194,98240.1291,23759.9
1886245,61342.9327,32757.1
1891270,34243.4352,09856.6
1896307,29344.0391,73456.0
1901350,20245.6417,59754.4
1906424,61448.1458,79651.9
1911505,59950.4496,77949.6
1916585,30653.9501,25846.1
1921681,98756.2530,85343.8
Total population
1926953,17268.0448,50032.0
19361,065,22867.9503,88632.1
19451,227,06972.2472,07727.8
19511,406,51772.7527,07927.3
19561,600,80973.8568,80626.2
19611,840,20376.4569,21723.6
19662,119,08679.3553,02320.7
19712,328,87681.5528,60918.5
19762,614,11983.6511,00516.4
19812,682,90685.4460,40114.6
19862,780,15185.2481,46714.8
19912,884,66885.5488,60414.5
19963,091,65985.5524,97614.5
20013,204,29485.8531,88814.2
20063,463,18886.0563,93114.0

Main urban areas

Seventy-two percent of the 2006 Census usually resident population count lived in main urban areas (places with 30,000 or more people). With the exception of Wanganui, all main urban areas experienced population growth, between 2001 and 2006, along with most secondary urban areas (places with between 10,000 and 29,999 people). Between 1996 and 2001 most secondary urban areas had experienced a decrease in population.

Table 5.09. Population of largest urban areas
At selected censuses

Urban area1886(1)1911(1)193619611986(2)1991(2)1996(2)2001(2)2006(2)

(1) Excludes Māori.

(2) Figures from 1986 onwards are census usually resident population counts, replacing census night population counts used previously.

Note: Confidentiality rules have been applied to all cells in this table, including randomly rounding to base 3.

Symbol:... not applicable.

Source: Statistics New Zealand

Auckland33,162102,675226,365448,365816,927878,220991,8121,074,4501,208,094
Christchurch29,65580,193133,515220,509295,749303,411325,251334,107360,768
Wellington25,94470,728159,357249,531323,421324,147334,002339,927360,624
Hamilton1,2003,54320,09750,505138,645146,148158,043166,128184,908
Dunedin23,24464,23685,608105,003107,331107,526110,793107,088110,997
Tauranga1,1491,3475,80824,66062,37070,25782,14995,664108,882
Palmerston North2,60710,99224,37243,18566,95170,23973,86072,68176,032
Hastings1,5036,28517,91932,49056,71857,26758,58459,21162,118
Nelson7,3148,23513,49425,32043,72545,87950,69153,68856,367
Napier7,68011,73619,17032,71552,52452,12254,30054,53456,286
Rotorua...2,3918,89825,06848,85550,77252,95352,60853,766
New Plymouth3,0935,23818,59732,38847,37047,65548,87347,76349,281
Whangarei...2,6649,86721,78944,09744,40645,96346,10749,080
Invercargill8,25015,85825,91141,08852,81851,54049,40446,30546,773
Wanganui4,90214,70325,74935,69440,51241,10041,09739,42338,988
Kapiti...1,0685,36712,30623,04027,34530,28833,67237,347
Gisborne2,1938,19615,87925,06532,01931,40132,60731,72232,529
Blenheim3,0933,7715,03711,95522,99823,79925,75226,59228,527
Timaru3,75311,28018,77126,42428,69227,78627,17126,74526,886
Pukekohe............14,22015,32416,91718,82522,518
Taupo............16,26017,16319,22720,36421,291
Masterton...5,1819,09615,12019,35319,77019,68619,49719,497

Population of local government areas

Table 5.10 shows the estimated resident population of New Zealand's regions and table 5.11 (overleaf) gives the estimated populations of territorial authority areas (cities and districts).

Table 5.1. Estimated resident population of regions
At 30 June

Region(1)Estimated resident population(2)Population change 2006–2007
200120062007NumberPercent

(1) Based on 2007 regional council boundaries.

(2) Resident population estimates are not strictly comparable with census usually resident population counts, as they include adjustments for census undercount and New Zealand residents temporarily overseas.

(3) Includes the population of Kermadec Islands, Chatham Islands Territory, and people on oil rigs. These are not included within regional council areas.

Note: Figures may not add up to stated totals, due to rounding.

Source: Statistics New Zealand

North Island
   Northland144,400152,700153,8001,1700.8
   Auckland1,216,9001,371,0001,394,00023,0201.7
   Waikato369,800395,100398,6003,4600.9
   Bay of Plenty246,900265,300267,7002,3900.9
   Gisborne45,50046,00045,900-40-0.1
   Hawke's Bay147,300152,100152,5004600.3
   Taranaki105,700107,300107,200-90-0.1
   Manawatu-Wanganui227,500229,400229,000-330-0.1
   Wellington440,200466,300470,3004,0500.9
Total North Island2,944,3003,185,1003,219,20034,0901.1
South Island
   Tasman42,40045,80046,1003500.8
   Nelson42,90044,30044,4001700.4
   Marlborough40,70043,60044,0004101.0
   West Coast31,10032,10032,2001600.5
   Canterbury496,700540,000546,9006,8901.3
   Otago188,300199,800201,7001,8600.9
   Southland93,30093,20093,000-190-0.2
Total South Island935,400998,8001,008,4009,6401.0
New Zealand(3)3,880,5004,184,6004,228,30043,7301.0

Table 5.11. Estimated resident population of territorial authority areas at 30 June

Territorial authority area(1)Estimated resident population(2)Population change 2006–2007
200120062007NumberPercent

(1) Based on the 2007 territorial authority area boundaries.

(2) Resident population estimates are not strictly comparable with census usually resident population counts, as they include adjustments for census undercount and New Zealand residents temporarily overseas.

(3) Includes the population of inlets, ships, oil rigs, and Bays-Waiheke, Kermadec, Mayor, Motiti and White Islands, which are not included within territorial authority areas.

Note: figures may not add up to stated totals, due to rounding.

Source: Statistics New Zealand

Far North district56,40057,50057,8002100.4
Whangarei district70,00076,50077,5009301.2
Kaipara district17,95018,55018,600300.1
Rodney district78,50092,40094,7002,2202.4
North Shore city194,200216,900220,2003,3201.5
Waitakere city176,200195,300198,4003,0901.6
Auckland city388,800428,300433,2004,9201.1
Manukau city298,200347,100354,8007,7302.2
Papakura district42,30046,90047,7007901.7
Franklin district53,30060,90062,2001,3102.2
Thames-Coromandel district25,80026,70026,8001000.4
Hauraki district17,25017,60017,650400.2
Waikato district41,30045,40046,0005901.3
Matamata-Piako district30,30031,20031,200500.2
Hamilton city120,900134,400136,6002,1501.6
Waipa district40,00043,70044,2005501.3
Otorohanga district9,5909,3109,250-60-0.7
South Waikato district24,20023,20022,900-310-1.3
Waitomo district9,7809,6809,600-80-0.8
Taupo district32,50033,40033,500400.1
Western Bay of Plenty district39,30043,30043,9005901.4
Tauranga city93,300106,700108,8002,1202.0
Rotorua district66,90068,10068,000-130-0.2
Whakatane district34,10034,50034,400-40-0.1
Kawerau district7,2907,1507,070-70-1.0
Opotiki district9,4909,2009,140-60-0.6
Gisborne district45,50045,90045,900-40-0.1
Wairoa district9,2608,7208,580-140-1.6
Hastings district69,60073,20073,6004300.6
Napier city55,20056,80056,9001500.3
Central Hawke's Bay district13,20013,25013,250200.1
New Plymouth district68,40071,10071,4003000.4
Stratford district9,1109,1209,090-30-0.3
South Taranaki district28,40027,20026,800-360-1.3
Ruapehu district15,00014,05013,800-250-1.8
Wanganui district44,40043,80043,600-220-0.5
Rangitikei district15,50015,15015,050-110-0.7
Manawatu district28,20029,00029,1001100.4
Palmerston North city75,20078,50078,8003200.4
Tararua district18,35018,05017,950-140-0.8
Horowhenua district30,60030,60030,500-30-0.1
Kapiti Coast district43,60047,50048,0005501.2
Porirua city49,50050,60050,7001400.3
Upper Hutt city37,70039,70040,0003300.8
Lower Hutt city99,100101,300101,5002800.3
Wellington city171,100187,700190,5002,7801.5
Masterton district23,20023,20023,100-80-0.4
Carterton district7,0007,2607,300400.5
South Wairarapa district8,9409,1209,140200.2
Tasman district42,40045,80046,1003500.8
Nelson city42,90044,30044,4001700.4
Marlborough district40,70043,60044,0004101.0
Kaikoura district3,5803,7303,750300.8
Buller district9,8609,9409,960200.2
Grey district13,20013,55013,600600.5
Westland district7,9908,6208,690700.9
Hurunui district10,15010,75010,800200.2
Waimakariri district37,90044,10045,1001,0302.3
Christchurch city335,300361,800365,7003,8701.1
Selwyn district28,30035,00036,4001,4004.0
Ashburton district26,00028,00028,4003701.3
Timaru district42,80043,80043,9001100.2
Mackenzie district3,7903,9003,920200.5
Waimate district7,2207,3807,420400.5
Chatham Islands territory7506506400-0.5
Waitaki district20,50020,70020,700100.0
Central Otago district14,75017,05017,4503602.1
Queenstown-Lakes district17,85024,10025,4001,3205.5
Dunedin city119,300122,300122,5001700.1
Clutha district17,55017,20017,200-10-0.1
Southland district29,40029,20029,100-110-0.4
Gore district12,75012,40012,300-110-0.9
Invercargill city51,10051,60051,600200.0
New Zealand(3)3,880,5004,184,6004,228,30043,7301.0

Components of population change

Population change has two main components, natural increase (the excess of births over deaths) and net migration (the difference between arrivals and departures).

Figure 5.05 shows New Zealand's population change from 1867 to 2007 and contributions made by natural increase and net migration.

Figure 5.05.

Fertility

Changing levels of fertility over the years have played a major role in determining the size and structure of New Zealand's population. Figure 5.06 (overleaf) shows the significant changes in the fertility rate (births per woman) in New Zealand from 1916 to 2006. In 1935, the fertility rate in New Zealand fell to 2.2 births per woman. This was attributed to fewer and later marriages, and limitation of family size within marriage. With demobilisation of forces after World War II and the resulting increase in marriages and births, the fertility rate reached 3.6 births per woman in 1947.

Other features of the years following World War II were New Zealanders marrying younger and marriage becoming almost universal. By 1961, half of all women were married before the age of 22, compared with barely one-quarter married by that age in the early 1940s. These trends were reinforced by early childbearing and the shortening of intervals between births.

The median age of women having their first child 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 27,000 in 1935 to about 42,000 in 1945, and to 65,000 in 1961. About 1.13 million New Zealanders were born between 1946 and 1965.

At its peak in 1961, the total fertility rate exceeded 4.3 births per woman, and significantly exceeded figures for other developed nations. 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 introduction of the oral contraceptive pill in the early 1960s, but the ‘cause-and-effect’ relationship is not clear-cut. It is possible that increased acceptance and use of the pill helped sustain the downward trend.

By the mid-1970s, the post-World War II rise in fertility had ended. The total fertility rate fell below the ‘replacement level’ (2.1 births per woman) in 1978, and then to a low of 1.9 births per woman in 1983. This drop had a great impact on the annual number of births.

Despite a substantial increase in the number of prospective mothers caused by the ‘baby boomers’ entering prime reproductive ages, births dropped from around 64,000 in 1971 to around 50,000 in 1982.

Table 5.12 (overleaf) shows fertility trends and patterns from 1881 to 2006.

Table 5.12. Fertility trends and patterns
Year ending 31 December

YearLive birthsCrude birth rate(1)Fertility rate(2)Gross reproduction rate(3)(4)Net reproduction rate(4)(5)

(1) Live births per 1,000 estimated mean population.

(2) The average number of live births that a woman would have during her life if she experienced the age-specific fertility rates of that year.

(3) The average number of daughters that a woman would have during her life if she experienced the age-specific fertility rates of that year.

(4) Figures before 1966 exclude the Māori population.

(5) The average number of daughters that a woman would have during her life if she experienced the age-specific fertility and mortality rates of that year.

(6) Excludes the Māori population.

(7) Births and fertility rates for 1998 are lower than expected because of a small change to the way in which births were registered during 1998.

Note: Birth and fertility rates for 1991 onwards are based on the resident population concept, replacing the de facto population concept used previously.

Symbol:.. figure not available

Source: Statistics New Zealand

1881(6) 38.00......
1886(6) 33.14......
1891(6) 29.01......
1896(6) 26.35......
1901(6) 26.34......
1906(6) 27.08......
1911(6) 25.99......
1916(6)28,50925.94......
192129,62323.243.08....
192629,90421.152.88....
193128,86719.062.56....
193628,39518.032.301.040.97
194139,17024.022.931.371.27
194647,52427.013.451.591.47
195149,80625.573.601.641.58
195656,53125.903.981.841.77
196165,39026.954.312.031.96
196660,00322.373.411.661.61
197164,46022.513.181.551.51
197655,10517.602.271.091.07
198150,79416.092.010.980.96
198652,82316.121.960.960.94
199159,91117.142.091.011.00
199657,28015.341.960.950.93
199757,60415.231.960.960.94
1998(7)55,34914.511.890.920.90
199957,05314.871.970.960.95
200056,60514.661.980.960.95
200155,79914.361.970.970.95
200254,02113.671.890.920.91
200356,13413.941.930.940.93
200458,07314.201.980.970.95
200557,74513.961.970.960.95
200659,19314.142.010.980.97

Figure 5.06.

New mother Patricia Heffernan cuddles her day-old daughter, Hannah. The median age of women having their first child rose steadily from 23 years in 1964 to 28 years in 2006.

Table 5.13 (overleaf) provides a summary of vital statistics for the New Zealand population from 1950 to 2006.

After 1983, there was a minor resurgence in the fertility rate, to 2.18 births per woman in 1990, but the rate soon dropped to 2.04 (below replacement level) in 1993. Since then the fertility rate has fluctuated around 1.96. This level of fertility is slightly below the level required for the population to replace itself without migration.

The median age of women having their first child rose steadily from 22.8 years in 1964 to 28.5 years in 2003, and dropped slightly to 28.2 years in 2006. In 2002, the 30–34-year age group replaced the 25–29-year age group as the most common for childbearing.

Figure 5.07 shows the median age of childbearing for New Zealand women from 1966 to 2006, based on all live births.

Figure 5.07.

The dynamics of the fertility decline and of 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.

Demographic measures for 2000–2002 indicate a significant ethnic difference in fertility, with the birth rate for Pacific, Māori, European and Asian women at 2.9, 2.6, 1.8 and 1.7 births, respectively.

Patterns of marriage and family formation have changed radically, with a shift away from early marriage and childbearing, toward later marriage and delayed parenthood. Between 1971 and 1986, the first-marriage rate for women aged 20–24 dropped by about two-thirds, from 314 to 113 marriages per 1,000 never-married women.

By 2006, the first-marriage rate for women aged 20–24 had dropped to 32 per 1,000. Men and women who were marrying for the first time in 2006, were, on average, marrying about seven years later than those who married for the first time in 1971. In 2006, the median age for women at first marriage was 28.2 years, and 30.0 years for men. This compares with 20.8 and 23.0 years, respectively, in 1971.

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 marriage.

Becca Duffy (left), 18, with her daughter Charlie, 17 months, and Natalie Jury, 18, with her son Dontay, aged two. The teen mums visit groups to talk about their experiences of sex education at school. Awareness-raising by peers is a way of reducing the number of unplanned teen pregnancies. In 2006, the fertility rate for New Zealand teenagers was 28 births per 1,000 women aged 15–19 years. This compares with a fertility rate of 119 births per 1,000 women aged 30–34 years, and 105 births for women aged 25–29.

Table 5.13. Vital statistics
Year ending 31 December

YearLive birthsDeathsNatural increase(1)Median age at death
MaleFemale
 Number Years

(1) Live births minus deaths.

(2) Births are lower than expected because of a small change to the way in which births were registered during 1998.

Note: Figures from 1991 onwards are based on the resident population concept, replacing the de facto population concept used previously.

Source: Statistics New Zealand

195049,33118,08431,24768.069.7
195555,59619,22536,37168.972.1
196062,77920,89241,88769.874.0
196560,04722,97637,07169.074.7
197062,05024,84037,21068.575.0
197556,63925,11431,52568.674.9
198050,54226,67623,86670.475.7
198551,79827,48024,31871.477.2
199060,15326,53133,62272.077.7
199159,91126,38933,52271.878.1
199259,16627,11532,05172.478.7
199358,78227,10031,68272.978.8
199457,32126,95330,36873.279.2
199557,67127,81329,85873.379.3
199657,28028,25529,02573.579.7
199757,60427,47130,13373.580.1
1998(2)55,34926,20629,14373.879.9
199957,05328,12228,93174.580.6
200056,60526,66029,94574.880.5
200155,79927,82527,97475.081.3
200254,02128,06525,95675.581.4
200356,13428,01028,12475.781.5
200458,07328,41929,65476.282.0
200557,74527,03430,71175.882.0
200659,19328,24530,94876.382.3

Mortality

A temperate climate, low population density, lack of heavy industry, and good nutrition have given New Zealand a comparative advantage over other nations in terms of health. Ongoing advances in living standards, medical knowledge, technology, and health services continue to increase life expectancy.

Nevertheless, life expectancy rates for the total New Zealand population mask the fact that Māori life expectancy rates are much lower than for non-Māri, and that New Zealand life expectancy rates have been overtaken by some other countries, as shown in table 5.15.

A large part of longevity improvement in New Zealand occurred before 1930 and was due to the saving of life at younger ages. Allowing for higher Māori mortality, the infant mortality rate fell steadily from more than 100 deaths per 1,000 live births in the late 19th century to about 50 deaths per 1,000 births in the 1920s. As table 5.14 shows, the infant mortality rate (under the age of one year) has continued to drop, from 22.76 deaths per 1,000 in 1961, to 5.07 deaths per 1,000 in 2006.

Table 5.14. Death rate(1)
By age group and sex
Year ending 31 December

YearAge group (years)
Under1(2)1–45–1415–2425–3435–4445–5455–6465–7475+

(1) Per 1,000 mean estimated population.

(2) Per 1,000 live births.

(3) Excludes the Māori population.

Note: Live births for 1901–1961 include late registrations, while those from 1981 onwards exclude late registrations. Death rates for 1991 onwards are based on the resident population concept, replacing the de facto population concept used previously.

Source: Statistics New Zealand

Male
1901(3)78.606.811.893.523.976.1611.9423.1250.59141.67
1921(3)53.104.781.852.443.565.559.6119.9646.17128.60
194143.654.391.362.532.933.959.2021.1347.45140.17
196125.861.350.491.281.472.677.3719.7047.40125.90
198113.010.950.351.531.352.266.5717.3043.39114.11
20016.140.330.201.081.201.563.269.0426.8687.33
20025.620.390.200.901.121.593.398.8424.9586.79
20035.690.340.190.931.141.593.388.4023.8184.34
20045.680.300.170.910.961.523.287.8422.9884.29
20055.820.270.170.991.011.623.097.7920.5276.09
20065.720.280.160.880.981.393.077.7920.6377.85
Female
1901(3)63.875.501.643.584.726.7010.6219.4443.32127.98
1921(3)42.314.491.312.343.384.468.0014.8836.81120.23
194135.753.841.201.942.443.506.9015.0438.61118.74
196119.501.160.350.540.871.954.5911.2329.92104.72
198110.220.640.230.670.641.513.949.1923.7384.67
20014.440.330.180.410.510.902.476.3015.6872.37
20025.480.320.130.390.560.962.296.0215.7072.44
20034.140.360.120.460.490.972.415.6915.4170.82
20045.470.240.110.400.470.962.415.6814.7972.15
20054.360.260.150.390.450.952.245.2513.1567.63
20064.390.230.100.360.420.942.255.1613.7370.52
Total
1901(3)71.406.171.773.554.336.4011.3721.6347.87135.71
1921(3)47.824.641.582.393.475.108.8517.5941.90124.84
194139.814.121.282.222.673.728.0218.1643.06129.00
196122.761.260.420.921.182.315.9915.4337.71113.84
198111.651.560.291.110.991.895.2913.1532.6795.41
20015.300.330.190.750.841.222.867.6521.0778.11
20025.550.350.170.650.831.272.837.4220.1678.01
20034.930.350.160.700.801.272.897.0319.4676.14
20045.580.270.140.660.701.232.846.7518.7376.97
20055.110.260.160.700.721.272.666.5116.7071.03
20065.070.260.130.620.691.162.656.4617.0673.50

Significant ethnic differences exist in mortality rates. According to 2000–02 complete period life tables, a newborn girl could expect to live 81.1 years, and a newborn boy could expect to live 76.3 years. For Māori, life expectancy was 73.2 years for newborn girls and 69.0 years for boys.

Higher Māori death rates at ages 45–79 account for about three-quarters of these differences, and this partly reflects different rates of smoking and diabetes, as well as socio-economic differences. For example, the 2006 Census reported that 42 percent of Māori aged 15 and over were regular smokers, compared with 21 percent of the total population.

Women live longer than men and experience lower death rates at all ages, although men have closed the gap in recent decades. A century ago, women could expect to outlive men by about 2.5 years. By 1950–52, the female advantage had increased to 4.1 years, and by 1975–77 it was 6.4 years. However, the male-female difference narrowed to 4.8 years in 2000–02, and further to 4.1 years in 2004–2006.

Figure 5.08.

External migration

New Zealand has traditionally been a country of immigration, although its intake has been small compared with immigration flows to New World countries such as Australia, Canada and the United States. The end of World War II saw economic stability and the reintroduction, in 1947, of an assisted/free passage scheme to attract working-age industrial and agricultural labour from the United Kingdom.

Agreements were also negotiated to accept young non-British European migrants, and refugee immigration was allowed on humanitarian grounds. This led to the settlement of nearly 4,000 Indo-Chinese refugees in New Zealand during 1978–82. Historical and regional considerations also led to establishment of immigration quotas for small Pacific island countries.

The Government adopted a new immigration policy in 1974 that 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. The right of free entry into New Zealand was also maintained for the people of the Cook Islands, Niue and the Tokelau Islands, who are regarded as New Zealand citizens.

As a result of these initiatives, and further policy changes in the 1980s and 1990s, immigrants in post-war years have come from a wider range of countries than before.

Between the 1947 and 1967 March years, New Zealand recorded a net gain of about 281,000 permanent and long-term migrants (people whose stated intention is to stay in New Zealand). In each of the 21 years, net migration was positive; for 16 of those years, the net gain was more than 10,000. During this period, annual immigrants increased from 8,106 in 1947 to 38,999 in 1967, while annual emigrants increased from 6,051 to 21,128.

Net migration between 1968 and 2007 was volatile, with 17 years of net outflows and 23 years of net inflows. The economic recession of the late 1960s led to a significant drop in immigration, and an upturn in emigration, which resulted in a net outflow of 7,386 people during 1968–70.

There were net migration gains in each of the next six years, with a total gain over this period of 83,149 people. As a result of the 1974 immigration policy changes and the end of the assisted passage scheme in 1975, immigration from the United Kingdom decreased, and Australia became the biggest source and destination country for migrants.

Between 1976 and 1979, the annual number of emigrants almost doubled, to 81,008, with nearly two-thirds of this increase being departures to Australia. Departures exceeded arrivals for each year between 1977 and 1982, with a total net loss of 156,704 people.

Table 5.15. Life expectancy at birth
International comparisons

CountryPeriodMaleFemale
Years of life

(1) Excludes the Māori population.

(2) Abridged period life table.

Source: Statistics New Zealand

New Zealand1901–05(1)58.160.6
Australia1901–1055.258.8
Denmark1901–0552.956.2
Japan1899–190344.044.8
Norway1901–0554.056.9
United Kingdom190648.051.6
New Zealand1950–5267.271.3
Australia1953–5567.172.8
Denmark1951–5569.872.6
Japan1950–5259.663.0
Norway1951–5571.174.7
United Kingdom195166.271.2
New Zealand1960–6268.473.8
Australia1960–6267.974.2
Denmark1961–6270.474.4
Japan196065.370.2
Norway1961–6571.076.0
United Kingdom196167.873.7
New Zealand1970–7268.574.6
Australia197168.374.8
Denmark1971–7270.776.1
Japan197069.374.7
Norway1971–7571.477.7
United Kingdom197168.875.0
New Zealand1980–8270.476.4
Australia198171.478.4
Denmark1981–8271.477.4
Japan198073.478.8
Norway1981–8572.779.4
United Kingdom1980–8270.876.8
New Zealand1990–9272.978.7
Australia199174.480.3
Denmark1991–9272.577.9
Japan199075.981.9
Norway1991–9574.480.4
United Kingdom1990–9273.278.7
New Zealand2000–0276.381.1
Australia2000–0277.482.6
Denmark2001–0274.779.2
Japan200077.784.6
Norway2001–0576.981.9
United Kingdom2000–0275.680.4
New Zealand2005–07(2)78.182.2
Australia2004–0678.783.5
Denmark2006–0775.980.5
Japan200679.085.8
Norway200678.182.7
United Kingdom2004–0676.981.3

Table 5.16. External migration
Year ending 31 March

YearTotalPermanent and long-termShort-term
ArrivalsDeparturesNetArrivalsDeparturesNetArrivalsDeparturesNet

Symbol:.. figure not available

Source: Statistics New Zealand

Five-year totals
190093,03784,3988,639............
1905141,67899,50142,177............
1910190,772146,78343,989............
1915202,087165,28636,801............
192098,47390,5327,941............
1925199,791151,28548,506............
1930192,606167,34625,26053,98816,08137,907138,618151,265-12,647
1935111,933118,076-6,14313,46614,830-1,36498,467103,246-4,779
1940171,424159,51411,91022,87119,2673,604148,553140,2478,306
194535,00332,4142,5896,5979,241-2,64428,40623,1735,233
1950158,637135,43923,19851,48730,02021,467107,150105,4191,731
1955306,837239,14867,689116,51037,41979,091190,327201,729-11,402
1960395,218347,02148,197115,30851,16964,139279,910295,852-15,942
1965737,703676,13761,566156,46275,05581,407581,241601,082-19,841
19701,278,8671,273,4095,458155,008127,81427,1951,123,8591,145,595-21,736
19752,506,7142,400,234106,480274,842196,99377,8492,231,8722,203,24128,631
19803,793,4833,874,575-81,092204,867319,964-115,0973,588,6163,554,61134,005
19854,772,2574,766,9935,264213,059247,712-34,6534,559,1984,519,28139,917
19907,359,3407,394,389-35,049226,420306,653-80,2337,132,9207,087,73645,184
19959,773,4299,711,64161,788280,508220,47360,0359,492,9219,491,1681,753
200013,519,01613,462,49156,525337,781303,48034,30113,181,23513,159,01122,224
200518,000,32017,815,512184,808419,038326,42092,61817,581,28217,489,09292,190
Annual totals
19972,726,8972,689,11837,77976,89655,94820,9482,650,0012,633,17016,831
19982,651,7372,649,8141,92362,92860,2212,7072,588,8092,589,593-784
19992,755,8952,769,847-13,95256,58066,779-10,1992,699,3152,703,068-3,753
20002,919,7552,917,6062,14961,08970,076-8,9872,858,6662,847,53011,136
20013,218,9953,214,0374,95866,46579,065-12,6003,152,5303,134,97217,558
20023,336,5553,269,15867,39788,36562,73025,6353,248,1903,206,42841,762
20033,481,4983,417,54063,95898,67157,07941,5923,382,8273,360,46122,366
20043,702,7543,668,34834,40687,47359,49527,9783,615,2813,608,8536,428
20054,261,0064,246,39914,60778,06468,05110,0134,182,9424,178,3484,594
20064,342,0844,334,6987,38680,12570,3869,7394,261,9594,264,312-2,353
20074,413,2384,391,45721,78182,53170,45012,0814,330,7074,321,0079,700

By 1984, the number of emigrants had fallen to 34,147. More people arrived in New Zealand than left in 1983 and 1984, giving small gains to the country of 3,180 and 6,558 people, respectively.

The turnaround was short-lived, however. During the remainder of the 1980s, the number of departures resumed an upward movement, primarily driven by people moving to Australia. The peak year was 1989, with 70,941 emigrants, giving a net outflow of 24,708 people for that year. Although arrivals also increased over the period, departures exceeded arrivals for each year from 1985 and 1990, with a total net loss of 88,317 people.

The 1990s saw a return to net migration gains, with arrivals exceeding departures from 1991 to 1998. The total net gain over the eight years was 113,522 people. During this period, arrivals increased steadily, from 49,010 in 1992 to a peak of 80,288 in 1996, before dropping back. Migrants from Asia made a significant contribution to these changes.

Fewer arrivals combined with more departures resulted in another period of net outflows between 1999 and 2001, with a total loss of 31,786 people through migration.

Between 2001 and 2003, there was a decrease of over 20,000 in the annual number of departures, mainly due to fewer people moving to Australia. This coincided with arrivals increasing to 98,671 in 2003, resulting in a net migration gain of 41,592 people that year – the highest recorded for a March year.

The increase in arrivals was driven predominantly by arrivals from Asia (many of whom were students), and from the United Kingdom. The main contributor to a subsequent decrease in arrivals in 2004 and 2005 was a drop in the number of arrivals from Asia.

Although permanent and long-term departures increased again between 2003 and 2007, net migration remained positive. Over the 2002–2007 period, there was a net gain of 127,038 permanent and long-term migrants.

During the past two decades, there have been consistent net migration gains from Asia, but consistent net losses to Australia.

Composition of the population

Age and sex

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 the time of the 2006 Census, there were slightly more females than males in the New Zealand population. This contrasts with early colonial days, when there was a large surplus of males, especially young males. Each census has seen 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, females again outnumbered males, and the ratio of females to males has increased steadily since then.

The 2006 Census showed there were 1,965,618 males and 2,062,329 females usually resident in New Zealand, representing a ratio of 95 males to 100 females. There is a preponderance of females among the older population (those aged 65 years and over), with 81 males to 100 females in 2006. At ages below 65 years, the sex ratio was 98 males to 100 females.

Figure 5.09 shows crude birth and death rates, and figure 5.10 shows the age and sex distribution of the New Zealand population at ten-year intervals from 1976 to 2006.

Changes in the age structure of New Zealand's population in the past 100 years largely reflect the ‘roller coaster’ movements in the birth rate, with small and large birth cohorts moving through the age structure. However, migration gains and losses (dominated by people of younger and middle working ages) have added significantly to these structural changes.

Figure 5.09.

Warm weather draws holidaymakers to the Christchurch beach Taylors Mistake in early January 2008. The age structure of the population is undergoing significant changes as a result of changing fertility patterns and increased longevity. Overall, New Zealand's population will take on an older profile.

Figure 5.1.

The baby boom lifted the proportion of children in the population to 33 percent in 1961, with nearly half of the population aged under 25 at that time. The subsequent sharp decline in fertility, increased longevity, and the movement of the baby boom ‘bulge’ into working ages, caused a major realignment of the age structure. The median age of the population rose by 7.8 years between 1981 and 2006, from 28.1 years to 35.9 years.

At the 2006 Census, there were 867,576 children under the age of 15 usually resident in New Zealand (up from 846,600 in 1981). They made up 22 percent of the population (down from 27 percent in 1981). The 15–64-year age group increased by more than half a million between 1981 and 2006, to number 2,664,768 at the 2006 Census.

The greatest change in the age structure of the population is at the older ages. Since 1981, the number of people aged 65 and over has increased by more than one-and-a-half times (from 309,792 to 495,600), and the number aged 80 and over has more than doubled (from 53,538 to 128,904).

Contributors and related websites

Births, deaths and marriages – www.bdm.govt.nz

Department of Internal Affairs – www.dia.govt.nz

Ministry of Education – www.minedu.govt.nz

Statistics New Zealand – www.stats.govt.nz

Chapter 6. Social framework

Ben Lee (left), Daniel Lee, and Jae Ahn are a group of Korean New Zealanders who have been voluntarily weeding and tidying up Stancich Reserve, North Shore, for the past 10 years. They had hoped to build a Korean style garden as part of the reserve, but the North Shore City Council's parks department was concerned that this would introduce exotic plants into a native reserve.

Social diversity

Information in this chapter is based on the census ‘usually resident population count’ – a count of all people who usually live in New Zealand and were present in New Zealand on the night of the census. It excludes visitors from overseas and New Zealand residents who were temporarily overseas on census night.

Ethnicity

Ethnicity is a key variable used to explain differences in social characteristics, social well-being, and social change.

The population census has traditionally been the main source of national statistics on ethnicity in New Zealand. Since 1991, people have been asked to identify which ethnic group, or groups, they belong to, and multiple responses are counted.

The 2006 Census showed that New Zealand's ethnic make-up continues to change.

Although the total European grouping, including New Zealand European, remained the largest of the major ethnic groups in 2006, it reduced from 80 percent of the population in 2001, to 67.6 percent in 2006 (2,609,592 people). The main reason is that, for the first time, ‘New Zealander’ responses were counted separately from the European category. In 2006,11.1 percent of the total population (429,429 people) gave ‘New Zealander’ as their only or as one of their responses, making this the third-largest category in the census.

The Māori ethnic group is the second largest, with 14.6 percent of the total population (565,329 people) – an increase of 7.4 percent (39,048 people) since 2001. The Asian ethnic group increased 48.9 percent between censuses, increasing from 238,176 people in 2001, to reach 354,552 in 2006. Those identifying with the Pacific ethnic group increased 14.7 percent from the 2001 Census, to 265,974 people in 2006. The Korean, Arab, Croatian, Iraqi, and South African ethnic groups also made significant population gains between 2001 and 2006.

In the 2001 Census, 9.0 percent of New Zealand's population identified with more than one ethnic group. However, in 2006 this figure increased to 10.4 percent. The 2006 Census results showed that young people were far more likely to list multiple ethnicities. Of people aged under 15 years, 19.7 percent identified with more than one ethnic group, compared with 3.5 percent of those aged 65 years and over.

Table 6.01 shows changes in the ethnic make-up of the New Zealand population between the 2001 and 2006 Censuses. Table 6.02 compares the age structure of New Zealand's major ethnic groups.

Table 6.01. Ethnic groups (total responses)

Ethnic group2001 Census2006 CensusChange between censuses (percent)
Number of peoplePercentage(1)Number of peoplePercentage(1)

(1) The percentage of the population that specified an ethnicity.

(2) Middle Eastern, Latin American and African was introduced as a new category for the 2006 Census. Previously Middle Eastern, Latin American and African responses were allocated to the Other category.

(3) Includes response unidentifiable, response outside scope, and not stated.

Note: The number of responses is greater than the total population, as multiple responses are counted. This data has been randomly rounded to protect confidentiality. Individual figures may not add up to totals, and values for the same data may vary in different tables.

Symbols:... not applicable – figure too small to be expressed

Source: Statistics New Zealand

European2,871,43280.12,609,59267.6-9.1
Māori526,28114.7565,32914.67.4
Pacific peoples231,7986.5265,9746.914.7
Asian238,1796.6354,5529.248.9
Middle Eastern/Latin American/African(2)24,0840.734,7460.944.3
Other Ethnicity
  New Zealander......429,42911.1...
  Other ‘Other’Ethnicity801..1,494..86.5
Not elsewhere included(3)150,636...167,784......
Total New Zealand resident population3,737,277100.04,027,947100.07.8
Selected ethnic groups (total responses)
New Zealand European2,696,72475.22,381,07661.7-11.7
Māori526,28114.7565,32914.67.4
Samoan115,0173.2131,1033.414.0
Chinese105,0572.9147,5703.840.5
Indian62,1871.7104,5832.768.2
Cook Island Maori52,5691.558,0111.510.4
Tongan40,7161.150,4811.324.0
British and Irish
  British not further defined16,5720.527,1890.764.1
  English35,0821.044,2021.126.0
  Scottish13,7850.415,0390.49.1
  Irish11,7060.312,6480.38.0
  Welsh3,4110.13,7710.110.6
  Other British and Irish1,9170.11,9770.13.1
  Total British and Irish77,5232.2100,6682.629.9
Dutch27,5070.828,6410.74.1
Niuean20,1480.622,4730.611.5
Korean19,0260.530,7920.861.8
South African14,9130.422,8930.653.5
Filipino11,0910.316,9380.452.7
Japanese10,0230.311,9100.318.8
Fijian7,0410.29,8610.340.1
Tokelauan6,2040.26,8190.29.9
Sri Lankan7,0140.28,3100.218.5
Arab2,8560.12,6070.1-8.7
Iraqi2,1450.13,2220.150.2

Table 6.02. Major ethnic groups
By age group
2006 Census

Age group (years)EuropeanMāoriPacific peoplesAsianMELAA(1)Other ethnicity(2)
Percentage of ethnic group population

(1) Middle Eastern, Latin American and African.

(2) Includes ‘New Zealander’ responses.

Note: Figures may not add up to stated totals, due to rounding.

Source: Statistics New Zealand

0–46.611.713.16.79.76.1
5–1414.023.624.615.017.812.9
15–2413.117.918.221.919.69.5
25–3411.913.713.917.018.912.7
35–4414.713.412.816.917.017.4
45–5413.69.98.512.110.017.2
55–6411.05.65.05.94.213.7
65–747.62.92.63.31.86.9
75–845.61.01.01.00.82.8
85+1.90.20.20.20.20.7
Total100.0100.0100.0100.0100.0100.0

Country of birth

The increasing diversity of New Zealand's population is reflected in the number of people born overseas. In 2006, of the people who usually live in New Zealand, 77.1 percent were born there, down from 80.5 percent in 2001 (see table 6.03).

Between 2001 and 2006, New Zealand's overseas-born population rose by 180,915 people, an increase of 25.9 percent. Much of this increase occurred in Auckland – in 2006, over one-third (37.0 percent) of Auckland's population was born overseas, and over half (51.8 percent) of the entire overseas-born population of New Zealand live in Auckland.

Areas that overseas-born people came from are changing. In 2001, almost one-third (32.2 percent) were born in the United Kingdom and Ireland – historically New Zealand's most significant source of migrants – but by 2006, the proportion had decreased to 28.6 percent. In contrast, the proportion of people born in Asia increased from 25.5 percent in 2001 to reach 28.6 percent in 2006, and for the first time, equalled the proportion born in the United Kingdom and Ireland. A 100.8 percent increase in the number of people born in the People's Republic of China – from 38,949 people in 2001 to 78,117 in 2006 – was the main contributor to the increase.

The Indian-born population more than doubled, from 20,889 in 2001 to 43,341 in 2006, an increase of 107.5 percent. The number born in the Republic of Korea increased 60.6 percent, to 28,806. Another significant increase was in the South African-born population, which increased from 26,061 in 2001 to 41,676 in 2006, a 59.9 percent increase.

Significant proportions of New Zealand's immigrant population are relatively recent arrivals in the country. In 2006, almost one-third (32.3 percent) of overseas-born residents had lived there less than five years, while a further 17.0 percent had lived here between five and nine years.

Table 6.03. Country of birth(1)(2)

Country of birth2001 Census2006 CensusChange between censuses (percent)
Number of peoplePercentage(1)Number of peoplePercentage(1)

(1) All figures are for the census usually resident population, and calculations are made based on the number of people who specified a country of birth.

(2) Categories in this table are for major groups and selected categories, where the total number of responses exceeded 1,000. All remaining categories have been grouped as ‘Other...’.

(3) Includes Australian External Territories.

(4) The data includes counts of people who reported being born in Yugoslavia.

Note: This data has been randomly rounded to protect confidentiality. All totals are randomly rounded to base 3. Individual figures may not add up to totals, and values for the same data may vary in different tables. Symbols:... not applicable – figure too small to be expressed.

Source: Statistics New Zealand

  New Zealand2,890,86980.52,960,21777.12.4
  Australia(3)56,2591.662,7421.611.5
  Samoa47,1181.350,6491.37.5
  Fiji25,7220.737,7491.046.8
  Tonga18,0510.520,5200.513.7
  Cook Islands15,2220.414,6970.4-3.4
  Other Oceania and Antarctica11,8770.312,2460.33.1
Total Oceania and Antarctica3,065,12185.43,158,81482.33.1
  United Kingdom and Ireland225,1236.3251,6886.611.8
  Netherlands22,2420.622,1010.6-0.6
  Germany8,3820.210,7610.328.4
  Other Europe(4)28,9230.835,2050.921.7
Total Europe284,6707.9319,7558.312.3
  Iraq4,8480.16,0240.224.3
  Iran1,9800.12,7930.141.1
  Egypt1,179..1,344..14.0
  Other North Africa and Middle East4,1640.16,3720.253.0
Total North Africa and Middle East12,1740.316,5330.435.8
  Malaysia11,4600.314,5470.426.9
  Philippines10,1370.315,2820.450.8
  Other South-East Asia23,5950.728,4370.720.5
  China, People's Republic of38,9491.178,1172.0100.6
  Korea, Republic of17,9340.528,8060.860.6
  Taiwan12,4860.310,7640.3-13.8
  Hong Kong11,3010.37,6830.2-32.0
  Japan8,6220.29,5730.211.0
  India20,8890.643,3411.1107.5
  Other North-East, Southern and Central Asia10,4010.314,5830.440.2
Total Asia165,7744.6251,1336.551.5
  North America21,1140.626,7420.726.7
  Central and South America4,3950.17,6380.273.8
Total Americas25,5090.734,3800.934.8
  South Africa26,0610.741,6761.159.9
  Other sub-Saharan Africa10,1520.317,4420.571.8
Total Africa36,2131.059,1181.563.3
  Not specified/born at sea147,816...188,211...27.3
Total3,737,277...4,027,947...7.8

Figure 6.01.

Religious affiliation

Results from the 2006 Census showed that New Zealand is becoming increasingly more secular, with 34.7 percent of the people who responded to the religious affiliation question indicating that they had ‘no religion’, compared with 29.6 percent in the 2001 Census. This continues a steady trend from the last three censuses.

Christianity (including Māori Christian) remained the dominant religion, with over 2 million people, or 55.6 percent of those who answered the religious affiliation question. This compares with the 2001 Census, when 60.6 percent of people affiliated with Christianity.

The five largest Christian denominations in 2001 remained the largest in 2006, with some denominations increasing and some decreasing. Compared with 2001, Anglican affiliation decreased 5.1 percent; Catholic increased 4.7 percent; Presbyterian, Congregational and Reformed affiliations decreased 7.0 percent; Christian not further defined decreased 3.1 percent; and Methodist increased 1.0 percent.

Between 2001 and 2006, some smaller Christian denominations had larger increases in affiliation. Most significantly, in 2006, the number of people affiliating with Orthodox Christian religions increased 37.8 percent; Evangelical, Born Again and Fundamental affiliation increased 25.6 percent; and affiliation with Pentecostal religions increased 17.8 percent. Of the people of Māori ethnicity who answered the religious affiliation question, 11.1 percent identified with a Māori Christian religion, such as Rātana or Ringatū.

The three most common non-Christian religions in 2006 were the Hindu, Buddhist and Islam/Muslim religions, which made up 1.7 percent, 1.4 percent and 1.0 percent of total responses, respectively. There were also more than 90 religious groups that together made up less than 1 percent of the population. Those who objected to answering the religious affiliation question decreased from 6.9 percent in 2001 to 6.5 percent in 2006.

Changes to the question on religious affiliation from 2001 onwards mean direct comparisons cannot be made with censuses before 2001. Previous censuses collected only one response for religious affiliation, whereas in 2001 and 2006, people were able to give up to four responses.

Table 6.04. Religious affiliation (total responses)

Religious affiliation2001 Census2006 Census

(1) Total number of people who specified at least one religious affiliation or objected to answering the question.

Note: All totals are randomly rounded to base 3.

Source: Statistics New Zealand

Anglican584,793554,925
Catholic486,012508,437
Presbyterian, Congregational and Reformed431,547400,839
Christian not further defined192,165186,234
Methodist120,705121,806
Pentecostal67,23979,155
Māori Christian63,59765,550
Hindu39,79864,392
Baptist51,42656,913
Buddhist41,63452,362
Latter-day Saints39,91243,539
Islam/Muslim23,63136,072
Spiritualism and New Age16,06219,800
Brethren20,40619,617
Jehovah's Witness17,82617,910
Adventist14,86816,191
Evangelical, Born Again and Fundamentalist11,01913,836
Orthodox9,58813,194
Salvation Army12,61811,493
Judaism/Jewish6,6366,858
Lutheran4,3144,476
Other Christian3,5583,798
Church of Christ and Associated Churches of Christ3,2702,988
Protestant not further defined2,7843,954
Uniting/Union Church and Ecumenical1,3891,419
Asian Christian195195
Other18,78324,191
No religion1,028,0521,297,104
Object to answering239,244242,609
Total people(1)3,468,8133,743,655

Citizenship

New Zealand's citizenship legislation is contained in the Citizenship Act 1977, the Citizenship (Western Samoa) Act 1982, and Citizenship Regulations 2002. All citizenship legislation and policy is administered by the Department of Internal Affairs. The principal legislation – the 1977 Act – includes the Cook Islands, Niue, Tokelau, and the Ross Dependency in the definition of New Zealand for purposes of New Zealand citizenship.

Under the Act, a person may be a New Zealand citizen by birth in New Zealand, or by grant, or by descent from a parent who is a New Zealand citizen (but not by descent). British subjects resident in New Zealand throughout 1948 may also apply for confirmation of citizenship.

Citizenship by birth Most people born in New Zealand after 1 January 1949 are New Zealand citizens by birth. From 1 January 2006, children born in New Zealand (or in the Cook Islands, Niue or Tokelau) can acquire New Zealand citizenship at birth only if at least one of their parents is either a New Zealand citizen or entitled to be in New Zealand (or in the Cook Islands, Niue or Tokelau) permanently. This entitlement generally includes Australian citizens, and persons entitled to be in Australia permanently. A child born in New Zealand is a New Zealand citizen by birth if they would otherwise be stateless.

Citizenship by descent Most people born outside New Zealand after 1 January 1949 to a parent who is a New Zealand citizen but not by descent have a claim to citizenship by descent (although there are some limitations on this). New Zealand's citizenship legislation also contains provisions for those adopted by New Zealand citizens.

Grant of citizenship Migrants to New Zealand who wish to make New Zealand their home may apply for a grant of citizenship. They must be 16 years or older, of full capacity, and must submit an application form and fee. Applicants must satisfy the Minister of Internal Affairs that they:

  • have been present in New Zealand for the five years immediately preceding their application

  • are entitled to remain in New Zealand permanently (most applicants are required to have permanent residence status)

  • are of good character

  • have a sufficient knowledge of the English language, and of the responsibilities and privileges attached to New Zealand citizenship

  • intend to continue to live in New Zealand, or to work overseas in Crown service or for a New Zealand resident or established organisation.

The Citizenship Act 1977 contains special provisions for those whose parents are citizens by descent, for minors, for those who would otherwise be stateless, and for people with special circumstances.

The Citizenship (Western Samoa) Act 1982 provides for the grant of citizenship to Samoan citizens. To be granted citizenship under this Act, a person must be able to prove that they: either were in New Zealand at any time on 14 September 1982 (the day before the commencement of this Act); or have lawfully entered New Zealand after that date, and have an entitlement to remain in New Zealand permanently (most applicants will be required to have permanent residence status).

Dunedin mayor Peter Chin chats with new New Zealanders Ramachandra Keertipati (left), Swetha Keertipati, and Smitha Keertipati, after they received their certificates of New Zealand citizenship at a ceremony in 2007.

Applicants aged 14 and over who are approved for citizenship are required to attend a citizenship ceremony to swear allegiance to New Zealand and Queen Elizabeth II as Head of State. After this, the grant of citizenship is complete and a citizenship certificate is provided.

New Zealand citizens may be deprived of their citizenship if they act in a manner contrary to the interests of New Zealand, or if citizenship was obtained by fraud, false representation, or wilful concealment of relevant information. A citizen cannot be deprived of citizenship if citizenship was acquired by mistake, or if depriving them would leave them stateless. New Zealand citizens may choose to renounce citizenship if they hold citizenship of another country.

Figure 6.02 shows the number of citizenship applications granted from 1962 to 2007, while table 6.05 shows the country of birth of approved citizenship applicants in 2006 and 2007.

Figure 6.02.

Immigration

Immigration legislation and policy are administered by Immigration New Zealand (INZ), part of the Department of Labour.

The role of INZ is to increase the economic capacity of New Zealand through immigration, and to position New Zealand as an international country with immigration-related interests and obligations. INZ has branches overseas and throughout New Zealand.

The Ministry of Foreign Affairs and Trade processes applications for temporary entry to New Zealand on behalf of INZ in some countries where INZ is not represented.

Residence

People who want to migrate permanently to New Zealand can apply under one of the three streams of the New Zealand residence programme: skilled/business, family sponsored, or international/humanitarian. Each stream has a number of categories. For 2006/07, the immigration programme's residence approval target was between 47,000 and 52,000 people.

Residence applications are considered on the basis of whether principal applicants meet policy criteria set by the government. Principal applicants may include their partners and dependent children in their application. All applicants must meet health and character requirements, and all migrants over the age of 16 in the skilled migrant, entrepreneur, and in most investor categories must meet a minimum standard of English. This standard can be satisfied by either meeting the specified score in the International English Language Testing System (IELTS), or by showing other evidence of English language ability. Skilled migrants must have an average of 6.5 on the IELTS scale across the four skill areas (speaking, writing, listening and reading). For business migrants the requirements vary, depending on which category they apply under. Non-principal applicants who do not meet the standard may still be granted residence, provided they purchase, in advance, English language tuition to be taken up once they arrive in New Zealand.

Skilled/business residence stream

The skilled/business residence stream consists of the skilled migrant, work-to-residence, and business categories. The business category includes active investor migrants, entrepreneurs, and employees of businesses relocating to New Zealand. In 2006/07, there were 28,140 people approved for residence under the skilled/business stream. This represented 60 percent of all approvals. Of these, 26,874 applications were approved under the skilled migrant and work-to-residence categories, and the other 1,266 were approved under the business category.

Table 6.05. Citizenship approvals
By country of birth
Year ending 31 December

Country of birth(1)20062007

(1) Countries are shown as stated on individuals' applications. This results in duplication of some countries, which may be listed by both their current and former names.

Source: Department of Internal Affairs

Afghanistan368254
Albania83
Algeria914
American Samoa2222
Angola12
Argentina6851
Armenia56
Australia146149
Austria1216
Azerbaijan42
Bahamas21
Bahrain415
Bangladesh117110
Barbados11
Belarus914
Belgian Congo10
Belgium411
Belize02
Bermuda21
Bhutan01
Bolivia86
Bosnia-Herzegovina1010
Botswana1119
Brazil6654
British Virgin Islands10
Brunei67
Bulgaria6352
Burma139
Burundi14
Cambodia388300
Canada96121
Central Africa10
Channel Islands2733
Chile1619
China3,8863,077
Colombia1740
Congo41
Costa Rica12
Croatia3014
Cuba20
Cyprus56
Czech Republic98
Czechoslovakia62
Democratic Republic of the Congo02
Denmark75
Djibouti41
Dominica11
Dutch East Indies01
East Germany10
East Timor12
Ecuador22
Egypt86104
England2,4643,085
Eritrea422
Estonia03
Ethiopia71103
Falkland Islands10
Federation of Rhodesia and Nyasaland01
Fiji1,6921,722
Finland108
France7755
French Equatorial Africa01
French Polynesia22
Georgia712
Germany129153
Ghana118
Gibraltar02
Greece86
Guam11
Guatemala03
Guinea10
Guyana40
Haiti01
Honduras15
Hong Kong166174
Hungary3233
Iceland21
India4,3315,177
Indonesia139164
Iran232237
Iraq738500
Ireland2433
Isle of Man31
Israel8349
Italy1931
Jamaica26
Japan4037
Jordan6856
Kazakhstan269
Kenya65103
Kiribati24
Korea1,6381,448
Kuwait7346
Kyrgyzstan33
Laos116
Latvia75
Lebanon1623
Lesotho01
Liberia20
Libya25
Lithuania02
Luxembourg01
Macau47
Macedonia4448
Madagascar31
Malawi213
Malaya02
Malaysia330449
Maldives53
Malta83
Mauritius139
Mexico617
Moldova77
Mongolia31
Montenegro31
Morocco99
Mozambique13
Myanmar3534
Namibia3523
Nauru35
Nepal3730
Netherlands Antilles04
New Caledonia43
New Zealand16
Nigeria3934
Norfolk Island12
North Korea11
Northern Ireland4261
Northern Mariana Islands11
Northern Rhodesia78
Norway42
Nyasaland01
Oman2123
Pakistan251297
Palestine11
Palestinian Administered Area76
Papua New Guinea1415
Paraguay10
Peru2723
Philippines1,1231,166
Pitcairn Island01
Poland4452
Portugal26
Qatar24
Republic of Ireland3728
Rhodesia2431
Rhodesia and Nyasaland24
Romania364233
Russia319268
Rwanda08
Samoa1,2051,237
Saudi Arabia3733
Scotland284331
Serbia216
Serbia and Montenegro191
Seychelles35
Sierra Leone26
Singapore124119
Slovakia1218
Slovenia213
Solomon Islands98
Somalia237167
South Africa2,8023,131
South Vietnam10
South West Africa25
Southern Rhodesia4243
Spain1013
Sri Lanka435480
St Kitts and Nevis10
St Lucia01
St Vincent and the Grenadines01
Sudan3876
Swaziland13
Sweden3631
Switzerland5154
Syria3326
Tahiti20
Taiwan429373
Tajikistan05
Tanganyika10
Tanzania1216
Thailand252212
The Netherlands139145
Tibet10
Togo01
Tonga191259
Trinidad and Tobago61
Tunisia31
Turkey3833
Tuvalu910
USA346401
Uganda67
Ukraine10466
United Arab Emirates6455
Uruguay63
USSR3338
Uzbekistan1320
Vanuatu04
Venezuela612
Vietnam214215
Wales105124
Western Samoa163208
Yemen31
Yugoslavia9045
Zambia8289
Zimbabwe771864
Total29,12329,905

Skilled migrant The skilled migrant category focuses on the active recruitment of applicants with the skills that New Zealand needs.

Potential migrants submit expressions of interest, and information from this is used to score points for a number of employability and capacity-building factors. They must meet a pre-set number of points in order to enter a pool of potential residence applicants. They are then invited to apply for residence, based on their ranking in the residence pool and other point factors, and subject to them meeting health, character, English language, and initial verification requirements. Principal applicants invited to apply must be no older than 55 years. Applications for residence are assessed against government residence policy, and the applicant's ability to settle and contribute to New Zealand.

A person who can demonstrate their ability to settle in New Zealand successfully – by having skilled employment, an offer of skilled employment in New Zealand, or a New Zealand postgraduate qualification – may qualify for residence. A person who has potential but does not have these attributes will be interviewed to gather more information. Either a residence or a work-to-residence visa/permit may be issued to these people.

Work to residence This category provides a pathway to residence for holders of permits granted under three specific work policies – talent accredited employers; talent arts, culture and sports; and the long-term skill shortage list.

Active investor migrant This category changed when a new policy came into effect in November 2007, replacing the 2005 Investor category. It has three subcategories:

  • General (active) investor category – under this category, points for age, business experience, and lawfully earned or acquired investment funds may be claimed. Applicants first lodge an expression of interest to enter a pool from which they may be invited to apply for residence. A number of policy requirements must be met – including the principal applicant being no older than 54 years, having a minimum of four years' business experience, and investing a minimum of NZ$2.5 million in New Zealand for four years. The IELTS standard for the English language requirement is two band scores of 5 or more.

  • Professional investor category – this category has the same requirements relating to business experience and lawfully earned or acquired investment funds as the general (active) investor category, but it is not points based, so does not require an invitation to apply for residence. Professional investors must be no older than 64 years. They must invest a minimum of NZ$10 million, of which NZ$2 million is to be actively invested in one or more new or existing lawful enterprises that undertakes significant economic activity in New Zealand, and results in the principal applicant acquiring at least a 10 percent shareholding. The IELTS standard for the English language requirement is two band scores of 4 or more.

  • Global investor category – this category also has the same requirements relating to business experience and lawfully earned or acquired investment funds as the general (active) investor category, but again, it is not points based, so does not require an invitation to apply for residence. It requires a minimum investment in New Zealand of NZ$20 million for four years, of which NZ$5 million is to be actively invested in one or more new or existing lawful enterprises that undertakes significant economic activity in New Zealand, and results in the principal applicant acquiring at least a 10 percent shareholding. The global investor category has no age or English language requirements.

Entrepreneur People who have successfully established a business that benefits New Zealand – and have been self-employed in New Zealand in that business for at least two years – can be granted residence under this category. Successful establishment means the applicant has established, purchased, or made a substantial investment in a profit-making business operating in New Zealand. The business must also benefit New Zealand, and may meet this criterion if it creates employment, revitalises an existing business, enhances New Zealand's export markets, or introduces new skills or technologies to New Zealand.

Employees of businesses relocating to New Zealand This category is available on a case-by-case basis to essential employees of businesses relocating to New Zealand who do not qualify for residence under any other category.

Family-sponsored residence stream

Thirty percent of approvals were allocated to the family-sponsored residence stream for 2006/07, and 14,705 applications were approved. The family-sponsored stream allows migrants in a variety of close relationships with New Zealand citizens or residents to be sponsored for residence. In general, sponsors must have held New Zealand residence for at least three years immediately before sponsorship, and must sign a declaration that they will provide accommodation and financial support for the first two years of the migrant's residence in New Zealand. Sponsors of parents must meet a minimum income requirement. Financially-dependent children under the age of 25 may also be sponsored. Adult children and siblings who have no parents or siblings in their home country are eligible to be sponsored for residence, along with their dependants, providing they have a job offer in New Zealand, and meet a minimum income requirement.

Partnership policy To qualify for residence under this policy, applicants have to prove they have been living in a genuine and stable relationship with a New Zealander for 12 months or more at the time of application, whether or not they are in a marriage or de facto relationship (whether opposite or same sex).

International/humanitarian residence stream

The international/humanitarian residence stream includes the refugee quota and other refugee-linked categories, such as refugee status, and the refugee family support category. Other categories include the Pacific access category, the Samoan quota, ministerial exceptions to policy, a category for victims of domestic violence, and various miscellaneous categories.

Refugees New Zealand is committed to working with the international community to help resolve refugee problems. The Department of Labour manages the refugee quota programme, which allows up to 750 refugees to settle in New Zealand each year. It consists of a number of categories, including women at risk, medical/disabled, protection and emergency. In 2006/07, the 748 people approved for residence through the programme included refugees from Myanmar (Burma), Afghanistan, Sudan, and the Democratic Republic of Congo.

All refugees attend a six-week orientation programme at the Department of Labour's Mangere Refugee Resettlement Centre. The department locates and maintains sponsors who assist refugees to settle in the community following their induction. Refugees accepted under the quota are granted residence permits on arrival in New Zealand. This means they are entitled to live in New Zealand permanently, and to enjoy the rights of New Zealand residents in matters such as education, health, employment, and social welfare.

New Zealand also considers claims for refugee status from people who arrive in New Zealand seeking asylum. Claims are assessed under the 1951 United Nations Convention and 1967 Protocols relating to the status of refugees. The refugee status branch of INZ assesses claims in the first instance. In 2006/07, there were 62 successful refugee status claimants. The number of refugee status claims in New Zealand has reduced substantially in recent years. If a claim is declined, the claimant may appeal to the Refugee Status Appeals Authority.

Pacific access The Pacific access category enables up to 250 people from Tonga, 75 people from Tuvalu, and 75 people from Kiribati to be granted residence each year. Applicants must be citizens of their country, meet English language, health, and character requirements, and have an offer of employment in New Zealand.

Samoan quota Up to 1,100 Samoan citizens may be granted residence in New Zealand each year under the Samoan quota. English language, health, and character requirements must be met, and the principal applicant must have an offer of employment in New Zealand.

Domestic violence policy The domestic violence policy enables ex-partners of New Zealand citizens or residents to apply for residence when their relationship has ended as a result of domestic violence, and they are unable to return to their home country, for cultural or social reasons, and would not have (or be able to get) independent support (eg financial) in their home country.

Gadir Maklaf (left) and his parents, Fauzia Zahroon and Moayed Sowadi, came to New Zealand from Iraq as refugees. Every year 750 refugees are able to settle in New Zealand under the refugee programme.

Sources of migration

United Kingdom nationals accounted for 26 percent of the 46,964 people approved for residence in New Zealand in 2006/07. Twelve percent of those approved for residence were from China, 9 percent were from India, and 8 percent were from South Africa.

In 2006/07, categories in the skilled/business residence stream made up 60 percent (28,140 people) of all approvals, and a further 30 percent (14,705 people) were granted residence under the family-sponsored stream. In the same period, 10 percent of residence approvals were allocated to the international/humanitarian stream, and 4,119 people were granted residence.

Temporary entry

All travellers arriving in New Zealand, including New Zealand citizens, must produce a valid passport or another form of recognised travel document.

With the exception of New Zealand citizens (including people born in the Cook Islands, Niue and Tokelau), Australian citizens, and a small number of people exempt under the Immigration Act 1987, everyone entering New Zealand is required to obtain a permit to remain in New Zealand. The main categories for temporary permits are outlined below.

Visitors People may enter New Zealand as visitors if they are tourists, visiting friends or relatives, studying for less than three months, playing sport or performing in cultural events without pay, or making short business trips. A visitor's permit is usually granted for an initial period of three months, and may be extended for up to a further six months.

More than 50 countries have been granted visa waivers, so citizens of these countries do not need to apply for a visitor's visa before they travel to New Zealand (they are granted a visitor's permit at the border). Visitors from countries without visa waivers need to apply for a visitor's visa before travelling to New Zealand.

Visitors must have sponsorship or sufficient funds to support themselves while they are in New Zealand, and must have an outward ticket or some other travel arrangement.

Students International students from visa-required countries must apply for a visa before travelling to New Zealand to study. If the course of study is less than 12 weeks, they may be granted a visitor's visa. If the course of study is more than 12 weeks, they may be granted a student visa. Students from visa-waived countries who are intending to study for a period of less than 12 weeks may enter New Zealand as visitors and be granted a visitor's permit. If they are enrolled in a course of study for a period of more than 12 weeks, they must apply for a student visa before entering New Zealand.

Students must show they have been offered a place at a recognised educational institution. They must have: evidence that course fees have been paid, a guarantee of accommodation, the ability to support themselves, and a return ticket (or the funds to buy one). During their studies, student permit holders must attend classes and make satisfactory progress.

Students may be granted permission to work for up to 20 hours a week if certain conditions are met. Students undertaking a full-time course of 12 months or more may be allowed to work full time during the summer holiday period.

Students who have successfully completed a New Zealand qualification that would gain points under the skilled migrant category are eligible for a 12-month open work permit. Students who have graduated from a course of at least three years duration, or who have completed a New Zealand qualification that would qualify for points under the skilled migrant category, may be granted a work permit for up to two years if they have an offer of employment relevant to their course or qualification. A permit of up to three years may be granted if this is necessary in order to gain membership or registration with a New Zealand professional organisation. Partners of students undertaking particular courses may be eligible for an open work permit for the duration of the student's course of study.

Guardian This policy allows the legal guardian of a young international student to live with and care for the child, while they study in New Zealand. The guardian visa applies to legal guardians of children aged 17 and under who are enrolled for years 1 to 13 at a New Zealand school. The guardian visa is linked to the child's student visa and can be renewed annually. Only one legal guardian in each family is eligible for a guardian visa.

Work-related entry

Anyone who wishes to work in New Zealand (except New Zealand or Australian citizens or residents) must have a work permit. The policy allows people to enter New Zealand for a variety of work-related purposes. Some policies allow employers to recruit temporary workers from overseas to meet particular or seasonal skill needs that cannot be met from within New Zealand. Other policies allow partners of New Zealand citizens or residents to participate in the labour market. Work permits are also issued to young people (those aged 18–30 years) participating in working holiday schemes that New Zealand has established with a number of countries, and to people applying through work-to-residence policies.

For immigration purposes, ‘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. A work permit is still required if payment is made by an overseas employer.

Setu Sua, a Samoan worker on a temporary work permit picks asparagus on Lewis Farms, one of the biggest producers of asparagus in New Zealand, which covers 70 hectares near Foxton in Manawatu. For the past three years, farm owner Geoff Lewis has arranged for up to 30 workers to come from Samoa to help with the harvest, as it has become increasingly difficult to find local staff.

Recognised seasonal employer policy In 2007, the recognised seasonal employer policy was introduced to facilitate the recruitment of overseas workers by employers in the horticulture and viticulture sectors, when labour demand exceeds the available New Zealand workforce, and employers have made reasonable attempts to train and recruit New Zealanders. Employers must meet a number of ‘good employer’ requirements to become a recognised seasonal employer, and if approval to recruit overseas is granted, preferential access is given to workers who are citizens of eligible Pacific countries.

Immediate skills shortage list INZ publishes this regionally-based labour market skills shortage list to facilitate work visa and permit applications from employers where there appears to be a skills shortage. This list is updated six-monthly.

In 2002, new work permit categories that provide a pathway for gaining residence in New Zealand were introduced. These categories allow people who are interested in applying for residence in New Zealand to work for up to two years before lodging their application for residence. These categories include the long-term skills shortage list, and talent visas. Holders of work permits under these policies may be eligible for residence after two years, if they meet all policy requirements including, in most cases, an offer of ongoing employment with a minimum base salary.

Long-term skills shortage list Applicants are eligible for a work permit under this category if they have an offer of employment for an occupation that is on the long-term skills shortage list, and they have the necessary qualifications, training or experience, and registration (if required) to undertake the offer of employment. The employment offer must be for at least 24 months, be full time, and comply with all relevant New Zealand employment laws.

Talent (accredited employer) Businesses operating in New Zealand can apply to become accredited employers with INZ. Accredited employers are able to recruit workers directly from overseas to fill skill shortages, provided those workers meet immigration criteria.

Talent (arts, culture and sports) Under this category, a person who has an international reputation, a record of excellence in their field, and who will enhance the quality of New Zealand's accomplishments and participation in that field, may be granted a work permit. An applicant must be sponsored by a New Zealand organisation of national repute.

Working holiday schemes These schemes generally allow 18–30-year olds from partner countries to spend 12 months in New Zealand and undertake temporary work. The schemes also allow young New Zealanders to work overseas under reciprocal agreements. At March 2008, New Zealand had schemes with 27 countries.

Long-term business visa Work permits may be granted to business people interested in either applying for residence under the entrepreneur category, or establishing a business in New Zealand without living permanently in New Zealand. A satisfactory business plan must be submitted, and applicants must have sufficient funds to finance their proposed business, and to support themselves and their families. English language requirements were introduced for this category of applicants in November 2002.

A long-term business visa is issued for nine months. By the end this period, in order to be granted an extension to their visa for a three-year term (including the initial nine months), applicants must provide evidence of having transferred the investment funds for the business to New Zealand, and of taking reasonable steps to establish the business.

Removal and deportation

The Immigration Act 1987 requires all people in New Zealand, other than New Zealand citizens, to hold a permit or be exempt from holding a permit. The Act provides for residence to be revoked by the Minister of Immigration on certain grounds. People who do not hold a permit or an exemption are deemed to be unlawfully in New Zealand and may be removed.

Any person may appeal against removal on humanitarian grounds to the Removal Review Authority within 42 days of becoming unlawfully present in New Zealand. People removed from New Zealand are not eligible to return for five years after the date of their departure.

The Act provides for deportation of people who threaten national security or are suspected terrorists, or are criminal offenders who are residents of New Zealand. Such people may appeal on humanitarian grounds to the Deportation Review Tribunal, an independent tribunal administered by the Ministry of Justice. If the tribunal dismisses an appeal, the deportation order remains in place. A further appeal, only on a point of law, may be made to the High Court of New Zealand. Anyone deported from New Zealand is not permitted to return without special permission from the Minister of Immigration.

Māori society

Demography

In most surveys collecting data about ethnicity, including the Census of Population and Dwellings, ethnicity is self-perceived and people can, and do, identify with more than one ethnic group. People are counted as having Māori ethnicity if they identify with the Māori ethnic group as one of their ethnicities.

Statistics based on ethnicity are widely used for analysing Māori population growth and distribution, and are relevant to many requirements of users. However, a different concept, based on Māori descent, is used to measure the Māori electoral population.

Figure 6.03.

Age distributionTable 6.06 compares the Māori ethnic group population at the 2001 and 2006 Censuses by age group. Apart from the impact of births, deaths and migration, inter-ethnic mobility (changes in ethnic identification over time) is also an important factor in Māori population change.

The 2006 Census showed that the Māori ethnic group was significantly younger in age structure than the total population – 35.4 percent of the Māori population was aged under 15 years, compared with 21.5 percent of the total population. By contrast, only 4.1 percent of the Māori population was aged 65 and over, compared with 12.3 percent of the total population. These differences mainly reflect the higher historical fertility (in terms of birth rates) and the lower life expectancy of the Māori ethnic group, relative to the total population.

Figure 6.03 shows the Māori ethnic group population as a proportion of the total New Zealand population in the census years from 1906 to 2006.

Table 6.06. Māori ethnic group(1)
By age group

Age group (years)2001 Census2006 CensusChange between censuses (percent)
Number of peoplePercentageNumber of peoplePercentage

(1) Māori ethnic group census usually resident population count.

Note: Figures may not add up to stated totals, due to rounding.

Source: Statistics New Zealand

0–467,56012.866,42311.7-1.7
5–966,11412.666,77111.81.0
10–1462,80511.966,72611.86.2
15–1949,5309.458,53310.418.2
20–2442,0938.042,7717.61.6
25–2940,1647.638,1066.7-5.1
30–3439,2527.539,4567.00.5
35–3938,3227.338,5986.80.7
40–4432,8596.237,2726.613.4
45–4925,0924.831,9055.627.2
50–5419,4733.724,1924.324.2
55–5913,8272.618,6273.334.7
60–6411,5502.212,8162.311.0
65–697,9381.510,1551.827.9
70–745,0701.06,5101.228.4
75–792,6880.53,8070.741.6
80+1,9410.42,6520.536.6
Total526,281100.0565,329100.07.4

Female-to-male ratio In the 2006 Census, females outnumbered males in the Māori ethnic group. There were 290,466 Māori females and 274,860 Māori males, representing a sex ratio of 105.7 females to every 100 males.

Regional distribution Changes in the regional distribution of the Māori ethnic group between the 2001 and 2006 Censuses are shown in table 6.07 (overleaf). People of Māori ethnicity continue to be concentrated in the North Island, and more especially in Northland, Auckland, Waikato and Bay of Plenty. The Māori population in the North Island and South Island increased 6.6 and 13.3 percent, respectively, between the 2001 and 2006 Censuses. The Otago and Canterbury regions showed the largest percentage increases between the two censuses. Redistribution of the Māori population between 2001 and 2006 was the result of variations in the relative levels of natural increase (births minus deaths) in the regions, and the impact of both internal and external migration flows.

Dynamics of population change Māori have a substantially higher rate of natural increase than the total population, partly because of their more youthful age structure and higher birth rate. The birth rate for Māori women fell rapidly during the 1960s and 1970s and, as a consequence, the gap between their birth rate and that of the total population narrowed, from a two-child difference in 1962 to less than one child in 2006. Nevertheless, the Māori birth rate of 2.7 births per woman in 2006 remains higher than that for all women (2.0 births per woman). Births to non-Māori mothers and Māori fathers also contributed to Māori population growth.

Treaty of Waitangi

The Treaty of Waitangi Te Tiriti o Waitangi was signed at Waitangi on 6 February 1840. While the treaty has always been recognised within Māori society as an affirmation of rights and highly valued as a taonga (treasure) and a sacred pact, this has not always been the case for governments or the courts.

However, in 1987, a ruling by the Court of Appeal ensured that the treaty moved from being ‘a simple nullity’, as it was described in 1877, to exerting an important influence over much of government activity.

Table 6.07. Māori ethnic group(1)
By region

Region2001 Census2006 CensusChange between censuses (percent)
Number of peoplePercentageNumber of peoplePercentage

(1) Maori ethnic group census usually resident population count.

(2) Includes Chatham Islands.

Note: Figures may not add up to stated totals, due to rounding.

Source: Statistics New Zealand

North Island
  Northland40,7347.743,5277.76.9
  Auckland127,62624.3137,13324.37.4
  Waikato72,82213.876,57213.55.1
  Bay of Plenty63,65412.167,66212.06.3
  Gisborne19,3653.719,7583.52.0
  Hawke's Bay32,0886.133,5555.94.6
  Taranaki14,5592.815,7982.88.5
  Manawatu-Wanganui39,2677.542,2887.57.7
  Wellington51,1239.755,4379.88.4
Total461,23587.6491,73087.06.6
South Island
  Tasman2,7780.53,0630.510.3
  Nelson3,2190.63,6120.612.2
  Marlborough3,8910.74,2750.89.9
  West Coast2,5470.52,9160.514.5
  Canterbury31,6356.036,6696.515.9
  Otago10,5452.012,2702.216.4
  Southland10,0381.910,4221.83.8
Total64,65012.373,23013.013.3
Area outside region(2)3930.13690.1-6.1
Total New Zealand526,281100.0565,329100.07.4

The ruling confirmed the special relationship between Māori 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

The Waitangi Tribunal Te Rōpū Whakamana i te Tiriti o Waitangi, established under the Treaty of Waitangi Act 1975, is a permanent commission of inquiry. Its main functions are to inquire into, and make findings and recommendations to the Crown on claims by Māori relating to the Treaty of Waitangi.

The tribunal consists of up to 16 members appointed by the governor-general for up to three years, and a chairperson, who is either a judge or retired judge of the High Court of New Zealand or the chief judge of the Māori Land Court. The chairperson may appoint a judge of the Māori Land Court as deputy chairperson and assign Māori Land Court judges to preside over particular inquiries.

Members are appointed for their expertise in matters likely to come before the tribunal. Membership of the tribunal reflects partnership in the Treaty of Waitangi through balanced representation of Māori and New Zealanders of European descent.

In exercising any of its functions, the Waitangi Tribunal has exclusive authority to determine the meaning and effect of the Treaty of Waitangi, as embodied in the English and Māori texts, and to decide upon issues raised by the differences between them.

The tribunal may inquire only into claims by Māori concerning legislation, acts, omissions, policies, and practices of the Crown that are alleged to have caused prejudice to the claimants, and that are claimed to be inconsistent with the principles of the Treaty of Waitangi.

Claims fall into three broad categories:

  • historical claims (for example, past government actions)

  • contemporary claims (for example, current government policies or practices)

  • conceptual claims (for example, ownership of natural resources).

The tribunal must register any claim that complies with the Act, but may refuse to inquire into claims it considers frivolous or vexatious.

The tribunal does not settle claims – it makes recommendations to the government on how claims might be settled. Generally, the tribunal has the authority to make recommendations only.

In most instances, its recommendations do not bind the Crown, claimants, or third parties, and nearly all claims are settled by negotiation with the government. However, in certain limited situations, the tribunal does have binding powers. These include powers to order the return of former State-owned enterprise, railway, education, or Crown forest land that has been memorialised (which makes them available to the tribunal). However, in no other circumstances can the tribunal recommend or order the return of private land.

The tribunal's process is flexible and inquisitorial. It is not required to follow court rules of evidence, and it can adapt its procedures as it sees fit. For example, the tribunal can adopt the protocols of the marae (meeting place) at which a hearing is taking place.

All evidence is presented in public, hearings are open to all, and the tribunal's reports are published.

The tribunal has given priority to hearing historical claims, which are defined as those alleging grievances that arose before September 1992. The government set a statutory deadline of 1 September 2008 for the submission of new historical claims.

From 1975 to 31 December 2007, the tribunal registered 1,428 claims. Of these, 949 claims were under inquiry or had received tribunal reports. They range from small claims submitted by individuals, up to comprehensive claims on behalf of large iwi- or hapū-based (tribe and sub-tribe) groups.

The tribunal inquires into most historical and contemporary claims on a joint district basis. At 31 December 2007, the tribunal had reported on or started inquiries in 27 of the tribunal's 37 districts. These covered 89 percent of the national territory. In several other districts, the principal claimant groups had completed or were negotiating with the Crown for the settlement of their claims.

Office of Treaty Settlements Te Tari Whakatau Take e pā ana ki te Tiriti o Waitangi was established on 1 January 1995, to give better focus to government objectives to resolve historical claims under the Treaty of Waitangi. The office has the following major functions:

  • to 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

  • to negotiate and implement settlement of specific claims

  • to acquire, manage, and dispose of Crown-owned property for purposes related to treaty claims.

For administration and financial management purposes, the office is attached to, but funded separately from, the Ministry of Justice, and has its own Vote Treaty Negotiations allocation. At the beginning of 2007, the office was dealing with about 25 claimant groups at the pre-negotiation, negotiation, or implementation stage.

Te Puni Kōkiri

Te Puni Kōkiri Ministry of Māori Development is the Crown's principal adviser on relationships between Māori and the Crown, and guides Māori public policy by advising the government on policy affecting Māori well-being and development.

Te Puni Kōkiri's strategic outcome is ‘Māori succeeding as Māori’. This outcome strives to achieve a sustainable level of success for Māori as individuals, in organisations, and in collectives.

The purpose of Te Puni Kōkiri is to ‘realise Māori potential’. Te Puni Kōkiri has developed the Māori Potential Approach, an innovative, forward-looking policy approach that aims to better position Māori to realise the potential of their collective resources, knowledge, skills, and leadership capability to improve their overall quality of life.

Māori organisations

Māori Trustee has been in existence since 1921 and is now governed by the Māori Trustee Act 1953. It is independent of the Crown and is accountable to landowners and the Māori Land Court. The Māori Trustee exists to:

  • protect and enhance the interests of Māori clients and their resources

  • manage the adverse effects of fragmented and multiple ownership of Māori land

  • provide fair, proper, and prudent administration and management of clients' assets within the principles and obligations of trusteeship and agency.

In helping Māori to manage their land and assets, the Māori Trustee:

  • acts as either a trustee or an agent for owners of Māori land, usually in leasing the land

  • collects and pays rent and other income to owners

  • invests trust moneys

  • keeps landowners informed about how their land is managed

  • regularly publishes an unclaimed moneys list.

New Zealand Māori Council Te Kaunihera Māori is constituted under the Māori Community Development Act 1962, and is a founding member of the World Indigenous People's Council. Some of the functions of the council are to:

  • consider and discuss matters that are relevant to the social and economic advancement of Māori

  • consider, and as far as possible act on, any measures that will conserve and promote harmonious and friendly relations between Māori and other members of the community

  • promote, encourage, and assist Māori 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 development of employment, education, training, housing, and health care for Māori people.

As a statutory body, the council is accountable to the government for its funding. The council is based on the 946 marae (rural or urban Māori centres) throughout New Zealand. It represents 17 district Māori councils, which nominate three delegates to attend full council meetings. The council also includes representatives from the Māori Women's Welfare League and Māori wardens. The executive committee consists of the chairperson of each district council. The council is the only national Māori body with a statutory framework that recognises non-iwi-based representation. Apart from the urban councils, each district council is tribally represented and the council promotes the traditional social infrastructure of whānau (family) and hapū (subtribe).

Māori Congress Te Whakakotahitanga o ngā Iwi o Aotearoa was officially launched in July 1990, after three national Māori leaders – the late Sir Hepi Te Heuheu, the late Dame Te Ātairangikaahu (the Māori Queen) and the late Mrs Te Reo Hura – sought to create a national body under which iwi (tribes) could gather to share, consolidate and advance their positions. Objectives of the congress include:

  • advancement of all Māori people

  • exercise by each iwi of tino rangatiratanga (self-determination)

  • provision of a national forum for iwi representatives to address economic, social, cultural and political issues within tikanga Māori (Māori custom)

  • promotion of constitutional and legislative arrangements enabling Māori to control their development and exercise self-determination.

While acknowledging the strengths and autonomy of each iwi, the Māori Congress provides a forum at which matters of national importance affecting all iwi and, indeed, all Māori, can be debated within a Māori context. By standing apart from government, both in terms of direction and funding, it offers Māori people an opportunity to consider options and strategies for social, economic and cultural advancement. With its wide iwi base, the congress provides a source of collective Māori opinion from which policies acceptable to it can develop. The congress is led by two presidents, and has three elected officers. Membership includes five delegates from 45 participating iwi.

Māori Women's Welfare League Te Rōpū Wāhine Māori Toko i te Ora is a national voluntary organisation that aims to promote the well-being of Māori women and their families. The league has a nationwide network of 165 branches, with a membership of 3,000. It has been actively involved with Māori families and communities since 1951, improving health, housing, education, welfare, justice, and economic development for Māori people.

Māori wardens were established by the Maori Community Development Act 1962. Māori wardens are volunteers who provide services such as maintaining security for territorial local authorities, businesses and hospitals; addressing truancy issues and removing children and young people from risk situations; dealing with issues of drug and alcohol misuse; helping whānau in need; working at the courts and other parts of the justice sector; and walking and patrolling the streets. They are usually people of high standing in the Māori community. Their approach is based on rangimārie (peace), aroha (compassion), and kōrero (persuasion). Knowledge of taha Māori (Māori ways) and pride in Māori identity guides the way the wardens operate.

Te reo Māori

Te reo Māori is the language of the indigenous people of New Zealand and an official language of the country. Legislation that led to declaring Māori as an official language of New Zealand was passed in 1987.

Māori Language Commission Te Taura Whiri i te Reo Māori was established by the Māori Language Act 1987 to promote the Māori language and its use as an official language of New Zealand – as a living language, and as an ordinary means of communication.

The Māori language renaissance, which began about 30 years ago, has fostered many Māori language initiatives to revitalise te reo Māori, including kōhanga reo (Māori language immersion preschool movement), kura kaupapa Māori and wharekura (Māori language immersion primary and secondary schools), and whare wānanga (Māori tertiary institutions). There are also 21 Māori radio stations, and a Māori television service, which began in 2004. New Zealand's first 100 percent Māori language television channel, Te Reo, was launched in March 2008.

Kōhanga reo is a whānau (family) base where Māori language, values and customs are naturally acquired by preschool children from kaumātua (elders), whānau, kaimahi (staff), and kaiako (teachers).

The kōhanga reo movement's aim is that through the example of the whānau, children learn aroha (love, compassion), manaakitanga (caring, hospitality) and whānaungatanga (family responsibilities) through the medium of Māori language. The movement provides a variety of courses and training programmes that can be accessed by whānau through their own kōhanga reo. These courses are whānau-based and have been designed to improve whānau skills and knowledge, not only in te reo and tikanga Māori, but also in learning and teaching, administration, and management of the kōhanga reo operation.

Children from Hawke's Bay Te Kōhanga Reo o Te Ara Hou explore the workings of a worm farm with whānau workers. The kōhanga (language nest) gives preschoolers an opportunity to watch their food scraps being recycled, while learning about natural processes and the environment. Worm farms are an excellent way to teach the principle of ‘kaitiakitanga’ – showing responsibility and guardianship for natural and physical resources.

In 2007, there were approximately 500 kōhanga reo attended by 9,500 children throughout New Zealand.

Pacific peoples

Demography

Population statistics for the Pacific ethnic group are compiled on the basis of self-identification. People are counted in the Pacific ethnic group if they indicate one or more Pacific ethnicities in response to the census ethnicity question.

The Pacific ethnic group includes people of Samoan, Cook Island Maori, Niuean, Tokelauan, Fijian, Tuvaluan, and other Pacific ethnicities (eg Hawaiian and Tahitian). People may identify themselves as belonging to more than one Pacific ethnicity. While they are counted in each ethnicity when considering ethnicities within the broad Pacific ethnic group, they are counted only once in the Pacific ethnic group.

Age distributionTable 6.08 (overleaf) compares the Pacific population at the 2001 and 2006 Censuses on an age group basis. The increase of 34,176 (14.7 percent) in the Pacific population between the 2001 and 2006 Censuses was partly a result of significant natural increase (an excess of births over deaths).

At the time of the 2006 Census, the Pacific population was considerably younger in age structure than the total population, with 37.7 percent of Pacific peoples under the age of 15, compared with 21.5 percent of the total population. By contrast, only 3.8 percent of Pacific people were aged 65 and over, compared with 12.3 percent of the total population. In the past, people of Pacific ethnicities in New Zealand had a different age structure from that of the Māori ethnic group. This difference was mainly the result of Pacific peoples' consistently high net migration levels, especially for the younger working-age group (15–24 years) during the 1970s. However, since 1996, with a large increase in intermarriage, the ageing of Pacific people, and relatively high fertility rates, their age structure has become almost identical with that of Māori.

Two other features affect the Pacific population. Firstly, in the past three decades, the number of Pacific people born in New Zealand has increased significantly, to reach 60 percent in 2006 – the result of growth in the population of reproductive age. Secondly, an increasingly large proportion of children and teenagers identify themselves as being of both Pacific and Māori ethnicities. More than 25 percent of all children under the age of five who belong to the Pacific ethnic group also belong to the Māori ethnic group.

Table 6.08. Pacific ethnic group(1)
By age group

Age group (years)2001 Census2006 CensusChange between censuses (percent)
Number of peoplePercentageNumber of peoplePercentage

(1) Pacific ethnic group census usually resident population count.

Note: Figures may not add up to stated totals, due to rounding.

Source: Statistics New Zealand

0–432,77514.134,84813.16.3
5–930,48013.133,59712.610.2
10–1426,88911.631,89612.018.6
15–1921,4869.327,69010.428.9
20–2419,7828.520,7217.84.7
25–2917,9767.818,9187.15.2
30–3417,7787.718,1296.82.0
35–3916,0116.918,0756.812.9
40–4412,7535.516,0896.026.2
45–4910,1314.412,6874.825.2
50–547,9773.410,0473.825.9
55–595,6672.47,6112.934.3
60–644,4611.95,5772.125.0
65–693,1501.44,2901.636.2
70–742,2411.02,7151.021.2
75–791,2690.51,7160.635.2
80+9750.41,3590.539.4
Total231,798100.0265,974100.014.7

Regional distribution More than two-thirds of New Zealand's Pacific population live in the Auckland region. While all regions experienced growth in their Pacific populations between the 2001 and 2006 Censuses, in the Auckland region the Pacific population grew by 23,253 (15.0 percent) during the five-year period.

Table 6.09. Pacific ethnic group(1)
By region

Region2001 Census2006 CensusChange between censuses (percent)
Number of peoplePercentageNumber of peoplePercentage

(1) Pacific ethnic group census usually resident population count.

(2) Includes Chatham Islands territory.

Note: Figures may not add up to stated totals, due to rounding.

Source: Statistics New Zealand

North Island
  Northland2,9431.33,7021.425.8
  Auckland154,68066.7177,93366.915.0
  Waikato10,5244.511,7964.412.1
  Bay of Plenty5,4632.46,4652.418.3
  Gisborne1,1370.51,2990.514.2
  Hawke's Bay4,7102.05,2652.011.8
  Taranaki1,0590.51,3650.528.9
  Manawatu-Wanganui5,0312.25,8922.217.1
  Wellington32,28313.934,75213.17.6
Total217,83394.0248,47293.414.1
South Island
  Tasman2220.13360.151.4
  Nelson5940.37110.319.7
  Marlborough4080.26420.257.4
  West Coast1860.12820.151.6
  Canterbury8,6223.710,9234.126.7
  Otago2,6461.13,1411.218.7
  Southland1,2780.61,4610.514.3
Total13,9506.017,4966.625.4
Area outside region(2)150.060.0-60.0
Total New Zealand231,801100.0265,974100.014.7

Migration to New Zealand

Cook Islands The Cook Islands gained independence in free association with New Zealand in 1965. Its people retained the right of free entry to New Zealand and significant emigration began in the 1950s, and increased during the 1960s and 1970s. The most common destinations were Auckland and Wellington. Smaller numbers of migrants settled in other parts of New Zealand, mostly in the main urban areas. The 2006 Census recorded 58,011 Cook Island Maori living in New Zealand.

Niuean Tifa Ikitoelagi dances with other women at the Niuean village during the Pasifika Festival at Western Springs, Auckland. More than 22,000 Niueans lived in New Zealand in 2006, most of them in Auckland.

Fiji At the time of the 2006 Census, there were 9,861 Fijians living in New Zealand, an increase of 40.1 percent since 2001. New Zealand-born Fijians made up 43.5 percent of the Fijian population in 2006, while 51.7 percent of Fijians born overseas had been living in New Zealand for less than 10 years. Nearly 60 percent of Fijians lived in the Auckland urban area, with the next-largest concentration, 9.5 percent, in the Wellington urban area. Figure 6.04 shows the pattern of Pacific migration from 1987 to 2007.

Niue achieved self-government in free association with New Zealand in 1974 and Niueans were granted right of free entry, residence, and New Zealand citizenship. Among New Zealand's attractions for Niueans is a more settled way of life. Niue is particularly vulnerable to natural disasters, such as drought and cyclones, and cyclones in 1959, 1960, and 2004 had devastating effects. In 2006, there were over 22,000 Niueans living in New Zealand, most of them in Auckland.

Samoa Samoa's 13 islands are divided into Samoa and American Samoa. The six islands east of the 171st meridian were annexed by the United States in 1899. New Zealand assumed control of Western Samoa at the start of World War I, and retained it until 1962, when Western Samoa became independent. Western Samoa is now known as Samoa. Emigration from the islands picked up in the mid 1960s and continues largely through the process of chain migration. Rapid population growth, a decline in export prices for cocoa and copra, a banana crop disease, and a major cyclone in 1966 were persuading factors for migrants. The Treaty of Friendship signed at Western Samoa's independence ensured emigrants would not have to register in New Zealand as aliens. Samoans constitute the largest group of Pacific peoples living in New Zealand – more than 130,000 at the 2006 Census. Most live in Auckland.

Figure 6.04.

Tokelau The small island group of Tokelau was declared a British Protectorate in 1889. New Zealand took over administration on behalf of Britain in 1925 and it became part of New Zealand's territory in 1948, with full political independence being gained in 1994. The 10 square kilometres of Tokelau's three atolls have few natural resources, apart from lagoons, coconut palms and the ocean. The atolls are also vulnerable to cyclones. After a devastating cyclone in 1966, the New Zealand Government set up a resettlement scheme that involved about 500 people, half the Tokelauan population. These people voluntarily left Tokelau and resettled in urban Porirua and forest-industry towns such as Rotorua. In 2006, there were close to 7,000 Tokelauans living in New Zealand and only about 1,500 in Tokelau.

Tonga The Kingdom of Tonga is an independent nation. Population pressures have forced it to adopt emigration as an official policy. In 1970, a scheme was initiated under which Tongans were allowed to migrate to New Zealand temporarily to work in unskilled jobs in the processing industry. Many also went to Australia and to the United States. In 2006, more than 50,000 Tongans were living in New Zealand, most of them in Auckland.

Asian population

Demography

The population of the Asian ethnic group in New Zealand increased markedly between 1996 and 2006. People are counted as belonging to the Asian ethnic group if they give any Asian ethnicity in response to the census ethnicity question. People may identify themselves as belonging to more than one Asian ethnicity. While they are counted in each ethnicity when considering the ethnicities within the broad Asian ethnic group, they are counted only once in the Asian ethnic group. Figure 6.05 shows the pattern of Asian migration from 1981 to 2007.

Figure 6.05.

Asian ethnicities Even though most Asian ethnicities increased significantly between 2001 and 2006, each group's share of the total Asian population changed only marginally. In 2006, people of Chinese ethnicities were the largest subgroup within the Asian ethnic group (with a share of 41.6 percent) and they experienced the largest numerical increase in their population, from 105,057 people in 2001 to 147,570 in 2006. People of Indian ethnicities (29.5 percent of the Asian ethnic group in 2006), experienced a similar numerical increase, from 62,187 people to 104,583 between 2001 and 2006, but had the highest percentage increase, at 68.2 percent. People of Korean ethnicity were the third largest group, accounting for 8.7 percent (30,792 people) of the Asian ethnic group in 2006.

Age distribution Between 2001 and 2006, the population of the Asian ethnic group increased by nearly 50 percent, from 238,176 people to 354,552. This represents an average growth rate of 9.8 percent a year, compared with 1.6 percent for the total New Zealand population. Net migration was a major contributor to this population growth. This growth also had a significant impact on the overall age structure of the Asian group. At the time of the 2006 Census, 73.8 percent of the Asian ethnic group were of working age (15–64 years), compared with 66.2 percent for the total population. By contrast, only 4.5 percent of Asians were aged 65 and over, compared with 12.3 percent of the total population.

Regional distribution The Asian ethnic group continues to be concentrated in the Auckland, Wellington and Canterbury regions. Between the 2001 and 2006 Censuses, the Auckland region experienced the largest growth in its Asian population in numerical terms, while Marlborough experienced the largest growth in percentage terms (65.1 percent). The Auckland region's Asian population increased more than 80,000, to reach 234,219 people in 2006, and represented 71.0 percent of the national increase of 116,376 people between 2001 and 2006.

Table 6.1. Asian ethnic group(1)
By age group

Age group (years)2001 Census2006 CensusChange between censuses (percent)
Number of peoplePercentageNumber of peoplePercentage

(1) Asian ethnic group census usually resident population count.

Note: Figures may not add up to stated totals, due to rounding.

Source: Statistics New Zealand

0–418,3787.723,9106.730.1
5–918,3817.725,0537.136.3
10–1419,5218.227,9877.943.4
15–1927,10211.432,0769.018.4
20–2424,01810.145,62112.989.9
25–2917,9797.532,2329.179.3
30–3419,9478.427,8827.939.8
35–3922,7229.529,1638.228.3
40–4419,8068.330,7478.755.2
45–4915,6906.624,8707.058.5
50–5411,5204.818,0125.156.4
55–597,1613.012,5253.574.9
60–646,1922.68,4032.435.7
65–694,4341.96,9872.057.6
70–742,5891.14,6021.377.8
75–791,4850.62,4450.764.6
80+1,2540.52,0370.662.4
Total238,176100.0354,552100.048.9

Table 6.11. Asian ethnic group(1)
By region

Region2001 Census2006 CensusChange between censuses (percent)
Number of peoplePercentageNumber of peoplePercentage

(1) Asian ethnic group census usually resident population count.

(2) Includes Chatham Islands territory.

Note: Figures may not add up to stated totals, due to rounding.

Symbol: C confidential

Source: Statistics New Zealand

North Island
  Northland1,9980.82,5800.729.1
  Auckland151,60263.7234,21966.154.5
  Waikato12,0215.018,2045.151.4
  Bay of Plenty5,2022.27,8242.250.4
  Gisborne6210.37410.219.3
  Hawke's Bay2,9371.23,5131.019.6
  Taranaki1,5000.62,1540.643.6
  Manawatu-Wanganui6,5642.88,1212.323.7
  Wellington27,81911.736,47710.331.1
Total North Island210,26488.3313,83388.549.3
South Island
  Tasman3690.25670.253.7
  Nelson8610.41,0650.323.7
  Marlborough3870.26390.265.1
  West Coast2430.13450.142.0
  Canterbury19,4318.229,1698.250.1
  Otago5,7692.47,7792.234.8
  Southland8490.41,1490.335.3
Total South Island27,90911.740,71311.545.9
Area outside region(2)CCCCC
Total New Zealand238,176100.0354,552100.048.9

Human rights

Human Rights Commission

The Human Rights Commission Te Kāhui Tika Tangata is an independent Crown entity, which has a range of functions to perform under the Human Rights Act 1993. The commission's four major functions are to:

  • advocate and promote respect for, and an understanding and appreciation of, human rights in New Zealand society

  • encourage maintenance and development of harmonious relations among individuals, and among the diverse groups in New Zealand society

  • lead, evaluate, monitor, advise, analyse, and liaise on equal employment opportunities

  • respond to enquiries from members of the public about discrimination

  • facilitate the resolution of disputes alleging discrimination in the most efficient, informal, and cost-effective manner possible.

The commission is required to act independently in performing its statutory functions and duties, and in exercising its statutory powers. The Act provides for the positions of Chief Commissioner, Equal Employment Opportunities Commissioner, Race Relations Commissioner, and no more than five part-time human rights commissioners.

The commission has offices in Auckland, Wellington and Christchurch.

Dispute resolution The commission has the function of mediating disputes relating to unlawful discrimination on the grounds of sex (including pregnancy) and sexual harassment; marital status (including being in a civil union); religious belief; ethical belief; colour; race; ethnic or national origins; disability; age; political opinion; employment status; family status; and sexual orientation in the following areas of government or public sector activities: employment; access to education; access to public places, vehicles and facilities; provision of goods and services; provision of land, housing and accommodation; industrial and professional associations, qualifying bodies, and vocational training bodies; and partnerships.

In the year ending 30 June 2007, the commission received 5,796 enquiries and complaints. Of these, 1,665 had an unlawful discrimination component. The rest were predominantly about other human rights matters. Outcomes achieved through the dispute resolution process include encouraging parties towards self-help (where appropriate), increasing the parties' understanding of human rights standards, apologies, participation in policy reviews, and financial compensation. Where a settlement cannot be reached, complainants may take their case to the Human Rights Review Tribunal, and seek legal representation from the Director of Human Rights Proceedings.

Equal Employment Opportunities Trust

The Equal Employment Opportunities (EEO) Trust was established in 1991 by the Government and the private sector to promote EEO principles and best practice in the workplace. Trustees are representative of both public and private sectors.

The EEO Trust raises awareness of the business benefits of developing versatile workplaces that employ people on the basis of merit. The annual EEO Trust Work and Life Awards recognise organisations and individuals who champion work/life balance.

Women's issues

New Zealand women were the first in the world to win the right to vote in national elections (in 1893).

Today, women's rights have wide legislative protection, but despite this, inequalities still exist. For example, women are still paid less on average than men, and they are more likely to be victims of sexual and family violence.

The government is working to eliminate these inequalities, and to ensure that there are no barriers for women to contribute to social, economic, and environmental outcomes for New Zealand. This work is guided by the Action Plan for New Zealand Women – a five-year, whole-of-government plan launched in 2004.

The plan has three high-level outcomes:

  • improving the economic independence of women – to help ensure they have enough money to care for themselves and those who depend on them

  • greater work/life balance in New Zealand – to help women balance work, family/whānau, and community roles

  • improved well-being for all New Zealand women – focusing on preserving women's general well-being, including their safety, security, housing, and physical and mental health.

The Ministry of Women's Affairs monitors progress on implementing the plan.

Family issues

Property (Relationships) Act 1976 In 2001, the Matrimonial Property Act 1976 was renamed the Property (Relationships) Act 1976, and was amended to provide for division of property when a married or de facto couple separates, or when one of the partners in a married or de facto relationship dies. The 1976 Act was further amended in 2005 to include civil union couples.

Domestic Violence Act 1995 The Domestic Violence Act 1995 aims to deliver greater protection for victims of domestic violence. The Act provides for a single protection order that protects against a wide range of behaviour amounting to physical, sexual, or psychological abuse. The order involves certain statutory provisions, including a prohibition on any form of violence, and restricting the possession of firearms. It includes special conditions that a court can impose to suit the circumstances of the particular case. The order also contains flexibility around certain provisions, such as the non-contact provision, so that the applicant can agree to live with the respondent. The other conditions still apply, and the applicant can change their mind at any time. The Act places particular emphasis on providing programmes for victims and their children, and mandatory programmes for respondents to protection orders.

The Act applies to married and de facto spouses, same-sex partners, family and household members, and those in close personal relationships. The Act also recognises that abuse can occur not just in relationships between domestic partners, but also in wider family groups.

Youth issues

The Ministry of Youth Development Te Manatū Whakahiato Taiohi aims to make a real difference in the lives of young people in New Zealand. It was created on 1 October 2003 and is administered by the Ministry of Social Development. It brought together the former Ministry of Youth Affairs and the youth policy functions of the Ministry of Social Development.

From 2005, the ministry developed a small regional presence across New Zealand to enable it to support and achieve positive outcomes for young people at a local level. The ministry's five key functions are:

  • providing young people with a central point of contact within government so they can express their views and interests

  • providing government with advice on how to improve outcomes for young people

  • working with other government agencies, local government, and the youth development sector to improve services and opportunities for young people

  • funding services to provide at-risk young people with support in their local communities

  • building and sharing an evidence base about youth development in New Zealand.

Participation projects for young people A key role of the Ministry of Youth Development is to ensure that young people's diverse voices and interests are known to government to support the best possible decision making on behalf of all young people in New Zealand. Since its establishment, the ministry has increased young people's involvement in consultation, advice, project development, and decision making within the ministry and government.

Voices rose, and order was called during a fiery session in the House of Representatives during Youth Parliament 2007. The 121 Youth MPs from around New Zealand met at Parliament to debate topics that included binge drinking and the young driving age, and inflation and the housing market.

The ministry's youth participation channels provide young people with opportunities to give input into key policy areas, government reviews, and service delivery.

Youth Development Strategy Aotearoa This strategy sets out a vision, supported by principles and goals, for all New Zealand young people aged 12–24 years. In particular it provides a framework for government and non-government agencies to develop policies that impact on young people, and guide the design of services and programmes for youth.

Through Services for Young People, the ministry supports organisations that provide vulnerable young people with tangible outcomes, through innovative and creative youth development services.

Existing services engage young people through positive relationships, connection to the outdoor environment, and opportunities for participants to give back to local communities. Curriculum components of programmes target specific needs of participants, including educational qualifications, alcohol and drug management, health, and relationship issues.

The Youth Development Partnership Fund allows the ministry and territorial authorities to work together to provide opportunities for young people. A key objective of the fund is to increase achievement of positive social, economic and well-being outcomes for young people by providing opportunities to develop valuable work, life and learning skills.

Youth Parliament Every three to four years, the Youth Parliament provides young people with an opportunity to learn about how parliament works. They have their views heard by the actual Members of Parliament (MPs), who each select a Youth MP for the Youth Parliament experience.

Youth MPs take part in all the work that real MPs do, such as debating in the house, reviewing legislation, asking ministers questions, and select committee meetings.

Running alongside the Youth Parliament is a Youth Press Gallery, which gives aspiring young journalists a taste of political reporting.

The next Youth Parliament is expected to be in 2010.

Contributors and related websites

Department of Internal Affairs – www.dia.govt.nz

Equal Employment Opportunities Trust – www.eeotrust.org.nz

Human Rights Commission – www.hrc.co.nz

Immigration New Zealand – www.immigration.govt.nz

Māori Language Commission – www.tetaurawhiri.govt.nz

Ministry of Justice – www.justice.govt.nz

Ministry of Women's Affairs – www.mwa.govt.nz

Ministry of Youth Development – www.myd.govt.nz

Office of Ethnic Affairs – www.ethnicaffairs.govt.nz

Office of Treaty Settlements – www.ots.govt.nz

Statistics New Zealand – www.stats.govt.nz

Te Kohanga Reo – www.kohanga.ac.nz

Te Puni Kōkiri Ministry of Māori Development – www.tpk.govt.nz

Waitangi Tribunal – www.waitangi-tribunal.govt.nz

Youth Parliament – www.youthparliament.govt.nz

Chapter 7. Social development

Roger and Teresa van Kuylenberg with seven of the eight grandchildren that they raise, Patrick (left), 11, Mathias, 3, Takawai, 11, Phoenix, 6, Teresa, 7, Cairo, 3, and 18 month-old Faith, during their day out at the grandparents raising grandchildren day, held at Chelsea Primary School in Auckland in 2008.

Social development is a process of coordinated social change, which promotes the well-being of the population as a whole and of disadvantaged groups within it.

Social development aims to promote well-being across a range of areas, such as social assistance, health, education, employment, care, and protection, and takes a whole-of-life approach to improving outcomes.

Successful social development involves:

  • ensuring that social and economic interventions are sustainable and mutually reinforcing

  • supporting individuals, families and communities to develop and deliver their own solutions, focusing on their strengths, needs and issues

  • working with the private sector, local authorities, communities, and the voluntary sector to develop unified local services

  • regularly monitoring New Zealanders' well-being, ensuring there is flexibility to respond to regional and local needs.

Ministry of Social Development

The Ministry of Social Development was established on 1 October 2001, bringing together the policy advice and research functions of the Ministry of Social Policy and the income support and employment services of Work and Income.

The ministry's aims include building strong and healthy families, supporting young people, helping people achieve economic independence, developing well-being within communities, and contributing to a growing and resilient economy.

The ministry works closely with other social sector agencies, including health, education and housing, to improve all areas of people's lives. The ministry's framework covers children and young people, working-age people, older people, families, and communities.

The ministry undertakes social research and evaluation, gives cross-sectoral policy advice to the government, delivers income support and employment services through Work and Income, and delivers services to students through StudyLink. Family and Community Services – part of the ministry – leads and coordinates community-based services to families.

The ministry also administers Child, Youth and Family, the Ministry of Youth Development, the Office for Disability Issues, the Office for the Community and Voluntary Sector, and the Office for Senior Citizens.

Policy, research and evaluation

The Ministry of Social Development's strategic social policy group monitors and reports on the social well-being of New Zealanders, and delivers policy advice to the government on cross-sectoral policy issues.

The sector policy group delivers policy advice on: the care and protection of children and young people; social assistance and employment; positive ageing and retirement; disability issues; and family and community development.

The Centre for Social Research and Evaluation researches key social policy issues, provides evidence to support policy development, and evaluates the effectiveness of government policies and programmes.

Work and Income

Work and Income, a service line of the Ministry of Social Development, provides income support and employment services for more than 1 million New Zealanders a year, and employs approximately 4,400 people in 190 locations.

The average number of applications for main benefits and pensions per working day is about 1,800. (Applications for supplementary benefits by people receiving a main benefit, and lump sum grants and benefit advances, are not included.) This total includes applications for all benefits, including the Orphan's Benefit and the Unsupported Child's Benefit, non-beneficiaries receiving a supplementary benefit, Unemployment – Student Hardship, New Zealand Superannuation, and the Veteran's Pension.

Work and Income pays a wide range of benefits, supplementary benefits and pensions.

Benefits paid in the year ending 30 June 2007 included:

  • Caring benefits – Domestic Purposes Benefit (Sole Parent), Domestic Purposes Benefit (Caring for the Sick or Infirm) and Domestic Purposes Benefit (Woman Alone)

  • Incapacity benefits – Sickness Benefit and Invalid's Benefit

  • Work-related benefits – Independent Youth Benefit and Unemployment Benefit

  • Miscellaneous benefits – Emergency Benefit, Unsupported Child's Benefit, Orphan's Benefit and Widow's Benefit

  • Military service pensions – Veteran's Pension, War Disability Pension and dependant's allowance

  • New Zealand Superannuation

  • Supplementary benefits and lump sum assistance payments – Accommodation Supplement, Childcare Subsidy, Out of School Care and Recreation (OSCAR) Subsidy, Disability Allowance, Funeral Grant, Special Benefit, Special Needs Grant, Training Incentive Allowance, advance payments of income support, and recoverable assistance available to people not receiving benefits or pensions.

Weekly rates of income support at 1 April 2007 are shown in table 7.01.

Barbara Stone set up a food bank 17 years ago, but it has now turned into a cashless supermarket. People come in and get what they want, after being referred by social workers.

Table 7.01. Income support weekly(1) rates(2)
At 1 April 2007

Type of income supportNet weekly payment(3) ($)

(1) Prior to 1 July 2007, some people may have received fortnightly payments at double the indicated rates. Since that date, all benefits have been paid weekly.

(2) Rates shown are maximum amounts. For income-tested benefits, the amount a person actually receives will depend on their income from other sources.

(3) From 1 April 2005, the child component of benefits (that is the additional payment included for one or more children) was removed from benefit payments and included in Working for Families Tax Credits.

(4) From 1 April 2006, all people receiving Sickness Benefits have been paid at the same rate, regardless of when their benefit was granted.

(5) ‘Married’ includes people who are married, living as married, or in a civil union.

(6) Only the caregiver receives payment.

Source: Ministry of Social Development

Unemployment Benefit/Sickness Benefit(4)
Single, aged 18–19 years, at home118.98
Single, aged 18–19 years, away from home148.73
Single, aged 20–24 years148.73
Single, aged 25 years and over178.49
Married couple (each partner)(5)148.73
Sole parent255.65
Invalid's Benefit
Single, aged 16–17 years180.54
Single, aged 18 years and over223.10
Married couple (each partner)(5)185.92
Sole parent293.08
Domestic Purposes Benefit
Woman alone185.92
Sole parent255.65
Domestic Purposes Benefit – Caring for the Sick or Infirm(6)
Single, aged 16–17 years180.54
Single, aged 18 years and over223.10
Married couple (each partner)(5)175.61
Sole parent293.08
Emergency Maintenance Allowance
Aged 16–17 years, at home118.98
Aged 16–17 years, away from home255.65
Aged 18 years and over255.65
Widow's Benefit
Single185.92
Sole parent255.65
Orphan's Benefit and Unsupported Child's Benefit
Child, aged under 5 years117.76
Child, aged 5–9 years135.42
Child, aged 10–13 years144.24
Child, aged 14 years and over153.05
Independent Youth Benefit
Single, aged 16–17 years148.73
New Zealand Superannuation and Veteran's Pension
Single, living alone277.06
Single, sharing255.74
Married person(5)213.12
Married couple (both qualify)(5)426.24
Married couple with non-qualifying spouse (each partner)(5)203.22

Income adjustment People receiving an Invalid's Benefit, Widow's Benefit, any Domestic Purposes Benefit, Sickness Benefit or Unemployment Benefit have any income they earn above $80 per week (or $4,160 per year) charged against their benefit payment.

These benefits may also be subject to an initial stand-down period of up to two weeks.

The levels at which all benefits are paid are adjusted annually, in line with movement in the consumers price index (CPI). In addition, the CPI-adjusted rate for New Zealand Superannuation and Veteran's Pension is compared with average wage levels, to ensure the after-tax payment rate for couples is between 65 and 72.5 percent of the after-tax average ordinary time weekly wage.

Basic income exemptions People receiving the Unemployment Benefit, Sickness Benefit or Independent Youth Benefit, and non-qualified spouses of people receiving New Zealand Superannuation, have their weekly benefit reduced by 70 cents for each dollar of gross weekly income they earn above $80.

People receiving Invalid's Benefit, Widow's Benefit or any Domestic Purposes Benefit have their benefit reduced by 30 cents for every dollar earned between $80 and $180 a week, and by 70 cents per dollar earned above $180 a week.

Unemployment Benefit This benefit is available to people who are not in full-time employment, are capable of and willing to undertake full-time work, and are taking reasonable steps to obtain employment. An Unemployment Benefit is also available to people who are not full-time students, but are engaged in full-time, employment-related training programmes.

At the end of June 2007, there were 23,159 working-aged people receiving an Unemployment Benefit, 16,593 fewer than at the end of June 2006. There were 6,099 working-aged people in training and receiving an Unemployment Benefit at the end of June 2007, 533 more than at the end of June 2006.

Domestic Purposes Benefit This benefit is available to parents caring for children without the support of partners, to people caring at home for someone who would otherwise be receiving hospital care, and, in some circumstances, to older women living alone.

At the end of June 2007, there were 96,467 working-aged people receiving a Domestic Purposes Benefit, 5,174 fewer than at the end of June 2006.

Widow's Benefit This benefit is available to women whose husbands, civil union partners, or de facto partners have died. At the end of June 2007, 6,287 working-aged people were receiving the Widow's Benefit, 714 fewer than at the end of June 2006.

Invalid's Benefit This benefit is available to people aged 16 years and over who are either totally blind, or permanently and severely restricted in their capacity for work.

At the end of June 2007, 77,301 working-aged people were receiving an Invalid's Benefit, 1,952 more than at the end of June 2006.

Sickness Benefit This benefit is generally available to people aged 18 and over who cannot work due to sickness, injury, disability or pregnancy. It can also be paid when a person is employed, but is losing earnings through sickness or injury; or is working at a reduced level. At the end of June 2007, 48,063 working-aged people were receiving a Sickness Benefit, 991 more than at the end of June 2006.

Family assistance

Working for Families Tax Credits These tax credits are provided to low- to middle-income families with dependent children. They are paid to income earners through Inland Revenue and Work and Income New Zealand. People receiving benefits, who live with dependants, get the Family Tax Credit.

Childcare Subsidy This subsidy provides financial assistance to low- to middle-income families with dependent children aged under five years, to help pay the costs of preschool childcare services. In the year ending June 2007, there were 58,051 approved applications for Childcare Subsidies, 4,949 more than in the year ending June 2006.

The increased use of Childcare Subsidies largely reflects the increased eligibility for this subsidy, which was part of the Working for Families package.

OSCAR Subsidy The OSCAR (Out of School Care and Recreation) Subsidy provides financial assistance with the costs of OSCAR-approved childcare before and after school, and for approved school holiday programmes. It is available to low- to middle-income families with dependent children aged five to 13 years. In the year ending June 2007, 27,621 applications for an OSCAR Subsidy were approved, 5,792 more than in the year ending June 2006.

The increased use of OSCAR Subsidies largely reflects the increased eligibility for this subsidy which was part of the Working for Families package.

Orphan's Benefit This benefit is available to carers of children whose parents cannot support the child because they are deceased, are ill or incapacitated, or cannot be found. This benefit is non-taxable.

Josie Pouwhare, who was born blind, is attending a course to learn touch typing at the New Zealand Foundation of the Blind. The foundation also offers employer awareness training and assistance, along with support and resources for employers and employees.

At the end of June 2007, 382 people were receiving an Orphan's Benefit, five more than at the end of June 2006.

Unsupported Child's Benefit This benefit is available to carers of children whose parents are, because of a family breakdown, unable to either care for the child, or provide fully for the child's support. This benefit is non-taxable.

At the end of June 2007, 7,205 people were receiving an Unsupported Child's Benefit, 80 more than at the end of June 2006.

Child Disability Allowance This is a non-taxable allowance paid to the parent or guardian of a seriously disabled child who requires constant care and attention.

There were 39,145 children covered by the Child Disability Allowance at the end of June 2007, 2,938 more than at the end of June 2006. Over the year ending June 2007, 10,019 applications for the allowance were granted, 344 more than in the year to June 2006.

Other assistance

Disability Allowance This is an income-tested allowance paid to people with additional, ongoing costs arising from a disability or a personal health need.

At the end of June 2007, 231, 214 people were receiving a Disability Allowance, 3,494 more than at the end of June 2006. In the year to June 2007, 77,679 applications were granted for Disability Allowances, 255 more than in the year to June 2006. People may receive a Disability Allowance for themselves or on behalf of one or more dependants.

Community Services Card This is an entitlement card that people on low- to middle-incomes can use to reduce the cost of doctor fees and prescription charges.

At the end of June 2007, there were 924,092 cardholders, 89,432 fewer than at the end of June 2006. Decreased use of Community Services Cards reflects in part the progressive rollout of Primary Health Organisation funding, which has meant that fewer people need a card to access subsidised health care.

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 the person has insufficient financial resources to meet the need. A client does not have to be receiving a benefit to qualify for a Special Needs Grant. In the year ending June 2007, 363,279 grants were made, 30,112 fewer than in the previous June year. Table 7.02 provides more details.

Special Benefit and Temporary Additional Support A Special Benefit provides financial assistance for people who have ongoing, essential costs that exceed their income and who are in hardship because of this.

Temporary Additional Support replaced the Special Benefit on 1 April 2006, and offers assistance for a maximum of 13 weeks. It is paid as a last resort to help clients with their regular essential living costs that cannot be met from their chargeable income and other resources.

Table 7.02. Special needs grants(1)
Year ending 30 June 2007

 NumberAmount ($)

(1) Includes recoverable and non-recoverable Special Needs Grants. Excludes benefit advances and payments made under the recoverable assistance programme.

(2) Includes Sole Parent, Caring for Sick or Infirm, Woman Alone, and Emergency Maintenance Allowance.

(3) Includes Unemployment Benefit, Hardship, Training, Training – Hardship, Hardship – Students, Independent Youth Benefit, and Emergency Benefit.

(4) Includes Sickness Benefit and Hardship.

(5) Includes Accommodation Supplement, Childcare Subsidy, OSCAR Subsidy, Disability Allowance, Child Disability Allowance, Orphan's Benefit, and Unsupported Child's Benefit.

Source: Ministry of Social Development

Recipient's income type
Domestic Purposes Benefit(2)123,61615,403,217
Unemployment Benefit(3)49,9495,837,067
Invalid's Benefit50,3785,843,052
Sickness Benefit(4)52,6815,785,194
Low-income earner(5)74,32811,776,594
New Zealand Superannuation9,8031,314,787
Widow's Benefit2,377285,850
Veteran's Pension14724,412
Total363,27946,270,173
Reason for grant
Food272,10025,545,873
Other emergency18,6364,307,039
Medical, in rest home43,58210,485,397
Education2,456510,477
Health-related11,8281,012,816
Re-establishment11,9533,810,472
Benefit stand downs987110,349
Goods or services27125,669
Miscellaneous1,466462,081
Total363,27946,270,173

At the end of June 2007, 40,919 people were receiving a Special Benefit or Temporary Additional Support, 8,414 fewer than at the end of June 2006.

Advance payment of benefit This is available to people receiving benefits, to help them pay for one-off, essential needs they would otherwise be unable to afford.

StudyLink services

StudyLink, a service of the Ministry of Social Development, connects people with the information they need to make informed decisions about student finances and other study-related issues, and provides financial support to students.

StudyLink provides services to over 200,000 clients, with staff located in 44 sites nationwide.

The Student Allowance is a weekly payment that helps students with living costs while they study full time. It is money that does not need to be paid back.

The Student Loan can help with study costs. It is a loan that needs to be paid back, so it is important that students only borrow what they need.

StudyLink also offers two scholarships: the Step Up and Bonded Merit scholarships. They also offer advice on what other scholarships are available for students.

Along with offering financial assistance in the form of Student Allowance, Student Loan, scholarships, and extra help with costs, StudyLink offers ‘StudyWise’ consultations to Student Loan borrowers and delivers ‘On Course’ presentations to senior secondary school students.

In addition, StudyLink offers advice and support for students in a range of circumstances, including those with childcare costs, those with ongoing medical and disability costs, and students who are unable to find work during breaks from study.

StudyLink offers online application for Student Allowance and Loans, and enables students to manage their own information online with ‘MyStudyLink’. More information about the Student Allowance, Student Loan, scholarships and the full range of extra support that StudyLink can offer can be found on the StudyLink website, www.studylink.govt.nz.

In 2007 StudyLink:

  • responded to over 1 million calls

  • managed around 230,000 Student Loan, 90,000 Student Allowance, 12,000 Unemployment Benefit – Student Hardship, and 4,000 scholarship applications

  • paid about $390 million in Student Allowances and $1.1 billion in Student Loans.

Table 7.03. People receiving income support and pensions
1940–2007(1)

Year(2)Benefit typePensionTotal
Unemployment(3)Unemployment-Training(4)Sickness(5)Invalid'sMiner'sDomestic Purposes(6)Widow'sOrphan's and Unsupported Child'sFamily(7)Transitional Retirement(8)New Zealand Superannuation(9)Veteran's10War(11)

(1) Since 1975, hardship assistance has been included in figures for related statutory benefits.

(2) Prior to 1990, the year ending 31 March; from 1990 onwards, the year ending 30 June,

(3) Includes Unemployment Benefit and Hardship, Independent Youth Benefit, and Emergency Benefit. From 1 July 2001, includes Hardship – Student.

(4) Includes Unemployment Benefit and Hardship paid to people in training.

(5) Includes Sickness Benefit and Hardship.

(6) Includes Sole Parent, Care of Sick or Infirm, Woman Alone, and Emergency Maintenance Allowance.

(7) Family Benefit was abolished from 1 April 1991. Statistics for 1989 and 1990 are of uncertain accuracy.

(8) The Transitional Retirement Benefit was abolished on 1 April 2004.

(9) Superannuation and age-related benefits are combined up to 1975, National Superannuation from 1970–1990, Guaranteed Retirement Income from 1990–1992, and New Zealand Superannuation since 1994. This includes non-qualified spouses since 1996.

(10) From 1996, includes non-qualified spouses, but excludes clients receiving War Pension. From 1 July 1999, Veteran's Pensions have been funded from Vote Veterans' Affairs – Work and Income.

(11) Includes pensions paid to surviving spouses and other dependants. From 1 July 1999, War Pensions have been funded from the Vote Veterans' Affairs Work and Income allocation.

Symbol:... not applicable

Source: Ministry of Social Development

19404,053...2,56511,811988...10,17433011,053...93,262...3,485137,721
1945198...4,23312,205783...10,96542124,251...158,332...54,083265,471
195012...4,9319,476636...14,198366254,920...186,512...56,398527,449
195519...4,2778,110481...12,197300298,370...199,236...56,497579,487
1960312...4,0648,024353...13,049277343,193...204,036...59,676632,984
1965208...4,6817,951184...14,529316376,824...214,659...57,576676,928
1970983...5,8768,34298...15,663315408,397...241,772...51,698733,144
19752,894...7,8309,4144517,23116,738376452,389...289,348...46,920843,185
198020,850...7,5045,6472137,04016,120413460,897...405,834...39,296993,622
198538,419...9,62721,4641156,54813,557365455,961..459,813...31,5371,087,302
1990139,6259,45319,51127,824694,82312,6765,239446,373...495,5003,42825,4241,279,882
1995139,38711,65534,03739,686...104,0279,0074,280...7,327469,2396,38025,748850,773
2000155,4053,75532,29455,392...108,9399,1045,799...8,856453,4017,24824,056864,249
2001141,0833,76633,62059,812...107,8218,9006,075...9,012446,7067,42523,435847,655
2002125,9423,99036,38064,529...108,0098,7746,332...5,118450,4357,58722,722839,818
2003111,9064,29139,90268,507...109,2958,6596,789...2,110457,2787,87222,242838,851
200481,2384,47444,12872,342...109,5268,4137,051......464,6248,46521,732821,993
200562,4534,36945,64674,796...106,3307,7957,279......475,2158,87121,128813,822
200651,5535,57147,55977,046...102,3317,1817,502......488,8259,47221,103818,143
200734,2196,10448,58779,077...97,1116,4717,587......502,71710,06520,866812,804

Training Incentive Allowance This allowance helps people meet the costs associated with attending recognised occupational or work-related courses that provide specific work skills. The allowance is available to people receiving Widow's Benefit, Invalid's Benefit, Emergency Maintenance Allowance, or any Domestic Purposes Benefit. In the year ending December 2006, 16,523 Training Incentive Allowances were granted, 2,692 fewer than in the previous June year.

Hospital rate of payment Income support clients with no dependent children receive their full income support payments for the first 13 weeks of hospitalisation. Following 13 weeks of hospitalisation, they receive a reduced hospital rate. The benefit rate is not reduced for clients with dependent children.

Table 7.03 shows the number of benefits and pensions in place since 1940, while table 7.04 shows income support and pension expenditure for the same period.

Support of children by non-custodial parents

Child support Responsibility for collection of child support payments from non-custodial parents rests with Inland Revenue. The aim of collecting payments is to ensure that parents contribute to the support of their children.

New Zealand Superannuation

At 1 April 2007, New Zealand Superannuation provided $277.06 a week (after tax at the ‘M’ rate) for a single person living alone, and $426.24 a week for a married couple (or $406.44 if one spouse did not qualify for New Zealand Superannuation).

Recipients are required to pay tax on their superannuation payments.

The qualifying age for New Zealand Superannuation has been 65 years since 1 April 2001. A 10-year residency requirement also applies to applicants in order to qualify for New Zealand Superannuation.

At the end of June 2007, there were 502,717 people receiving New Zealand Superannuation, 13,892 more than at the end of June 2006.

War pensions

War pensions and concessions are available for those who served in World War I and II, Korea, Operation Grapple (1950s British nuclear tests), Malaya, Viet Nam, Mururoa (1970s French nuclear tests), the Gulf, Angola, Bosnia, Sierra Leone, East Timor, Afghanistan, the Solomon Islands and Iraq.

Table 7.04. Expenditure on income support and pensions
1940–2007(1)

Year(2)Benefit typePension
Unemployment(3)Unemployment-Training(4)Sickness(5)Invalid'sMiner'sDomestic Purposes(6)Widow'sOrphan's and Unsupported Child'sFamily(7)Transitional Retirement(8)New Zealand Superannuation(9)Veteran's(10)War(10)
$(000)

(1) Expenditure is on a cash basis to 30 June 1994 and on an accrual basis thereafter, net of taxation except for New Zealand Superannuation, and includes expenditure on selected supplementary benefits paid to clients receiving the benefits shown.

(2) Prior to 1990, the year ending 31 March; from 1990 onwards, the year ending 30 June.

(3) Includes Unemployment Benefit, Hardship paid to unemployed people, Independent Youth Benefit and Emergency Benefit. From 1 July 2001, includes Hardship – Student.

(4) Includes Unemployment Benefit and Hardship paid to people in training.

(5) Includes Sickness Benefit and Hardship.

(6) Includes Sole Parent, Care of Sick or Infirm, Woman Alone, and Emergency Maintenance Allowance.

(7) The Family Benefit was abolished from 1 April 1991.

(8) The Transitional Retirement Benefit was abolished on 1 April 2004.

(9) Superannuation and age-related benefits are combined up to 1975. National Superannuation was in place from 1976–1990, Guaranteed Retirement Income from 1990–1992, and New Zealand Superannuation since 1994. This includes the rest home subsidy and other supplementary payments before 1994.

(10) From 1 July 1999, the Veteran's Pension and the War Disability Pension have been funded from the Vote Veteran's Affairs – Work and Income allocation.

Symbol:... not applicable

Source: Ministry of Social Development

1940869...4181,884185...1,57230505...13,036...4,286
194556...7042,145149...1,971472,810...18,974...8,405
195021...2,0172,795240...4,3206229,702...34,627...10,517
195511...2,5543,233257...5,3295836,358...58,002...15,860
1960380...3,4394,237226...7,8327963,584...85,502...22,939
1965197...3,9144,830153...10,21511065,925...110,314...27,862
19701,465...6,0736,09399...13,74215072,318...155,822...30,929
19755,155...15,88713,6658430,15627,967381153,175...365,803...49,944
198066,077...33,23640,92476169,44953,342778220,854...1,334,115...92,529
1985274,689...72,550105,72472460,38578,4951,004284,167...2,743,512...95,438
19901,235,05656,460229,568260,751681,136,718114,88824,742284,444...4,774,6761,147103,770
19951,335,22993,584352,167463,598...1,300,17381,25820,557...79,1675,083,11957,21791,050
20001,663,82245,201384,680700,385...1,590,81391,59235,413...112,3845,227,59873,801101,277
20011,536,34040,575385,680761,656...1,575,97489,00838,567...114,1085,442,01278,354102,709
20021,418,62237,593415,683843,535...1,588,38188,95841,593...86,5675,600,48883,605105,214
20031,287,73037,942460,209926,515...1,634,47790,26547,081...42,0135,798,87387,625108,862
20041,090,88542,544518,943996,639...1,716,91790,25250,991...9,6796,059,39595,803112,886
2005838,90143,196571,8661,057,376...1,725,62487,42455,827......6,269,743103,890117,565
2006716,07247,686612,3671,097,936...1,682,15482,44664,624......6,615,876112,335128,303
2007592,13760,253640,9121,155,312...1,634,41277,53470,579......7,021,582125,207139,804

Veterans stand to attention during the Anzac Day dawn service at the Cenotaph in Wellington in 2007.

Routine service in New Zealand before 1 April 1974 is also included. Since then, service personnel have been covered under accident compensation provisions.

The War Pensions Act 1954 is administered by the Secretary for War Pensions, who is also Director of Veterans' Affairs New Zealand. Payments are provided from the Vote Veterans' Affairs – Social Development allocation, and the processing and payment of pensions is carried out by Work and Income.

Decisions on eligibility for war pensions are made by war pension claims panels, acting under delegation from the secretary. Each claims panel consists of a nominee from the Royal New Zealand Returned and Services Association and an employee of Veterans' Affairs New Zealand.

Veteran's Pension This pension is available to ex-service personnel with a significant disability. The pension is paid at the same rate as New Zealand Superannuation and is taxable. At the end of June 2007, 10,065 people were receiving a Veteran's Pension, 593 more than at the end of June 2006.

War Disablement Pension This pension provides tax-free compensation for people who served in the armed forces and who suffer from a disability or disabilities related to that service. War pensions are increasingly related to the ageing of the population, and numbers receiving these pensions have remained relatively constant in recent years. At the end of June 2007, 15,441 people were receiving War Disablement Pensions, 489 fewer than at the end of June 2006.

Other war pension provisions In addition to War Disablement Pensions, the war pensions programme provides pensions for surviving spouses and additional allowances and concessions for clients receiving War Disablement Pensions. At the end of June 2007, 5,325 surviving spouses and other dependants were receiving war pensions, 252 more than at the end of June 2006.

Social security agreements

New Zealand has social security agreements with Australia, Canada, Denmark, Greece (the Hellenic Republic), the Republic of Ireland, Jersey and Guernsey, the Netherlands, and the United Kingdom.

The main purposes of the agreements are to encourage the free movement of labour and to ensure that when a person has lived or worked in more than one country, each of those countries takes a fair share of responsibility for meeting the costs of that person's social security coverage.

The agreements are becoming part of the basic infrastructure of the global village, enabling people to move about the world for short or long periods, either to work or to be with family, without jeopardising their social security coverage. By entering into such agreements, New Zealand is better able to attract skills, specialist knowledge and technical know-how from overseas. A widening network of agreements also provides more options for New Zealanders who wish to live overseas in their retirement.

General portability Under the general portability provision, people eligible to receive New Zealand Superannuation or a Veteran's Pension in their own right may receive 50 percent of the payment while living outside New Zealand, provided they are not living in a country that has a social security agreement with New Zealand. Applications under this provision must be made while applicants are living in New Zealand.

Special portability arrangement People leaving New Zealand to live in certain Pacific countries can receive a rate of New Zealand Superannuation or Veteran's Pension based on the length of their New Zealand residence since the age of 20.

People with 10 years' New Zealand residence since the age of 20 receive 50 percent of New Zealand Superannuation or Veteran's Pension.

People with between 10 and 20 years' New Zealand residence since the age of 20 are entitled to an additional 5 percent of New Zealand Superannuation or Veteran's Pension for each year of residence over 10 years. People with over 20 years' residence are entitled to the full rate.

At the date of application, applicants must be living and be present in New Zealand and intending to live in the Pacific country for 52 weeks or more. Pacific countries covered by the arrangement are American Samoa, the Cook Islands, the Federated States of Micronesia, Fiji, French Polynesia, Guam, Kiribati, Marshall Islands, Nauru, New Caledonia, Niue, Northern Mariana Islands, Palau, Papua New Guinea, Pitcairn Island, Samoa, Solomon Islands, Tokelau, Tonga, Tuvalu, Vanuatu, and Wallis and Fortuna.

Child, Youth and Family

Child, Youth and Family provides direct services for children and young people in need of care and protection, for children and young people who have committed offences, and for people involved in adoption processes.

Child, Youth and Family's vision is to have safe children and young people in strong families and responsive communities.

Child, Youth and Family was established on 1 October 1999, following the integration of two Department of Social Welfare business units – the Children, Young Persons and Their Families Service and the New Zealand Community Funding Agency. From 1 July 2006, Child, Youth and Family became a service line of the Ministry of Social Development.

Child, Youth and Family has statutory responsibility for children and young people whose family circumstances put them at risk of abuse and neglect, offending behaviour, or poor life outcomes. Child, Youth and Family is guided by the objectives and principles of the Children, Young Persons and Their Families Act 1989, and also by other legislation, including the Adoptions Act 1955, Adult Adoption Information Act 1985, Adoption (Intercountry) Act 1997, and the Care of Children Act 2004.

Care and protection

Table 7.05 shows the number of care and protection notifications received and the number assessed as requiring further investigation and action by a social worker. All cases accepted for investigation are assigned a criticality rating, or response category, at time of intake.

In the year ending 30 June 2007, 75,326 notifications involving children and young people under the age of 17 were received, of which 46,776 required further action. In the previous June year, there were 66,210 notifications, with 49,063 requiring further investigation.

After investigation, findings are classified and recorded under the categories of sexual abuse, physical abuse, emotional abuse, neglect, behavioural/relationship problems, self-harm/suicidal behaviour, or abuse not found.

Case management When, through investigation, it is decided that Child, Youth and Family needs to remain involved with a child or family, direct services may be provided through family/whānau agreements, care agreements, family group conference plans, or court plans.

Family/whānau agreements When a family agrees there is a problem to address, family/whānau agreements are negotiated by a social worker. These agreements may be for up to three months, must be formally reviewed, and may be renewed for one further three-month period. There were 4,383 family/whānau agreements signed in the June 2007 year, compared with 3,442 agreements in 2006, 3,010 agreements in 2005, and 2,528 agreements in 2004.

Table 7.05. Care and protection notifications
Year ending 30 June

Action20032004200520062007
Source: Child, Youth and Family
Care and protection notifications received31,78143,31453,09766,21075,326
Notifications for further investigation27,39436,06643,46049,06346,776
Critical – immediate response time (same day)3,0454,3024,7254,9994,318
Very urgent (same day to one calendar day)1,6562,3542,6212,8332,391
Urgent (same day to six calendar days)14,96320,27725,83229,11926,374
Low urgency (same day to 27 calendar days)7,7308,4108,1879,41110,824

Table 7.06. Abuse and neglect investigation findings(1)
Year ending 30 June

YearSexual abusePhysical abuseEmotional abuseNeglectBehavioural/relationship problemsSelf-harm/suicidalAbuse not foundTotal

(1) Figures represent the number of findings, not the number of clients. Due to multiple findings, some clients are counted across more than one category.

Source: Child, Youth and Family

20031,2882,0022,2822,9393,32812814,23826,205
20041,1872,0352,8073,2123,58910416,68229,616
20051,4662,4774,8894,3664,57317924,41442,364
20061,2912,3366,1424,1994,65717226,01144,808
20071,1942,2748,2564,4864,46113822,92143,730

Family group conferences and court orders When a family/whānau agreement is not considered appropriate, intervention may occur through the statutorily-defined process of a family group conference. Child, Youth and Family manages family group conference plans and court orders to provide care for children, while working towards their return to parents, family or whānau. These may include custody orders, plans resulting from family group conferences, counselling orders and support orders. There were 9,243 referrals for family group conferences in the year ending June 2007, and 9,179 new and reconvened family conferences were held.

There are more family group conference plans than court orders, as a means of managing young people who come to the notice of Child, Youth and Family. Family group conferences encourage participation in the resolution of care and protection issues and often avoid the need for court involvement. The plans must be reviewed by reconvening the conference or by a less formal process.

Emergency action The Children, Young Persons and Their Families Act 1989 provides measures for securing the safety of a child through warrant action by social workers or the Police, or through temporary care agreements with parents, to provide immediate care for a child while longer-term solutions are explored.

Youth justice services

There has been a new youth justice structure in place since July 2007, along with new youth justice teams. Child, Youth and Family has established 25 new dedicated youth justice teams of social workers, coordinators, and practice advisors, who are led by youth justice managers.

The new structure and teams:

  • change how youth justice works and focus on addressing the unique factors that lead young people to offend

    The Rapana family (from left) Noelene, Hannah (aged four), John, Jacob (aged two), and Maria (aged 12). The family, who live in Papamoa in the Bay of Plenty, are part of The Incredible Years project, an education and mentoring programme that focuses on raising families in constructive ways without violence.

  • focus on addressing issues that lead young people to commit crime, particularly serious violent crime

  • allow youth justice to provide a range of services that will address both young people's offending behaviour and the context in which they offend

  • help youth justice to more effectively address re-offending, particularly as re-offending often involves more serious crimes.

Stakeholder collaboration Youth justice believes that solutions to offending exist in the community. Within the new structure, youth justice services will work alongside the youth justice sector and the community to develop an in-depth understanding of local issues, and to bring together the necessary support systems to prevent re-offending.

Youth justice managers have been aligned to youth court boundaries and work closely with their local youth court judges.

Youth justice family group conferences Family group conferences are convened to address the offending behaviour of children and young people, as well as addressing re-offending. They bring together, in a statutorily-defined forum, members of the offender's family or whānau, law enforcement officers, and victims, to agree how the young offender will be held accountable, and to agree on appropriate intervention plans.

Care services Two main placement options are used in New Zealand for children and young people requiring alternative care. These are either based in a home environment (extended family, caregivers, family home, special purpose family home, specialist or group homes) or in a residential care centre (short- or extended-term local or national residences).

International research indicates that family-based placements are more effective than other forms of placement. Children and young people are more likely to return to their usual caregivers, and are less likely to be re-abused, if they are placed in family-based care, rather than in non-kin-based care. The Children, Young Persons and Their Families Act 1989 shifted the emphasis away from longer-term, extended-care placements towards restoring usual caregiving arrangements. When alternative placements are necessary, emphasis is put on making a placement, whenever possible, within the child's extended family or community.

Residential care Child, Youth and Family residences provide care and protection and youth justice programmes for children and young people aged eight to 16 years. Admission to a residence only happens when there are no other practical alternatives, or when a child's continued presence in the community is a threat to their own safety, or the safety of others. There are currently seven residences around New Zealand.

Table 7.07. Youth admissions to national residential facilities
Year ending 30 June

Type of admission20032004200520062007

Symbol:... not applicable

Source: Child, Youth and Family

Care and protection.........109135
Youth justice.........307299
Total admissions751714654416434

Adoption assessment, placement and information services

The adoption information and services unit of Child, Youth and Family is responsible for statutory adoption services. Child, Youth and Family became a service of the Ministry of Social Development on 1 July 2006.

Local and inter-country adoption services include education, preparation and assessment of prospective adoptive applicants, counselling of birth parents, approval of placements, supervision, and reporting to the New Zealand Family Court.

Post-adoption services for birth and adoptive families are provided when requested, or referrals made.

Table 7.08. Access to adoption information

Action19961997199819992000200120022003200420052006
Sources: Child, Youth and Family; Department of Internal Affairs
Original birth certificates issued to adopted people1,5801,9251,4461,3561,2301,030943902800785679
Original vetoes from adopted people173022814062312
Renewal vetoes from adopted people5113456809114
Cancelled vetoes from adopted people170235122100
Birth parent applications for identifying information650534450392325303285269254246145
Original vetoes from birth parents12660221542153462
Renewal vetoes from birth parents3517719111313101123460
Cancelled vetoes from birth parents102611150010

Table 7.09. Adoptions by New Zealand citizens
Year ending 30 June

 20032004200520062007

(1) A registration may occur in a different financial year from the adoption report, therefore the total number of adoptions may not equal the sum of the adoption reports for the same period. Any disparity is included under ‘adoption type not recorded’.

Source: Child, Youth and Family

Adoption of New Zealand children by323275314294213
   Non-relatives811081138760
   One parent and spouse7154567369
   Relatives7165716570
   Foster parents28843
   Adoption type not recorded(1)9840666511
Adoption of foreign children316387262417406
   In New Zealand court to non-relatives1312121811
   In New Zealand court to relatives3836414342
   In overseas court (section 17 Adoption Act 1955)265339209356353
Total adoptions granted or recognised by New Zealand639662576711619

Other social services

Community services funding Community providers are funded each year by Child, Youth and Family to provide a variety of social services from non-departmental budget allocations. Child, Youth and Family is responsible for allocation and management of funding and support to iwi (tribal) and community-based social and welfare services in accordance with government policies and criteria. Table 7.10 shows budget allocations for contracted social services from 2004 to 2007.

Table 7.1. Community services funding
Year ending 30 June

Allocation200420052006(1)2007(1)(2)
$(000)

(1) Figures for 2006 and 2007 exclude GST.

(2) From 1 July 2006, the funding of community services is grouped into four, rather than six categories.

Symbol: ... not applicable

Source: Child, Youth and Family

Information and advice1,4261,429915...
Education and prevention services9,6059,8768,1995,771
Family well-being services51,85155,68441,09238,962
Counselling and rehabilitation services15,10915,96610,47010,963
Emergency and special purpose housing and associated services9951,006900...
Strengthening providers and communities8,9256,6796,5005,011
Total87,91190,64068,07660,707
Other expenses incurred by Child, Youth and Family    
     Contingency and innovations fund365365365365
     Stronger communities action fund1,9161,916......

Contributors and related websites

Child, Youth and Family – www.cyf.govt.nz

Department of Conservation – www.doc.govt.nz

Department of Internal Affairs – www.dia.govt.nz

Family and Community Services – www.familyservices.govt.nz

Ministry of Social Development – www.msd.govt.nz

New Zealand Association of Citizens Advice Bureaux – www.cab.org.nz

Office for Disability Issues – www.odi.govt.nz

Retirement Commission – www.sorted.org.nz

Studylink – www.studylink.govt.nz

Veterans' Affairs New Zealand – www.veteransaffairs.mil.nz

Chapter 8. Health and safety

Michelle Bussey, a case manager at Accident Compensation Corporation (ACC), sees the results of injuries and accidents and says it has made her more cautious than most. She holds safety equipment used in the workplace. Ninety percent of ACC claimants (excluding serious claims such as car accidents and head injuries) are back at work within 70 days.

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. Seventy-eight percent of health care is publicly funded, with out-of-pocket payments and private insurance being the other main contributors.

Ministry of Health

The Ministry of Health Manatū Hauora is the government's primary advisor on health policy and disability support services. The ministry aims to ensure that the health and disability system works for all New Zealanders. The ministry consists of eight directorates with defined responsibilities, each led by a deputy director-general: corporate services; health and disability national services; health and disability systems strategy; information; Māori health; population health; sector accountability and funding; and sector capability and innovation.

For more information about each of the directorates, visit the Ministry of Health website, www.moh.govt.nz.

District health boards

New Zealand's 21 district health boards (DHBs) are Crown entities and have both funding (planning and funding health services for their populations) and provider (delivery of hospital and related services) roles.

Established under the New Zealand Public Health and Disability Act 2000, the statutory objectives of DHBs are to: improve, promote and protect the health of communities; promote integration of health services, especially primary and secondary care services; and promote effective care or support for those in need of personal health services or disability support services.

Boards are also responsible for promoting the independence, inclusion and participation in society of people with disabilities, and of reducing health outcome disparities among various population groups.

Boards are expected to show a sense of social responsibility, to foster community participation in health improvement, and to uphold the ethical and quality standards expected of providers of services, and public sector organisations.

The boards work with all health-care provider organisations to ensure specified health services are provided, and to balance each community's needs for health and disability services.

Crown-owned public hospitals are the main providers of secondary health-care services. Primary and community-based care comes from private/non-government providers, such as general practitioners, Māori providers, and disability support providers.

Boards have seven elected members, and up to four members appointed by the Minister of Health. DHB elections are held every three years, at the same time as local government elections, using a single transferable voting system. In addition to the governing board, each DHB must have three statutory advisory committees. Each board has a separate operating charter, and a set of accountabilities and reporting requirements.

The 21 DHBs and their constituencies are:

  • Northland – Far North, Whangarei, Kaipara

  • Waitemata – Rodney, North Shore, Waitakere

  • Auckland – Auckland north-west and gulf, Auckland north-east, Auckland south

  • Counties Manukau – Manukau, Mangere, Manurewa, Franklin, Papakura

  • Waikato – Thames-Coromandel, Waikato, Hamilton, South Waikato

  • Bay of Plenty – Western Bay of Plenty, Tauranga, Whakatane

  • Lakes – Rotorua north, Rotorua south, Taupo

  • Tairawhiti – Gisborne, Tairawhiti

  • Hawke's Bay – Wairoa, Hastings, Napier-Chatham Islands, Central Hawke's Bay

  • Taranaki – New Plymouth, Taranaki north, Taranaki south

  • Whanganui – Wanganui, Waimarino, Rangitikei

  • MidCentral – Manawatu, Palmerston North, Tararua, Horowhenua

  • Wairarapa – Masterton, Carterton, South Wairarapa

  • Hutt Valley – Lower Hutt central, Lower Hutt harbour, Wainuiomata

  • Capital & Coast – Kapiti Coast, Porirua, north-west and south-east Wellington, Lambton

  • Nelson Marlborough – Tasman, Richmond, Nelson, Marlborough, Blenheim

  • West Coast – Buller, Grey, Westland

  • Canterbury – North Canterbury, Christchurch, Mid-Canterbury

  • South Canterbury – Timaru, Temuka-Pleasant Point, Mackenzie-Geraldine, Waimate

  • Otago – Waitaki, Central Otago, Clutha, Dunedin north, Dunedin south

  • Southland – Queenstown-Lakes, Southland, Gore, Invercargill.

Crown Health Financing Agency (CHFA) This agency is the Crown provider of long-term debt finance to DHBs. The range of loan facilities available to boards is similar to that offered by private banks. CHFA loans are available to refinance boards' private bank debt, or to finance new capital work projects.

The CHFA offers property advice and a land disposal service to help DHBs to dispose of surplus property. Formerly the Residual Health Management Unit, the CHFA is the legal successor to area health boards and manages a range of residual functions, assets and liabilities transferred from area health boards to the CHFA in 1993. The CHFA operates under provisions of the New Zealand Public Health and Disability Act 2000.

Health advisory committees

National Advisory Committee on Health and Disability (National Health Committee) This committee provides the Minister of Health with independent advice on a broad spectrum of health and disability issues. Their website is: www.nhc.health.govt.nz.

The Public Health Advisory Committee, a subcommittee of the National Health Committee, provides the minister with independent advice on public health issues.

National Advisory Committee on Health and Disability Support Services Ethics This committee is responsible for providing the Minister of Health with advice on ethical issues of national significance in respect of any health and disability matter, including research and health services. The committee is also required to determine nationally-consistent ethical standards across the health and disability sector.

Child and Youth Mortality Review Committee (CYMRC) This is an independent ministerial committee that reviews deaths of children and young people aged from four weeks to 24 years. The committee reports to the Minister of Health at least annually on how to reduce the number of preventable deaths in this age group.

Data is collected through a network of local agents of the CYMRC, which review deaths and submit additional information to the ministry-funded mortality database. A particular focus of the committee has been sudden unexpected death in infancy. The Ministry of Health funds the committee and provides secretariat support. Their website is: www.cymrc.health.govt.nz.

Ethics Committee on Assisted Reproductive Technology The committee's main function is to consider and determine applications for assisted reproductive procedures or human reproductive research. Their website is www.ecart.health.govt.nz.

Quality Improvement Committee Since the beginning of 2007, the National Health Epidemiology and Quality Assurance Committee (EpiQual) has been operating as the Quality Improvement Committee. This statutory committee is independent and reports directly to the minister on matters relating to quality in health care. The committee has been focusing on a range of key priorities for the health-care sector. The Ministry of Health funds the committee and provides secretariat support. Their website is: www.qic.health.govt.nz.

Cancer Control Council The council is responsible for making sure New Zealand's Cancer Control Strategy is turned into action. The council is an independent advisory body appointed by the Minister of Health. It gives strategic advice directly to the minister, as well as to the wider cancer control community. The council works with all the bodies involved in controlling cancer, to reduce both the incidence and impact of cancer in New Zealand and the inequalities that surround it.

The council's key tasks are to:

  • monitor and review implementation of the Cancer Control Strategy

  • provide independent strategic advice to the Minister of Health, the Director-General of Health, DHBs and non-government organisations, on matters related to cancer control

  • foster collaboration and cooperation between bodies involved in cancer control

  • foster and support best practice in, and an evidence-based approach to, improvements in the effectiveness of cancer control

  • set up links with overseas cancer control agencies.

The council's members are drawn from across the cancer control field – from primary prevention, screening and early detection, through to palliative care and research. Their website is: www.cancercontrolcouncil.govt.nz.

Advisory Committee on Assisted Reproductive Technology This committee, established under the Human Assisted Reproductive Technology Act 2004, is responsible for issuing guidelines and advice to the Ethics Committee on Assisted Reproductive Technology. The committee is also responsible for providing advice to the Minister of Health on options for regulation of assisted reproductive procedures and research.

Health Information Strategy Action Committee This is a discretionary advisory committee, established under the New Zealand Public Health and Disability Act 2000, and is responsible for providing the Minister of Health with advice on a national framework for the development of health information standards.

Health and Disability Ethics Committees A multi-region committee and six regional ethics committees provide independent ethical review of health and disability research and innovative practice that will be conducted in New Zealand, to safeguard the rights, health and well-being of consumers and research participants.

Perinatal and Maternity Mortality Review Committee This committee was established in 2005 under the New Zealand Public Health and Disability Act 2000, to review perinatal and maternal deaths and report to the Minister of Health. The aim is to reduce the number of deaths, and to encourage continuous quality improvement through promotion of quality assurance programmes.

Radiation Protection Advisory Council The council is a statutory body established under the Radiation Protection Act 1965 to advise and make recommendations to the Minister of Health and to the Director-General of Health about the use of ionizing radiations.

New Zealand Blood Service

The New Zealand Blood Service (NZBS) ensures the supply of safe blood and blood products. It is also responsible for all aspects of the national blood transfusion service, from collection of blood from volunteer donors to transfusion of blood products within the hospital environment – ‘vein to vein’ transfusion.

In addition to its core activities, NZBS provides related services, including matching of patients and donors prior to transplantation, and provision of tissue banking services.

Health research

Health Research Council of New Zealand (HRC) The HRC was established under the Health Research Council Act 1990, and is the Crown agency responsible for management of the government's investment in public-good health research in New Zealand. The Act requires the HRC to set guidelines for health research ethics and to accredit regional ethics committees.

Ownership of the HRC resides with the Minister of Health. The HRC is also responsible for advising the Ministry of Health and administering funds in relation to national health research policy. The HRC's statutory functions include fostering recruitment, education, training, and retention of those engaged in health research in New Zealand.

Blood donor Graeme Thomas has his blood pressure taken. Graeme has donated blood more than 450 times and has made the highest number of donations in New Zealand. Although 80 percent of people will need blood or blood products during their lifetime, only 4 percent currently roll up their sleeves and donate. Approximately 3,000 donations are needed each week to meet hospital needs.

The HRC aims to improve human health by promoting and funding health research. The HRC funds a broad spectrum of health research, including biomedical, public health, Māori and Pacific peoples' health, and clinical research. HRC funding is largely through the Vote Research, Science and Technology allocation, with funding for ethics policy advice coming from the Vote Health allocation. Total government funding for the HRC's work in 2006/07 was $77.90 million.

The Malaghan Institute of Medical Research Established in Wellington in 1979 as an independent medical research institute, the Malaghan Institute is a charitable trust dedicated to the relief of human suffering through scientific research into the causes, nature and treatment of disease. Formerly the Wellington Cancer and Medical Research Institute, it was renamed in 1986 to recognise the contribution of Len and Ann Malaghan.

More than 50 full-time Malaghan Institute scientists carry out research into cancer, asthma, arthritis, multiple sclerosis and infectious diseases, including tuberculosis and RSV (a respiratory infection most serious in children aged under 12 months). The institute has a commitment to educating, fostering, and developing scientists, which it regards as essential to the continuing success of scientific research in New Zealand. To that end, the institute sponsors programmes for doctoral candidates and summer internships for university students. The Malaghan Institute is funded by contestable research grants, contributions from corporate sponsors, bequests and donations.

Health expenditure (public)

As shown in table 8.01, public health expenditure (this includes expenditure on public health by the Ministry of Health, Accident Compensation Corporation, other government departments, and local authorities) in New Zealand was $12,013 million in 2005/06, the latest year for which figures are available. Expenditure by the Ministry of Health of $10,302 million represented 18 percent of estimated appropriations for government for the year ending 30 June 2006.

Table 8.01. Health expenditure(1)
Year ending 30 June

Sector1997199819992000200120022003200420052006
$(million)(2)

(1) Consumers price index-deflated, non-health items excluded.

(2) Expressed in 2005/06 dollars.

Note: Figures may not add up to stated totals, due to rounding.

Source: Ministry of Health

Public
   Ministry of Health6,7867,0727,5057,7158,0258,5148,7529,1249,73310,302
   ACC and other govt6847928819791,1321,2261,3551,2831,4551,630
   Local authorities57567271747681686482
Subtotal7,5267,9208,4588,7649,2319,81610,18810,47511,25312,013
Private
   Households1,4151,5631,5821,6191,8911,9061,9062,3062,4472,553
   Insurance613612634661697680702684688724
   Not for profits2832363838374099153144
Subtotal2,0572,2072,2522,3172,6262,6232,6483,0883,2873,420
Total9,58310,12710,71011,08211,85712,43912,83613,56314,54015,433

Regulation of health service professionals

The health service workforce is made up of a large number of professions and occupations. The Health Practitioners Competence Assurance Act 2003 seeks to protect the health and safety of members of the public by providing mechanisms to ensure that registered health practitioners are competent and fit to practise their professions. The following practitioners are provided for under the Act:

Doctors The Medical Council of New Zealand is a statutory body, with a primary purpose of protecting public health and safety by ensuring that doctors are competent and fit to practise medicine.

Registration of a doctor by the council is evidence that a doctor has met a certain standard. In addition to registration, the council has responsibilities in the areas of doctor education, standards, conduct and health.

The main functions of the council are:

  • registration – the council registers all doctors working in New Zealand. Doctors who complete medical training outside New Zealand or Australia must show they meet certain standards by examination and/or assessment before registration is granted. Doctors with recognised postgraduate qualifications and training are registered in recognised branches of medicine (and are sometimes called specialists).

  • medical education – this involves accreditation of New Zealand medical schools, courses and curricula, in association with the Australian Medical Council. The council approves ‘runs’ in hospitals that are suitable for the education, training and experience of interns in their seventh year, the mandatory period before general registration. It also promotes vocational and continuing medical education in New Zealand and accredits societies and colleges responsible for postgraduate or higher training.

  • health – the council manages the rehabilitation and continued monitoring of doctors who, because of some mental or physical health problem, may not be fit to practise for a period of time.

  • professional standards – legislation provides for the council to review the competency or performance of doctors and to implement remediation as appropriate, including, if necessary, imposing conditions on annual practising certificates or registration. The council also ensures doctors maintain their competency to practise through continuing medical education, peer reviews, and individual audits to overcome any knowledge or skill gaps.

Complaints about doctors may be received by either the Medical Council of New Zealand or the Health and Disability Commissioner (HDC), but all complaints must be referred to the HDC. The HDC may refer complaints back to the Medical Council and the council must assess the complaint promptly and consider what action should be taken, including referral to a Professional Conduct Committee. Under the Health and Disability Commissioner Act 1994, the HDC must notify the Medical Council of any investigation directly involving a doctor.

The number of practising doctors at 30 June 2006 was 11,398. The Medical Council's website is: www.mcnz.org.nz.

Oral health practitioners The Dental Council of New Zealand regulates all oral health practitioners. This includes dentists, clinical dental technicians, dental technicians, dental therapists and dental hygienists. The Dental Council has constituted four committees, known as workforce boards, to manage the registration of practitioners and liaison with educational establishments on training and examination requirements.

The Office of the Health and Disability Commissioner (HDC) is the initial recipient of complaints about health-care practitioners, including oral health practitioners. The HDC may refer a complaint back to the Dental Council under the Health and Disability Commissioner Act 1994. The council will assess the complaint and decide what action, if any, to take. There are a number of options available to the council, including whether to: review the practitioner's competence or fitness to practise; refer the complaint for investigation by a professional conduct committee; establish an individual recertification programme; or send an educational letter to the practitioner concerned.

The Dental Council issues annual practising certificates, which certify that the practitioner is competent and fit to practise. Where public safety issues arise, the council may appoint a competence review committee – consisting of two of the practitioner's peers and a layperson. The competence review aims to ensure practitioners are practising at the required standard and may require them to undertake further education or assessment.

Disciplining of oral health practitioners is carried out by the Health Practitioners Disciplinary Tribunal (HPDT). The HPDT can impose penalties, including fines and suspension or cancellation of a practitioner's registration.

There are two main training providers for oral health practitioners. The University of Otago offers degree programmes for dentists, dental technicians, clinical dental technicians, dental therapists and dental hygienists. The Auckland University of Technology offers a degree programme for dental therapists and dental hygienists and a pre-degree certificate in dental assisting.

Dr Nikki Turner offers her services to the City Mission by giving free check-ups. The mission provides a range of social and health services to marginalised Aucklanders, including the homeless, elderly, families in crisis, people with dependencies, and people living with HIV/Aids.

At 31 March 207, the following numbers of oral health practitioners were registered and practising:

  • 1,966 dentists

  • 167 clinical dental technicians

  • 191 dental technicians

  • 675 dental therapists

  • 400 dental hygienists.

Nurses The Nursing Council of New Zealand is the health regulatory authority responsible for nurses in New Zealand. The council's primary concern is public safety.

The council registers nurses; sets minimum standards for registration; issues practising certificates; sets standards for, approves and monitors nursing programmes at educational institutions; conducts examinations; ensures maintenance of professional standards and continuing competence of nurses; assesses, investigates and prosecutes complaints about nurses; and deals with health issues that affect nurses' ability to practise safely.

The council aims to act in a manner that is proactive and responsive to relevant national and international trends that influence the practice of nursing. At 31 March 2007,44,520 New Zealand nurses held practising certificates.

Midwives The Midwifery Council is concerned with registration and education of midwives, setting standards for practice, issuing practising certificates, ensuring midwives maintain competence, and (in conjunction with the Health and Disability Commissioner) addressing matters involving the competence and discipline of registered midwives.

A direct entry, three-year Bachelor of Midwifery programme is offered at five institutions throughout New Zealand. Students must complete the programme, pass a national examination, and meet required standards of fitness for practise and competencies for entry to the register, before being registered.

Overseas-qualified midwives who meet a separate set of requirements are able to be registered in New Zealand. All midwives wishing to hold practising certificates must engage in a recertification programme in each three-year period, in order to maintain competence. This requires completion of compulsory and elective clinical and theoretical courses and engagement in professional development. At 1 April 2007, there were 13,412 registered midwives, with approximately 2,500 holding practising certificates.

Psychologists The Psychologists Board promotes education and training in the profession, and reviews and promotes the competency of registered psychologists. It sets standards of clinical and cultural competence and ethical conduct. Maintenance of an accurate register of psychologists is one of the board's key responsibilities. The board also investigates complaints against psychologists. At 31 March 2007 there were 1,732 psychologists holding annual practising certificates, an increase of 107 over the previous year.

Physiotherapists The Physiotherapy Board protects the health and safety of the New Zealand public by providing mechanisms to ensure that physiotherapists are competent and fit to practise. At 1 October 2007, 3,770 physiotherapists held annual practising certificates.

Occupational therapists The Occupational Therapy Board of New Zealand is responsible for registering and overseeing occupational therapy practitioners. Three-year, full-time degree courses for occupational therapists are conducted at Auckland University of Technology and at Otago Polytechnic. At 31 March 2008, there were 2,043 registered occupational therapists holding current practising certificates.

Dietitians The Dietitians Board prescribes qualifications, accredits programmes and institutions, and oversees and registers dietitians. A 15-month postgraduate training course for dietitians is conducted at the University of Otago, the prerequisite qualification being a three-year Bachelor of Science degree in Human Nutrition or a Bachelor of Consumer and Applied Science from the University of Otago. At 31 March 2006, there were 1,174 registered dietitians, with 430 holding annual practising certificates.

Optometrists and dispensing opticians The Optometrists and Dispensing Opticians Board is concerned with registration and conduct of optometrists and dispensing opticians. Optometrists are trained at the University of Auckland in a five-year, full-time degree course. Dispensing opticians are trained through a two-and-a-half-year correspondence course. At 31 March 2007, there were 821 registered optometrists, with 541 holding annual practising certificates. There were also 163 registered dispensing opticians, with 133 holding annual practising certificates.

Podiatrists The Podiatrists Board registers qualified podiatrists and sets standards for education through audit and accreditation, and for professional competence through its re-certification framework programme. The Auckland University of Technology offers a three-year Bachelor of Health Science (Podiatry) degree, which is the only New Zealand qualification recognised for registration. The board issues annual practising certificates and acts on complaints against members of the profession. At 31 March 2007, there were 273 registered podiatrists holding an annual practising certificate.

Chiropractors The Chiropractic Board is concerned with registration, education and professional conduct of registered chiropractors. The board conducts registration examinations twice a year and successful candidates are considered for registration by the board. The board also issues annual practising certificates and acts on complaints against members of the profession. At October 2007, there were 345 chiropractors registered and holding an annual practising certificate.

Pharmacists The Pharmacy Council of New Zealand is the regulatory authority responsible for pharmacists' registration, competence and fitness to practise. Entry to the pharmacy profession can be gained through a four-year degree course at either the University of Auckland or the University of Otago, followed by one year's practical training as an intern pharmacist. Recognition of pharmacy qualifications exists between New Zealand and Australia. Other routes of entry are available for pharmacists with qualifications gained in other countries. At 30 June 2007, there were 3,900 registered pharmacists, with 2,889 holding an annual practising certificate.

Medical radiation technologists The Medical Radiation Technologists Board is concerned with registration, education, and the conduct of those practising medical radiation technology.

There are five scopes of practice of medical radiation technology: diagnostic imaging general; radiation therapy; nuclear medicine; ultrasound imaging; and magnetic resonance imaging. The first two require undergraduate degrees, while the other three require postgraduate qualifications.

Students study diagnostic imaging general at UNITEC in Auckland, the Universal College of Learning, and the Christchurch Polytechnic Institute of Technology. Those studying radiation therapy undertake a three-year course at the University of Otago's Wellington School of Medicine and Health Sciences.

At 31 March 2007, 2,008 medical radiation technologists held annual practising certificates. Excluding those in training, the number in each scope of practice was as follows: diagnostic imaging general, 1,464 people; magnetic resonance imaging, 38 people; nuclear medicine, 44 people; radiation therapy, 238 people; and ultrasound, 256 people.

Medical laboratory scientists and technicians The Medical Laboratory Science Board deals with training, registration and the conduct of people who practise medical laboratory science, and it has approved two scopes of practice – medical laboratory scientists and medical laboratory technicians.

The University of Otago, Massey University and Auckland University of Technology offer a Bachelor of Medical Laboratory Science degree. The board has also approved a graduate diploma route to registration as a medical laboratory scientist.

The New Zealand Institute of Medical Laboratory Science offers two qualifications leading to registration as a medical laboratory technician. These are the Qualified Medical Laboratory Technician examination and the Qualified Phlebotomy Technician examination.

At 31 March 2007, there were 3,308 registered medical laboratory scientists. Of these, 1,538 were licensed to practise. There were also 1,794 registered medical laboratory technicians, of these 1,232 were licensed to practise.

Osteopaths The Osteopathic Council is concerned with registration, conduct and certification of the competency of osteopaths.

Osteopaths are required to complete a Master of Osteopathy degree from the Auckland University of Technology or successfully complete an Osteopathic Council examination in order to seek registration. There were 330 registered osteopaths at 31 March 2007.

Health service benefits and subsidies

General practitioner subsidies Nearly all New Zealanders are enrolled with a general practice that is part of a primary health organisation (PHO). Funding is based on a PHO's population, rather than a payment for each service. General practitioners set their own fees.

In recent years, cheaper doctor visits through PHOs were progressively rolled out to people, based on their age group. The increased funding has resulted in fee reductions (compared with unsubsidised charges) of approximately $25 for those over the age of six, while doctor visits for children under six continue to be free.

Where people receive care outside a PHO, previous subsidies still apply – $35 for children under six; $15 for older children and low income or high-use adults; and $20 for low income or high-use older children. Services for children and influenza vaccines for high-need adults are free.

Hospital treatment Inpatient, outpatient and day treatment in New Zealand public hospitals is free to all people eligible for publicly-funded health services. Services related to public hospital treatment, such as pharmaceuticals and x-rays, are also free, as are inpatient, outpatient and day treatment in public psychiatric hospitals. Mental health services, including pharmaceuticals, are free to day patients or outpatients, including those who are patients of community mental health teams on community treatment orders.

Pharmaceutical benefits All people eligible for publicly-funded health services are entitled to a wide range of medicines, approved appliances, and materials included in the pharmaceutical schedule. These are usually supplied at a small cost. The pharmaceutical schedule is a list of drugs and services subsidised by the government. Special mechanisms ensure people get access to non-schedule drugs in exceptional circumstances. The government sets a standard maximum pharmaceutical charge of $15 an item.

People who are enrolled in Access PHOs (primary health organisations in socio-economically deprived areas), and those under the age of 24 or over 65 are entitled to higher government subsidies on pharmaceuticals. The standard charge for this group is $3 for a prescription item that is on the schedule.

Individuals or families pay the pharmaceutical charge for the first 20 pharmaceutical items from 1 February each year. After 20 items, an individual or a family is eligible for a pharmaceutical subsidy card, which allows the cardholder and named family members to pay a lower amount for prescriptions. Community services cardholders do not pay a prescription charge after 20 items, until the following 1 February.

Maternity services Eligible women in New Zealand receive free pregnancy, childbirth, and postnatal care from general practitioners or midwives through benefits paid by the Ministry of Health. Some women choose to receive primary maternity care from a specialist obstetrician and may then be charged above the rate provided by the benefit. If clinical reasons require involvement of a specialist obstetrician, the service is available free from public hospitals.

Approximately 96 percent of births take place in hospitals, but midwives may provide care to women who choose to have their babies at home. All maternity hospitals are licensed under the Hospitals Act 1957 and the Ministry of Health is responsible for ensuring regulations regarding buildings, equipment, and staff are observed.

Home nursing and home help This service is free when provided by a registered nurse or midwife employed by a district health board (DHB) or an approved organisation. Subsidies are available to organisations that provide domestic help, in appropriate cases, to older people or families with young children. DHBs also provide home help 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.

Equipment and modifications services These services are available to enable people with long-term disabilities to participate in activities in and around their home, and in the wider community. Equipment includes, but is not limited to, hearing aids, cochlear implants and other equipment that improves communication; wheelchairs and other mobility devices; and equipment that assists daily living, such as shower chairs. Subsidies are available for items such as artificial eyes and wigs. Modifications are made to houses and motor vehicles, and there may be assistance for vehicle purchase.

Specific eligibility conditions apply for each type of support, and in some cases access may be prioritised. In some cases, items are subsidised rather than fully funded, or there may be part charges.

HealthPAC (health payments, agreements and compliance) HealthPAC is a business unit of the Ministry of Health that makes government subsidy payments to health professionals on behalf of the Ministry of Health and DHBs. It also administers contracts between vendors and health professionals, and monitors payments to ensure taxpayer money is being spent appropriately.

Contractual agreements apply to all primary care-based transactions subsidised by the government, such as visits to the doctor, pharmaceutical prescriptions, and maternity, immunisation and disability services.

HealthPAC handles around $4.3 billion in payments a year, involving around 70 million items. Confidential aggregated payment-related information from HealthPAC is used by the Ministry of Health for health reports and planning.

PHARMAC A Crown entity reporting to the Minister of Health, PHARMAC's main role is to manage New Zealand's Pharmaceutical Schedule – the list of more than 2,000 subsidised prescription drugs and related products, and to manage expenditure on prescription medicines on behalf of DHBs, who hold the funding.

The schedule, which is updated monthly, records the price of each drug, the subsidy it receives from public funds, and the guidelines or conditions under which it is subsidised. In 2006/07, 11 new medicines were added to the schedule, compared with 14 in 2005/06.

DHBs spent $599 million on pharmaceuticals (drug cost ex-manufacturer) in the year ending 30 June 2007, up $35 million (6.2 percent) on the previous year. In the same period, the number of prescriptions grew by 11.8 percent. This controlled increase in spending reflects PHARMAC's ability to negotiate lower prices, which offsets volume growth and spending on new pharmaceuticals.

PHARMAC also promotes the optimal use of prescription medicines and manages the purchasing of some pharmaceuticals used in hospitals. It is also able to engage in research.

Public health

Public health services are generally those provided to populations rather than to individuals, or those provided to individuals that require population-wide planning, such as population-based screening, or development of an immunisation register.

Public health supports a population health approach, which takes into account all factors that determine health, and systematically plans how these will be tackled and how inequalities can be reduced. Public health services account for 1.9 percent of health services funded through the Vote Health allocation.

The Ministry of Health is responsible for providing policy and strategic advice on public health issues and services, for monitoring the state of health of the population, for developing and enforcing public health legislation, for developing public health strategies, and for planning and funding public health services. Staff working on public health issues are located in a number of the ministry's directorates. The Director of Public Health provides overall professional leadership, and also undertakes various statutory and international roles.

Twelve public health units based in district health boards (DHBs) provide health promotion, health protection and disease prevention services to all 21 DHB districts.

Public health activities are also carried out by local authorities, who have a role in improvement, promotion and protection of public health, and are charged with developing long-term plans, with a focus on community public health. Around 200 non-government providers also provide complementary public health services at a national, regional and local level.

Safe drinking water

Safe drinking water is an essential prerequisite for public health. If a community's drinking water supply becomes contaminated by pathogenic organisms, a large number of people can be infected quickly, and this can lead to the spread of infectious diseases in pandemic proportions.

Chemical contamination of drinking water also has to be guarded against, although this is less common in New Zealand than contamination by pathogenic organisms is. Although direct health risks from chemicals in New Zealand are lower than for contamination by pathogens, there is public concern about chemical contamination.

The Health (Drinking Water) Amendment Act, passed in October 2007, makes most of the (previously voluntary) elements of the current Ministry of Health drinking water strategy subject to legal duties. It brings New Zealand into line with the Bonn Charter for Safe Drinking Water, and encourages the introduction of integrated water resource management.

The Act is probably the first in the world to require all water suppliers servicing more than 500 people to produce and implement public health risk management plans for their supplies. It also requires all water suppliers to take all practicable steps to comply with the drinking water standards for New Zealand.

The Act is complemented by a Drinking Water Assistance Programme that provides free technical assistance to all water suppliers serving fewer than 5,000 people, and may provide funding assistance to these water suppliers if they do not meet the standards, or their risk management plan identifies significant public health risks related to the supply.

The Ministry of Health informs the public about the safety of both public and privately-owned community drinking water supplies, using a system that grades water supplies from A1 (completely satisfactory) to E (completely unsatisfactory).

Table 8.02. Subsidised prescriptions
Year ending 30 June

YearNumber of prescriptionsGovernment expenditure(1) $(million)

(1) Drug expenditure is ex-manufacturer. Expenditure figures exclude distribution and dispensing costs. Any payments by patients have not been deducted. Figures exclude GST and are not adjusted for inflation.

Source: PHARMAC

199721,902,649542
199822,471,870550
199921,850,759502
200021,742,171517
200121,484,187516
200221,943,895504
200322,337,364510
200424,272,384534
200526,941,947565
200628,550,543564
200731,923,044599

Waitakere College student Alana Bulling (right) drinks filtered water from a water fountain, while Santana Bagnall drinks water from a bottle. The college is one of 12 schools in New Zealand chosen as part of a government-led health initiative, Mission On – one of their projects is filtered water fountains.

Gradings are determined by the extent to which the supply and distribution complies with drinking water standards, and whether adequate barriers to contamination are in place.

The Register of Community Drinking Water Supplies in New Zealand lists community drinking water supplies that serve 25 or more people for 60 or more days a year. The Act requires all community drinking water supplies to be registered. The register provides information on public health gradings and whether any chemical contaminants are present at concentrations that could potentially be of public health significance.

The quality of community water supplies is assessed by qualified drinking-water assessors and the results published in an annual review.

Misuse of drugs

A wide range of drugs capable of being misused, including illegal drugs, prescription drugs and restricted substances, are controlled by the Misuse of Drugs Act 1975, the Misuse of Drugs Regulations 1977, and associated legislation.

It is an offence to obtain, manufacture, possess, consume, supply, or offer to supply controlled drugs unless authorised under the Act. Illegal dealing in any class of controlled drug is subject to penalties varying from fines to imprisonment.

Controlled drugs are divided into three classes depending on their assessed level of harm. Heavier penalties are provided for offences involving Class A drugs, such as heroin, cocaine and methamphetamine. Penalties for drugs in Class B and Class C are progressively less. Many Class B and C drugs, such as morphine and pethidine, are legitimately used for medical and scientific purposes.

Cannabis plants, fruit and seeds are included in Class C. Substances manufactured from cannabis plants are classified B. Benzylpiperazine (BZP) was reclassified from a restricted substance to a Class C drug in April 2008.

Rapid emergence of potentially dangerous ‘designer’ drugs necessitated a quicker way to control these drugs. In 2000, Parliament amended the Misuse of Drugs Act 1975 to create a more rapid and evidence-based process for classifying drugs. The amendment clarified the basis of drug classification to relate to risk of harm to individuals and society arising from the drug. The risks range from Class A (very high) and Class B (high) to Class C (moderate risk). An expert advisory committee was established to assess the relative risk of various drugs and to make classification recommendations to the Minister of Health.

A review of the Misuse of Drugs Act 1975 has been announced and the Law Commission will be working closely with the Ministries of Health and Justice, and other interested agencies and groups on this.

National drug policyThe National Drug Policy 2007–2012 (2007) sets out the Government's policy for tobacco, alcohol, illegal drugs, and other drugs, within a single framework. The overarching principle is ‘harm minimisation’, which involves a coordinated set of initiatives across government agencies under a three-pronged approach:

  • supply control (limiting availability of drugs through, for example, legislation and law enforcement)

  • demand reduction (reducing the desire to use drugs through initiatives such as education programmes)

  • problem limitation (mitigating harm from drugs through treatment services).

Other principles include: evidence-informed policy; whole-of-government approach; partnerships with non-government stakeholders; and reducing inequalities. The NDP, led by the Ministry of Health, provides a basis for priority setting, inter-sectoral decision-making and strategic alignment. The national drug policy website is www.ndp.govt.nz.

National Drug Intelligence Bureau To ensure that drug policy is based on sound information, the Ministry of Health, the New Zealand Customs Service and the New Zealand Police have maintained the National Drug Intelligence Bureau since 1972.

Alcohol

Alcohol is the most commonly-used recreational drug in New Zealand, with the most recent survey results showing 81 percent of people aged 12–65 had consumed alcohol in the last 12 months. While most people drink without harming themselves or others, the misuse of alcohol by some results in considerable health, social, and economic costs to individuals, families, and the wider community. Alcohol abuse can lead to physical and mental health problems, dependence, injury and death on the roads, drownings, violence, fetal abnormalities, absenteeism, and impaired work performance.

Figure 8.01.

Ministry of Transport figures indicate that alcohol was a contributing factor in about 28 percent of fatal road accidents and 14 percent of injury accidents in 2006. In annual terms, the social cost of alcohol misuse in New Zealand has been estimated at between $1.5 and 2.4 billion.

The 2004 New Zealand Health Behaviours Survey – Alcohol Use found that one in four New Zealanders aged 12–65 years who had consumed alcohol in the previous year, reported consuming amounts on a typical drinking occasion that are potentially hazardous and harmful.

Although less likely to be drinkers, Māori and Pacific peoples who drank were more likely to have potentially hazardous drinking patterns than other ethnic groups, and young people who drank were also likely to have hazardous drinking patterns. Fifty-six percent of those aged 12–17 had consumed alcohol in the last 12 months, and of these, two in five reported consuming large amounts of alcohol on a typical drinking occasion.

Recognising the potential for harm, the sale and supply of alcohol is regulated and policies and programmes are in place to reduce alcohol-related harm. These include regular advertising campaigns to alert people to the dangers of drinking then driving; pregnant women being advised of the potential harm to unborn babies of drinking during pregnancy; and liquor bans in some areas to enhance public safety.

Alcohol and other drug issues are one of the priority areas for action identified in the New Zealand Health Strategy (2000). Alcohol is one of the substances covered by the National Drug Policy, which aims to minimise harm from alcohol, tobacco and other drugs.

Tobacco

Smoking is the greatest single preventable cause of premature death in New Zealand. Each year about 4,700 New Zealanders die from cancers, cardiovascular disease, chronic obstructive pulmonary disease, and other diseases caused by smoking. There is also considerable evidence of harm to adults and children from exposure to second-hand smoke in homes, workplaces and enclosed public places.

Table 8.03. Cigarette smoking status
Usual residents aged 15 years and over 2006 Census

Smoking statusNumber of people
Source: Statistics New Zealand
Regular smoker597,792
Ex-smoker637,293
Never smoked regularly1,653,924
Response unidentifiable106,347
Not stated165,015
Total3,160,371

Under new regulations about the sale of cigarettes, 30 percent of the front and go percent of the back of packets are now covered in graphic warnings, which include images of gangrenous toes, rotting teeth and gums, diseased lungs and smoking-damaged hearts. Cigarette packets also carry the Quitline logo and freephone number and other information about quitting smoking. These regulations came into force on 28 February 2008 and all retailers were required to comply by 1 August 2008.

Smokers who die from tobacco-related causes lose, on average, 13 years of life compared with non-smokers.

The prevalence of smoking in New Zealand is decreasing. The 2006 New Zealand Tobacco Use Survey results show that 23.5 percent of those aged 15–64 currently smoke, and the 2006 Census showed that 20.7 percent of people aged 15 and over smoke on a daily basis. These figures represent a large decline in smoking since 1990 (when 28 percent of people smoked) and 1983 (when 33 percent smoked).

Increases in the prevalence of smoking by secondary school students in the 1990s have been reversed, with a strong downward trend apparent between 1999 and 2006 for both males and females.

The prevalence of smoking among adult Māori and Pacific peoples remains high, 45.8 percent and 36.2 percent, respectively, in 2006.

Annual tobacco consumption per adult (15 years and over) continues to track downwards, from 1,971 cigarettes in 1990 to 999 cigarettes in 2004. There was a slight increase in 2005, to 1,033 cigarettes per adult.

The success of New Zealand's smoking cessation programmes has been achieved through a mix of legislation, taxation, health promotion, and cessation support.

Figure 8.02.

An amendment to the Smoke-free Environments Act 1990, which reduced exposure to environmental tobacco smoke by extending the scope of smoke-free workplaces to include bars, restaurants, cafes and clubs, took effect during 2004. The amendments also restricted further access by minors to tobacco products and placed restrictions on the display of tobacco products at point of sale.

Communicable disease control

Medical practitioners are required under the Health Act 1956 to notify medical health officers of notifiable disease cases they suspect or diagnose. Since December 2007 medical laboratories are also required to notify test results that indicate a notifiable disease.

Notification data is recorded on a computerised database 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 on behalf of the Ministry of Health.

The Ministry of Health monitors the prevalence of communicable diseases, manages national coordination of responses to disease outbreaks, and is responsible for the national immunisation schedule and the control of communicable diseases through designated officers.

The ministry is also responsible for policy development, promulgation of regulations and fulfilment of the new disease-reporting requirements, based on the International Health Regulations, 2005.

Changes to the national immunisation schedule in 2008 Immunisation provides protection from or resistance to infectious diseases. The Ministry of Health's National Immunisation Programme improves health by reducing diseases, such as hepatitis B, measles, and influenza, through the use of vaccines.

The national immunisation schedule is the series of vaccines that are offered free to babies, children and adolescents. Some vaccines are also provided for adults. Pneumococcal vaccine was added to the schedule on 1 June 2008.

Pneumococcal vaccine protects against the most common strains of the pneumococcal bacteria that cause severe disease. Severe pneumococcal disease can cause meningitis, blood poisoning and pneumonia. All babies are at risk of severe pneumococcal disease.

The addition of the pneumococcal vaccine to the schedule means that from 1 June 2008 all New Zealand babies have access to free immunisations that protect them against 11 serious diseases. The schedule is reviewed every two years to make sure New Zealanders receive safe and effective vaccines.

Table 8.04. Recommended immunisation schedule(1) from 1 June 2008

AgeDisease protected against (vaccine name)

(1) Effective from 1 January 2008.

(2) Hepatitis B vaccine and hepatitis B immunoglobulin is also given at birth to babies of a mother who is a carrier of hepatitis B, and bacille calmette-guin is offered to babies who will be living in households where there are recent immigrants from high risk countries, or people with current or past history of tuberculosis. The rubella vaccine (as MMR vaccine) is available for susceptible women.

(3) Administration is not funded for these vaccines.

(4) The influenza vaccine is also funded for people of all ages with certain chronic medical conditions.

Source: Ministry of Health

6 weeks(2)diphtheria, tetanus, whooping cough, polio, hepatitis B, haemophilius influenzae type b (Infanrix-hexa)
 pneumococcal (Prevenar)
 meningococcal B (MeNZB)
3 monthsdiphtheria, tetanus, whooping cough, polio, hepatitis B, haemophilius influenzae type b (Infanrix-hexa)
 pneumococcal (Prevenar)
 meningococcal B (MeNZB)
5 monthsdiphtheria, tetanus, whooping cough, polio, hepatitis B, haemophilius influenzae type b (Infanrix-hexa)
 pneumococcal (Prevenar)
 meningococcal B (MeNZB)
10 monthsmeningococcal B (MeNZB)
15 monthshaemophilius influenzae type b (Hiberix)
 pneumococcal (Prevenar)
 measles, mumps, rubella (MMRII)
4 yearsdiphtheria, tetanus, whooping cough, polio, (Infanrix-IPV)
 measles, mumps, rubella (MMRII)
11 years(3)diphtheria, tetanus, whooping cough (Boostrix)
45 yearsdiphtheria, tetanus (ADT)(3)
65 yearsdiphtheria, tetanus (ADT)(3)
 influenza(4) (Vaxigrip or Fluvax)

Food safety and quality

The New Zealand Food Safety Authority (NZFSA) protects and promotes public health by ensuring safe and suitable food supply, and facilitates access to markets for New Zealand food and food-related products.

It also administers legislation covering food manufactured and sold on the domestic market (both local and imported); primary production and processing of animal products and official assurances related to their export; export of plant products; and controls surrounding registration and use of agricultural compounds and veterinary medicines.

The authority's market access activities focus on negotiating conditions and certification requirements with countries importing New Zealand's animal and plant products. This includes managing bilateral agreements, trading partner relationships and equivalency negotiations.

NZFSA works to secure market access at various levels. At a multilateral level, it works with international bodies such as the World Organization for Animal Health and the International Plant Protection Convention. These are multinational groups of the World Trade Organization that review international standards for trade in food and other agricultural products. NZFSA's role is to ensure that rules are science and risk-based, and reflect New Zealand's needs.

Under the Food Act 1981, NZFSA is responsible for the development of food safety standards and for ensuring labelling and composition standards developed for both Australia and New Zealand by Food Standards Australia New Zealand (FSANZ) meet New Zealand's needs.

NZFSA is responsible for compliance and enforcement of food legislation and for investigation of food complaints, while the Ministry of Health manages communicable disease, including identification of food-borne illness.

Cancer control

Cancer is a major health issue for New Zealanders. One in three will have some experience of cancer, either personally or through a relative or friend. The number of people who develop cancer is rising, with much of this increase being due to an increasing and ageing population. Currently, about 17,000 New Zealanders develop cancer each year, while about 7,500 die as a result of cancer.

Reducing the incidence and impact of cancer is one of 13 population health objectives in the New Zealand Health Strategy (2000).

The cancer control programme is an organised approach to reducing the community burden of cancer through prevention, screening and early detection, treatment, support and rehabilitation, and palliative care.

The New Zealand Cancer Control Strategy (2003) outlines the goals of the strategy, which are to:

  • reduce the incidence of cancer through primary prevention

  • ensure effective screening and early detection to reduce incidence and mortality

  • ensure effective diagnosis and treatment to reduce morbidity and mortality

  • improve the quality of life for those with cancer, and their family or whānau, through support, rehabilitation and palliative care

  • improve delivery of services across the continuum of cancer control through effective planning, coordination and integration of resources and activity, monitoring, and evaluation

  • improve effectiveness of cancer control in New Zealand through research and surveillance.

The New Zealand Cancer Control Strategy Action Plan 2005–10 was published in March 2005. The Cancer Control Council was appointed in 2005 by the Minister of Health to monitor implementation of the plan and provide the minister with independent advice.

Services for older people

Most older people are fit and well, and live independent lives. However, with advancing age, older people become increasingly high users of health and disability support services, such as home support and residential care.

People are now entering residential care later but with a higher level of dependency than in the past. The average age of entry to aged residential care is 82.3 years.

In terms of government expenditure, the most significant services used specifically by older people are: residential care; home-based support; assessment, treatment and rehabilitation; environmental support; and carer support. Public expenditure on these services is estimated to be $1,160 million in 2007/08.

DHBs are responsible for planning and funding health and disability services for older people, except for environmental support services, which are funded directly by the Ministry of Health.

In 2006/07 approximately 27,100 people received aged residential care, funded to a greater or lesser extent by DHBs, at a cost of approximately $690 million (excluding GST). This did not include contributions made by residents.

Approximately $145 million was spent by DHBs on home-based support services for older people in 2006/07. DHBs also spent $180 million on assessment, treatment and rehabilitation services, and $35 million on carer support.

In Budget 2007, the Government increased annual funding of aged residential care by $37.5 million and home-based support services by $20.3 million. In addition, $32 million per year was provided to DHBs for inflation and volume increases for these services.

The Health of Older People Strategy, released in 2002, provides a framework for future service development for older people. Key directions in the strategy are an integrated approach to service planning and provision, and a greater emphasis on community-based services to support older people to remain at home with a good quality of life.

Not for profit organisations

Not for profit organisations make valuable contributions to aspects of public health. The Vote Health allocation, through a variety of contracts and other agreements, funds a wide range of independent service providers and related organisations, including the Royal New Zealand Plunket Society, the New Zealand Family Planning Association, the National Heart Foundation and the New Zealand AIDS Foundation.

Mental health

The Ministry of Health has responsibility for leading implementation of the National Mental Health Strategy contained in Looking Forward (1994) and Moving Forward (1997) and the Government's most recent policy direction for mental health and addiction, Te Tāhuhu – Improving Mental Health 2005–2015: The Second New Zealand Mental Health and Addiction Plan released in June 2005.

Implementation of the strategy has been supported by growth in public funding – from $465 million (excluding GST) in 1997/98 to $1,021 million (excluding GST) in 2006/07. Growth in funding has been accompanied by significant growth in services, 74 percent of which are community based, with inpatient services making up the remainder.

Services provided by non-government organisations receive 29 percent of funding for community-based services.

New Zealand's 21 DHBs have responsibility for planning, funding and ensuring provision of mental health and addiction services.

Te Tāhuhu – Improving Mental Health sets out Government policy and priorities for mental health and addiction for the 10 years to 2015, and provides an overall direction for investment in the area. Based on an outcomes framework, it broadens government interest in the mental health of all New Zealanders, while continuing to place an emphasis on those most severely affected by mental illness and addiction. It covers the spectrum of interventions, from promotion and prevention, to primary care and specialist services.

Te Puāwaitanga: Māori Mental Health National Strategic Framework (2002) was developed to assist and provide detailed guidance for the mental health sector and DHBs on the planning and delivery of services for Māori, recognising the importance of cultural identity as an essential component of mental health care.

Building on Strengths: a new approach to promoting mental health in New Zealand/Aotearoa (2002) outlines a national approach to mental health promotion, with the aim of providing education and guidance on mental health promotion, along with planned priority actions for promotional activities.

The ‘Like Minds, Like Mine’ programme continues to counter stigma and discrimination, and promote social inclusion of people who experience mental illness. More information is at www.likeminds.org.nz.

Suicide

Suicidal behaviour is a significant and preventable public health issue in New Zealand. It is a major cause of death and injury and a significant contributor to social and health costs. In 2004, the total cost (economic and non-economic) of suicide and attempted suicide was estimated at $1.6 billion.

Every year approximately 500 people die by suicide, and approximately 10 times that number are hospitalised for intentional self-harm. The three-year moving average rate of suicide for 2003–05 was 13.2 deaths per 100,000 people. This is a decrease of 19 percent from the 1996–98 peak of 16.3 deaths per 100,000 people, and continues the downward trend of recent years.

Males consistently have a higher rate of suicide than females, with approximately three male suicides to every female suicide. However, females have a higher rate of hospitalisation for intentional self-harm than males, with two females being hospitalised for every male hospitalisation.

The subgroups with the highest rates of suicide were: males; Māori (as opposed to non-Māori); those aged 15–44 years; and those residing in the most socio-economically deprived areas of New Zealand.

Research suggests that over their lifetime, 15.7 percent of New Zealanders will report experiencing ideas about suicide, 5.5 percent will make a suicide plan, and 4.5 percent will make a suicide attempt.

There is a broad range of factors involved in the development of suicidal behaviours, such as: the presence of a mental health problem (for example depression or an alcohol or drug disorder); social isolation and discrimination; family disadvantage; exposure to trauma, such as family violence, sexual abuse, or bullying; having a friend or family member die by suicide; having ready access to the means of suicide; experiencing adverse life events, such as financial or legal problems or a relationship loss; and the inability to manage life stressors and bounce back from adversity. Most often suicide results from an accumulation of risk factors.

Because there are multiple contributing factors to suicide, no single initiative is likely, on its own, to make a significant difference, and there are no ‘quick fixes’. Reducing the rate of suicide in New Zealand requires sustained action, from a number of sectors over a long period of time.

In 2006 the Government released the New Zealand Suicide Prevention Strategy 2006–2016, which will guide prevention efforts nationally. As a companion to the strategy, the New Zealand Suicide Prevention Action Plan 2008–2012 (2008) outlines in more detail a programme of action to achieve the aims of the strategy. This strategy is led and coordinated by the Ministry of Health, with input from other government agencies whose sectors have a role in suicide prevention.

The Ministry of Health's suicide prevention website is: www.moh.govt.nz/suicideprevention.

Disability support services

The 2006 New Zealand Disability Survey estimates that 1 in 10 New Zealanders rely on some form of disability support to help them live their everyday life. This includes support with housework and personal care, support for education and employment, and support to move around the community. Much support is provided directly by paid and unpaid caregivers, but it can also include equipment, and home and motor vehicle modifications.

While most support is provided by family, friends and other people in the community, people with disabilities can also receive support through government agencies. In 2005/06, government agencies spent $2.7 billion on long-term disability supports (that is supports that are required for more than six months). More than half the total expenditure on disability supports was through the Vote Health allocation, with other significant expenditure being through the Vote Social Development and Vote Education allocations, and the Accident Compensation Corporation.

Within the Vote Health allocation, the Ministry of Health spent $699 million (excluding GST) on disability supports for people with long-term physical, intellectual and sensory disabilities (mostly people aged under 65 years); and DHBs spent $905 million (excluding GST) on disability supports for older people with disabilities and people with psychiatric disabilities. DHBs also funded health services for people with disabilities.

Any person wishing to access long-term disability supports (funded by the Vote Health allocation) has their needs assessed, after which a service coordinator develops a package of care to meet a person's identified needs. In most cases, the supports people receive are ‘in-kind’ supports, although a small number receive direct funding that they can use to purchase supports themselves. Of expenditure by the Ministry of Health, about 42 percent was spent on community residential care. The other key areas of expenditure were environmental support services (10 percent), home support (9 percent), high and complex services (9 percent), caregiver support (3 percent), assessment, treatment and rehabilitation (3 percent) and respite care (2 percent).

Family health

The Ministry of Health, DHBs, health professionals, government, and non-government agencies all promote good health of New Zealand families. A strong primary health-care system is central to improving the health of New Zealanders and, in particular, tackling inequalities in health and reducing hospital admissions.

The Government has made considerable investment to ensure better access to primary health care. For example, the Under-6s initiative offers a premium to primary health-care organisation practices that agree to provide free standard consultations to children aged under six. At 1 January 2008, 70 percent of children aged under six were receiving free standard consultations through practices participating in the Under-6s initiative, or very low cost access scheme.

Sexual and reproductive health

The Government has declared its commitment to development of a comprehensive sexual and reproductive health strategy, including HIV/Aids prevention and control.

Nearly all sexually transmitted infections (STIs) that are reported on in New Zealand have increased in recent years. STIs, such as syphilis, genital herpes and gonorrhoea, can facilitate the spread of HIV infection. Some STIs, for example chlamydia, gonorrhoea and genital warts, are associated with severe, long-term effects, such as infertility, ectopic pregnancy and cancer.

In 2001, phase one of the Sexual and Reproductive Health Strategy was released. It provides the overall vision, principles, obligations, strategic context and strategic directions for achieving good sexual and reproductive health for all New Zealanders. It highlights the need to increase knowledge about safer sex and to provide information on sexual health, the risk of STIs and HIV, prevention, and early diagnosis and treatment.

Māori health

As a population group, Māori have, on average, the poorest health status of any ethnic group in New Zealand. The Government and the Ministry of Health have made it a key priority to improve Māori health outcomes and reduce health inequalities.

At a structural level, factors such as education, income, and housing have the potential to affect health outcomes, and their uneven distribution is a key cause of health inequalities.

Health and disability services therefore have a role, not only in the crucial work of addressing the health needs of the populations they serve, but also in identifying the role of the wider determinants of health (like education, income and housing), and in designing services that respond to existing inequalities.

He Korowai Oranga: Māori Health Strategy (2002) provides the strategic direction to achieve whānau ora: Māori families supported to achieve their maximum health and well-being. The strategy recognises that action is required along four pathways: working across sectors; effective service delivery; Māori participation; and whānau (family), hapū (subtribe), and iwi (tribe) development. The strategy also acknowledges the importance of action in the health and disability sector being underpinned by a solid evidence base.

Accompanying He Korowai Oranga was an action plan for 2002–05, and Whakatātaka Tuarua: Māori Health Action Plan 2006–2011 (2006). These publications outline specific actions to achieve whānau ora. In Whakatātaka Tuarua, four focus areas have been identified over the five-year period. These are:

  • building quality data and monitoring Māori health

  • developing whānau-based models

  • ensuring Māori participation in the workforce and in governance

  • improving primary health care.

Research supports that improving Māori health outcomes and reducing inequalities will benefit not only Māori, but all New Zealanders.

Women's health

The Ministry of Health provides policy advice on a range of issues of particular relevance to women. These include contraception, sexual and reproductive health, infertility, pregnancy and childbirth, abortion services, and breast and cervical cancer screening.

Women's health services are provided by DHBs, health professionals, and a large number of community and consumer groups.

Cervical screening International evidence suggests morbidity and mortality from invasive cervical cancer can be reduced with an organised screening programme aimed at detecting and treating pre-cancerous changes to the cervix. New Zealand's National Cervical Screening Programme was established in 1990 and is targeted at women aged 20–69. In 2007, 70 percent of eligible women had been screened within the past three years as recommended by the programme. Cervical cancer incidence and mortality rates have both halved since the introduction of the screening programme.

National breast cancer screening programme Established in 1998, the BreastScreen Aotearoa (BSA) programme provides two-yearly mammographic screening and follow-up assessment and treatment services to women. In July 2004, the programme was expanded to include all women aged 45–69 years. By 30 June 2006, BSA had screened 326,674 women in two years, an increase of 32 percent on the number screened in the June 2002–04 years. Breast cancer is the leading cause of cancer deaths in New Zealand women. Between 1998 and July 2006, BSA detected breast cancer in 5,510 women.

Child health

The Ministry of Health's Child Health Strategy (1998) continues to provide direction to the health and disability sector on overall improvement in child health and disability outcomes. The strategy recognises that a comprehensive approach is required in order to improve outcomes, involving:

  • greater focus on health promotion

  • disease prevention and early intervention

  • better coordination of resources

  • development of a national child health information strategy

  • development of the child health workforce

  • improved child health research and evaluation

  • leadership in child health.

Figure 8.03.

The strategy emphasises the need to reduce inequalities in health and disability outcomes by focusing on: Māori children, Pacific children, children whose families experience multiple social and economic disadvantages, and children with high health and disability support needs.

DHBs and the Ministry of Health purchase a comprehensive range of health services, including high-quality secondary and tertiary pediatric services, primary care, and well-child services that focus on disease prevention and health promotion. Individual boards are developing strategies incorporating local concerns and demographics.

New Zealand also has a comprehensive and free well-child service, which includes newborn screening; developmental, vision and hearing screening for children aged under five years; and immunisation. Well-child services for this age group are offered by a range of providers, including hospitals, Plunket, and Māori and Pacific providers. The service recommends examination by family doctors at about six weeks of age, and whenever there is anxiety over acute or chronic illness or development.

The infant mortality rate was 5.1 deaths per 1,000 live births in 2006, continuing the reduction that began in the early 1990s, following release of the New Zealand Cot Death Study.

Youth Health Action Plan This plan was published in 2002, following extensive consultation with the health, social services and education professions, and with young people. The plan identifies the need to improve young people's mental and physical health, with special reference to Māori and Pacific youth, and to those with disabilities and chronic illness. Participation by young people in development of policy, programmes, and the running of health services was emphasised.

Oral health

New Zealand's oral health service includes a Community Oral Health Service that provides care primarily for children from birth to year 8 at school. Publicly-funded oral health services are also available from year 9 to the age of 18. Major hospitals provide dental services for in-patient and other special groups.

Emergency dental care for low-income adults is provided by some hospital dental services, and by contracts with private dentists in some DHBs.

Community Oral Health Service The Community Oral Health Service has replaced the School Dental Service. The free community-based service is characterised by prevention and early intervention from birth to year 8 at school. Care includes examination, disease prevention measures, fillings, and oral health education.

Oral health services from year 9 to the age of 18 years are free. These services are usually provided by private dentists who are contracted by DHBs, but in some areas adolescents will be able to attend a Community Oral Health Service.

The Community Oral Health Service is funded by DHBs. Treatment requiring a general anaesthetic is performed at a hospital. Orthodontic treatment and some other specialist services can only be obtained privately.

Two-year-old Farah Thien (left) eating fruit alongside her sister Fendi (aged 14) and brother Harris (aged 12) at their home. Fruit and vegetables are an important part of children's diets. Programmes such as “5+ a day” and Healthy Eating – Healthy Action Oranga Kai – Oranga are some of the high-profile initiatives to raise awareness about the importance of good nutrition.

Dental research The bulk of dental research in New Zealand is undertaken by the School of Dentistry at the University of Otago. Health Research Council-funded dental research is undertaken by a number of researchers.

Fluoridation More than 60 percent of New Zealanders on reticulated water supplies live in areas with fluoridated water. Water fluoridation is a proven measure to reduce dental decay. The benefit of fluoridation in preventing dental decay is greatest for those in low socio-economic groups, for Māori, and for children. In 2006, 57 percent of five-year-olds living in fluoridated areas showed no dental decay, compared with 48 percent of five-year-olds in non-fluoridated areas.

Hospitals

In the year ending 30 June 2007, there were 558,543 inpatient and day-case medical and surgical discharges from publicly-funded district health board (DHB) hospitals in New Zealand.

This number does not include directly-purchased Accident Compensation Corporation elective cases, maternity cases, and short stay accident and emergency cases.

Outpatients

Most people who attend a hospital are ‘ambulatory’ (not confined to a bed) and do not require constant hospital care. These people receive treatment in outpatient and community settings.

In the year ending 30 June 2007, 937,008 people attended a specialist medical or surgical clinic at a hospital for diagnosis, treatment and pre- and post-operative care, typically on two or more occasions.

In the same year, health professionals assessed, treated and rehabilitated approximately 204,640 patients in clinical and home-based settings; 52,480 people attended educational programmes for diabetes and cardiac conditions; 19,412 patients received dialysis treatment; and 365,000 people received specialist outpatient dental treatment.

Length of stay in public hospitals The length of time spent by inpatients in hospital continues to fall, reflecting long-term trends. If day-case patients are excluded, the average length of stay, at 30 September 2007, was 4.08 days. This is shorter than the average stay of 4.18 days recorded five years previously (30 September 2002).

Shorter hospital stays are the result of advances in medical technology, such as new medical treatments and more effective drugs; improved community and follow-up care; and more effective hospital administration.

Table 8.05. Hospital-based outpatient and community services
Year ending 30 June

ServiceNumber of unique patients(1)Number of discharges
2006200720062007

(1) Accuracy of counts is limited by the accuracy of health care user identification (National Health Index).

(2) Refers to treatment by professionals such as dietitians and physiotherapists. Excludes treatment in support of inpatient and other outpatient events.

(3) Includes domiciliary, disability, or health older people (HOP) service areas. HOP was introduced in 2006, as part of a rehabilitation service, which is an alternative to inpatient or outpatient care.

(4) Includes blood transfusions and blood products such as Factor VIII. Excludes transfusions occurring as part of inpatient or other outpatient attendances.

(5) Includes school and adolescent dental services and special services for children and adolescents.

(6) Renal medicine excludes dialysis training such as CAPD, haemodialysis, and in-centre self-managed dialysis training.

(7) Minor diagnostic procedures performed on a day-patient or outpatient basis. Excludes scopes performed as part of an inpatient stay.

(8) Inpatient events that are recorded separately because they are excluded from the national minimum dataset.

Source: Ministry of Health

Allied health(2)108,410125,905379,396401,938
Community services(3)93.47178,735931,086650,167
Blood products(4)2,8973,2929,2848,427
Chemotherapy5,97210,36843,49662,075
Outpatient dental(5)381,296365,000147,86395,626
Dialysis(6)14,72619,412154,950221,223
Emergency department events543,660640,118716,529846,560
Education-related programmes (incl training)42,62652,480107,25746,221
Radiotherapy5,6599,01190,412142,084
Scopes(7)41,35244,64046,25647,839
Spinal procedures(8)357361442447
   Medical specialist (first assessment)141,268145,544148,710157,086
   Surgical specialist (first assessment)232,554243,275240,922258,196
Total first assessments373,822388,819389,632415,282
   Medical specialist (subsequent assessment)224,527235,356468,859482,143
   Surgical specialist (subsequent assessment)295,228312,833527,175560,639
Total subsequent assessments519,755548,189468,8591,042,782
Total assessments3,027,5803,223,3384,871,1285,438,735

Norman Reynolds donated a defibrillator to St Heliers Village Association, and 10 local shop owners have been trained to use it. Portable defibrillators can resuscitate a person who has had a cardiac arrest. Improvements in defibrillator design mean trained non-medical people can respond to emergencies effectively.

Causes of death

Malignant neoplasm (cancer), ischaemic heart disease, and cerebrovascular disease were the leading causes of death in New Zealand in the year ending 31 December 2004, the most recent year for which statistics are available.

Collectively, they accounted for almost 60 percent of all deaths. Cancer was the cause of 28.0 percent of deaths, ischaemic heart disease 22.0 percent, and cerebrovascular disease 9.8 percent.

Table 8.06. Major causes of death
2002–2004

Cause of deathNumber of deathsRate per million people
200220032004200220032004
Source: New Zealand Health Information Service
Malignant neoplasm7,8007,9328,0231,978.61,978.31,974.9
Diabetes mellitus805847843204.2211.2207.5
Chronic rheumatic heart disease15014812338.136.930.3
Hypertensive disease21924728355.661.669.7
Ischaemic heart disease6,2876,1966,3131,594.81,545.31,554.0
Other forms of heart disease1,2931,2931,205328.0322.5296.6
Cerebrovascular disease2,8292,6922,806717.6671.4690.7
Disease of artery, arteriole or capillary558461508141.5115.0125.0
Influenza and pneumonia462412465117.2102.8114.5
Bronchitis, emphysema and asthma20920517553.051.143.1
Other disease of respiratory system1,7121,7421,827434.3434.5449.7
Disease of the liver14013213435.532.933.0
Peptic ulcer95888224.121.920.2
Congenital anomaly20018817850.746.943.8
Conditions of perinatal mortality17213715043.634.236.9
Transport accidents531582520134.7145.2128.0
Intentional self-harm466517488118.2128.9120.1
Other injury and poisoning699704702177.3175.6172.8
All other diseases3,7333,5383,811947.0882.4938.1
Total28,36028,06128,6367,194.16,998.57,048.9

Cancer

In 2004 (the latest year for which statistics are available), 95.4 percent of cancer deaths occurred at age 45 years and over, with 70.4 percent occurring at 65 years and over.

Table 8.07 compares male and female deaths from malignant cancer.

Table 8.07. Deaths from malignant cancer
By sex and age group
Year ending 31 December 2004

Age group (years)MalesFemales
NumberRate per 100,000 peoplePercentage of total deathsNumberRate per 100,000 peoplePercentage of total deaths
Source: New Zealand Health Information Service
Under 521.40.010.70.0
5–1472.30.2103.40.3
15–24113.70.3113.80.3
25–4412622.33.020433.95.3
45–64986212.723.61017214.826.4
65+3,0411,41472.92,607962.567.7
Total4,173208.8100.03,850186.5100.0
Total in 20034,233214.7100.03,699181.5100.0

Fetal and infant mortality

The term perinatal death covers fetal deaths at 20 or more weeks gestation or 400 grams birthweight, and infant deaths within seven days of birth (early neonatal deaths). A late neonatal death occurs when a live-born infant dies after seven days but before 28 days after birth. A post-neonatal death is when a live-born infant dies after 28 days but before the first year of life is completed. An infant death is the death of a live-born infant before the first year of life is completed.

Table 8.08. Fetal and infant mortality rates
By ethnic group
Year ending 31 December 2005(1)

Category of deathMāoriPacific peoplesOtherTotal
NumberRate(2)NumberRate(2)NumberRate(2)NumberRate(2)

(1) Figures for 2005 are provisional.

(2) Rate per 1,000 recorded pregnancies or live births.

(3) Deaths at before 20 weeks or under 400 grams birth weight.

(4) Fetal deaths at 20 or more weeks gestation or 400 grams birth weight, and infant deaths within seven days of birth (early neonatal deaths).

(5) When a live-born infant dies after seven days but before 28 days after birth.

(6) Infant death after 28 days but before the first year of life is completed.

Source: New Zealand Health Information Service

Total fetal(3)1609.36410.23279.25519.3
Infant
   Early neonatal(4)472.8243.8772.21482.5
   Late neonatal(5)100.650.8200.6350.6
   Post-neonatal(6)573.4142.2401.11111.9
Total infant1146.7436.91373.92945.0

Table 8.09. Infant mortality rates for selected OECD(1) countries
Deaths per 1,000 live births

 200020012002200320042005

(1) Organisation for Economic Co-operation and Development.

Source: OECD Health Division

Australia5.25.35.04.84.75.0
Austria4.84.84.14.54.54.2
Germany4.44.34.24.24.13.9
Greece5.45.15.14.04.13.8
Iceland3.02.72.32.42.82.3
Japan3.23.13.03.02.82.8
New Zealand6.15.35.64.95.65.1
Portugal5.55.05.04.13.83.5
Switzerland4.95.05.04.34.24.2
United Kingdom5.65.55.25.35.05.1

Abortion

Abortion is permitted by New Zealand law under the Contraception, Sterilisation and Abortion Act 1977 in circumstances where strict criteria are met. The criteria are that continuation of the pregnancy would result in serious danger (excluding the danger normally associated with childbirth) to the life, or to the physical or mental health of the woman or girl; or that there is a substantial risk that the child, if born, would be so physically or mentally abnormal as to be seriously handicapped.

The grounds are stricter when the gestation of the pregnancy is more than 20 weeks. Then, an abortion will be authorised only to save the life of the mother, or to prevent serious, permanent injury to her physical or mental health. The Crimes Act 1961 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 criteria for determining a case. If, after consideration of a case, two certifying consultants establish that the case meets the criteria of the Act, they will each issue an authorising certificate.

The Act also created a three-member Abortion Supervisory Committee. The committee's functions include keeping provisions of the Act under review, granting licences to institutions (both private and public) to perform abortions, appointing certifying consultants, and collating and disseminating information relating to the performance of abortions in New Zealand. The committee also appoints counselling advisors to monitor counselling services for women seeking advice about their pregnancy.

Table 8.1. Abortions(1)
By age group
Year ending 31 December

Age group (years)200120022003200420052006

(1) New Zealand-registered induced abortions.

(2) The average number of abortions that 1,000 women would have during their life if they experienced the age-specific abortion rates of a given period (usually a year). It excludes the effect of mortality.

Source: Abortion Supervisory Committee

11–146678898592105
15–193,2403,6023,7573,7583,7183,978
20–244,7285,1245,6705,5285,2035,314
25–293,4503,4503,6193,5013,4913,530
30–342,5552,6762,8002,6442,5202,497
35–391,7301,7151,8461,9161,7731,777
40–44593686692721687691
45+484938584742
Total16,41017,38018,51118,21117,53117,934
Total abortion rate(2)594.9621.3648.2628.7600.8608.2

International comparisons International comparisons are affected by both statistical coverage and laws relating to induced abortion, so differences between New Zealand and other countries' abortion rates should be interpreted with care. International data for 2006 is not available, so comparisons have generally been made using 2005 data. In 2005, the general abortion rate (abortions per 1,000 women aged 15–44 years) for New Zealand was 19.7 per 1,000. The Netherlands (8.6), Scotland (11.9), Denmark (14.3), Norway (15.2), and England and Wales (17.8) had lower rates. In Australia (19.3 in 2004), Sweden (20.2) and the United States (20.8 in 2003), the abortion rate was similar to that of New Zealand.

Accidents

Road crashes

Motor vehicle crashes involving death or personal injury are required by law to be reported to the Police. During the year ending 31 December 2006, there were 11,291 reported crashes, resulting in 391 fatalities and injuries to 15,174 individuals.

Table 8.11. Motor vehicle crashes resulting in injury or death
By classification
Year ending 31 December

Classification20052006
People killedSerious injuriesMinor injuriesTotalPeople killedSerious injuriesMinor injuriesTotal
Source: Ministry of Transport
Overtaking or lane change2612144158822116413551
Head on (not overtaking)1364531,0321,6211074151,1491,671
Lost control or ran off road on straight423081,2371,587372981,2891,624
Lost control or ran off road while cornering1036372,5863,326996772,8653,641
Collision with obstruction375351429692373471
Rear end7781,4271,5126941,4461,546
At intersections or driveways
   Turning versus same direction1390573676682641729
   Crossing, no turn151338651,013111569901,157
   Crossing, vehicle turning111219571,089181369501,104
   Vehicles merging140230271242272316
   Right turn against51459301,080161578841,057
   Vehicles manoeuvring480510594783511601
   Pedestrian crossing road1718459179228212589829
   Pedestrian – other1139991491836105159
   Miscellaneous11279112983368109
Total4052,53111,92014,8563912,62912,54515,565

Figure 8.04.

Road Safety to 2010 (2003) provides the strategic direction for road safety in New Zealand and describes the result the Government wants to achieve by 2010 – to reduce road deaths to no more than 300 a year.

The government's key priorities for road safety include engineering safer roads, reducing speed, combating drink driving, dealing with serious offenders, encouraging the use of seat belts, improving safety for pedestrians and cyclists, improving the vehicle fleet, and providing new and better-targeted education initiatives.

Road safety is built around engineering, education and enforcement, and this requires coordination among agencies such as the Ministry of Transport, Transit New Zealand, Land Transport New Zealand, the Ministry of Education, the New Zealand Police, and local authorities. The National Road Safety Committee and a number of other bodies, including local road safety committees, provide advice and coordination for road safety partners.

Figure 8.05.

There has been considerable progress in reducing road deaths – the road toll was 766 in 1986, 514 in 1996 and 391 for 2006. This was the lowest number of fatalities since 1960.

Table 8.12. Fatalities and injuries in motor vehicle crashes
By age group
Year ending 31 December

Age group (years)Fatalities(1)injuries
2002200320042005200620022003200420052006

(1) Killed immediately or died within 30 days of accident.

Source: Ministry of Transport

Under 58101086204198157180192
5–988101011386363355337368
10–141595138639650567630593
15–1954738184612,5062,5412,5752,6782,850
20–2447565649411,8671,9781,8622,0572,139
25–2938412727201,2651,2361,1801,2121,318
30–3437453320291,1521,2531,1341,1311,185
35–3927402420261,0821,0749911,0921,062
40–4422283435339471,0131,0071,0451,068
45–491925262730719761826832919
50–542920162521619685615678709
55–591815301311471532521576613
60–641518131317396401394383408
65–691316121413306302294300301
70–741514161111261254258284290
75–791514161116226223238235253
80+1822182031253258265260302
Age unknown77856619650651541604
Total40546143540539113,91814,37213,89014,45115,174

Table 8.13. Road crash casualties and rates

YearFatalitiesFatality rate(1)InjuriesInjury rate(1)Total casualty rate(1)

(1) Per 100,000 people.

Source: Ministry of Transport

199651413.814,796398412
199753914.413,37535637
199850113.212,412328341
199950913.411,999316329
200046212.110,962286298
200145511.812,368321333
200240510.313,918353364
200346111.514,372359370
200443510.713,890342353
20054059.914,451353363
20063919.415,174367376

Table 8.14. International comparison of motor vehicle fatality rates(1)
Year ending 31 December

Country20042005
Fatality numberFatality rate(2)Fatality rate per 10,000 vehiclesFatality numberFatality rate(2)Fatality rate per 10,000 vehicles

(1) Data is for countries that contribute data to the International Road Traffic and Accident Database and is the most recent available.

(2) Per 100,000 people.

Symbol:.. figures not available

Source: Ministry of Transport

United States42,63614.51.843,44314.71.8
New Zealand43510.71.54059.91.3
France5,5309.21.55,3188.81.4
Canada2,7258.51.4......
Australia1,5837.91.21,6398.11.2
Germany5,8427.11.15,3616.51.0
Japan8,4926.71.07,9316.21.0
United Kingdom3,3685.61.03,3365.51.0
Norway2595.70.92244.90.8
Sweden4805.40.94404.90.9

New Zealand Fire Service trainer Dean Ligtenburg oversees the extraction of Randy, a fully-jointed dummy, from a tricky situation. Mr Ligtenburg was training members of the Queenstown and Frankton Fire Brigades in the skills needed to get crash victims out of cars as quickly as possible. Firefighters attended 3,055 rescues and medical emergency incidents in the year ending 30 June 2007.

Water accidents

Water Safety New Zealand is responsible for water safety education in New Zealand. Formed in 1949, Water Safety New Zealand represents the interests of 36 aquatic sports, recreational, and community organisations. It is funded by the New Zealand Lottery Grants Board and through sponsorship of specific programmes by organisations such as the Accident Compensation Corporation.

Water Safety New Zealand helps meet the water safety needs of the community through education, information and statistics, research and advice, and consultancy. The organisation also supports and funds educational activities by member organisations, such as Surf Life Saving New Zealand, the Coastguard Boating Education, the New Zealand Outdoor Instructors' Association, and the New Zealand Underwater Association.

Table 8.15. Drownings by activity type
Year ending 31 December

Activity type2000200120022003200420052006
Source: Water Safety New Zealand
Recreational
   Land-based fishing51014811136
   Non-powered boat813117983
   Powered boat14101311768
   Sailing2121120
   Underwater104810266
   Swimming1091318141213
   Water sport/recreation8638946
Subtotal57536463535142
Non-recreational
   Accidental immersion33324130252626
   Flood/civil emergency1010100
   Rescuing others4251321
   Commercial fishing4311530
Subtotal42374832343127
Other
   Aircraft0000102
   Homicide3200101
   Other commercial4000032
   Road vehicle1015121817196
   Suicide1614151216169
Subtotal33312730353820
Total drownings13212113912512212089

General accidents

External causes Accidents, poisoning and violence caused 6.0 percent of deaths from all causes in New Zealand in 2004 (the latest New Zealand Health Information Service statistics available), compared with 6.4 percent in 2003, 6.0 percent in 2002, and 5.9 percent in 2001.

Table 8.16. Deaths from external causes
Year ending 31 December

Cause200220032004
NumberRate(1)NumberRate(1)NumberRate(1)

(1) Per million people.

(2) Includes falls aboard ships and from horseback.

(3) Includes drowning from water transport.

Source: New Zealand Health Information Service

Transport accident531134.7582145.2520128.0
Intentional self-harm466118.2517128.9488120.1
Accidental fall(2)30477.133784.035487.1
Accidental drowning(1)7418.86015.05814.3
Accidental poisoning4210.74611.54912.1
Assault6917.55614.04711.6
Exposure to smoke, fire and flames317.9194.7225.4
Firearm accident20.571.720.5
Undetermined307.6328.0307.4
Other external causes14737.314736.714034.5
Total1,696430.21,803449.71,710420.9

Males accounted for 66.1 percent of deaths from external causes in 2004 (the latest New Zealand Health Information Service statistics available). Males aged 15–24 had the highest number of deaths for any age group, with transport accidents being the most common cause of death, followed by intentional self-harm.

Table 8.17. Deaths from external causes
By sex and age group
Year ending 31 December 204

Age group (years)Transport accidentIntentional self-harmAssaultUndeterminedAccidental fallAccidental drowningExposure to smoke, fire or flamesFirearm accidentAccidental poisoningOther external causeTotal
MFMFMFMFMFMFMFMFMFMFMF
Source: New Zealand Health Information Service
0–141610424501117632111013115039
15–241074883306044120821063005023287
25–34502376195421819020711013017349
35–4458158420713110082201060015419749
45–5442164817633491401044008512550
55–6441184012302197410212007710750
65–74231117610122214321200009107747
75+2913273201096163201512001122170208
Total366154379109341316141671874513111130192081591,131579
Total in 20034111713761413818266157180481271225217095521,190613

Injury prevention

Injury prevention activities are guided by the New Zealand Injury Prevention Strategy (2003), which is led by the Accident Compensation Corporation (ACC). The strategy sets out a number of priority action areas for 2005–08. These include injury prevention strategies for motor vehicle crashes, suicide and deliberate self-harm, falls, workplace injuries, assault, and drowning and near drowning. The Ministry of Health and a number of other agencies fund injury prevention activities throughout New Zealand.

The Ministry of Health has been the lead agency for the suicide and deliberate self-harm priority area since July 2005. In July 2006, the Ministry of Health released the national all-age suicide prevention strategy, New Zealand Suicide Prevention Strategy 2006–2016. While the ministry leads and coordinates the strategy, the prevention of suicide requires input from other government and non-government agencies. The ministry's five-year plan, the New Zealand Suicide Prevention Action Plan 2008–2012 (2008), translates the high-level goals of the strategy into specific actions.

The Ministry of Health also funds a number of public health-focused regional and national injury prevention programmes that contribute to other priorities under the New Zealand Injury Prevention Strategy. These programmes can include those that prevent intentional injuries, and those that prevent unintentional injuries.

Initiatives aimed at preventing unintentional injuries include falls prevention and child safety programmes, and community injury prevention programmes. Those initiatives for preventing intentional injuries include programmes to reduce physical, emotional and sexual violence in families, schools, communities, and marae, through education and by changing the social norms that tolerate violence. The ministry also runs the Violence Intervention Programme, under which health professionals routinely screen women aged over 16 for experience of family violence and provide support and referrals where necessary.

Accident insurance

Nearly 35 years ago New Zealand was the first country to introduce comprehensive 24-hour, no-fault personal accident insurance cover for people injured in accidents.

Legislation creating the accident compensation scheme took effect on 1 April 1974, replacing a statutory workers' compensation scheme, compulsory third-party motor vehicle accident insurance, and a criminal injuries compensation scheme. This scheme also removed the common law right to sue for damages, in return for support for all people injured, regardless of fault.

Essentially, the scheme covers all New Zealand residents, New Zealand residents temporarily overseas, and overseas visitors in New Zealand.

The scheme is managed by a statutory corporation, the Accident Compensation Corporation (ACC).

The scheme has been amended from time to time, mainly to keep its entitlements in line with social changes. The Injury Prevention, Rehabilitation and Compensation Act, which came into effect from 1 April 2002, reintroduced lump sum payments for injuries that resulted in permanent impairment, required ACC to develop a code of claimant rights, and made a number of changes to entitlements for injured people.

Accident Compensation Corporation

The Accident Compensation Corporation (ACC) is a Crown entity with a board of directors appointed by the Minister for the Accident Compensation Corporation. A service agreement between the board and the minister specifies ACC's desired outcomes and objectives, and acts as an accountability mechanism.

In the year ending 30 June 2007, ACC processed almost 1.8 million claims (an increase of 5 percent over the previous year) from injured people in New Zealand, and paid $2.4 billion in total claims costs. Through good care and high-quality programmes, injured people return to productive life as quickly as possible. In 2007, rehabilitation rates for new compensation claims were high – with 65 percent of injured people returning to productive life within three months, 83 percent within six months, and 92 percent within a year.

Services The main services ACC provides to injured people are:

  • retrieval from accident scene – when ambulance or air transport is necessary

  • physical rehabilitation – including cost of some public hospital and private hospital treatment; contribution to costs of the primary health-care provider (such as general practitioners) for consultation and treatment relating to minor injury; and some contribution to cost of travel for treatment

  • compensation for loss of earnings – weekly payments of up to 80 percent of a claimant's pre-injury income for the period during which the claimant is unable to work as a result of the accident (abated compensation is available if the claimant is able to resume work on reduced earnings)

  • vocational support – through the provision of retraining to enable claimants to return to their previous employment, or to take up alternative employment

  • personal support – designed to make living with the results of an accident more comfortable (this can include payment of an independence allowance, 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 daily life)

  • lump sum compensation – a one-off payment to compensate for permanent impairment resulting from injury (this lump sum is paid in addition to any other entitlements or assistance a claimant may receive from ACC, with the payment amount dependent on the level of permanent impairment).

Funding ACC is funded by all New Zealanders, with the funding reserves policy moving in 1998 from a ‘pay-as-you-go’ basis to a ‘fully-funded’ basis. This change required ACC to set levies today, which will cover the full future cost of each claim, and to establish reserves to meet the full future entitlement of people injured in the past. This brought ACC into line with usual insurance practice, and means that each generation pays the cost of its own accidents, rather than passing the cost on to future generations.

ACC receives income from:

  • earners – who pay levies based on their earnings, collected with PAYE (pay as you earn) tax

  • motor vehicle owners and users – who pay a levy as part of their annual motor vehicle licence fee, and a petrol levy

  • the government – on behalf of non-income earners

  • employers and the self-employed

  • investment earnings – on funds held to cover claims costs.

Costs Injury costs are assigned to one of six accounts:

  • The work account meets the cost of all work-related injuries to employees and the self-employed. The account is funded from levies paid by employers based on industry risk, and earnings-related levies paid by self-employed people.

  • The residual claims account covers the continuing cost of work-related injuries sustained before 1 July 1999, and non-work injuries to earners occurring before 1 July 1992 for all earners, including the self-employed. The account is funded by employers, and from levies on the self-employed.

  • The earners' account covers the cost of non-work injuries (including injuries sustained at home, and during sport and recreation) occurring to all earners, including the self-employed, after 1 July 1992. The account is funded from earners' levies paid through PAYE and from earnings-related levies on the self-employed.

  • The non-earners' account meets the cost of all injuries to people who are not in the paid workforce: students, beneficiaries, older people and children. This account is funded by contributions from government.

  • The motor vehicle account covers the costs of all personal injuries involving motor vehicles on public roads. It is funded from petrol excise duty and a levy collected with the motor vehicle relicensing fee.

  • The treatment injury account meets the cost of treatment injuries from medical or surgical procedures. The account is funded from the earners' or non-earners' accounts, depending on the earning status of the injured person.

In the year ending 30 June 2007, ACC's income from levies and investments was $4.1 billion, and total expenditure including movement in claims liability was $3.8 billion.

Table 8.18. ACC claims registered
By ACC account
Year ending 3 June

Account200220032004200520062007
Source: Accident Compensation Corporation
Non-earners723,108725,476717,896734,046781,414817,198
Earners458,864497,808529,645529,631561,866612,094
Employers/other insurer158,103165,404167,388169,978169,024167,222
Self-employed work49,15348,30645,08644,67842,37439,162
Motor vehicle34,89636,70439,56140,94143,08344,130
Medical misadventure6636908238932,5633,964
Residual claims8536091,5929461,2292,225
Total1,425,6401,474,9971,501,9911,521,1131,601,5531,685,995

Emergency management

Ministry of Civil Defence and Emergency Management

The Ministry of Civil Defence and Emergency Management Te Rākau Whakamarumaru leads the way in making New Zealand and its communities resilient to hazards and disasters. The overarching strategy for achieving this is through a risk-management approach to the four ‘Rs’-reduction, readiness, response and recovery.

This approach starts with recognising hazards, and the vulnerability of communities and infrastructure to those hazards. By addressing the possible effects of these hazards, the focus can move to measures for reducing risks and managing the potential impact.

The ministry aims to put the right tools, knowledge and skills in the hands of those responsible for designing and implementing solutions at the local level. It does this by working closely with local government, utilities, and emergency services involved in civil defence emergency management.

The control room of the Western Bay of Plenty Civil Defence headquarters in Tauranga during a civil defence exercise that simulated a tsunami in the Pacific, generated by an earthquake near Chile.

Fire protection

Fire protection involves fire safety and operational firefighting. 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 statutory requirements set out in the Fire Service Act 1975 are met. The commission consists of five members appointed by the government, and is the national purchasing and policy-setting agency. Established under the Forest and Rural Fires Act 1977 as the National Rural Fire Authority, the commission is today responsible for coordinating 112 rural fire authorities operating in areas outside the designated fire districts (in which operational firefighting is provided by the New Zealand Fire Service).

The net cost of funding the commission, after allowing for miscellaneous income, is met by a levy on insured property collected by the insurance industry. For the year ending 30 June 2006, the levy total was $254.28 million, compared with $249.04 million in the year ending 30 June 2005.

New Zealand Fire Service The service aims to reduce the incidence and consequence of fires. It has an operating structure designed to deliver decision-making, response and resources to frontline operations. Senior managers are specifically responsible for fire safety, and enhancement of fire safety technology. Eight fire regions are responsible for fire safety programmes, fire fighting resources, and the training and operational efficiency of brigades within their fire districts.

Table 8.19. Incidents attended by fire brigades
Year ending 3 June

 20032004200520062007
Source: New Zealand Fire Service
Fires
   Structure fire6,8806,5916,4866,1106,269
   Mobile property fire3,2183,1523,2953,4923,485
   Vegetation fire4,7714,3594,1984,8745,545
   Chemical, flammable liquid or gas fire79132139121125
   Miscellaneous fire7,8707,7967,7318,95010,076
All fires22,81822,03021,84923,54725,500
   Fatalities from fires4143242832
   Hazardous emergencies2,5412,9282,8162,9613,336
   Incidents relating to mobile property/accidents5,9755,3965,8235,9096,636
   Rescues and medical emergencies1,1003,0292,7733,0923,055
   Assist other emergency services3,6072,8633,8023,7153,876
   Other incidents2,3242,8052,2992,6062,621
Natural disasters
   Flood5231,1721,347745698
   Wind-storm, tornado, cyclone, etc46759482457412
   Other natural hazard emergencies668292238
False alarms
   Good intent calls6,6374,7444,6784,7386,368
   False alarm19,38321,28920,24619,94520,535
All incident types64,96067,08366,14467,73773,075

Firefighter Wayne Hamilton demonstrates the effect of pouring a cup of water on a fat fire in the New Zealand Fire Service's portable kitchen. The cooking mishap, which finished with a great ball of fire, was part of a demonstration in Dunedin's Octagon by the Fire Service. The portable kitchen is made of stainless steel and was developed in Christchurch by a team of firefighters.

Thirty of 348 fire districts are served mainly by career firefighters, with some stations being augmented by volunteers, while the remaining 318 districts are staffed by volunteers. Nationally in 2006, there were 1,665 career firefighters, compared with 1,621 in 2005 and 1,575 in 2004.

There were more than 7,500 volunteers and 3,000 volunteer rural firefighters in 2006, numbers similar to the previous year. There were 507 support staff in 2006 (including those at communications centres in Auckland, Wellington and Christchurch).

The New Zealand Fire Service has the responsibility of fighting fires in all urban fire districts and, without compromising its ability to fight fires, it can also respond to other emergencies at which its fire fighting resources can be used.

Occupational safety and health

Primary responsibility for the provision of occupational safety and health policy advice and services rests with the Department of Labour.

Maritime New Zealand and the Civil Aviation Authority have designated responsibility for administration and enforcement of legislation in their respective sectors, while the commercial vehicle investigation unit of the New Zealand Police undertakes investigation and enforcement of work-related incidents on public roads. The Accident Compensation Corporation (ACC) also plays a major role in workplace injury prevention.

The principal legislation is the Health and Safety in Employment Act 1992, the object of which is to promote prevention of harm in the workplace.

To achieve this, the Act:

  • defines hazards and places of work

  • promotes excellence in health and safety management

  • imposes enforceable duties on those responsible for work, and those who do the work

  • provides for making regulations and codes of practice for dealing with particular hazards or types of work

  • encourages employee participation and a cooperative approach to workplace health and safety between employers and employees.

The Act sets out the responsibilities of employers, employees, contractors, and others who exercise control over places of work. It provides for detailed guidance material to be created by either mandatory regulations, or by codes of practice approved by the Minister of Labour, after consultation with industry.

Table 8.2. Fatal accidents investigated by the Occupational Safety and Health Service
By industry
Year ending 30 June

Industry20002001(1)2002(1)2003(1)2004(1)20052006

(1) Includes bystanders killed as a result of workplace accidents – 2001 (0), 2002 (5), 2003 (16) and 2004 (8).

(2) Includes fatalities in extractive industries, such as mining – 2001 (2), 2002 (5), 2003 (1), 2004 (1), 2005 (1) and 2006 (1).

Source: Department of Labour

Agriculture and hunting17172522152417
Forestry and logging4727917
Construction17812146514
Other(2)1873430321727
Total57397373624765

Approved codes are not mandatory, but outline an acceptable regulatory standard of workplace health and safety practice for the particular area covered. Other subject-specific best-practice guidelines are also developed by the Department of Labour, in conjunction with industry.

The Department of Labour focuses on supporting safe and healthy workplace practices and reducing work-related illness, injury and deaths through:

  • working with other government agencies in promoting and supporting health and safety in the workplace

  • providing information and advice to help workplaces self-manage health and safety

  • identifying changes and risks in workplaces through environmental scoping

  • promoting research and influencing society's attitudes towards workplace health and safety

  • investigating workplace accidents and complaints and enforcing health and safety legislation.

The department also inspects workplaces for compliance with the law, and regulates agents who certify safety-critical equipment. The department investigates all workplace fatalities.

As the designated enforcement agency for workplaces under the Hazardous Substances and New Organisms Act 1996, the department works closely with emergency services, local authorities and defence forces in the area of explosives and dangerous goods, and work-related hazardous substances.

The department has 20 regional offices delivering services to workplaces, and had a total of 155 health and safety inspectors and occupational medicine specialists for the year ending June 2007.

During 2006/07, the department completed 3,778 forums and information visits, and 5,144 workplace assessments. A total of 9,746 health and safety complaints, incidents or fatalities were notified, with 4,761 investigations being opened in response.

In 2006/07 investigations led to the start of 97 prosecutions, and 80 convictions (some of which followed prosecutions begun in previous years). This compares with 80 prosecutions and 79 convictions in 2005/06, and 110 prosecutions and 119 convictions in 2004/05.

Revenue is gathered through a levy on employers and self-employed people, collected alongside ACC levies. For 2006/07, the Health and Safety in Employment Levy was 5 cents per $100 of wages paid. The Government's budgeted Crown funding to administer the Act for the 2006/07 year was $32.185 million.

Contributors and related websites

Accident Compensation Corporation – www.acc.co.nz

Dental Council of New Zealand – www.dentalcouncil.org.nz

Department of Labour – www.dol.govt.nz

Health and Disability Commissioner – www.hdc.org.nz

Health Research Council of New Zealand – www.hrc.govt.nz

Health Sponsorship Council – www.hsc.org.nz

Malaghan Institute of Medical Research – www.malaghan.org.nz

Medical Council of New Zealand – www.mcnz.org.nz

Medical Laboratory Science Board – www.mlsboard.org.nz

Medical Radiation Technologists Board – www.mrtboard.org.nz

Midwifery Council of New Zealand – www.midwiferycouncil.org.nz

Ministry of Civil Defence and Emergency Management – www.civildefence.govt.nz

Ministry of Health – www.moh.govt.nz

Ministry of Justice – www.justice.govt.nz

Ministry of Transport – www.transport.govt.nz

New Zealand Fire Service Commission – www.fire.org.nz

New Zealand Food Safety Authority – www.nzfsa.govt.nz

New Zealand Health Information Service – www.nzhis.govt.nz

New Zealand Psychologists Board – www.psychologistsboard.org.nz

Nursing Council of New Zealand – www.nursingcouncil.org.nz

Occupational Therapy Board of New Zealand – www.otboard.org.nz

Osteopathic Council of New Zealand – www.osteopathiccouncil.org.nz

PHARMAC – www.pharmac.govt.nz

Pharmacy Council of New Zealand – www.pharmacycouncil.org.nz

Physiotherapy Board of New Zealand – www.physioboard.org.nz

Registration Boards Secretariat Ltd – www.regboards.co.nz

Statistics New Zealand – www.stats.govt.nz

Water Safety New Zealand – www.watersafety.org.nz

Workplace Health and Safety – www.osh.govt.nz

Chapter 9. Education

Students at Pukehou School in Hawke's Bay in front of the environment wall they painted, and holding the flag presented to the school when it became one of five green-gold enviroschools in 2006. New Zealand had 533 enviroschools in 2007.

Curriculum

The New Zealand Curriculum is a statement of official policy relating to teaching and learning in English-medium New Zealand schools. It sets the direction for student learning and provides guidance for schools as they design and review their curriculum. A parallel statement, Te Marautanga o Aotearoa, was launched in 2008 and serves the same function for Māori-medium schools.

The curriculum includes a set of principles that guide what is important and desirable in teaching and learning. These principles underpin all school decision making, put students at the centre of teaching and learning, and affirm New Zealand's unique identity. They are:

  • high expectations

  • learning to learn

  • Treaty of Waitangi

  • cultural diversity

  • inclusion

  • community engagement

  • coherence

  • future focus.

The curriculum also includes a set of values that students will be encouraged to follow. These include: excellence, innovation, inquiry and curiosity, diversity, equity, community and participation, ecological sustainability, integrity and respect.

The curriculum specifies eight learning areas: English, the arts, health and physical education, learning languages, mathematics and statistics, science, social sciences and technology.

The New Zealand Curriculum provides the framework and a common direction for all schools. It gives schools the scope, flexibility and authority they need to design and shape their own curriculum so that teaching and learning is meaningful and beneficial to their particular communities of students. The design of each school's curriculum then allows teachers to set a classroom curriculum that responds to the particular needs, interests and talents of individuals and groups of students in their classes.

National Qualifications Framework

The National Qualifications Framework (NQF) brings qualifications for senior secondary education, industry training and tertiary education into one system.

Coordinated and administered by the New Zealand Qualifications Authority (NZQA), the NQF is based on nationally-agreed unit standards, achievement standards and national qualifications. Each standard belongs to one of 10 framework levels, has a credit value associated with it, and may be used to meet the requirements of registered national qualifications.

National certificates awarded at levels 1–7 include the senior secondary education qualifications, the National Certificate of Educational Achievement (NCEA) at levels 1–3.

National diplomas are awarded at levels 5–7. There is provision for the award of national graduate diplomas and certificates at levels 6 and 7; national bachelor's degrees at level 7; national postgraduate diplomas and certificates, and national bachelor's degrees with honours, at level 8; national master's degrees at level 9; and doctorates at level 10. However, at December 2006, only national certificates, national diplomas and a national postgraduate certificate had been registered on the NQF.

The NQF enables students to continue their studies and trade training wherever they wish – at school, university, polytechnic, private or government training establishment, wānanga, or in the workplace. Each student receives a record of achievement – a personalised list of credits achieved. NZQA updates the learner's record of achievement when results are received from accredited organisations.

National certificates and national diplomas are developed by industry training organisations or other approved standard-setting bodies. Training for these qualifications occurs on the job, off the job, or in a mixture of these, depending on the qualification.

Wellington student John Stewart (16 years) has a thoughtful response to receiving his NCEA results in January 2008. Secondary students' qualifications include NCEA at levels 1–3.

National certificates (and in a few cases national diplomas) have replaced trade certificates and advanced trade certificates in nearly every industry.

In the year ending 30 June 2007, a total of 162,582 NQF qualifications were awarded.

National Certificate of Educational Achievement

The National Certificate of Educational Achievement (NCEA) is designed to acknowledge achievement across a range of learning fields, particularly those identified in the New Zealand Curriculum. It also acts as a learning goal; and attests to a student's ability to participate in and benefit from further study, thereby promoting lifelong learning.

NCEA allows recognition of a broad range of student achievement, such as performance ability, research measurement and laboratory skills.

Success in NCEA is assessed against nationally-agreed standards of achievement. These standards have been developed in line with both English and Māori language curriculums to ensure equity of access to the qualification.

NCEA shows differences between ‘achieving the standard’, ‘achieving the standard with merit’ and ‘achieving the standard with excellence’. Candidates working towards NCEA are also able to work towards other national certificates and qualifications.

NCEA Level 1 holders have typically shown themselves able to work at directed activities, with limited responsibility for decisions about the organisation of their work. The qualification is available mainly to year 11 school students. It is awarded to those credited with a minimum of 80 credits at level 1 or above who have met literacy and numeracy requirements – a minimum of eight credits from specified literacy subfields and/or listed standards, and a minimum of eight credits from specified numeracy subfields and/or domains.

NCEA Level 2 is designed to help access the foundation skills required for employment. At level 2, students have typically shown themselves able to integrate knowledge and skills to solve familiar problems; find and use available sources of information; and work in directed activity. The qualification also provides a base for further study and knowledge. This qualification is mainly available to year 12 school students. It is awarded to those credited with at least 80 credits, of which a minimum of 60 credits are at level 2 or above, from achievement standards and/or unit standards anywhere on the National Qualifications Framework.

NCEA Level 3 is designed to enable access to the skills required for employment. Students certificated at level 3 have typically shown themselves able to integrate knowledge and skills to solve unfamiliar problems; access, analyse and use available sources of information; and work independently in undirected activity. The qualification also provides a more advanced foundation for further study and knowledge. Level 3 is available mainly to year 13 school students. It is awarded to those credited with at least 80 credits at level 2 or above, of which a minimum of 60 credits are at level 3 or above, from achievement standards and/or unit standards anywhere on the National Qualifications Framework (NQF).

New Zealand Scholarship is an award, not a qualification, that extends the best secondary school students and enables top scholars to be identified and acknowledged. New Zealand Scholarship candidates are expected to have completed a full year of study of courses at level 3 of the NQF. New Zealand Scholarship holders will have demonstrated high-level critical thinking, abstraction and generalisation, and an ability to integrate, synthesise and apply knowledge, skills, understanding and ideas to complex situations. Depending on the subject, students will also have displayed effective communication, original or sophisticated solutions, performances or approaches, critical evaluation, and flexible thinking in unfamiliar or unexpected situations. Substantial monetary awards are made for individual performances of a high level in each subject, overall high performance in three scholarship subjects, and outstanding performance in at least two scholarship subjects. Students who receive the Premier Award are identified from those students who demonstrate outstanding performance in at least three scholarship subjects.

Administration of education

Ministry of Education

The Ministry of Education Te Tāhuhu o te Mātauranga is responsible for advising government on matters relating to early childhood education, compulsory schooling, tertiary education and training, and for implementing government education policy.

The Ministry of Education is committed to building and supporting a world-leading education system that equips all New Zealanders with the knowledge, skills and values to be successful citizens in the 21st century. Its focus is on:

  • increasing participation in high quality early childhood education

  • building strong early foundations in primary schooling with an emphasis on literacy and numeracy, in particular for Māori and Pasifika students and students with special education needs

  • increasing presence and engagement in secondary schooling and ensuring that more school leavers have meaningful qualifications

  • ensuring tertiary education is high quality and relevant, and that research supports the realisation of New Zealanders' goals and national social development.

The ministry has around 3,350 employees located in 51 sites. The secretary of education and six deputy secretaries are based in the national office in Wellington. Deputy secretaries are responsible for: strategy and performance, people and business capability, schooling, early childhood and regional education, special education, and Māori.

Special education The Education Act 1989 states that all children from five years of age are able to attend their local school full time (when school is open) until the end of the year in which they turn 19. Students with a section 9 agreement can stay at school to the end of the year they turn 21.

The government's five-year action plan, Better Outcomes for Children, aims to improve outcomes for all students with special educational needs. This involves being at early childhood and school education facilities, and participating in learning that helps them achieve.

Students with special education needs include children and young people with disabilities, learning difficulties, communication or behavioural difficulties, and sensory or physical impairment.

Best practice encourages schools and early childhood centres to work closely with students, their families, whānau, communities and specialists to identify needs and make the best decisions to meet these needs.

Future needs A key planning role for the Ministry of Education is assessing the need for new schools and classrooms. The primary school (5–12-year-olds) roll peaked at 487,000 in 2003 and has been declining since then. The decline was expected to stop in 2008, with growth to follow. The secondary school (13–17-year-olds) roll is growing and in 2007 there were 1,636 more full-time equivalent students than in 2006. While these are national figures, there are significant local variations, with some areas in heavy decline and others sustaining long-term growth (Auckland in particular). Ten new schools are opening in 2008 and 2009, in response to demographic changes and roll growth. An additional 200 classrooms are planned to meet increased school rolls. Eleven new school sites will be purchased, and existing school sites extended to cater for future roll growth.

Education Review Office

The Education Review Office Te Tari Arotake Mātauranga (ERO) is a government department that reports publicly on the quality of education and the care of students in schools and early childhood services. ERO findings help parents, educators, managers and others make decisions and choices.

ERO's chief review officer accredits review officers to carry out reviews. There are approximately 150 review officers in nine local offices, a national evaluation unit that reviews kura and kōhanga reo (Māori-medium education), and a Pacific evaluation unit.

In an education review, ERO investigates and reports to boards of trustees, early childhood service managers and the government on the quality of education provided for students in individual services and schools.

School and early childhood service reviews are scheduled, on average, once every three years. The review schedule is based on previous performance and current risk analysis – reviews are more frequent in cases such as low quality performance, or where there are major risks to students and their safety. ERO's reports on individual schools and services are available to the public. They can be obtained from the individual school or service, from any ERO office, or from the ERO website.

ERO also publishes national reports that evaluate specific educational issues, using information from its reviews. National reports cover areas such as curriculum, assessment, principals and teachers, early childhood education, management, school types, cluster reports, and good practice.

New Zealand Qualifications Authority

The overall role of the New Zealand Qualifications Authority Mana Tohu Mātauranga o Aotearoa (NZQA) is to be the independent expert organisation that administers robust National Qualifications Framework (NQF) assessment systems, and provides reliable quality assurance systems – in accordance with its statutory accountabilities.

This allows New Zealand qualifications to be accepted as credible and robust, nationally and internationally.

NZQA's main functions are to:

  • develop and maintain a comprehensive, flexible and accessible NQF

  • oversee the setting of standards for qualifications

  • ensure that assessment procedures adopted by accredited providers are fair, consistent, and in keeping with the required standard

  • ensure New Zealand qualifications are recognised overseas and overseas qualifications are recognised in New Zealand

  • administer national secondary school examinations.

NZQA is one of six government agencies that work together to achieve educational outcomes in New Zealand. The Ministry of Education monitors NZQA's performance as a Crown entity.

New Zealand Teachers' Council

The New Zealand Teachers' Council Te Pouherenga Kaiako o Aotearoa is a Crown entity established under the Education Standards Act 2001. It maintains an online register of teachers who meet the requirements of the Act, are of good character, are fit to be teachers, are satisfactorily trained to teach, are satisfactory teachers in practice, and who hold a current practising certificate.

Teacher registration is compulsory for teachers employed as supervisors in early childhood centres and in private and state schools. Teachers are issued with a practising certificate valid for three years. There were 87,000 teachers with current practising certificates at 1 December 2007, compared with 85,000 in June 2005 and 67,000 two years earlier. Renewal of practising certificates depends on teachers demonstrating they remain satisfactory teachers. Teachers not meeting registration requirements can be employed temporarily, with a limited authority to teach.

Names of teachers who have their registrations cancelled, or have conditions placed on renewal of their practising certificates, are listed on the council's publicly accessible web register.

The council operates reciprocal registration with Australia under the Trans-Tasman Recognition Agreement, and maintains links with the General Teaching Council for Scotland and other teacher registration bodies overseas.

The council is primarily funded from practising certificate fees paid by teachers.

Other administrative bodies

Boards of trustees All state and state-integrated schools are governed by boards of trustees. Boards include three to seven parent representatives, the principal of the school and a staff representative. Parent representatives are elected by parents of students enrolled at the school. Where there are students enrolled full time in year 9 or above, a student representative must also be elected to the board. 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. The proprietors of state-integrated schools may appoint up to four representatives to their boards.

Boards of trustees work in partnership with their communities, principals, staff and the government to ensure the best possible educational outcomes for their students. In consultation with its community, each board develops a school charter, which communicates the vision and direction of the school, its goals for the long and short term, and its approach to meeting legal responsibilities. Boards are accountable for meeting objectives in their charter and for managing funds they receive from the government to run the school. They are required to present an annual report to their community and the Ministry of Education in April/May of each year.

Tertiary councils Under the Education Act 1989, tertiary institutions (universities, polytechnics and wānanga) are governed by councils. Council members represent business, industry, local authorities, universities, women's and ethnic groups, as well as other educational and community interests. The council of each university is the governing body.

New Zealand Register of Quality Assured Qualifications Te Āhurutanga provides a comprehensive list of all quality-assured qualifications (40 credits and over). It includes all qualifications on the National Qualifications Framework, as well as those developed by tertiary education organisations.

Key purposes of the register, administered by the New Zealand Qualifications Authority, are to:

  • identify all quality-assured qualifications in New Zealand

  • ensure that all qualifications have a purpose and relate to each other in a way students and the public can understand

  • maintain and enhance learners' ability to transfer credits by establishing a common system of credit

  • enhance and build on the international recognition of New Zealand qualifications.

Register requirements ensure consistency of description across all quality-assured qualifications, regardless of whether they are awarded by a school or university, are academic or vocational, or are a six-month or three-year qualification. The public face of the register is the website: www.kiwiquals.govt.nz.

A selection of publications from Learning Media Ltd. The organisation is a major publisher of resources in te reo Māori and five Pasifika languages.

Learning Media Ltd

Learning Media Ltd Te Pou Taki Kōrero is a state-owned enterprise whose services and products contribute significantly to education in New Zealand and internationally.

Learning Media designs and delivers many of the educational resources the Ministry of Education provides to New Zealand teachers and students, as well as creating and implementing key professional development programmes. It is a major publisher of resources in te reo Māori and five Pasifika languages.

Learning Media also produces educational resources in a variety of media for other New Zealand public and private sector organisations. The company has built a significant global presence and exports to Canada, the United States, Australia, Europe and the Pacific.

Government funding

Table 9.01 shows that government spending on education from 1996/97 to 2005/06 increased steadily, both in dollar terms and generally as a proportion of government expenses. There was a small decrease in 2006/07.

Early childhood education

Early childhood education funding is payable to chartered early childhood service providers. To be chartered, a service must be licensed under the Education (Early Childhood Centres) Regulations 1998, or comply with the Education (Home-based Care) Order 1992.

Table 9.01. Government expenditure on education
1996/97–2006/07

YearEducation expenses(1)Gross domestic product(2)Education expenses as a percentage of GDPTotal government expenses(3)Education expenses as a percentage of government expenses
$ (million)%$ (million)%

(1) Education expenses from 1997/98 exclude GST on Crown spending. Figures are from The Treasury.

(2) The expenditure measure of GDP in current prices.

(3) Total government expenses from 1997/98 exclude GST on Crown spending.

Sources: Ministry of Education, Statistics New Zealand, The Treasury

1996/974,81799,0344.931,70815.2
1997/985,162101,5925.132,85215.7
1998/995,337104,6895.134,36715.5
1999/20005,712111,0255.134,53616.5
2000/016,136118,3495.236,69916.7
2001/026,473125,7955.137,97017
2002/037,016132,7305.341,74916.8
2003/047,585142,7465.341,60818.2
2004/057,930150,9905.346,23417.2
2005/069,914156,3256.350,23819.7
2006/079,289166,7145.649,90018.6

To receive government funding, a service must be open continuously for at least 2.5 hours a day. Each service can claim funding for up to six hours per child-place each day, to a maximum 30 hours per child-place a week.

The funding subsidy is not intended to cover the full cost of providing early childhood education. Parents are expected to contribute to the cost of services through fees, donations or fundraising activities.

The early childhood education funding system, introduced in April 2005, ensures the subsidy rates accurately reflect the costs of providing early childhood education. Funding rates for teacher-led, centre-based services depend on whether the service is all-day or sessional (all-day funding rates are higher because of higher staff-to-child ratio requirements), the proportion of registered teacher hours, and the age of children attending. Funding rates for teacher-led, home-based care and parent/whānau-led services depend on whether they meet the standard or quality requirements, and the age of the children attending.

Free ECE funding, introduced in July 2007, covers the average cost of providing the good standard of early childhood education required by regulations. This includes staff costs, equipment and resources, property and all other operating costs.

Other funding streams available to early childhood education services are:

  • equity funding (available for chartered community-based early childhood services that meet criteria set out by the Ministry of Education)

  • an annual top-up for isolated services (available to those generating $5,000 to $20,000 in funding subsidy and equity funding between 1 June and 31 May each year)

  • incentive and support grants to help meet the costs of teachers becoming registered (available to teacher-led services)

  • the Discretionary Grants Scheme ($16.239 million for 2007/08), an annual scheme designed to increase participation in early childhood education services by providing capital assistance to eligible community-based groups. Funding is allocated to projects that address participation through creating new or retaining existing places in licensed services

  • establishment grants that contribute to certain operational costs associated with establishing a new licensed service, or services that are extending a building to increase their licensed child-places.

Compulsory schooling

Compulsory schooling is funded for state and state-integrated schools at levels adequate to ensure delivery of the curriculum to all students entitled to attend school. State and state-integrated schools receive funding from the Ministry of Education for operational funding, staffing entitlement, school property, and school transport assistance. Expenditure is controlled by each school's board of trustees, with the board's financial management audited by the Audit Office.

Private schools receive a government subsidy and charge student fees.

All schools are reviewed by the Education Review Office for their provision of education, management and governance.

Operational funding Operational funding levels vary according to school type, student numbers and year levels, and the school's property profile. State and state-integrated schools receive operational funding on an entitlement and a targeted basis. Many boards of trustees choose to supplement this resourcing with funds raised by the local community to provide for extra activities and staffing. Schools may also receive the following targeted funding entitlements:

  • Māori language resourcing – funding depends on the level of Māori immersion in the programme

  • for educational achievement – funds to address barriers to learning associated with socioeconomic factors, based on the school's roll and the location of students' homes

  • for isolation – to recognise the additional costs of accessing goods and services needed to operate an isolated school and to deliver the curriculum

  • careers information grant – to provide school-based careers information for secondary students

  • Secondary Tertiary Alignment Resource (STAR) – for senior programmes in area and secondary schools

  • special education grant and learning support funding – to assist with support for students with moderate special education needs.

Supplementary funding is also available to support students with verified high and very high special education needs, and for students needing English for speakers of other languages programmes.

Staffing entitlement Schools receive a formula-driven entitlement to employ teachers. This provides schools with a measure of security and stability, enabling them to make long-term decisions about students' curriculum and pastoral care needs. Above this entitlement, additional staffing is provided in response to specifically identified needs. Teachers' salary funding is managed centrally and accessed through the Ministry of Education's education service payroll.

Children from Te One School on the Chatham Islands wave from their school bus as it heads towards Owenga to drop them home. Around 100,000 students in New Zealand use a school bus each day.

School property New Zealand's state school property portfolio consists of about 2,300 schools and 938 houses. There are also more than 300 state-integrated schools. Although part of the state network, these schools are not owned by the Ministry of Education, but by individual proprietors, mainly representing the Catholic church. Proprietors may charge attendance fees to finance capital work, whereas this is the responsibility of the Ministry of Education for full state schools.

Of the full state school portfolio, 70 percent of schools are in urban areas and 30 percent in rural areas. There are nearly 21,000 individual buildings, of which 90 percent were constructed after 1950. Replacement value of the portfolio, excluding state-integrated schools, is $11.5 billion. Managing state school property is a shared responsibility between the ministry and each school's board of trustees.

The ministry represents the owner, provides advice to both schools and the government on property management policies, and allocates capital funding to schools for property-related works. The ministry also maintains a database of all land and buildings, arranges insurance, town-planning designations, building warrants of fitness, the sale of surplus property, and administers housing for some teachers and caretakers.

Boards of trustees for both state and integrated schools manage the daily needs of schools. This involves ensuring all building, health and safety laws are met, as well as planning and implementing property-related works to maintain and improve the teaching and learning environment. Boards of trustees own approximately 1,100 houses.

School transport Students who travel long distances to school in areas where there is no public transport may be entitled to use a government-subsidised school bus, or get financial help for transport. Around 100,000 students use school buses each day. Another 5,000 students receive transport allowances because they cannot use a school bus or need to travel long distances to do so.

Bus operators are contracted to the Ministry of Education and to schools. Approximately 1,600 school bus services carry students to and from school each day. Another 800 services transport some primary school students to technology classes at other schools during the day.

Special education students also receive transport assistance, usually in the form of taxis.

School boarding bursaries Boarding assistance is available to students who need to live away from home in order to receive their education. The annual value of a school boarding bursary is $2,725, paid to the school in equal amounts at the end of each term.

Tertiary education

Significant changes to the tertiary funding system were put in place in 2006/07, with most tertiary funding being determined through the Tertiary Education Commission's decisions on the level of investment in tertiary organisations' plans. The total funding available for allocation is capped.

Private training establishments (PTEs) In 2007 the Government provided $121 million in student component funding to 204 private providers, to subsidise tertiary tuition costs for more than 19,700 full-time equivalent students. The role of PTEs is to provide education that complements public providers.

StudyLink

StudyLink, a service of the Ministry of Social Development, connects people with information they need to make informed decisions about student finances and other study-related issues. It also supplies financial support to students. StudyLink provides services to over 200,000 people.

Along with financial assistance in the form of student allowance, student loans, scholarships and extra help with costs, StudyLink offers StudyWise consultations to loan borrowers. These consultations help students make wise study choices and ensure they consider all options for financing their studies.

Student allowance is a weekly payment that helps students with living costs while they study full time. It's money that doesn't need to be paid back. A student loan helps with study costs and needs to be paid back.

StudyLink also offers two scholarships, the Step Up and Bonded Merit scholarships, and offers advice on other scholarships available.

To ensure students' applications are managed quickly and efficiently StudyLink offers an online service for allowance and loan applicants. Students can also manage their own information online. Both services are accessed through the StudyLink website.

In addition, StudyLink offers advice and support for students about issues such as childcare costs, ongoing medical and disability costs, or being unable to find work during study breaks.

More information about student allowances, student loans, scholarships and the extra support that StudyLink offers is at www.studylink.govt.nz.

StudyLink also delivers presentations to senior students in around 95 percent of New Zealand secondary schools. These help to: support students make informed tertiary study decisions, illustrate the realities of being a student, identify ways for students to fund their study, explain what StudyLink does, and show the consequences of borrowing to pay for study.

StudyLink works closely with students, and in cooperation with education providers, student bodies and other agencies, to ensure students get the information they need and the financial support they are entitled to.

Table 9.02. Student allowance and accommodation benefit
By number of students and amount paid
Year ending December 2003–07

 20032004200520062007
Source: Ministry of Social Development
Number of students
   Student allowance64,03660,82656,80659,43162,479
   Accommodation benefit50,44648,14343,64445,06845,976
   Total students64,05360,95856,81159,45962,505
Total payments ($million)
   Student allowance350.6341.1318.0341.4357.7
   Accommodation benefit42.042.644.048.750.8
Average payments ($)
   Student allowance5,4745,6085,5975,7445,724
   Accommodation benefit8338851,0071,0811,104

Table 9.03. Student loans, repayments, administration fees
By number of students and amount paid
Year ending 31 December 2003–07

 20032004200520062007
Source: Ministry of Social Development
Number of students
   Fees144,678145,549143,406156,236160,855
   Course related costs101,66498,50694,782103,553103,651
   Living costs79,37377,50773,66880,92187,175
   Repayments and refunds38,27842,07938,42143,25746,968
   Administration fees150,754150,899149,447162,211166,315
   Total students156,250157,032154,411167,420173,791
Total payments ($million)
   Fees593.9589.6609.8688.7736.1
   Course related costs95.192.489.498.498.2
   Living costs297.7293.0282.5311.3337.5
   Repayments and refunds51.258.255.560.070.9
   Administration charges7.77.77.68.38.5
Average payments ($)
   Fees4,1054,0514,2534,4084,576
   Course related costs936938943950948
   Living costs3,7513,7803,8353,8473,871

StudyLink staff are located in 44 sites nationwide, with a central processing centre in Palmerston North, a contact centre in Lower Hutt, a national office in Wellington and outreach offices around New Zealand.

In 2007, StudyLink handled over 1 million calls, and managed applications for about 230,000 student loans, 90,000 student allowances, 12,000 unemployment benefit student hardship allowances, and 4,000 scholarship applications. It also paid out about $390 million in student allowances and $1.1 billion in student loans.

Rural Education Activities Programme

The Rural Education Activities Programme is a community-managed package of educational resources operating in 13 rural communities: the Far North, Eastern Bay of Plenty, Tairawhiti (East Coast), the Central Plateau, Central King Country, Ruapehu, Tararua (Southern Hawke's Bay), Wairarapa, Marlborough, Buller, Westland, Central Otago and Southland.

Each programme provides educational support and assistance across all education sectors, from early childhood, through primary and secondary education, to adult and community education.

Activities in the adult and community education sector include access to information about adult learning opportunities and assistance with meeting adult education needs identified by the community, as well as information and advice on community development, piloting new learning methods, and managing projects and programmes.

In January 2005, the Tertiary Education Commission took over Rural Education Activities Programme funding for adult and community education from the Ministry of Education. The ministry continues to fund the early childhood, primary and secondary sectors covered by the programme.

Māori education

By 2021, the Māori population will be 30 percent greater than the 2001 figure, and Māori will make up more than 16 percent of the total New Zealand population.

Most Māori students are in mainstream (English medium) education, although there is a steadily increasing number in kaupapa Māori (Māori medium) education – in early childhood, school and tertiary learning environments.

The government has a range of initiatives to improve Māori education outcomes. Ensuring Māori students participate and achieve to their full potential in the education system involves:

  • building strong learning foundations for Māori in quality early childhood education

  • supporting provision of Māori language learning options such as kōhanga reo, kura kaupapa Māori and bilingual education

  • ensuring that Māori students can be successful in mainstream education

  • developing strong partnerships between schools, students, parents, whānau (family), iwi (tribe) and community

  • recognising the importance of whānau in supporting children's and young people's education.

In 2007, Ka Hikitia – Managing for Success: The draft Māori Education Strategy 2008–2012 was released for consultation. In this context, ‘ka hikitia’ means stepping up the performance of the education system to ensure Māori students enjoy success.

The draft outlines plans to improve Māori education, drawing on research, and feedback from iwi partners and interested groups. There are four focus areas: early childhood education and the first school years, young people in learning, Māori language learning, and the ministry's leadership role. The final strategy document was due for release in 2008.

Māori Education Trust

The Māori Education Trust was set up in 1961 to encourage more Māori into tertiary education, and improve Māori educational achievement by providing financial assistance to Māori students.

The trust achieves this objective by administering and co-sponsoring scholarships for Māori attending secondary and tertiary (undergraduate and postgraduate) courses, both in New Zealand and overseas. Income for scholarships comes from two dairy farms, investment interest, and fee-based service contracts with other organisations, including the Ministry of Education.

Early childhood education

Early childhood education (ECE) is non-compulsory education and care provided for infants, toddlers and young children before they begin school. It is available to children under the age of six years. ECE is provided by education and care services, kindergartens, playcentres, home-based services, kōhanga reo (Māori medium) and Pasifika services.

All ECE services must be licensed and chartered, chartered (home-based services), or licence-exempt. Licensing ensures that minimum quality standards are maintained. A charter contains objectives and practices about the learning opportunities provided by the service.

Since 31 December 2007, teacher-led, centre-based early childhood services have needed at least 50 percent of their regulated staff to hold a recognised ECE qualification. Home-based care networks must have a coordinator who has a Diploma of Teaching (ECE) or equivalent qualification.

The main licence-exempt providers are playgroups, including groups with a focus on Māori immersion, Pasifika ECE services and general playgroups.

Participation in ECE is vital to ensuring young children get the best possible start in life. The Ministry of Education is working with a 10-year strategic plan – Pathways to the Future: Ngā Huarahi Arataki, released in 2002.

Figure 9.01 shows the percentage of children enrolled in each type of early childhood education.

Kindergartens are education and care centres run by a kindergarten association. All kindergarten teachers must be registered teachers and hold at least a Diploma of Teaching (ECE). Most kindergartens offer services to children aged between two-and-a-half and five years. Older children attend morning sessions five days a week, and younger children attend afternoon sessions three days a week. Some kindergartens offer all-day sessions and may take children under two years.

Each kindergarten is run by a committee of parents and community people. The committee reports to its kindergarten association. Kindergartens usually ask for a parent donation or fee. At 1 July 2007, there were 43,695 children enrolled in 618 licensed kindergartens.

Playcentres have parents, whānau and caregivers who directly support their children's early learning. Most playcentres are licensed and/or chartered services that offer learning through play for children from birth to school age. Each playcentre sets its own session times and children attend up to five sessions a week. People become members of a playcentre when they enrol their child. They are then involved in running the centre and taking part in the daily programme.

Each centre is linked to a regional association, which belongs to the New Zealand Playcentre Federation. Parents, whānau and caregivers are encouraged to work towards a playcentre qualification. Playcentres usually charge fees. At 1 July 2007, there were 14,664 enrolments in 466 licensed playcentres.

Kōhanga reo build children's and parents' knowledge of te reo Māori (language) and tikanga (culture), with whānau being closely involved in the child's learning and development. Children can be part of the kōhanga reo total immersion environment, where te reo is the only language used, from birth to six years of age.

Parents are responsible for managing and operating their kōhanga reo, within guidelines set by Te Kōhanga Reo National Trust Board, and are encouraged to take part in the daily programme. Kōhanga reo have a whānau contribution system, which may vary according to the needs of the whānau. This contribution can be koha – donations for food and/or paying fees. At 1 July 2007, there were 9,236 enrolments in 470 licensed kōhanga reo.

Parents as First Teachers (PAFT) is based on programmes developed in the United States. PAFT programmes provide regular home visits by early childhood educators to parents with children – from birth to three years. The programmes were built on the belief that parents are their children's most important teachers. By helping parents feel good about this role, they will become more confident, and participate more effectively in the development and education of their children. Core elements of the programme include individual support, through structured learning on child development, and the fostering of early learning.

Programmes are funded directly by the government, cover most regions of New Zealand, and involve around 8,000 families. A range of organisations are contracted to provide PAFT programmes.

Pasifika Early Childhood Education Services offer programmes based on the values and languages of Pasifika cultures. The services cover Samoan, Cook Islands Maori, Niuean, Tongan, Tokelauan, Tuvaluan and Fijian nationalities. Services include licence-exempt groups (playgroups) meeting once or twice a week, to licensed and chartered education and care centres meeting all day, five days a week. Programmes have high parental involvement and emphasise language development, both in Pacific languages and English, and increased parental knowledge about early childhood care and education.

Nearly all Pasifika Early Childhood Education Services are community owned and operated. At 1 September 2007, there were 96 licensed Pasifika education and care centres, mostly in the Auckland region.

Education and care services are licensed and/or chartered early childhood centres offering all-day or part-day services. Education and care services include crèche, workplace, and childcare centres that are run by either community or private owners. Some services are based on a specific culture, or around certain education beliefs or methods, such as the Montessori or Rudolph Steiner centres.

Figure 9.01.

Minister of Māori Affairs Parekura Horomia reads to four-year-old Ethan Walker at Pikipiko Clyde Quay Kindergarten in Wellington. Free ECE gave many three- and four-year-old children up to 20 hours free early childhood education from July 2007.

Teachers in charge must be registered teachers holding a Diploma of Teaching (ECE) or similar early childhood teaching qualification. At 1 July 2007, 60 percent of usual teaching staff at teacher-led services were qualified. Depending on the centre, children may be accepted from birth to school age. In most services, children need to be enrolled for a set period of time.

Education and care services usually charge fees. Parents, whānau or caregivers can be involved with management committees, or as voluntary helpers or fundraisers. At 1 July 2007, there were 91,733 enrolments in 1,932 licensed education and care services.

Home-based education and care services involve a caregiver providing education and care for small groups of young children in their home as part of a chartered home-based education and care network. Caregivers provide full-day or part-day education and care. They may also provide emergency care. A registered teacher (coordinator) from the network supports the caregiver's work and the child's learning programme. The coordinator also helps parents choose the right caregiver for their child and visits the home-based caregiver regularly to check on the child's safety, well-being and learning progress.

Home-based care services usually charge fees. At 1 July 2007, there were 11,073 children enrolled across 227 licensed home-based networks.

Playgroups are licence-exempt, community-based, non-profit services run by 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 by the Ministry of Education. Active parental participation is required at all sessions. Many licence-exempt groups work with Ministry of Education staff to develop the learning programmes they offer.

There were 18,058 children enrolled in 608 playgroups at 1 July 2007.

Compulsory education

Compulsory education in New Zealand is divided into primary, intermediate and secondary schooling.

Primary schools cater for children from the age of five (year 0) to the end of year 6. Children in years 7 and 8 may either go to a separate intermediate school, or to part of a primary, secondary or composite/area school. Secondary schools usually provide for students from year 9 until the end of year 13. Adult students who return to school enter in the year of the majority of their subjects. Composite/area schools, usually based in rural areas, combine primary, intermediate and secondary schooling at one location.

A child aged between five and six years, starting primary school for the first time between July (when the school roll is counted) and the end of that school year, is classed as year 0. Children who begin school for the first time between 1 January and before the July roll count, are classed as year 1. Children who start school for the first time after the age of six, are placed in the same year as other children of the same age.

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 approximately even length.

Table 9.04 shows the level of highest achievement, the ethnicity and the sex of secondary school leavers in 2006.

Choices in schooling

While most students in New Zealand attend state-funded schools, parents or caregivers and students have the choice of a number of schooling options.

State schools are co-educational (both sexes) at primary and intermediate level, but some offer single-sex education at secondary level. Lessons are based on the New Zealand Curriculum. Some state schools offer special programmes for adult students, or run community education classes.

Integrated schools are those that used to be private but have become part of the state system. They teach the New Zealand Curriculum, but keep their own special character (usually a philosophical or religious belief) as part of their school programme. Integrated schools receive the same government funding for each student as state schools, but as their buildings and land are privately owned, they charge attendance fees to meet property costs.

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 cater for students from years 1–8 or years 1–13. The schools build on kōhanga reo (Māori language early childhood education centres) learning. A key goal of kura kaupapa is to produce students who are equally skilled in both Māori and English.

Independent schools (or private schools) are governed by their own independent boards, but must meet certain standards in order to be registered. Independent schools may be either coeducational or single sex. They charge fees, but also receive government funding.

Boarding schools may either be independent or part of a state-funded school. All charge boarding fees.

The Correspondence School Te Kura ā Tuhi is a national state school funded by the Ministry of Education and administered by a board of trustees. The school has around 14,000 students on its roll at any one time. It provides early childhood, primary, secondary and special education programmes for full-time and part-time students across New Zealand and overseas.

Home-based schooling is available for parents and caregivers who want to educate their children at home. Parents and caregivers need approval from the Ministry of Education and must educate their children at least as regularly and as well as at a registered school. Home-based schooling parents and caregivers are given an annual grant to help with the cost of learning materials and can choose to purchase teaching services from the Correspondence School. Home-schooled children account for approximately 1 percent of total New Zealand school enrolments.

Table 9.04. Secondary school leavers in 2006
By level of highest attainment, ethnic identification, and sex

Highest attainmentEuropeanMāoriPasifikaAsianOtherTotal
MaleFemaleMaleFemaleMaleFemaleMaleFemaleMaleFemaleMaleFemale
Source: Ministry of Education
NZ Scholarship award or NQF qualification at level 4 or higher70212140055161212853
NCEA level 3 or other level 3 NQF qualification5,3207,8225718722454421,2301,4701872087,55310,814
Year 13: Cambridge International Exams, International Baccalaureate, Accelerated Christian Education, or other overseas awards4052171389225296205699328
30+ credits at level 3 or above1,7431,61440751629843236129862762,8712,936
NCEA level 2 or other level 2 NQF qualification3,0882,71273283147540125222081724,6284,236
Year 12: Cambridge International Exams, International Baccalaureate, Accelerated Christian Education, or other overseas awards504251101711007354
30+ credits at level 2 or above1,53298760355930032416511977542,6772,043
NCEA level 1 or other level 1 NQF qualification1,4001,053450470116104576323202,0461,710
40+ credits at any level including literacy & numeracy for NCEA level 1680497311368103112351319161,1481,006
40+ credits at any level without literacy & numeracy for NCEA level 1838485390292199140653127201,519968
Year 11: Cambridge International Exams, International Baccalaureate (prep year), Accelerated Christian Education, or other overseas awards181401 030002115
14–39 credits at any level including literacy & numeracy for NCEA level 115110091103192118345283232
14–39 credits at any level without literacy & numeracy for NCEA level 1695529423411212123612823211,4141,112
1–13 credits at any level4503923023261117753171912935824
No formal attainment1,271964837889209168867538322,4412,128
Total17,71117,4495,1375,6612,2972,3462,7102,46058154328,43628,459
Number of students with university entrance included in total5,5317,5625117581983601,5141,4921961987,95010,370

Designated character schools are state schools that teach the New Zealand curriculum, but have been allowed to develop their own set of aims, purposes and objectives to reflect their particular values.

Special schools are state schools that provide education for students with special education needs. The curriculum is the same as at other state schools. New Zealand has eight residential special schools.

Assessment of students

Assessment information gathered about the progress and achievement of students is used to improve the quality of teaching programmes. Most information comes from ongoing classroom assessment.

Strengths and weaknesses identified as a result of assessment are shared with students and parents. Parents are also entitled to ask for meetings with teachers to talk about their child's progress.

Achievement by primary students across New Zealand is monitored by assessing around 3 percent of 8- and 12-year-olds each year. The National Education Monitoring Project covers all New Zealand curriculum learning areas on a four-year rolling cycle. At secondary school level, results from the National Certificate of Educational Achievement are used to provide national information about student achievement. A sample of New Zealand students also participates in international assessment studies to measure achievement levels against those of other OECD countries.

Tables 9.06 and 9.07 show results for students in NCEA level 3 and Scholarship in 2006.

Tertiary education

After finishing compulsory schooling, many New Zealanders continue their education at tertiary level. The tertiary sector encompasses adult and community education, industry training, foundation education (basic skills usually acquired at school), and study at tertiary institutions such as universities, polytechnics, wānanga (Māori tertiary institutions) and private training establishments. Ministry of Education figures for 2006 showed around 703,000 New Zealanders participating in formal tertiary education. This included 176,600 in industry training and modern apprenticeship programmes, 28,600 in targeted training and 491,000 in other formal tertiary education.

Table 9.05. Secondary school leavers in 2006
By year level, ethnicity and sex

Year levelEuropeanMāoriPasifikaAsianOtherTotal
MaleFemaleMaleFemaleMaleFemaleMaleFemaleMaleFemaleMaleFemale
Source: Ministry of Education
Year 916612142200103122
Year 10303137172171332411673526341
Year 112,4201,6291,2311,117284210935634324,0623,044
Year 124,4963,7051,5341,69850941529924699756,9376,139
Year 1310,28911,7882,1032,5601,4071,6632,2592,11442042116,47818,546
Year 141391447066452342331410310276
Year 154840153517965629291
Total17,71117,4495,1375,6612,2972,3462,7102,46058154328,43628,459

Table 9.06. NCEA level 3 results in 2006
By learning area

Learning areaTotal achieved resultsAchievement status
All standardsUnit standardsAchievement standardsAchievedMeritExcellence
Number of students% of students

Symbol: ... not applicable

Source: NZQA

Language and languages101,59915,46686,13352.3230.3317.35
   English84,60214,79669,80656.3229.9913.69
   Te reo Māori4,0065073,49950.1327.0422.84
   Other languages12,99116312,82831.1433.0635.8
   Mathematics122,90517,930104,97552.4635.4212.12
   Science92,57912,04380,53656.6526.5816.77
   Technology (eg design, generic computing)41,68132,7178,96454.3528.6816.97
   Social sciences (eg geography, history, social studies)88,88320,09068,79355.2630.1114.63
   Arts (eg practical art, drama performance)34,7452,38432,36143.9332.4323.64
   Health & physical education41,32018,57822,74256.3229.4114.26
   Specialist studies (eg hospitality, travel & tourism)12,40312,4030.........

The number in industry training was up 116 percent on those involved in 2000. Enrolments in targeted training programmes, which provide employment-related skills for people seeking work, fell 23 percent between 2000 and 2006 in response to falling unemployment. Other formal enrolments by domestic students rose more than 48 percent in the same period.

Qualifications gained are part of the 10-level New Zealand Register of Quality Assured Qualifications. The register provides a common basis for the level, name and size of qualifications. It helps students transfer between qualifications, enabling people to build their skills over a lifetime.

In December 2006, the Government released the Tertiary Education Strategy 2007–12 and the Statement of Tertiary Education Priorities 2008–10. The strategy has a sharp focus on the expected contribution of the tertiary education system to the Government's national goals. It also describes how the tertiary education system is expected to contribute to lifelong learning – creating and applying knowledge to drive innovation, and connecting tertiary education organisations with the communities they serve.

The Statement of Tertiary Education Priorities 2008–10 articulates priorities for implementing the strategy, indicating areas in which the sector needs to make a focused effort. These are shown in the priority outcomes of:

  • increasing educational success for young New Zealanders – more achieving qualifications at level 4 and above by age 25

  • increasing literacy and numeracy levels for the workforce

  • increasing the number achieving advanced trade, technical and professional qualifications, to meet regional and industry needs

  • improving research connections and linkages to create economic opportunities.

The Tertiary Education Commission was established in January 2003 under the Education (Tertiary Reform) Amendment Act 2002. It is responsible for funding post-compulsory education and training offered by universities, polytechnics, colleges of education, wānanga, private training establishments, foundation education agencies, industry training organisations, and adult/community education providers. The Tertiary Education Commission invests, within the funding available, in a broad range of quality, relevant education and research that fits within tertiary education organisations' distinctive contributions.

Initiatives to improve the affordability of tertiary education and increase student access to tertiary education include the policy that limits increases to course fees. In addition, since 1 April 2006 student loans have been interest-free for borrowers living in New Zealand.

Table 9.07. New Zealand Scholarship results in 2006
By subject

SubjectLevel 3 students taking subjectPercentage receiving ScholarshipNumber achieving ScholarshipOutstanding Scholarship

Symbol:... not applicable

Source: NZQA

Accounting2,8943.07512
Art history1,7283.2487
Biology7,7422.919130
Chemistry6,3883.318921
Chinese16413.4202
Classical studies4,9153.214216
Drama1,4913.0386
Economics4,3553.111917
English12,8523.034638
French7483.6252
Geography5,9613.015129
German3805.5192
Graphics1,5823.1445
History5,3832.814010
Japanese8143.6254
Latin2317.431
Mathematics with calculus6,9813.119721
Media studies2,3712.7576
Music studies8753.2253
Physical education3,6122.26612
Physics6,3452.816217
Science6993.2202
Spanish2383.881
Statistics and modelling12,5333.032549
Te reo Māori4283.7142
Technology9202.1145
Visual arts5,5853.014818
Total......2,611338

Figure 9.02.

Figure 9.03.

There have been improvements in the way public tertiary education institutions collaborate and coordinate to offer more effective and diverse education services. These include mergers between tertiary education institutions, and the development of accords and working alliances between education institutions and industry bodies.

Universities

There are eight universities in New Zealand – Auckland University of Technology, Lincoln University, Massey University, Victoria University of Wellington, the University of Auckland, the University of Canterbury, the University of Otago and the University of Waikato.

Universities are controlled by their own councils, established under legislation that maximises their autonomy, consistent with normal requirements of accountability for public funding.

Each university sets its own academic programmes, which are subject to external quality assurance, and each university council sets dates for terms or semesters.

Councils, which represent the interests of staff, students and the community, set the strategy of the institution, employ the chief executive officer and oversee management of the university. Councils are also responsible for approving course regulations and for maintaining the equivalences of courses for degrees and other qualifications.

Over the 10 years to 2006, the universities absorbed the six colleges of education, which were responsible for training teachers.

Polytechnics

Polytechnics and institutes of technology provide a diverse range of academic, vocational and professional programmes, including trade training. They cover an increasing number of subjects at various levels of specialisation.

There are 20 polytechnics in New Zealand – Northland Polytechnic, UNITEC New Zealand, Manukau Institute of Technology, Waikato Polytechnic, Bay of Plenty Polytechnic, Waiariki Institute of Technology, Tairawhiti Polytechnic, Eastern Institute of Technology, Western Institute of Technology, Universal College of Learning, Whitireia Polytechnic, The Open Polytechnic of New Zealand, Wellington Institute of Technology, Nelson Marlborough Institute of Technology, Tai Poutini Polytechnic, Christchurch Polytechnic Institute of Technology, Aoraki Polytechnic, Otago Polytechnic, Telford Polytechnic and Southland Institute of Technology.

Wānanga

Wānanga (Māori tertiary institutions) provide tertiary education and training while helping students apply knowledge of ahuatanga Māori (Māori tradition), in accordance with tikanga Māori (Māori custom). Te Wānanga o Aotearoa in Te Awamutu, Te Wānanga o Awanuiarangi in Whakatane, and Te Wānanga o Raukawa in Otaki are governed in the same way as other tertiary institutions.

The Open Polytechnic of New Zealand

The Open Polytechnic of New Zealand He Wharekura-tini Kaihautu o Aotearoa is the country's only broad-based national polytechnic, and is the specialist tertiary institution in open and distance learning. In 2006, it had 570 equivalent full-time staff and 31,908 enrolled students. Nearly all students are part-time learners.

The Open Polytechnic is a major educator of adult learners and people in the workforce. A large proportion of students are in paid employment, studying in their own time to enhance job and career opportunities. The polytechnic's flexible service also ensures access to vocational learning for people otherwise unable to study due to distance, disability or personal circumstances.

The polytechnic works closely with many industry training organisations to enrol a large group of industry trainees. It also provides staff training and development services to organisations.

The Open Polytechnic is internationally recognised, and in 2004 received the Commonwealth of Learning's Award for Institutional Excellence in Distance Education. In New Zealand it received the Supreme Vero Award for Excellence in Business Support (2005) for its contribution to business education and training, and in 2007 won the Education Provider category in the same awards.

The polytechnic offers more than 1,300 courses and 150 programmes, from national certificate to diploma and degree level. It consults closely with industry and other interested groups to ensure qualifications are directly related to present and future workplace requirements. All degrees are approved by the New Zealand Qualifications Authority.

As well as supporting individual learners, the Open Polytechnic has led major collaborative projects contributing to e-learning development in New Zealand's tertiary education sector.

Canterbury University graduate Siatua Faletanoai-Evalu speaks after receiving his Pacific Achievers' award from the Prime Minister, Helen Clark in 2007. New Zealand has eight universities.

Private training establishments

Private training establishments (PTEs) provide post-school education and training, and are operated by a wide range of companies, trusts and other entities. The PTE sector is diverse – in size, location, ethnicity, culture and areas of education expertise. This enables flexibility and responsiveness.

At December 2007, there were 756 PTEs registered with the New Zealand Qualifications Authority (NZQA).

NZQA assures the quality of education services provided by PTEs. This is regardless of whether the PTE receives state funding, or students receive loans or allowances. Student fees are protected through the Student Fee Protection Policy.

Career Services

Career Services Rapuara assists all New Zealanders to maximise their potential by encouraging and supporting them to make informed career and learning decisions.

Career Services works with other government agencies and organisations advising them on incorporating career information into their work, based on research evidence and practical industry experience.

Career Services' consultants work with clients to identify skills, investigate career and training options, develop career plans, teach interview and job search techniques, and prepare CVs.

The Career Services website provides free, impartial and up-to-date information on jobs, industries, training, qualifications and the labour market. This resource is also supported by Pathfinder, a free, online career guidance programme. Pathfinder generates career options based on the profile an individual compiles by completing a range of activities and questionnaires.

Table 9.08. Enrolments at tertiary institutions
By field of study, level of study and sex
2006

Field of studyPost-graduateBachelor's degreeDiplomaCertificateTotal
FemaleMaleFemaleMaleFemaleMaleFemaleMaleFemaleMale
Source: Ministry of Education
Management and commerce3,7133,98320,60718,39511,7907,80243,03520,29575,86148,605
Society and culture4,8922,89022,46912,5889,2364,02529,53414,77763,83733,161
Mixed field programmes2,5182,4244,3043,2802,3341,73125,11620,11633,89927,319
Engineering and related technologies3081,1041,1305,5539074,9713,15829,8685,41839,945
Agriculture, environmental and related studies2742497648504136569,00030,85110,10231,616
Education2,18862110,7502,2428,5222,0815,1153,32626,0258,157
Health4,6941,05012,8773,3213,4225865,1682,44125,5737,239
Information technology1233727272,8729982,91412,2116,43513,88312,109
Natural and physical sciences1,6791,5718,2158,51138130696842811,09810,695
Creative arts5263897,0153,7273,3852,3173,1411,81913,8358,074
Architecture and building67819571,3736771,9631,38210,0123,05013,091
Food, hospitality and personal services00258911,9888697,8462,9669,6233,806
Total enrolments20,98214,73490,07362,80344,05330,221145,674143,334292,204243,817
Adjustment for multiple enrolments57462,3311,8181,0206268,7136,25826,80318,193
Total students20,92514,68887,74260,98543,03329,595136,961137,076265,401225,624

In the year to 30 June 2006, more than 626,000 people accessed career information and advice from Career Services, and more than 6,600 received government-funded career guidance and planning assistance.

Vocational qualifications

National diplomas are qualifications based on standards and are registered on the National Qualifications Framework (NQF). All framework qualifications must meet the requirements of the New Zealand Register of Quality Assured Qualifications.

All framework standards and national qualifications are developed by subject experts within a standard setting body.

Standard setting bodies which develop NQF standards include:

  • industry training organisations, which develop industry-related unit standards and national qualifications

  • Māori qualifications services within the New Zealand Qualifications Authority (NZQA), which develops unit standards and national qualifications for the classification field ‘Māori’ (eg Reo Māori)

  • national qualifications services within NZQA, which develops unit standards and national qualifications for generic skills

  • Ministry of Education, which develops the New Zealand curriculum-based achievement standards and the National Certificate of Educational Achievement.

Table 9.09. Qualifications completed
By award level, education sector and sex
2006

Award levelInstitutes of technology and polytechnicsColleges of educationUniversitiesWānangaPrivate training establishmentsTotal
FemaleMaleFemaleMaleFemaleMaleFemaleMaleFemaleMaleFemaleMale
Source: Ministry of Education
Doctorate00003203210000320321
Master's degree9042912,1431,66713756842,3111,796
Honours or postgraduate certificate/diploma418793483,7092,3191155503184,6412,691
Bachelor's degree2,8841,38393725414,0749,5422909026425818,40511,500
Diploma4,0172,5236055051,3811,0369174083,5702,45410,4736,917
Certificate15,42215,19313372,0931,27412,6365,39011,6905,79041,33927,374
Total qualifications completed22,83119,2201,71877523,72016,15913,8675,90016,1308,90477,48950,599
Adjustment for multiple completions6133811144773253281103962482,7931,460
Total students22,21818,8391,70777123,24315,83413,5395,79015,7348,65674,69649,139

Table 9.1. Qualifications completed
By field of study, award level and sex
2006

Field of studyDoctorateMaster's degreeHonours or postgraduate certificate/diplomaBachelor's degreeDiplomaCertificateTotal
FemaleMaleFemaleMaleFemaleMaleFemaleMaleFemaleMaleFemaleMaleFemaleMale
Source: Ministry of Education
Natural and physical sciences013322674384021,5811,555625839472,4382,303
Information technology00173420681976313491,0271,9371,1392,4982,847
Engineering and related technologies1046189481512321,0671174506803,8781,1125,662
Architecture and building0081413171782361241341231,3074441,679
Agriculture, environmental and related studies0062493741187210891901,8245,4002,1695,863
Health02259651,4352912,5776021,0151532,5881,0107,7442,034
Education65230623861043,5998102,1357641,3222127,6081,948
Management and commerce005256597968014,2373,6342,4961,7649,6393,80417,24410,462
Society and culture33307113601,3257184,3072,2082,1821,25311,4505,67519,3809,917
Creative arts311169399721,5747981,1359121,5507494,4442,600
Food, hospitality and personal services00000072116771652,8701,1003,4541,228
Mixed field programmes277282554935255155160878,3783,5309,1004,085
Total qualifications completed3203212,3111,7974,6462,70018,99611,91710,5416,95742,40027,85177,63550,628
Adjustment for multiple completions00015959141768401,0614772,9391,489
Total students3203212,3111,7964,6412,69118,40511,50010,4736,91741,33927,37474,69649,139

Apprentice mechanic 18-year-old Frances Tunley at her Kapiti coast workplace in 2007. After a one-year polytech course, she has up to three more years study to complete her automotive technician apprenticeship.

New Zealand certificates in engineering (NZCE) have been replaced by national diplomas. The last date for the award of NZCE is December 2008. Certificates required students to complete three years' suitable work experience. NZQA was responsible for maintaining the national database of results, evaluating and approving work experience, and certification of the qualification.

New Zealand certificates Many certificates have now been replaced by national diplomas. Courses for certificate qualifications are no longer available, but subjects may be completed through recognition of prior learning. A diploma can be awarded when a student completes requirements for the qualification – usually work experience.

New Zealand Diploma in Business (NZDipBus) is a generic business qualification, endorsed by a number of industries, including accounting, marketing, tourism, banking and management. Courses are available at accredited tertiary education providers. Most papers are one semester (half-year) long and are completed through full- or part-time study.

NZQA is the owner of the NZDipBus and is responsible for: establishing and maintaining regulations for the qualification, maintaining a database of results and issuing results notices, maintaining national records, developing and maintaining prescriptions, managing the national external moderation system, and certifying the qualification. Accredited training providers may award the NZDipBus in conjunction with NZQA.

Other qualifications A wide range of other vocational qualifications are available, including those developed and administered by polytechnics and other tertiary training providers; national bodies, such as the New Zealand Institute of Management and the Royal New Zealand Air Force; and private training providers. Responsibility for all aspects of these qualifications lies with the appropriate bodies, which are quality-assured by NZQA or a delegated quality-assurance organisation.

International students

A New Zealand educational institution enrolling international students must be a signatory to the Code of Practice for the Pastoral Care of International Students.

The code sets requirements for education providers which protect and promote the interests, welfare and safety of international students. This includes minimum requirements for recruitment and enrolment of students, and standards for accommodation and support services. The Ministry of Education implements the code.

Education providers are also required to ensure that international students have adequate medical and travel insurance cover.

International students intending to enrol with a New Zealand education institution or private training establishment should ensure that their chosen courses and providers are approved by the New Zealand Qualifications Authority (NZQA). This information is available from KiwiQuals, a database list of all quality-assured qualifications in New Zealand, on the NZQA website, www.nzqa.govt.nz.

Information for international students about New Zealand courses of study, academic entry requirements and costs is available at www.newzealandeducated.com.

Other information channels are New Zealand government offices in the student's home country, or direct contact with the educational institution a student wishes to attend.

Students require a visa for any course of study longer than three months. Student visas and permits are issued for the period for which fees have been paid.

Educational institutions set their own academic entrance requirements and fees. Some allow payment of annual fees by instalment. International students are not entitled to New Zealand student allowances or loans.

Table 9.11. International students studying in New Zealand(1)(2)
1999–2007

Category199920002001200220032004200520062007

(1) All figures independently rounded.

(2) Regardless of length of stay.

(3) Ministry of Education, at 1 July.

(4) Ministry of Education, full year data.

(5) Survey of English Language Providers, year ending 30 June for 1999 and 2000, year ending 31 March from 2001.

Symbol: .. not available

Sources: Ministry of Education, Statistics New Zealand

Primary and secondary students(3)6,0308,15011,33016,01018,08015,05011,98410,36310,869
Tertiary students(4)11,72816,62826,33338,47647,18650,44247,35142,589..
Students at English language providers(5) and on study tours21,00023,40031,50047,00074,800........
Total38,75848,17869,163101,486140,06665,49259,33552,952..

Sector statistics

Table 9.12. Full-time equivalent teaching staff at educational institutions
At 1 July

Institution type2000200120022003200420052006

Symbols: .. not available ... not applicable

Source: Ministry of Education

Licensed early childhood services
   Kindergartens1,6171,6431,6441,6631,6731,6721,672
   Playcentres (includes unpaid adults on duty)1,2511,1821,1741,2041,2181,2031,199
   Education and care services – regular and casual7,8548,2128,7349,3629,87510,32710,914
   Home-based services – coordinators271258265307305293264
   Correspondence School20252932332922
   Kōhanga reo..............
Primary schools
   State22,95723,36223,35823,61123,58323,35723,738
   Private401452465450464446450
Composite schools
   State1,4061,4851,57216901,7952,0072,043
   Private9379591,0161,0931,1861,2941,270
Secondary schools
   State15,08315,37415,59616,48817,27918,04418,473
   Private512596615651732709703
Special schools
   State663743764801834909930
   Private..............
Correspondence School
   Primary and secondary299318290290285244210
Tertiary education providers – academic staff
Public tertiary education institutions
   Polytechnics4,0353,9994,3234,2234,4054,3624,396
   Colleges of education505475485491450228200
   Universities5,9366,1036,3656,5626,6787,1127,030
   Wānanga156237526781987865665
Private tertiary education providers3,2903,7534,1194,1864,1873,9163,884

Table 9.13. Formal educational institutions and students enrolled
At 1 July

Institution type20052006
NumberStudentsNumberStudents

(1) Early childhood development.

(2) Counts only institutions with formally enrolled students.

Symbol: ... not applicable

Source: Ministry of Education

Early childhood education
Licensed early childhood education services
   Kindergartens61844,92061944,435
   Playcentres48215,05947414,888
   Education and care services1,75483,8891,84286,059
   Casual education and care (no regular roll)41...41...
   Home-based services2019,7702029,802
   Kōhanga reo50110,0704869,493
   Correspondence School18131577
Total licensed3,598164,5213,665165,254
Licence-exempt early childhood education services
   ECD(1) funded playgroups64118,04266717,476
   ECD(1) funded ngā puna kohungahunga4951941289
   ECD(1) funded Pacific peoples language groups1061,864931,179
   ECD(1) funded playcentres3143622167
   Kōhanga reo11146889
Total licence-exempt83821,00783119,200
Total early childhood education4,436185,5284,496184,454
Compulsory education
Primary schools
   State full primary1,101168,6111,092167,903
   State contributing795211,531798210,590
   State intermediate12158,46612157,448
   Private primary and intermediate425,838405,829
Total primary2,059444,4462,051441,770
Composite schools
   State composite10125,70710025,221
   State Correspondence School16,63215,873
   Private composite4615,5094715,806
Total composite14847,84814846,900
Secondary schools
   State years 9–15239206,448238206,133
   State years 7–159453,2689654,903
   Private years 7–15 and years 9–15197,996188,260
Total secondary352267,712352269,296
Special schools
   State462,735462,747
   Private11500
   Other Vote: Education134148
Total compulsory schooling2,607762,7902,598760,761
Home schooling...6,428...6,298
Tertiary education providers(2)
Public tertiary education institutions
   Polytechnics20118,02020116,601
   Universities8139,1518136,363
   Colleges of education25,68625,518
   Wānanga333,027327,500
Total public providers33295,88433285,982
Private tertiary education providers48054,96932359,761
Total tertiary513350,853389345,743

Table 9.14. Education 1875–2006

Year(1)Early childhood education providers(2)StudentsPrimary schools(3)(4)StudentsSecondary schools(5)(6)StudentsUniversity students(8)Polytechnic students(7)(8)College of education students(8)Wānanga students(8)Private training establishment students(8)
 (000) (000) (000)

(1) Year ending 31 December until 1925, then at 1 July. Figures from 1994 on revised and not comparable with previous years.

(2) Figures include only playcentres and kindergartens until 1990, then include childcare, kōhanga reo and Pasifika language groups.

(3) Includes year 1–8 students at all schools.

(4) Includes full primary, contributing, intermediate and special schools. Special schools can contain year 9–15 students.

(5) Includes year 9–15 students at all schools.

(6) Includes secondary and composite schools and Correspondence School. Some schools also have year 1–8 students.

(7) Prior to 1990, figures included all students attending polytechnic. From 1990, only those attending on 31 July.

(8) From 2005, all tertiary figures are full year.

Symbols: .. not available ... not applicable

Source: Ministry of Education

1875....83054.24..................
1880....1,17195.2141.6211............
1885....1,363116.5242.6442............
1890....1,566134.1222.1596............
1895....1,831145.8242.5742............
1900....2,157149.4866.9805............
1905....2,192158.1866.91,153...211......
1910....2,508179.6949.11,862...380......
1915....2,765210.812911.52,039...390......
1920....2,777225.313115.43,822...680......
1925....2,995247.318123.24,442...1,271......
1930....3,045252.6209314,801...1,155......
1935....2,950232.321631.95,101...429......
1940....2,656243.323436.15,528...1,457......
1945....2,874252.524846.98,425...1,431......
1950....2,377304.626953.711,515...2,684......
1955....2,423365.431380.810,851...2,847......
1960....2,517425354111.415,8097,6633,828......
1965..27.82,594472.9376157.922,14529,0744,790......
1970..41.12,595516.7386186.831,90843,2047,587......
19751,09854.82,542525.3408219.735,49956,0988,004......
19801,20856.92,595507.9394226.343,93373,0675,919......
19851,38960.72,641452.4403230.959,12376,0542,703......
19902,890118.42,460420.4400230.278,91956,7715,766......
19953,824159.42,368448.2430236.6104,38995,66410,156726...
20004,175174.22,268484.2456245.5122,72787,43612,0452,97239,173
20014,213171.32,256484.1462249.9125,66887,96510,88411,27851,666
20024,2281752,235488.7464259.7132,39695,78210,78827,53553,385
20034,2801802,224492.9469268.8137,00798,07210,82841,20049,897
20044,374184.52,171488.1500276.6138,583117,51411,10741,64459,158
20054,436185.52,107485.1500277.7168,333212,6346,99062,20083,556
20064,496184.52,098482.8500278.0165,571214,3946,90848,84280,432

Contributors and related websites

Career Services Rapuara – www.careers.govt.nz

Education Review Office – www.ero.govt.nz

Learning Media Ltd – www.learningmedia.co.nz

Māori Education Trust – www.maorieducation.org.nz

Ministry of Education – www.minedu.govt.nz

Ministry of Social Development – www.msd.govt.nz

New Zealand Qualifications Authority – www.nzqa.govt.nz

New Zealand Teachers' Council – www.teacherscouncil.govt.nz

Statistics New Zealand – www.stats.govt.nz

Tertiary Education Commission – www.tec.govt.nz

The Correspondence School – www.correspondence.school.nz

The Open Polytechnic of New Zealand – www.openpolytechnic.ac.nz

Chapter 10. Justice and law

Counties Manukau's new Mobile Police Station (MPS) at the scene of a serious crime. The MPS operates as the base from which foot and vehicle patrols are deployed.

Legal system

New Zealand is an independent state, with both a constitutional monarchy and a parliamentary democracy. The Queen, as Head of State, is the source of legal authority, but she and her representative, the Governor-General of New Zealand, act on the advice of the democratically-elected government in all but the most exceptional circumstances.

New Zealand has inherited from the United Kingdom the ‘Westminster’ system of parliamentary government and, as part of that system, the doctrine of the separation of powers. The doctrine provides that the three branches of government – Parliament, the Executive and the Judiciary – have different functions, which act as a check on the others.

Parliament has the function of the formal act of law-making, which is carried out through scrutinising, amending and passing bills that are introduced by government ministers or individual members of Parliament.

The Executive determines government policy, is responsible for the administration of law, and carries out all the powers and functions of organised central government through ministers directly, and through the public service and other bodies.

The Judiciary makes binding determinations of disputes between private individuals, and between individuals and the State, including determining the application and meaning of relevant laws.

Judges are appointed by the governor-general on the advice of the attorney-general. No person may be appointed as a judge unless he or she has held a practising certificate as a barrister or solicitor for at least seven years. Usually, those appointed to the judiciary have practised law for longer than seven years.

Judges in the Supreme Court of New Zealand, the New Zealand Court of Appeal, and the New Zealand High Court can only be removed from office by the governor-general, acting on advice from the House of Representatives, on the grounds of misbehaviour or incapacity. District court judges may be removed from office by the governor-general on the grounds of inability to perform or misbehaviour.

The passing of the Judicial Conduct Commissioner and Judicial Conduct Panel Act 2004 established a statutory complaints process for complaints about judges.

Ministry of Justice

The Ministry of Justice administers legislation and provides services to contribute to safer communities and a fairer, more credible, and more effective justice system by:

  • developing robust policy advice that influences the direction of justice in New Zealand

  • supporting an efficient and accessible court system

  • providing effective services to support independent judicial decision making

  • settling Treaty of Waitangi claims in a fair and durable way

  • managing parliamentary elections and referendums effectively, to maintain public confidence in electoral processes

  • working with communities to enhance safety and well-being.

The Ministry of Justice delivers the following services on behalf of the government:

  • administration, case management, and support services for the Supreme Court of New Zealand, the New Zealand Court of Appeal, the New Zealand High Court, and district courts, including the Family Court and Youth Court

  • administration, case management, and support services to specialist jurisdictions, including the Māori Land Court, the Māori Appellate Court, the Environment Court, the Employment Court, and a range of authorities, committees and tribunals

  • administration, inquiry management, and support services to the Waitangi Tribunal; negotiations for settlement of historical claims arising from the Treaty of Waitangi; and management of land for use in settlements

  • administration of parliamentary elections, by-elections, and referendums

  • collection and enforcement of court-imposed monetary penalties and infringement fines, and enforcement of civil court orders.

The ministry provides policy advice to a number of ministers and select committees, and works with a range of non-government organisations in crime prevention and other activities. This work includes:

  • providing policy advice to the Minister of Justice, the Minister in Charge of Treaty of Waitangi Negotiations, the Minister for Courts, the Minister Responsible for the Law Commission, and the attorney-general

  • providing briefings and advice to ministers and Cabinet to assist in the development of government policy and changes to legislation

  • providing support and advice to a number of parliamentary select committees, including the Justice and Electoral, Law and Order, and Māori Affairs select committees

  • facilitating input into the justice system from the public, by managing consultation during legislation development and reform

  • working directly with a range of non-government agencies in crime prevention and other activities, such as partnerships with territorial authorities and iwi (tribes), and providing funding directly to support local initiatives.

The ministry has a mandate to lead the justice sector and to coordinate processes that ensure a collaborative, outcome-focused approach.

In leading the sector, some of the ministry's activities are: research and evaluation, advising on sector outcomes, linking cross-sector strategies, strengthening knowledge and information flows across the sector, and coordinating the sector's annual budget process.

Hierarchy of courts

The Supreme Court of New Zealand is the country's court of final appeal. The Chief Justice of New Zealand presides over the court.

Below the Supreme Court is the New Zealand Court of Appeal, then the New Zealand High Court and district courts, which are the main courts that exercise general criminal and civil jurisdiction.

There are also a number of courts and tribunals that have jurisdiction over specific areas of law, with rights of appeal to one or more of the four main courts.

Supreme Court of New Zealand

Established in 2003, the Supreme Court is New Zealand's court of final appeal. It can hear appeals across almost all areas of law. While the right to appeal to the United Kingdom-based Judicial Committee of the Privy Council was abolished from 1 January 2004, certain appeals that were active before this date continue to be determined by the Privy Council.

The Supreme Court consists of the Chief Justice and up to five other judges. It is located in Wellington. A new building to house the Supreme Court is under construction, and is expected to be completed in 2009. At May 2008, the Chief Justice was Rt Hon Dame Sian Elias.

New Zealand Court of Appeal

The Court of Appeal hears civil and criminal appeals from proceedings heard in the High Court, and indictable criminal proceedings in district courts.

Matters appealed to the High Court from a district court can be taken to the Court of Appeal with leave, if they are considered to be of sufficient significance to warrant a second appeal.

The Court of Appeal may hear appeals against pre-trial rulings in criminal cases. The court also hears appeals on questions of law from the Employment Court.

The Court of Appeal is New Zealand's principal intermediate appellate court, and is located in Wellington. Its full-time membership is eight appellate judges and a president. At May 2008, the president was Hon Justice William Young.

New Zealand High Court

The High Court has jurisdiction over serious crimes, civil claims involving more than $200,000, judicial reviews of administrative action, admiralty proceedings, and appeals from tribunals and lower courts, including district courts.

Judges of the High Court include the Chief Justice of New Zealand, 48 judges (including judges of the Supreme Court and the Court of Appeal) and seven associate judges. They are led by the Chief Judge of the High Court, who is responsible to the Chief Justice of New Zealand for administration of the court. At May 2008, the Chief High Court Judge was Hon Justice Randerson.

Judges are based in Auckland, Wellington and Christchurch and travel on circuit to centres throughout the country. Associate judges of the High Court supervise the court's preliminary processes in most civil proceedings and have jurisdiction to deal with summary judgement applications, company liquidations, bankruptcy proceedings and some other types of civil proceedings.

District courts

District courts hear the majority of criminal offences, and civil claims up to $200,000. There are 63 district courts throughout New Zealand. There are 133 district court judges, including the principal judges and judges of the Environment Court. In addition to the judges there are 52 disputes tribunal referees and approximately 400 justices of the peace. The District Courts Act 1947 sets jurisdiction for district courts.

Justices of the Peace are persons of good standing in the community who administer documentation and justice. They are appointed by the governor general, on the recommendation of a Member of Parliament. Ministerial duties include witnessing documents, certifying copies, and taking declarations, affidavits or affirmations. Judicial duties include hearing summary offences, presiding over preliminary hearings, conducting traffic courts, hearing bail applications and requests for remands and adjournments, and issuing search warrants.

Specialist courts

New Zealand has a number of courts with specialist functions.

Employment courts hear cases concerned with the employment of employees by employers, and injunctions arising out of unlawful strikes, lockouts, and pickets. Judges of the court must have held a practising certificate as a barrister or solicitor for not less than seven years. The court consists of a chief judge and at least two other judges.

Normally, the court's jurisdiction is exercised by a judge sitting alone, but on occasions of appropriate significance, it will sit as a full bench of at least three judges. The Employment Court exercises jurisdiction under the Employment Relations Act 2000, the State Sector Act 1988, and other acts. Support for the Employment Court transferred from the Department of Labour to the Ministry of Justice on 1 December 2004.

Family courts are a specialist division of the district courts. They aim, wherever possible, to help people sort out their own problems through counselling, conciliation, and mediation. It deals with family and relationship matters, including: adoption, care of children, care and protection of children who are abused or neglected, inter-country child abduction, consents for minors to marry, protection from domestic violence, separation, divorce, matrimonial/relationship property, compulsory mental health assessment and treatment, protection of personal and property rights for people who are incapacitated, claims for maintenance and support, and bequests from estates.

Family court proceedings are not open to the public. The Care of Children Act 2004 established the right of ‘accredited’ news media organisations to attend family court hearings. It also sets important limitations on media coverage. There are 58 family courts, with 43 warranted judges, throughout New Zealand. Family courts, which administer 15 acts, were established under the Family Courts Act 1980.

Youth courts are part of the district court structure. They hear all criminal cases where the alleged offender is aged 14–16 years – except for charges of murder, manslaughter, or when a young person chooses to have a jury trial. There are 50 warranted youth court judges. Proceedings are not open to the public. Media can attend, however specific conditions apply. The court was established under the Children Young Persons and Their Families Act 1989.

In December 2007, the Minister of Māori Affairs, Parekura Horomia, announced the appointment of two new judges to the bench of the Māori Land Court. The swearing-in ceremony of judges Stephen Clark and Craig Coxhead took place at Rangiaowhia Marae in Hamilton, in January 2008.

Māori Land Court makes decisions on applications relating to the ownership, occupation, utilisation, and development of Māori land. The court also hears applications under new jurisdictions arising from the Māori Fisheries Act 2004, the Foreshore and Seabed Act 2004, and the Māori Commercial Aquaculture Claims Settlement Act 2004. The court has eight judges, including a chief judge and a deputy chief judge. The court was established under the Native Lands Act 1865, and continued under Te Ture Whenua Māori Act 1993.

Māori Appellate Court hears appeals from orders or preliminary determinations of the Māori Land Court, as well as cases stated by the Māori Land Court, the High Court, and the Waitangi Tribunal. Any three or more Māori Land Court judges have power to act as the Māori Appellate Court. The court was established under the Native Land Court Act 1894, and continued under Te Ture Whenua Māori Act 1993.

Environment Court considers appeals about regional and district statements and plans, and appeals from resource consent applications for land use, subdivision, water or discharge permits, or a combination of those. The Environment Court was constituted under the Resource Management Amendment Act 1996. The court has specialist judges, who are also district court judges and environment commissioners. The court has registries in Auckland, Wellington, and Christchurch. Sittings are held throughout the country, usually with one judge and two commissioners.

Coronial Services of New Zealand employs coroners – judicial officers appointed under the Coroners Act 2006. The role of the coroner is to establish the cause and circumstances of sudden or unexplained deaths, and deaths in other special circumstances. As part of their inquiry, the coroner may authorise post-mortem examinations. They may also make recommendations or comments on ways of avoiding future deaths.

Tribunals

More than 100 tribunals, authorities, committees, or related boards exist in New Zealand to deal with matters such as environmental planning, abortion supervision, taxation reviews, deportation reviews, land valuations, and occupational licensing.

Disputes tribunals are a division of district courts, and were established under the Disputes Tribunals Act 1988. They resolve disputes up to a value of $7,500, or $12,000 by agreement of the parties. Disputes referees preside over each tribunal.

Human Rights Review Tribunal hears civil proceedings brought by individuals or by the Director of Human Rights Proceedings, for alleged breaches of the Privacy Act 1993, the Human Rights Act 1993, and the New Zealand Bill of Rights Act 1990. It also hears proceedings brought by the Office of the Health and Disability Commissioner under the Health and Disability Commissioner Act 1994. The tribunal has a chairperson – a barrister or solicitor of the High Court of not less than five years' practice – who sits with two members appointed from a panel of not more than 20.

Tenancy Tribunal adjudicators make decisions on disputes up to a value of $12,000 brought to the Tenancy Tribunal by landlords or tenants in relation to residential tenancies. The tribunal was established under the Residential Tenancies Act 1986.

Waitangi Tribunal is a permanent Commission of Inquiry. It makes recommendations on claims brought by Māori, relating to actions or omissions of the Crown that allegedly breach promises made in the Treaty of Waitangi. It also examines and reports on proposed legislation referred to it by the House of Representatives or a minister of the Crown, and makes recommendations or determinations about certain Crown forest land, railway land, state-owned enterprise land, and land transferred to educational institutions.

The tribunal has a chairperson who is either a High Court judge, a retired High Court judge, or the chief judge of the Māori Land Court, and a deputy chairperson who is a judge of the Māori Land Court. It also has up to 16 members, appointed by the governor-general on the recommendation of the Minister of Māori Affairs. The tribunal was established by the Treaty of Waitangi Act 1975.

Law Commission

Established by the Law Commission Act 1985, the Law Commission Te Aka Matua o te Ture is an independent, government-funded organisation, which reviews areas of the law that need updating, reforming, or developing.

The commission helps ensure that laws provide effectively for the current and future needs of New Zealand's changing society. Its goal is to achieve law that is just, principled, and accessible, and that reflects the heritage and aspirations of the people of New Zealand.

Under the Act, up to six commissioners (one of them the president) can be appointed by the governor-general on the recommendation of the Minister Responsible for the Law Commission.

The commission is funded through the Vote Justice allocation, and employs legal researchers, librarians, and support staff.

Legal Services Agency

The Legal Services Agency is a Crown entity established by the Legal Services Act 2000. The agency replaced the Legal Services Board, and its task is to promote access to justice for those who have the greatest need and least capacity to pay for legal services. It does this by administering, funding, or sponsoring a range of legal services, including:

  • legal advice and representation through legal aid, duty solicitor, and Police detention legal assistance schemes

  • community legal services, such as those provided by community law centres

  • production of information and educational resources, targeting those with unmet legal needs

  • research into the unfulfilled legal needs of communities and how those needs might be met.

The agency is assisted by a public advisory committee, which advises on community concerns about legal aid, access to legal aid, unmet legal needs, community law centre funding, legal information and law-related educational needs, and areas in need of research.

Criminal legal aid This aid is available to anyone who has been charged with a criminal offence. In some cases, it is also available for people appearing before the New Zealand Parole Board.

Duty solicitors The duty solicitor scheme ensures that lawyers are available ‘on duty’ at every district court in the country. Duty lawyers provide free legal help on the first day in court for anyone who has been charged with a criminal offence, and doesn't have their own lawyer. The duty lawyer can explain the charge, and will advise on pleas, bail, and the sentencing options available to the court. They also help people to apply for legal aid.

Police detention legal assistance (PDLA) The PDLA scheme enables anyone who is arrested or held by the police to obtain free confidential legal advice from a lawyer. Advice may be provided by a lawyer over the telephone or in person. The scheme ensures that section 23 of the New Zealand Bill of Rights Act 1990 is given practical effect. This says that people detained for questioning “have the right to consult and instruct a lawyer without delay, and to be informed of that right”. Young people can use the PDLA scheme – there is no minimum age.

Civil legal aid This aid applies to all family and civil matters encompassing the Waitangi Tribunal and other civil proceedings, including refugee, accident compensation, and employment matters.

Grants and payments In the year ending 30 June 2007, 79,397 legal aid grants were made, and legal aid payments totalled $107.4 million. Payments made can relate to grants approved in previous years. Of these payments, $51.7 million was spent on criminal cases (private providers $48.9 million, public defender service $2.8 million), $28.3 million on family law cases, $12.6 million on Waitangi Tribunal matters, and $6.5 million on civil actions. A further $7.8 million was spent on the duty solicitor scheme, and $0.5 million on the Police Detention Legal Assistance scheme. Legal aid repayments totalled $9.9 million.

Legal aid is demand-driven. Once an entitlement to assistance is established, aid must be provided, and no direct control can be exercised over the number of applications submitted.

Community law centres These centres provide legal services to those in communities with unmet legal needs, particularly those who cannot afford to pay for legal services. The centres provide free legal advice and sometimes representation, law-related education, and legal information, and may work on law reform. The centres are funded mostly from a special fund (administered by the New Zealand Law Society), which earns revenue from interest income from nominated lawyers' trust accounts, plus some government funding. There were 27 centres in 2007.

Public Advisory Committee The Legal Services Agency's Public Advisory Committee represents a range of groups, including women, Māori, Pacific peoples, young people, older people, people with disabilities, consumers, community law centres, the legal profession, refugees, and migrants.

The committee provides advice to the agency on a number of matters, including feedback and concerns about legal aid schemes and other services funded or delivered by the agency, unmet legal needs, funding of community law centres, research, and law-related education.

Jury service

Jury service is an extremely important part of the justice system and democracy. The contribution of jurors is very much needed, valued, and appreciated.

A jury is a group of 12 people who have been chosen at random to sit in a court trial, hear the evidence, and reach a verdict. Its job is to decide what facts have been proved, apply the law to the facts with guidance on the law from the judge, and return a proper verdict.

A jury list for each court is made up by random selection from electoral rolls in the court area. People's names are then selected at random from the jury list, and those people are summonsed. Members of parliament, members of the Judiciary, those involved in certain justice-related occupations, and people who have been sentenced to certain prison terms are not eligible to serve on a jury.

Crown Law

Crown Law is a government agency providing legal advice and representation services to the government, particularly in areas of criminal, public, and administrative law. Its two primary objectives are to ensure that:

  • the operations and responsibilities of the Executive arm of government are conducted lawfully

  • the government is not prevented, through legal process, from lawfully implementing its policies, and discharging its governmental responsibilities.

The Solicitor-General of New Zealand is chief executive of Crown Law, and is the chief legal adviser to the government, subject to any views expressed by the attorney-general. In this capacity, the solicitor-general is the government's chief advocate in the courts. In addition, the solicitor-general is responsible for conducting the prosecution of indictable crime, and also has a number of specific statutory duties and functions.

Crown Law is organised into three practice groups, which bring together specialist teams enabling clients to address key issues about:

  • constitutional advice and litigation, including Treaty of Waitangi matters and constitutional conventions

  • the conduct of Crown prosecutions, including advice on international human rights obligations, the bill of rights, and criminal appeals

  • public law arising out of the exercise and control of governmental power and public sector governance.

The criminal process group is responsible for the supervision and conduct of the nationwide network of Crown solicitors. Crown solicitors, who are private legal practitioners in the main centres of New Zealand, conduct prosecutions for indictable crime on behalf of the Crown. Crown solicitors are appointed by the governor-general on the recommendation of the attorney-general.

Serious Fraud Office

The Serious Fraud Office Te Tari Hara Tāware (SFO) is a specialist department established by the Serious Fraud Office Act 1990, to facilitate the detection, investigation, and expeditious prosecution of serious and/or complex fraud offending.

At 30 June 2007, SFO had a staff of 33, consisting of forensic accountants, investigators, prosecutors, and support staff. Multi-disciplinary teams are used in the investigation and prosecution of cases.

To determine whether an offence involves serious or complex fraud, the Act provides that the director may, among other things, consider: the suspected nature, consequences, and scale of the fraud; the legal, factual and evidential complexity of the matter; and any relevant public-interest considerations. The director's decision to investigate or take proceedings is discretionary, and not subject to review.

During the 2006/07 financial year, 65 complaints were received and 23 full investigations were concluded. Of these, 11 resulted in prosecution, some with multiple offenders. In addition, 12 investigations were completed, but did not proceed to prosecution. Thirty-three cases remained at the full investigation stage at 30 June 2007.

Nineteen prosecutions were concluded during the year ending 30 June 2007 (some of which began before the 2006/07 year). Several involved a number of defendants. Convictions were obtained in 16 of the 19 cases. One prosecution was stayed after two jury trials failed to produce a verdict.

Four appeals against conviction and sentence were heard in the 2006/07 year. Three of these were dismissed.

The SFO's statutory powers are the most extensive in the area of criminal investigation in New Zealand. They require any person whose affairs are being investigated, or any other person the director has reason to believe may have relevant information or documents, to appear before the SFO to answer questions and produce such documents for inspection.

In the year ending 30 June 2007, 1,135 notices were issued under these powers (873 requiring documents or information, and 262 requiring people to attend interviews), compared with 859 in the previous year. Seven search warrants were executed, compared with five in the year before. Government funding for the year to 30 June 2007 was $5.5 million.

Criminal justice

The most serious crimes in New Zealand are defined in the Crimes Act 1961, the international Crimes and International Criminal Court Act 2000, and the Misuse of Drugs Act 1975. Other acts, such as the Aviation Crimes Act 1972 and the Maritime Crimes Act 1999, also outline serious indictable offences.

The Summary Offences Act 1981 covers a wide variety of less serious (summary) offences, including offences against public order, such as disorderly behaviour and fighting in a public place, and offences against people or property, such as common assault and wilful damage.

Convictions

A conviction is the most frequent outcome of a prosecution. The proportion of prosecutions that resulted in a conviction decreased slightly in the decade to 2006. In 1997, 69 percent of prosecutions resulted in conviction, but by 2000 the proportion had fallen to 66 percent. In 2000–03, the proportion remained at 66 percent, before decreasing slightly to 65 percent in 2004–06.

Total convictions The number of convictions decreased each year between 1998–2002. However, numbers increased again from 2003–06.

Figure 10.01 shows the types of offence as a proportion of all convictions from 2002 to 2006.

Figure 10.01.

Violent offences The number of convictions for violent offences generally showed a decreasing trend from 1997–2002, from 15,683 to 14,427, before increasing each year for the next four years, reaching 17,059 in 2006. In each year to 2006, violent offences averaged between 8 and 9 percent of all convictions. Table 10.03 (overleaf) shows the number of convictions for violent offences for 1997–2006.

Table 10.01. Offences(1)
1878–2007(2)

YearRecordedResolvedPercent resolved

(1) Figures before 1995 may not be comparable with previous figures because they represent all offences, including traffic.

(2) Figures prior to 2000 are for a calendar year. Figures from 2000 are for the year ending 30 June.

Symbol: .. figure not available

Source: New Zealand Police

187814,157....
188017,83716,72393.8
188518,95517,72393.5
189013,11512,17792.8
189514,01012,43588.8
190018,35817,13193.3
190520,24919,25195.1
191025,10623,94995.4
191528,41227,09695.4
192026,10624,71894.7
192530,47028,66894.1
193037,21433,69090.5
193533,16830,60192.3
194045,00941,61992.5
194534,00027,96582.3
195035,383....
195563,550....
1960102,79266,85765.0
1965132,31173,29455.4
1970165,85994,78557.1
1975233,644115,67149.5
1980349,193166,53547.7
1985435,640182,84942.0
1990488,886201,94241.3
1995506,359211,95641.9
2000432,354174,61140.4
2001424,286182,13742.9
2002436,315182,46841.8
2003447,146195,50243.7
2004426,149191,98845.1
2005396,018174,93744.2
2006426,469188,51144.2
2007426,584190,70544.7

Table 10.02. Convictions
By type of offence
Year ending 31 December

Offence type1997199819992000200120022003200420052006
Source: Ministry of Justice
Violent15,68316,13115,28714,57714,69214,42715,22415,58516,60617,059
Other against persons3,4963,7063,6863,6823,7023,7714,1644,2404,4724,628
Property53,67453,29551,17849,63548,71547,54649,02149,84946,44447,263
Drug12,99714,16814,02113,64912,55512,27212,35911,64310,92311,326
Against justice14,81915,68515,30615,46515,01714,97216,03419,08321,38123,840
Good order9,91810,52711,03011,57912,38912,83913,98713,93813,34315,009
Traffic60,51162,22658,81757,02556,58454,54155,84759,30859,80963,360
Miscellaneous9,70610,1019,4377,6639,29610,15013,51613,47414,53319,032
Total180,804185,839178,762173,275172,950170,518180,152187,120187,511201,517

Violent sex offences Convictions for violent sex offences (rape, unlawful sexual connection, attempted sexual violation, and indecent assault) averaged just under 1,500 a year from 1997–2006. In 2006, there were 1,548 convictions for violent sex offences.

The number of rape convictions decreased from 253 in 1998 to 131 in 2000. Convictions increased to 213 in 2003, and then fluctuated around 200 from 2004–06. In the decade to 2006, convictions for unlawful sexual connection averaged 353 each year. In the same decade, convictions for attempted sexual violation and indecent assault averaged 49 and 900 per year, respectively.

Non-sexual assaults The number of convictions for non-sexual assaults increased by 11 percent between 1997–2006. The number of ‘male assaults female’ convictions decreased from 3,335 in 1997, to 2,625 in 2002, before increasing each year for the next four years, reaching 3,587 in 2006. Table 10.02 shows annual convictions by type of offence from 1997–2006.

Assaults on children Convictions for assaults on children aged less than 14 years, under section 194(a) of the Crimes Act 1961, were relatively stable between 1997–2002, at approximately 290 convictions per year. The number decreased to 253 in 2003 – the lowest figure recorded in the decade to 2006. In 2004, convictions rose to 312, and then fell to 269 in 2006.

Assault The number of convictions in the two most serious categories of assault – grievous assault and serious assault – generally increased by 32 percent and 43 percent, respectively, in the decade to 2006. Convictions for minor assault generally decreased, from 4,432 in 1997, to 3,815 in 2006.

Table 10.03. Convictions for violent offences
Year ending 31 December

Offence type1997199819992000200120022003200420052006

(1) Includes convictions for manslaughter that involved the use of a motor vehicle.

(2) The definitions of burglary and aggravated burglary were amended in 2003, and the new definitions came into force on 1 October 2003.

(3) Includes both robbery and assault with intent to rob.

(4) Mostly assault with a weapon, wounding with intent, and injuring with intent, but also includes aggravated wounding or injury, disabling, committing a dangerous act with intent, acid throwing, and poisoning with intent to cause grievous bodily harm. These offences have maximum penalties of at least five years' imprisonment.

(5) Mostly common assault under the Crimes Act 1961, but also includes assault with intent to injure, injuring by an unlawful act, and aggravated assault (including assault on a police officer or a person assisting the police under the Crimes Act 1961). These offences have maximum penalties of at least five years' imprisonment.

(6) Offences under section 194(b) of the Crimes Act 1961. These are likely to be mostly domestic-related assaults. These offences could have been included in the ‘serious assault’ category, as they have a maximum penalty of two years' imprisonment. However they have been presented separately to show trends in domestic-related assaults. These offences are the best available proxy for such offences, given that the data does not include information on victim-offender relationships.

(7) Assault on a child under the age of 14 years under section 194(a) of the Crimes Act 1961.

(8) Mostly common assault under the Summary Offences Act 1981, but also includes assault on a police or prison officer, or on a person assisting the police, under the same Act. These offences have a maximum penalty of six months' imprisonment.

(9) Threaten to kill or do grievous bodily harm.

(10) Offences under section 195 of the Crimes Act 1961.

Source: Ministry of Justice

Murder39242531193124272128
Manslaughter(1)28452823313035562129
Attempted murder19569111651656
Kidnapping/abduction11214981106114117176117111169
Rape210253207131169168213174200222
Unlawful sexual connection279349361311384343414338339414
Attempted sexual violation58565842593648425342
Indecent assault9471,054968794818957935780874870
Aggravated burglary(2)102837771766769868757
Aggravated robbery582555523424366349398388477433
Robbery(3)258278233170152172207206245273
Grievous assault(4)1,2091,3351,2581,3201,3031,2961,3721,4651,6081,597
Serious assault(5)3,0313,2393,0903,2473,3643,3413,4583,8074,0984,335
Male assaults female(6)3,3353,1453,0432,9162,9162,6252,8703,1003,5613,587
Assault on a child(7)298294304280294291253312287269
Minor assault(8)4,4324,5164,2453,9593,8483,7633,8003,7773,7823,815
Threaten to kill/do GB(9)602633641628626697771772698773
Cruelty to a child(10)17174021231927282016
Other violence125101999411910914994119124
Total15,68316,13115,28714,57714,69214,42715,22415,58516,60617,059

Robbery The number of convictions for robbery has fluctuated between 1997–2006, around an annual average of 219. Convictions for aggravated robbery peaked at 582 in 1997, and dropped each year after that to 349 in 2002. Numbers rose again, then dropped to 433 in 2006.

Other convictions Convictions for threatening to kill or do grievous bodily harm showed a general upward trend between 1997–2006, with 773 convictions in 2006 – 28 percent higher than the 602 recorded in 1997. Convictions for non-violent sexual offences fell by 28 percent between 1997–2001, and then rose by 47 percent between 2001–06, reaching 610 convictions in 2006.

Table 10.04. Convictions for other offences against the person
Year ending 31 December

Offence type1997199819992000200120022003200420052006

(1) Mainly unlawful sexual intercourse or committing an indecent act with or upon another person, committing an indecent act in a public place, or obscene exposure in a public place. Sex offences reported in the violent offences category are not included in the figures for this category.

(2) Obstructing or resisting a police officer, traffic officer, or other official.

(3) Mostly offences under section 21 of the Summary Offences Act 1981. Excludes threatening to kill or do grievous bodily harm, which is classified as a violent offence.

Source: Ministry of Justice

Non-violent sexual(1)579492474495415447468453573610
Obstructing/resisting(2)2,2692,4932,4052,3762,2892,3772,5562,5532,5742,718
Intimidation(3)4664775495606186537729331,0971,082
Other against persons182244258251380294368301228218
Total3,4963,7063,6863,6823,7023,7714,1644,2404,4724,628

Drug offences In 2006, 73 percent of drug convictions involved cannabis. As table 10.05 shows, between 1997–2006, annual convictions for drug offences fluctuated around an average of 12,600. Six percent of all convictions in 2006 were for drug offences.

Table 10.05. Convictions for drug offences
Year ending 31 December

Offence type1997199819992000200120022003200420052006

(1) Mostly offences relating to the possession of pipes, needles, syringes or other drug-related utensils. The category also includes offences where the offender permitted their premises or motor vehicle to be used for a drug offence, or where the offender made a false statement in relation to the Misuse of Drugs Act 1975.

Source: Ministry of Justice

Use cannabis6,4596,9706,7616,1315,5414,9884,8564,2794,0404,121
Deal in cannabis3,7083,9773,9163,8843,5893,3053,1252,6752,1892,196
Other cannabis(1)1,7302,1722,2552,1862,1832,0722,2402,0931,9421,933
Use other drug4444124936765446687338518081,030
Deal in other drug496415405459403772631575610660
Other drug(1)1602221913132954677741,1701,3341,386
Total12,99714,16814,02113,64912,55512,27212,35911,64310,92311,326

Property offences The second largest group of charges resulting in a conviction is property offences. In 2006, 23 percent of all convictions were for offences against property. Convictions for property offences fell by 12 percent between 1997–2006. Numbers showed a slightly decreasing trend each year between 1997–2002, increased slightly in the following two years, and then decreased again in 2005, to reach the lowest value in the decade (46,444). In 2006, convictions for property offences increased again, but the number was still lower than earlier in the decade.

Table 10.06. Convictions for property offences
Year ending 31 December

Offence type1997199819992000200120022003200420052006

(1) The definition of burglary was amended in 2003, and the new definition came into force on 1 October 2003.

(2) Includes fraud, false pretences, forgery, and crimes involving deceit. The Crimes Amendment Act 2003 removed any references to ‘fraud’ from the Crimes Act 1961, and inserted sections referring to ‘crimes involving deceit’.

(3) Includes intentional damage under section 269 of the Crimes Act 1961 and wilful damage under section 11 of the Summary Offences Act 1981.

(4) Mostly unlawfully interfering with, or getting into/onto, a motor vehicle or motorcycle, misleading a social welfare officer, providing misleading information to obtain a benefit/finance, possessing instruments for burglary or conversion, or unlawfully taking a bicycle.

Source: Ministry of Justice

Burglary(1)6,7196,3745,9386,3395,5025,7115,4246,3986,4816,087
Theft13,20813,79313,72013,24614,14513,92114,26914,27614,17014,644
Receiving stolen goods3,0843,3743,0003,0102,8272,4372,6112,7292,5092,683
Motor vehicle conversion2,7932,5382,4312,1732,0532,0932,1302,1101,9672,127
Fraud(2)18,66117,12415,07814,39414,22012,76513,62913,55011,07810,770
Arson198313209170198213212219238209
Wilful damage(3)4,8005,0875,1565,2325,0655,1035,2855,5515,8026,724
Other property(4)4,2114,6925,6465,0714,7055,3035,4615,0164,1994,019
Total53,67453,29551,17849,63548,71547,54649,02149,84946,44447,263

Most of the decrease in property offences during the decade was due to a decrease in the number of convictions for fraud, which fell by 42 percent in the decade to 2006, from 18,661 in 1997, to 10,770 in 2006. This does not necessarily mean a decline in the number of offenders convicted of fraud, as many face a large number of charges – the total number of fraud charges can change considerably without the number of people involved changing appreciably.

Motor vehicle conversion In 2006, there were 2,127 convictions for motor vehicle conversion, down 24 percent compared with 1997.

Traffic convictions Convictions for driving causing the death or injury of another person tended to decrease between 1998–2002, but then increased in the next four years, reaching 1,675 convictions in 2006, back to the same level as in 1998.

For 2005–06 the average annual number of convictions for driving with excess alcohol was approximately 23,700. This was an increase from 2000–04, when the annual average number of convictions had dropped to around 21,700, from an average of 24,200 for 1997–99.

Between 1998–2002, the number of convictions for driving while disqualified decreased considerably, down from 11,605 to 6,861. From 2002–06, the number of convictions increased to 8,787, but the number was still 24 percent lower than in 1998.

Convictions for reckless or dangerous driving showed a generally increasing trend across the decade, from 2,611 in 1997, to 5,084 in 2006, an increase of 95 percent. This category includes offences related to unauthorised street or drag racing. Legislation making this an offence was introduced in May 2003 with the Land Transport (Unauthorised Street and Drag Racing) Amendment Act 2003.

In 2006, there were 7,441 convictions for careless driving; this was 23 percent lower than the figure for 1997.

Traffic offences As table 10.07 shows, the number of convictions for all traffic offences decreased from 60,511 in 1997, to 54,541 in 2002. In the next four years, the numbers increased, to reach 63,360 in 2006, the highest number in the decade. In the decade to 2006, traffic offences (at 31 percent) made up the largest group of charges resulting in conviction.

Table 10.07. Convictions for traffic offences
Year ending 31 December

Offence type1997199819992000200120022003200420052006

(1) Charges involving driving with excess alcohol, reckless or dangerous driving, or careless driving, where death or injury occurred. This data does not distinguish between charges resulting in injury and charges resulting in death. A small number of people who kill a person while driving a motor vehicle will be charged with manslaughter rather than driving causing death (see table 10.03).

(2) Mostly charges where the person was driving with excess alcohol, but also includes charges where the offender refused to supply a blood specimen, or was convicted for driving under the influence of drink or drugs. Charges where a person was driving with excess alcohol and caused death or injury are recorded in the first category in this table.

Source: Ministry of Justice

Driving causing death or injury(1)1,5561,6791,5751,4461,4221,4031,5281,5721,6311,675
Driving with excess alcohol(2)24,67224,81923,10121,60122,36320,81121,07822,58923,06124,240
Driving while disqualified10,74611,60510,4517,8627,3996,8617,0367,7348,0178,787
Reckless/dangerous driving2,6112,8812,9392,6912,7733,0143,4684,2264,6255,084
Careless driving9,63910,2489,1778,4177,9618,2487,5297,4817,6547,441
Other traffic11,28710,99411,57415,00814,66614,20415,20815,70614,82116,133
Total60,51162,22658,81757,02556,58454,54155,84759,30859,80963,360

Offences against administration of justice As shown in table 10.08, the number of convictions for offences against the administration of justice increased (by 61 percent) in the decade to 2006, with a particularly large increase between 2003–06. The 2006 figure of 23,840 was the highest recorded in the decade. Offences against the administration of justice accounted for 12 percent of all convictions in 2006, compared with 8 percent in 1997.

Protection orders The number of breaches of protection orders increased by 73 percent between 1997–99, from 1,223 to 2,117. Between 1999–2006, the number of convictions stabilised, averaging 2,240 a year.

Offences against good order There was a strong increasing trend for these offences in the decade to 2006, rising 51 percent – from 9,918 in 1997 to 15,009 in 2006 – as shown in table 10.09. Convictions for disorderly behaviour, and for possession of an offensive weapon nearly doubled in the decade, reaching 8,592 and 2,285, respectively, in 2006. Convictions for trespassing offences also showed an increasing trend, up from 2,997 in 1997, to reach 3,466 in 2006.

Miscellaneous offence convictions The wide variety of offences included in this category means it is difficult to explain annual fluctuations in the total number of convictions for these offences. Legislative amendments to the Dog Control Act 1996 led to large decreases in the number of convictions under this Act, as shown in table 10.10 (overleaf). Legislative amendments to the Sale of Liquor Act 1989 also led to large decreases in the number of convictions under this Act between 2000–02. Convictions then increased substantially between 2003–06, after convictions for breaching local liquor bans were included in this offence category. Before April 2003, these had been incorporated within the category of other miscellaneous offences.

Table 10.08. Convictions for offences against the administration of justice
Year ending 31 December

Offence type1997199819992000200120022003200420052006

(1) Community work was introduced on 30 June 2002 by the Sentencing Act 2002.

(2) The sentence of periodic detention was abolished by the Sentencing Act 2002 from 30 June 2002.

(3) The sentence of community service was abolished by the Sentencing Act 2002 from 30 June 2002.

(4) Failure, without reasonable excuse, to comply with any condition of release from prison.

(5) Failure by a person on bail to appear in court at a specified time and place.

(6) Mostly refers to escapes from custody in a penal institution, or escapes from police custody. Also includes a small number of charges for escaping custody from some other type of institution, such as a psychiatric hospital.

Symbol: ... not applicable

Source: Ministry of Justice

Breach of community work(1)...............5225,2517,9259,06410,518
Breach of periodic detention(2)7,3187,5327,0116,6236,2575,5511,09034013065
Breach of community service(3)326282220246219277144281610
Subtotal7,6447,8147,2316,8696,4766,3506,4858,2939,21010,593
Breach of supervision6346015535025775005667441,0621,185
Breach of release conditions(4)1802021992352673095679391,2411,427
Failure to answer bail(5)3,9594,0134,1244,2854,3074,3935,1045,7456,2207,263
Breach of protection/non-molestation order1,2231,8812,1172,2572,3602,0272,2542,2642,3812,249
Escape custody(6)380424406372292285332322370340
Obstructing/perverting the course of justice155152132143115128149174205182
Other against justice644598544802623980577602692601
Total14,81915,68515,30615,46515,01714,97216,03419,08321,38123,840

Characteristics of convicted offenders Male offenders accounted for 82 percent of all convictions in 2006 (where the offender's gender was known). Forty-five percent of all convictions in 2006 (where the offender's ethnicity was known) involved Europeans, 43 percent Māori, 9 percent Pacific peoples, and 3 percent involved offenders of other ethnicities.

Of all convictions in 2006 (where the offender's age was known), 21 percent involved teenagers, 38 percent were in their twenties, 21 percent were in their thirties, and 19 percent were aged 40 years and over.

Table 10.09. Convictions for offences against good order
Year ending 31 December

Offence type1997199819992000200120022003200420052006

(1) Mostly refers to behaving in a disorderly or offensive manner (section 4 Summary Offences Act 1981), disorderly or threatening behaviour (section 3 Summary Offences Act 1981), or fighting in a public place (section 7 Summary Offences Act 1981).

Source: Ministry of Justice

Riot7252315641530
Unlawful assembly69402123173053725134
Possessing an offensive weapon1,2591,4171,4171,3101,4441,5371,6501,7801,9552,285
Offensive language598650699681645581551493386420
Disorderly behaviour(1)4,6615,1305,6456,1496,9337,1518,1147,9687,4518,592
Trespassing2,9973,0283,0063,1353,0923,2883,3933,4003,3073,466
Other against good order327260237258243246222210190212
Total9,91810,52711,03011,57912,38912,83913,98713,93813,34315,009

Sentencing for all offences

Throughout the decade ending 2006, 8–10 percent of convicted cases resulted in a custodial sentence. In 2006, 10,469 cases resulted in a custodial sentence.

Of all cases resulting in custodial sentences across the decade, between 21–32 percent resulted in short prison sentences of three months or less (excluding corrective training).

Cases with prison sentences of more than three months and up to two years made up between 51–65 percent of all cases resulting in custodial sentences during the decade.

In each year during the decade, less than 1 percent of all cases that resulted in imprisonment received a custodial sentence of more than 10 years (including life imprisonment and preventive detention).

The average custodial sentence length imposed (including life imprisonment and preventive detention) increased from 13.5 months in 1997, to 15.7 months in 2003. Between 2004–06, the average custodial sentence length imposed was 14 months.

In 2006, 90 percent of cases resulting in custodial sentences involved male offenders.

Table 10.1. Convictions for miscellaneous offences
Year ending 31 December

Offence type/Act breached1997199819992000200120022003200420052006

(1) Excludes a small number of offences prosecuted under this Act that were categorised as violent offences or other offences against the person.

(2) Offences under the Income Tax Act 1976, the Income Tax Act 1994, the Goods and Services Tax Act 1985, or the Tax Administration Act 1994.

(3) Includes convictions under the Sale of Liquor Act 1962 and the Sale of Liquor Act 1989 as well as convictions under section 38(3) of the Summary Offences Act 1981 (minors drinking in a public place) and, from April 2003, convictions for breaches of local liquor bans under section 709A(8) of the Local Government Act 1974.

(4) This category covers convictions under the Fisheries Act 1983 and related regulations, eg commercial fishing regulations and freshwater fisheries regulations.

(5) Includes a wide variety of offences such as breaches under: the Health and Safety in Employment Act 1992, the Insolvency Act 1967, the Resource Management Act 1991, the Films, Videos, and Publications Classification Act 1993, the Building Act 1991, the Telecommunications Act 1987, the Medicines Act 1981, and the Conservation Act 1987.

Source: Ministry of Justice

Arms Act(1)8809529218577057378088848461,015
Dog Control Act1,641885592432491346551286347305
Tax Act(2)2,4712,4642,1052,2693,7734,1615,3135,1815,9947,510
Liquor-related(3)9571,2001,1812231902511,2423,2212,9274,821
Fisheries Act(4)319714455750762719792847623496
Other miscellaneous(5)3,4383,8864,1833,1323,3753,9364,8103,0553,7964,885
Total9,70610,1019,4377,6639,29610,15013,51613,47414,53319,032

Of cases resulting in imprisonment in 2006 (where the offender's ethnicity was known), Māori accounted for 53 percent, 37 percent involved Europeans, 7 percent involved Pacific peoples, and 3 percent involved offenders of other ethnicities.

Of cases resulting in custodial sentences in 2006,41 percent involved offenders in their twenties, while 12 percent involved teenagers (mainly aged 17–19 years).

Offenders in their thirties and those aged 40 years and over accounted for 26 and 20 percent, respectively, of cases where a custodial sentence was given in 2006.

Between 25 percent and 35 percent of all convicted cases in each year of the decade resulted in the imposition of community-based sentences. This percentage showed a decreasing trend after 1999, with the average figure for 2004–06 (25 percent) representing the lowest of the decade.

The use of monetary penalties as the most serious sentence fluctuated between 47 and 52 percent of all convicted cases during the decade.

Table 10.11. Sentencing for all offences(1)(2)
Year ending 31 December

Sentence type1997199819992000200120022003200420052006

(1) The system used to log cases was updated in 2004. This has caused changes in the figures and trends in cases that are observed up to and following 2004. In particular, any changes in the number of cases in 2004 may not represent a true change in offender patterns. Caution should therefore be used when making inferences based on any change between 2003 and 2004.

(2) Only the most serious sentence imposed is shown for cases where more than one sentence was imposed.

(3) Community work was introduced from 30 June 2002 by the Sentencing Act 2002.

(4) Sentence abolished from 30 June 2002 by the Sentencing Act 2002.

(5) Monetary penalties include fines and reparation.

(6) To come up for sentence if called on, or a suspended prison sentence. Suspended prison sentences were abolished from 30 June 2002 by the Sentencing Act 2002.

(7) Mainly cases that resulted in disqualification from driving, or an order under section 34 of the Criminal Procedure (Mentally Impaired Persons) Act 2003 for treatment or care of the offender in a psychiatric hospital or secure facility. Deportation orders are also included in this category.

(8) Conviction and discharge under section 20 of the Criminal Justice Act 1985, or section 108 of the Sentencing Act 2002.

Symbol: ... not applicable

Source: Ministry of Justice

Custodial8,1028,2558,1777,8867,8057,9308,49710,35310,55310,469
Community work(3)...............12,69325,07324,83924,99827,196
Periodic detention(4)19,51021,34020,48118,39518,4618,791............
Community service(4)7,8128,5258,2267,1246,7643,073............
Community programme(4)43037928720320754............
Supervision5,0375,0044,5504,0243,3672,3121,8942,0142,3472,243
Monetary(5)47,51547,16547,32647,21548,02848,50750,73352,91850,65053,207
Deferment(6)3,2333,5603,5023,5903,6063,6124,1344,8314,9165,345
Other(7)8089831,1161,1251,1351,2261,2951,8781,8972,061
Conviction and discharge(8)4,0684,9944,9825,9456,2336,1416,96012,18412,57312,253
Total96,515100,20598,64795,50795,60694,33998,586109,017107,934112,774

Proceeds of crime

Apart from his role in company liquidations and bankruptcies, the official assignee has certain statutory responsibilities under the Proceeds of Crime Act 1991.

The High Court may order that assets be placed in the custody and control of the official assignee. This is to ensure that assets are not depleted or destroyed while a criminal trial is pending, or a further application under the Act is to be heard.

If the court orders forfeiture of a criminal's property, or that restrained property must be sold to satisfy a fine, the official assignee takes the necessary steps to realise those assets, and to transfer proceeds to the Crown.

In the year ending 30 June 2007, the official assignee, in relation to proceeds of crime matters, returned $1,445,766 to the Crown, compared with $1,012,205 in the 2006 year, and $1,235,991 in 2005.

In March 2007, the government introduced the Criminal Proceeds (Recovery) Bill, to repeal and replace the Proceeds of Crime Act 1991. The Bill expands the proceeds of crime regime considerably, chiefly by introducing a civil forfeiture regime. The official assignee will continue to have responsibility for the custody and control of restrained property under the new regime, and for realising forfeited property.

Victim Support

Victim Support is a community, not-for-profit organisation providing a nationwide, 24-hour, seven-day-a-week support service for victims of crime and trauma.

Of those receiving support, 90 percent are victims of crime. Other victims include families and survivors where there has been a serious transport accident, a sudden death, a suicide attempt or completion, or a natural disaster.

A range of support services, based on the victim's needs, are provided by trained volunteer support workers. These include: crisis intervention at the time of an incident, where practical and emotional support is offered; advice on other services and agencies available to the victim; provision of information about police investigations and judicial processes; and ongoing support as needed, particularly throughout the criminal justice process. This latter support includes: assisting the victim to prepare a victim impact statement; attending court with the victim; supporting victims who have agreed to participate in a restorative justice conference or family group conference; and supporting victims who wish to participate in a parole hearing.

Other services available to victims include free counselling for families and close friends of victims of a homicide; financial assistance for victims who wish to attend a High Court trial, or to present a submission at a parole hearing; and advice on assistance with improving home security for low-income people who have been victims of repeat burglaries.

The main funding for Victim Support comes from government contracts for services, grants, sponsorship and donations, and national and local fund-raising activities. Victim Support also receives funding from the Vote Justice allocation, which contributes to the cost of providing core services for victims of crime.

Victim Support works closely with the Police, who provide office accommodation and facilities. There are 71 Victim Support offices throughout New Zealand, grouped into 12 districts. Table 10.12 provides details of Victim Support activities for the years ending 30 June 2001 to 2006.

Table 10.12. Victim Support operation and funding
Year ending 30 June

 200120022003200420052006
Source: New Zealand Council of Victim Support Groups
Victim Support groups666767676370
Staff employed (full-time equivalent)535353627893
Contacts made with victims212,443140,659187,211163,026127,692135,427
Volunteer workers1,3261,3111,3041,3521,4281,670
Hours of service given by volunteers134,70073,28480,13773,32155,13449,877
Ministry of Justice funding ($ million)1.21.71.92.53.43.4
Funding for victim assistance schemes ($)583,000653,000653,000653,000653,000653,000

Crime reduction

The Crime Reduction Strategy, introduced in 2001, establishes priorities for preventing and reducing crime. The strategy targets: family violence, including child abuse; other violence, including sexual abuse; burglary; theft of and from cars; organised criminal activity; serious traffic offending; youth offending and re-offending.

The strategy emphasises a partnership approach among government agencies, local government, and communities. Target groups include victims (particularly repeat victims), Māori, Pacific peoples, at-risk families, and those affected by drugs, alcohol, or gambling.

In June 2004, the Ministry of Justice's Crime Prevention Unit (CPU) launched an action plan to reduce community and sexual violence.

The CPU also implemented changes to the funding of local government activities to prevent community crime. From 1 July 2004, funding has been provided to territorial authorities, according to criteria determined by their crime prevention needs, including the size of population and crime rates. Metropolitan and provincial authorities are funded directly on the basis of a crime prevention plan designed to meet local needs. Smaller and rural authorities are funded on the basis of approved crime prevention projects.

The CPU has crime prevention partnership agreements with four iwi (tribes), and also funds crime prevention projects and programmes directly through individual contracts. The biggest contracted programmes are community-managed restorative justice programmes, community youth programmes run in conjunction with the Police, and neighbourhood-based safety programmes.

The appropriation for community crime reduction and prevention initiatives in the 2006/07 financial year was $5.950 million, compared with $6.538 million in the previous financial year.

Corrections system

The Department of Corrections' core responsibility is to manage the New Zealand corrections system and in doing so, to protect the public and reduce re-offending.

The department (also referred to as ‘Corrections’) ensures that custodial sentences (imprisonment), and community-based sentences and orders imposed by the courts and the New Zealand Parole Board, are administered in a safe, secure, humane and effective way.

Protecting the public involves ensuring compliance with sentences and orders, and providing information to the courts and parole board to assist them in their decision making. Reducing re-offending involves provision of targeted rehabilitative and reintegrative interventions to change offending behaviour.

The department operates:

  • 20 prisons

  • three community probation and psychological services regions, managing more than 1,500 staff in more than 140 locations nationwide. These staff include probation officers, psychologists and programme facilitators

  • 13 prison-based special treatment units – six drug and alcohol units, five Māori focus units, one violence prevention unit, and two sex offender units.

The Department of Corrections consists of eight groups and services, headed by a chief executive who is responsible to the Minister of Corrections for the broad direction of the department's work, goal and objective setting, policy advice formulation, effective implementation of major policy decisions, determining the department's priorities, and effective administration of the organisation.

Contracted facilities and services

Prisoner escort and courtroom custodial services The Department of Corrections has a contract with Chubb New Zealand Ltd to provide prisoner escort and courtroom custodial services in the Northland and Auckland regions. This includes escorting prisoners between corrections facilities, courts, and forensic psychiatric units, and court custody of prisoners appearing for judicial purposes. In the rest of New Zealand, prisoner escort and courtroom custodial services are provided by the Police and prison services officers.

Community Probation and Psychological Services

Each year, Community Probation and Psychological Services (CPPS) manages close to 72,000 sentences and orders, such as home detention and community-based sentences. CPPS has a key role in providing information and assessment reports to assist the courts in their sentencing function. It provides information to judges and the New Zealand Parole Board to inform sentencing and release decisions.

CPPS programme facilitators deliver a range of targeted rehabilitation programmes to offenders and prisoners to address their offending behaviour. CPPS psychologists treat offenders, conduct research, develop intervention programmes, and provide detailed reports about offenders to the court and parole boards. They also provide training and education for other Corrections staff and research programmes.

They operate from 10 offices nationwide, and at three special treatment units – Te Piriti, for child sex offenders (Auckland Prison); Kia Marama, for child sex offenders (Rolleston Prison); and the Violence Prevention Unit (Rimutaka Prison).

Over 2008–09, the department will also offer three special treatment unit programmes for high risk offenders – the Karaka Unit at Waikeria Prison is already operating and Matapuna at Christchurch Men's Prison will open in 2009. Puna Tatari at Spring Hill, in the Waikato, has special treatment and drug treatment units from September 2008.

At 30 June 2007, the Department of Corrections employed 89 psychologists. Department psychologists delivered close to 30,000 consultation hours to CPPS and Prison Services for the 2006/07 year.

CPPS manages offenders subject to sentences and orders in the community – community work, community detention, supervision, intensive supervision, extended supervision, home detention, parole, post-detention conditions, and release on conditions.

Community sentences

A new sentencing hierarchy was introduced on 1 October 2007. It is based on the degree of restriction on the offender's liberty and the level of supervision provided in each sentence. The level of monitoring, supervision and restriction of an offender increases as they move up the hierarchy. Imprisonment is the most severe penalty, and the sentence of ‘convict and discharge’ is the least severe.

In sentencing an offender, the court has a range of non-custodial sentences available and the opportunity to combine sentencing options. In order of severity, community-based sentences available are:

Community work sentences require offenders to do up to 400 hours of unpaid work for non-profit organisations. Community-work offenders contribute more than two million hours of free labour a year.

Supervision is a rehabilitative community-based sentence. Offenders can be sentenced to supervision for between six months and one year. Offenders will have standard, and possibly special, conditions imposed under supervision. They report to a probation officer, who will explain the requirements and conditions of the sentence, including how often they have to report.

Intensive supervision is a rehabilitative community-based sentence. It requires offenders to address the causes of their offending, with intensive oversight from a probation officer. Offenders can be sentenced to intensive supervision for between six months and two years.

Community detention requires the offender to comply with an electronically-monitored curfew imposed by the court. Offenders can be sentenced to detention for up to six months. Curfews can total up to 84 hours per week, with the minimum curfew period being two hours.

Home detention is the most severe sentence below imprisonment. It is intended for offenders who would otherwise receive a short sentence of imprisonment, and for whom community-based sentences are not deemed appropriate.

Home detention requires an offender to remain at an approved residence at all times, under electronic monitoring and close supervision by a probation officer. It can help offenders maintain family relationships, keep working or actively seek work, attend training or rehabilitative programmes. Sentences may range from 14 days to 12 months.

In addition to the above sentences, CPPS manages the following two sentences and orders:

Extended supervision is aimed at managing the long-term risks posed by child sex offenders in the community. Extended supervision is an order imposed by the court that allows the highest-risk child sex offenders to be monitored in the community for up to 10 years after their release from prison. It is expected to significantly reduce the rate of re-offending.

Extended supervision is combined with special conditions imposed by the parole board. These can include curfews, reporting, electronic monitoring, and off-limit areas.

Parole involves release into the community under the management of a probation officer. The Parole Act 2002 allows offenders serving sentences of more than two years to be considered by the New Zealand Parole Board for parole.

People on parole are released from prison under strict conditions laid down by law. Often they will be moved to a community-based programme designed to deal with their offending-related problems. They must report regularly to a probation officer, who will monitor their progress and adherence to conditions imposed as part of parole.

Table 10.13. Community-based sentences
Year ending 30 June

Sentence20032004200520062007

(1) Introduced by the Parole (Extended Supervision) Amendment Act 2004.

Symbol: ... not applicable

Source: Department of Corrections

Community work27,93628,04327,92828,40031,387
Supervision5,0594,9285,3015,5656,359
Home detention1,5751,9501,5151,2931,517
Parole1,9231,3081,1321,2441,451
Post-release conditions1,4613,4574,6524,8194,867
Extended supervision orders(1)......214838

If a prisoner is granted permission to reside at home, through a home detention sentence, the electronic monitoring anklet will show that he or she is on the property they are confined to.

Figure 10.02.

Prison Services

Prison Services is the part of the Department of Corrections responsible for running New Zealand's 20 prisons. It is responsible for providing safe, secure, and humane prison services, which contribute to reducing re-offending. It manages the sentence needs of each offender, including rehabilitation and reintegration.

Prison Services manages prisoners' security, with two key priorities. The first focuses on community safety, ensuring prisoners are securely contained in prison for the duration of their sentence. The second concentrates on encouraging prisoners to address the factors that drive their criminal lifestyle, and take steps to change their offending behaviour.

The 20 prisons/corrections facilities are managed within three regions, with a national office in Wellington. Prisons are listed in table 10.14.

Prisoners with different security classifications are held at each institution. Fifteen prisons are receiving institutions, while Auckland, Spring Hill, Tongariro, Wellington and Rolleston do not receive directly from courts. The cost per prisoner per day increased from $ 188.71 in the 2005/06 financial year to $209.97 in the 2006/07 year.

Detention in a corrections facility

Prison Services administers and manages custodial sentences imposed on offenders sentenced to imprisonment. Prison Services also manages remand offenders waiting on court appearances or sentencing.

At the time of sentencing, a judge may impose release conditions (both standard and special) on offenders sentenced to terms of imprisonment of 12 months or less, and must impose standard conditions on those sentenced to more than 12 months, but not more than 24 months. The courts may also impose special conditions on these offenders. Courts may defer the start of a person's prison sentence for up to two months. They can also impose a minimum non-parole period on any offender sentenced to more than 24 months, if satisfied that the circumstances of the offence are sufficiently serious.

The New Zealand Parole Board must impose standard conditions on offenders at their statutory release date, to take effect for six months beyond that date. The parole board may also impose special conditions to apply for the same length of time.

Murder The Sentencing Act 2002 reformed the law regarding sentencing for murder. Previously, a conviction for murder automatically resulted in a sentence of life imprisonment. Under the 2002 Act, there is still a strong presumption in favour of that, but the court may impose a determinate sentence, if satisfied that life imprisonment would be ‘manifestly unjust’ in the circumstances.

If the court chooses not to impose life imprisonment, it must give reasons in writing. If an offender is sentenced to life imprisonment, the court must also impose a minimum non-parole period of at least 10 years. In cases where there are specified aggravating factors, such as unusual callousness or a vulnerable victim, the court must impose a minimum non-parole period of at least 17 years, unless the court considers that to be ‘manifestly unjust’.

Preventive detention This sentence can be imposed for a range of sexual and violent offending. The Sentencing Act 2002 lowered the age of eligibility for preventive detention from 21 to 18 years, and increased the range of offences for which preventive detention can be imposed. When the court imposes this sentence, it must also impose a minimum non-parole period of at least five years. Under previous legislation, the minimum non-parole period had to be at least 10 years.

Victims' rights Victims of certain offences can apply under the Victims' Rights Act 2002 to receive specified information about offenders serving a sentence of imprisonment, either in prison or under home detention, or who have been released on parole. Victims are also entitled to information about a prisoner's sentence (including any programmes they have undertaken and completed, and their security classification), to help them prepare their submission. All applications are verified by Police, and sent to the government agency responsible for notification.

Table 10.14. Corrections facilities
At 11 December 2007

Prison/corrections facilityCapacity
Source: Department of Corrections
Male prisons
Waikeria1,031
Rimutaka1,044
Christchurch920
Auckland681
Hawke's Bay666
Spring Hill650
Tongariro/Rangipo601
Wanganui538
Mt Eden527
Auckland Central Remand412
Northland Region366
Otago335
Rolleston320
Manawatu290
Invercargill180
Wellington140
New Plymouth112
Female prisons
Arohata154
Auckland Region Women's286
Christchurch Women's138

The Department of Corrections notifies registered victims about offenders' information, such as their escape or death in custody, release to work, temporary release, or impending release date. The parole board is responsible under the Parole Act 2002 for notifying registered victims of impending parole hearings and of the victim's right to make submissions to the board. The board also notifies registered victims of the outcome of the board's hearings and, if the offender is released, any conditions on release that specifically relate to the registered victim or to submissions they have made to the board.

Parole eligibility and final release

New Zealand Parole Board The board is an independent statutory body that considers when offenders can be released on parole. It can also recall offenders to prison, on application by the Department of Corrections. The board is made up of full-time and part-time members appointed from the community and the judiciary. It operates in panels of three, with a district court judge convening each panel.

The parole board's paramount consideration, as set out in the Parole Act 2002, must be the safety of the community. The board considers the likelihood of further offending, and the possible nature and seriousness of this prospect. An offender does not apply for parole, it is a legal entitlement.

Determinate sentences Prisoners serving finite terms of imprisonment of 24 months or less are not eligible for parole, but are released automatically after serving half of their sentence. Prisoners serving finite terms of imprisonment of more than 24 months are eligible for parole after serving one-third of their sentences, unless the court has imposed a minimum non-parole period longer than this. A non-parole period can be for 10 years, or two-thirds of the total sentence, whichever is the lesser. When offenders are eligible for parole, their suitability for parole will be considered once a year, although further hearings can be postponed for up to two years. Prisoners must be released on their statutory release date, if not granted parole before then.

Indeterminate sentences Prisoners sentenced to preventive detention are subject to a minimum period of imprisonment specified by the court, which must be for a term of at least five years. When offenders are eligible for parole, their suitability for parole will be considered once a year, although further parole hearings can be postponed for up to three years.

Prisoners serving life sentences for murder are normally eligible for parole after serving 10 years of their sentences, unless the court has imposed a minimum period of imprisonment longer than this. However, where there are unusual mitigating factors, the court may decide to impose a determinate sentence, rather than life. When offenders are eligible for parole, their suitability for parole will be considered once a year, although further parole hearings can be postponed for up to three years.

Prisoners

Prisoner numbers The number of prisoners in New Zealand prisons has been increasing steadily. On 10 December 2007, there were 7,771 prisoners (7,319 males and 452 females) with 6,068 sentenced prisoners and 1,703 prisoners remanded in custody. By comparison, on 29 December 2005, there were 7,420 prisoners (6,965 males and 455 females) – 6,076 sentenced prisoners and 1,344 prisoners remanded in custody.

Age and ethnicity At 30 March 2008, Māori made up 49.6 percent of the prison population (3,770), and 45.1 percent of those serving community sentences (14,135). Pacific peoples accounted for 11.6 percent of the prison population (882), and 9.2 percent of those serving community sentences (2,902).

At 30 March 2008, 44.5 percent of all Māori prisoners were serving sentences for violent offences, compared with 48.5 percent of Pacific prisoners, and 26.5 percent of European prisoners. Among Māori prisoners, 27.3 percent were aged under 25 years, compared with 29.5 percent of Pacific prisoners, and 19.0 percent of European prisoners.

Pacific peoples accounted for 9.3 percent of offenders on community sentences and orders. The statistics are boosted by the high proportion of offenders aged 15–24 years – the group most likely to come into contact with Corrections.

However, Pacific peoples have some of the lowest recidivism and re-imprisonment rates. Of prisoners released in 2005/06, only 18.7 percent of offenders in this ethnic group were re-imprisoned 12 months after release, compared with 24.9 percent of European offenders, and 31.2 percent of Māori offenders.

Table 10.15 shows that over 40 percent of all prisoners were under 30 years old. The highest proportion of both male (18.0 percent) and female (19.8 percent) prisoners were in the 20–24-year age group. Those aged 40 years and over accounted for 28.6 percent of male and 27.1 percent of female prisoners.

Major offence As table 10.16 shows, 34.4 percent of male prisoners were imprisoned for violence offences (excluding sexual violence). The next-largest groups were property offenders (22.7 percent), and sex offenders (20.4 percent).

Table 10.15. Sentenced prisoners by age group and sex
At 30 June 2007

Age group (years)FemaleMaleTotal
NumberPercentNumberPercentNumberPercent

Note: Individual figures may not add up to stated totals due to rounding.

Source: Department of Corrections

14–1610.2170.3180.3
17–19266.34146.94406.8
20–248119.81,08618.01,16718.1
25–296816.699116.41,05916.4
30–346916.889914.996815.0
35–395112.488414.693514.5
40–498621.01,12218.61,20818.7
50–59194.64217.04406.8
60+61.51823.01882.9
Age unknown30.7190.3220.3
Total410100.06,035100.06,445100.0

Female prisoners were most likely to have been imprisoned for violence (35.9 percent) and for property offences (32.2 percent). Of all those imprisoned for drug offences, 65 women represented 15.9 percent of all female prisoners, while 594 men represented 10 percent of all male prisoners.

Sentence length As shown in table 10.17, the most common sentence length for women was 6–12 months, while for men, it was 3–5 years. The 65 women serving sentences for drug offences made up 15.9 percent of all female prisoners, while the 594 men sentenced made up 9.8 percent of all male prisoners. There were 23 women (5.6 percent) serving indeterminate sentences (life or preventive detention), while 567 men (9.4 percent) were imprisoned for an indeterminate length of time.

Table 10.16. Sentenced prisoners by major offence and sex
At 30 June 2007

OffenceFemaleMaleTotal
NumberPercentNumberPercentNumberPercent

Note: Individual figures may not add up to stated totals due to rounding.

Source: Department of Corrections

Violence14735.92,07134.32,21834.4
Sexual violence82.01,30821.71,31620.4
Against property13232.21,33322.11,46522.7
Involving drugs6515.95949.865910.2
Traffic409.85589.25989.3
Miscellaneous184.41712.81892.9
Total410100.06,035100.06,445100.0

Table 10.17. Custodial sentence length imposed by sex
At 30 June 2007

SentenceFemaleMaleTotal
NumberPercentNumberPercentNumberPercent

(1) Indeterminate length means either life or preventive detention.

Note: Individual figures may not add up to stated totals due to rounding.

Source: Department of Corrections

Up to 3 months102.4581.0681.1
3–6 months122.91592.61712.7
6–12 months7718.85619.36389.9
1–2 years7017.179013.186013.3
2–3 years7618.597816.21,05416.4
3–5 years7418.01,23720.51,31120.3
5–7 years317.661910.365010.1
7–10 years317.660510.06369.9
10 years and over61.54617.64677.2
Indeterminate(1)235.65679.45909.2
Total410100.06,035100.06,445100.0

Offending history In table 10.19 (overleaf), the number of previous sentences served by prisoners gives an indication of the extent of offending careers. For female prisoners, 60 percent had no previous sentences, but 33.6 percent had between one and five previous sentences, and 6.4 percent had more than six previous sentences. For male prisoners, these proportions were 38.0, 44.3 and 17.6 percent, respectively. Thirty-three men had between 21–50 previous sentences.

Table 10.18. NZQA(1) units and credits achieved by prison inmates
2006/07

ActivityUnits achievedCredits achieved

(1) New Zealand Qualifications Authority.

Source: Department of Corrections

Engineering
   Concrete products4501,635
   Asset maintenance4861,041
   Light engineering337940
   Other engineering66106
   Garages1929
Subtotal1,3583,751
Internal services
   Catering2,3055,180
   Sundry internal services116258
   Laundry271980
Subtotal2,6926,418
Land-based
   Grounds277664
   Nurseries5332,474
   Farms8942,700
Subtotal1,7045,838
Timber and textiles
   Contract gangs35134
   Joinery289474
   Processing121227
   Textiles450991
   Forests9172,517
Subtotal1,8124,343
Total7,56620,350

Table 10.19. Previous periods in custody by sex
At 30 June 2007

NumberFemaleMaleTotal
NumberPercentNumberPercentNumberPercent

Note: Individual figures may not add up to stated totals due to rounding.

Source: Department of Corrections

024660.02,29438.02,54039.4
15914.491915.297815.2
2338.067111.170410.9
3–54611.21,08918.01,13517.6
6–10204.975212.577212.0
11–2061.52774.62834.4
21–5000.0330.5330.5
Total410100.06,035100.06,445100.0

Inmate employment In October 2007, 45.5 percent of the prison population and 56.8 percent of sentenced prisoners were engaged in employment or training. A total of 3,755 prisoners were engaged in work activities – 1,799 in business-like industries, 147 in the Release to Work programme, 27 in trade and technical training, and 1,782 in unit-based activities.

  • Business-like industries – more than 140 business-like industries operate in prisons nationwide. They aim to provide work environments that match, as closely as possible, comparable industry environments.

  • Work parties – low security, supervised groups of prisoners work for councils, communities, or businesses outside the prison. Contracts include forestry, horticulture, farming, construction, and grounds maintenance.

  • Release to work – low security' prisoners approaching the end of their prison sentence are sometimes eligible to work for an approved employer, with a view to maintaining their employment on release. Such prisoners must meet strict eligibility criteria and demonstrate that they are highly motivated to work.

  • Industry training – prisoners can undertake industry training (within the prison environment) through the New Zealand Qualifications Authority (NZQA) framework, to gain unit standards or industry-certified national certificates. Table 10.18 (on page 213) shows the number of units and credits achieved by prison inmates for the year to 30 June 2007.

  • Unit-based activities – prisoners are employed in the cleaning and care of their unit, community work parties, and other constructive activities.

Earnings Modest earnings are paid to prisoners who work, or are involved in some reintegrative programmes. Amounts vary, depending on the nature of the work or activity, and the standard of performance. Money is banked in a personal trust account, and prisoners can spend it on personal items through a weekly shopping system. Any person who has been in custody for more than 31 days is eligible, on release, for the Steps to Freedom grant administered by the Ministry of Social Development. The grant is up to $350, but the amount of money in a prisoner's trust account on final release is deducted from the grant.

Punishments A prisoner charged with an offence against prison discipline appears before an authorised staff member or a Visiting Justice. If the prisoner is found guilty, a penalty may be imposed. Serious criminal offences by prisoners are referred to the Police for investigation.

New Zealand Police

National administrative and operational control of the New Zealand Police is vested in the Commissioner of Police. Police National Headquarters in Wellington provides policy advice and support to the government through the Minister of Police, and to the country's 12 police districts.

Each district is managed by a district commander, with a number of service centres throughout New Zealand providing administrative support to districts.

Police are responsible for enforcing the criminal law, principally through the Crimes Act and the Summary Offences Act, but also through various other statutes such as the Arms Act, the Sale of Liquor Act, the Gambling Act, the Misuse of Drugs Act, the Children Young Persons and Their Families Act, the Police Act, and the Transport Act.

Trained police prosecutors undertake summary prosecution, in district courts, of criminal offences investigated by the police.

At 30 June 2007 there was a full-time equivalent force of 7,891 sworn officers (506 more than at 30 June 2005). There were also 2,770 non-sworn, full-time equivalent personnel (up 424 on the 2005 figure).

Figure 10.03 shows the New Zealand population per sworn officer from 1916–2006.

Figure 10.03.

Table 10.2. Reported assaults on police
Year ending 30 June

YearAssaults involving weapons (firearms)Total
Source: New Zealand Police
199871 (23)1,924
199957 (13)1,878
200059 (19)1,965
200166 (18)1,997
200292 (30)2,150
200388 (31)2,072
200475 (30)2,053
200587 (37)1,869
200684 (22)2,123
200788 (31)2,248

Police operations

Armed offenders squads Police maintain 17 armed offenders squads of specially-trained and equipped officers throughout New Zealand. In the year ending 30 June 2007, armed offenders squads were deployed 620 times. The squads work with police negotiators and other specialist police support staff.

Special Tactics Group This group consists of selected members of armed offenders squads from Auckland, Wellington and Christchurch. It receives specialised training to enable it to deal with incidents beyond the capability of armed offenders squads. The group was deployed 32 times during the 2006/07 year.

Search and rescue There were 1,513 police-controlled search and rescue operations during the year ending 30 June 2007, which searched for and/or rescued over 1,770 people. The comparable activity in 2005/06 was 1,411 searches and more than 2,960 people being assisted.

National Drug Intelligence Bureau As shown in table 10.21, there were significant reductions in seizures in the year ending 31 December 2007 – for methamphetamine, cocaine, LSD, GHB/GBL (Fantasy type drugs), cannabis plants/leaf, and pseudoephedrine.

There are several explanations which, in part, illustrate the reasons for the decreases recorded in 2007 compared with 2006.

  • Since methamphetamine seizures in 2006 were characterised by one significant seizure of 95,000 grams, the 39,304 gram total seized in 2007 illustrates an overall increasing trend. New Zealand faces continuing challenges from both domestically manufactured methamphetamine and imported crystal methamphetamine.

  • Cocaine seizures in 2006 were elevated by a series of significant border interceptions of cocaine destined for the Australian market.

  • LSD seizures in 2006 spiked upwards, but in 2007 have returned to the levels experienced in earlier years.

  • GHB/GBL (Fantasy) seizures in 2006 were dominated by one significant seizure of 200,000ml.

  • Cannabis plant seizures in 2007 show a continued overall decline since 2002. The statistics do not reflect a reduction in either the known supply of, or demand for, cannabis, which continues to be widely available throughout New Zealand.

  • Cannabis leaf seizures in 2007 also show a decline compared with 2006.

There was a further reduction in seizures of MDMA (Ecstasy) in 2007, down from a peak of 266,175 tablets in 2003. However, MDMA remains popular in New Zealand.

In 2007, a total of 190 clandestine drug laboratories were detected and dismantled. A significant reduction has been recorded in seizures of pseudoephedrine/ephedrine tablets (the active ingredient used in the manufacture of methamphetamine) in 2007 compared with 2006.

Drug seizure data alone does not necessarily reflect known drug use or prevalence in New Zealand.

Table 10.21. Drug seizures(1)
By substance
Year ending 31 December

Substance200220032004200520062007

(1) Combined New Zealand Police and New Zealand Customs Service.

Symbol: .. figure not available

Source: National Drug Intelligence Bureau

Amphetamine (grams)1,5174192,146694237746
Cannabis leaf (kgs)618819625777752524
Cannabis oil (grams)1,3421,3738,2661,4062,978912
Cannabis plants (number)197,873179,416189,389170,104144,039126,688
Cocaine (grams)2677,06030,27014,11232,95525
Ecstasy/MDMA (tablets)256,350266,175115,25628,7368,7693,123
Fantasy/GHB/GBL(millilitres)5,1709,941118,81822,919202,2945,131
Heroin (grams)101,46638589134
Khat/Catha edulis (grams)...16,78730,45618,34754,3293,988
LSD (trips)4316,9667451,5293,4831,031
Methamphetamine (grams)7,7203,63228,46030,693121,83839,304
Psilocybin (grams)1,1924261,6661,766648846
Psilocybin (mushrooms)87370616728397263
Pseudoephedrine and ephedrine (tablets)254,987830,3202,159,0172,321,6452,718,8691,806,452

Police Infringement Bureau The Police Infringement Bureau administers the Speed Camera Programme and the Community Roadwatch Programme. It is the national processing centre for police-issued infringement offence notices, and also has an adjudication function in connection with these notices.

Police began speed camera operations in 1993, and since 1994 have delivered 74,000 hours of speed camera activity per year. Camera sites are selected by road safety and community groups who, together with Police, identify areas with a history of speed-related accidents. ‘Anywhere/anytime’ cameras were introduced as part of the government's Road Safety to 2010 package in December 2003. From April 2004, signs indicating speed camera zones were removed, to encourage drivers to remain within the speed limits over their whole journey.

Criminal Investigation Branch This branch of the Police is dedicated to investigating and solving serious crime, and targeting organised crime and recidivist criminals. The job of the branch is to investigate serious crimes, such as homicides, aggravated violence, sexual offending, drug offences, crimes against society, and fraud. Law enforcement teams in each police district target crime ‘hot spots’.

Modern policing tools assist most of the complex crime enquiries. A criminal investigation database is used to record and organise information gathered during serious crime investigations. Intelligence-led policing and analytical computer tools are increasingly used to help Police detect and suppress crime. Crime mapping is a tool that presents information on where certain crimes are being committed, while link charting enables detectives to plot the relationship between criminals and their activities.

Police dogs A comprehensive network of police dogs and handlers is maintained throughout New Zealand. During the year ending 30 June 2007, police dog teams were deployed to 31,729 calls for service, leading to the apprehension of 6,373 suspects. In the 2006/07 year, Police worked with 117 general-purpose dogs, seven narcotics-detector dogs, three firearms-detector dogs, and three explosives-detector dogs. Ten of the general-purpose dogs were also trained in search and rescue and victim recovery (cadaver), and 30 of the general-purpose dogs were trained to work with armed offenders squads.

Youth Education Service (YES) This service is the New Zealand Police's national strategy to deliver crime prevention programmes to schools and school communities. The mission of YES is to promote individual safety with school students and the wider school community, and to reduce the level at which these groups become either the perpetrators or the victims of road crashes, crime, and anti-social behaviour. YES promotes a curriculum for schools that has four themes:

  • crime prevention and social responsibility programmes focused on reducing the opportunity for young people to be involved in anti-social behaviour, or to commit crime

  • drug education programmes

  • road safety education, through school traffic safety teams and the RoadSense and RoadSafe Series programmes

  • violence prevention, for example, Keeping Ourselves Safe (personal safety) and Kia Kaha (anti-bullying).

There were 112 full-time equivalent youth education officers throughout New Zealand at 30 June 2007.

Youth Aid Under the Children, Young Persons and Their Families Act 1989, the 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. This aims to limit the number of young people who go on to the formal youth justice process.

Police Youth Aid currently diverts about 80 percent of young offenders out of the formal youth justice process by way of warnings, cautions, and alternative actions. There were 174.5 full-time equivalent Youth Aid staff throughout New Zealand at 30 June 2007.

Youth development Police employ 58 people nationally in district-based youth development programmes. The programmes use mentoring approaches to develop the supportive capacity of young offenders' families.

A mix of sworn police officers and non-sworn caseworkers provides holistic wrap-around services that help to shape family dynamics, and work to ensure offenders and their siblings are prevented from engaging in cycles of victimisation, offending, and re-offending. Police also manage a number of external contracts with community provider agencies that target youth offending and general violence.

Community policing Nearly 200 community constables are located throughout New Zealand. In the 2006 Budget the government agreed that an additional 250 community police would be provided by 2009. Their role will include a proactive focus on identifying and solving community crime and safety-related problems, to reduce real crime and road trauma, and increase community safety and reassurance. Community constables are helped by government, non-government, and community groups and organisations.

Some of the new community police will be focused on geographic communities (including rural); some on communities of interest such as youth, or on problems such as alcohol or graffiti; and some will be working in teams.

Thirty staff were allocated in 2006/07 to demonstration projects in Central, Wellington and Canterbury districts, and to setting up the National Community Policing Group. A further allocation of 120 staff in the districts was approved for 2007/08. The final 100 are being allocated in 2008/09.

Corporal Whitney Benoit (second from left) from the Royal Canadian Mounted Police (RCMP) visits the New Zealand Police dog breeding programme in 2007. With her, from left, are: Constable Mike Calvert and Peyton; Sergeant Mark Sanford; Senior Constable Mike More and Phagan; and Constable Matt Hay and Quade. Peyton and Phagan are from the ‘P’ litter and sons of Buddy, the dog whose semen was donated to the RCMP.

Community support groups The involvement of communities in identifying community crime and safety-related problems, and working alongside Police to assist in the creation of safer, more caring communities is fundamental to the New Zealand approach. Police work closely with partners, providing and receiving information from independent community groups, such as Neighbourhood Support New Zealand, and Community Patrols of New Zealand. Police also work closely with Victim Support, Women's Refuge, and other violence intervention, road safety, youth development, and health groups interested in reducing crime and victimisation, and making communities safer.

Contributors and related websites

Crime Prevention Unit – www.justice.govt.nz/cpu/

Crown Law Office – www.crownlaw.govt.nz

Department of Corrections – www.corrections.govt.nz

Independent Police Conduct Authority – www.pca.govt.nz

Law Commission – www.lawcom.govt.nz

Legal Services Agency – www.lsa.govt.nz

Ministry of Justice – www.justice.govt.nz

New Zealand Council of Victim Support Groups – www.victimsupport.org.nz

New Zealand Police – www.police.govt.nz

Serious Fraud Office – www.sfo.govt.nz

Chapter 11. Communications

Volunteer Chris Ballantyne sorts computers at the free community computer recycling day held in Wellington in 2006. The equipment was disassembled and the components recycled, with only 3 percent going to landfill.

In New Zealand, and around the world, information, broadcasting and telecommunication technologies are converging. These technologies play a key role in enhancing the lives of individuals and communities, and in accelerating economic growth.

The rapid expansion of the Internet has probably caused more social and economic change than any other aspect of information and communication technology (1CT). However, as full participation by local, national, and international communities becomes increasingly dependent on access to ICT and on having the skills to make use of it, the need to ensure ‘digital inclusion’ is a constant challenge.

New Zealand's small size, geographic isolation and technologically-aware population have all contributed to the widespread and rapid uptake of ICT, particularly in relation to Internet access. At 31 March 2007, there were 57 Internet service providers (ISPs) operating in New Zealand, with around 1.46 million active subscribers, providing a wide range of services, including dial-up and broadband access, and voice over Internet protocol (VoIP). New Zealand's relatively cheap dial-up Internet access facilitated the rapid adoption and diffusion of Internet use. It may, however, also have been responsible for a slower uptake of broadband services, since the expense of the latter is still comparatively high.

Several competing telecommunications companies in New Zealand offer an extensive range of ICT services, including television, telephony and Internet access. The Government has actively encouraged such competition, and, in recent years, has introduced regulations requiring the unbundling of the local loop and the operational separation of the telecommunications provider Telecom New Zealand Ltd.

The Government has implemented a wide range of ICT initiatives in e-government, health, commerce and education. The 2005 Digital Strategy, a whole-of-government strategy provided a unifying framework for ICT-related policies and initiatives.

The strategy identifies three key enabling conditions – content, confidence and connection – necessary to facilitate the transition to a ‘knowledge-based society’, allowing all New Zealanders to access and use appropriate, affordable digital technologies to find the information they need. The strategy also focuses on building partnerships between the key user groups – individuals and their communities, businesses and government.

In line with OECD guidelines, Statistics New Zealand, in collaboration with the Ministry of Economic Development, has developed a suite of surveys to measure the impact of ICT across the economy. These surveys include ICT use and uptake for businesses, government and households, with an ICT supply survey and a twice-yearly ISP census survey.

Internet use

The government was indirectly involved in establishing the Internet through its funding of universities and other research institutions, but commercial Internet services in New Zealand have been developed entirely by the private sector.

Responsibility for domain name registrations in the .nz domain (for example, stats.govt.nz) lies with InternetNZ (formerly the Internet Society of New Zealand).

The Māori Internet Society, established with help from the Māori Language Commission (among others), promotes a strong Māori presence on the Internet, and has successfully established the .maori.nz Internet domain name.

In general, there are minimal restrictions on New Zealand organisations registering a domain name in the .nz domain.

At 30 September 2007, there were 300,397 active registrations in the .nz domain. During the month of September 2007, 7,263 new domain names were created, compared with 6,900 in September 2006. In the same month, there were 12 active registrations in the .maori.nz domain and 16 in the .geek.nz domain. There are four moderated second-level domains in the .nz domain name space – .govt.nz, .iwi.nz, .cri.nz and .mil.nz.

Following a decision made early in 2005, InternetNZ has implemented a dispute resolution service for .nz domain names, based on the Nominet UK system, which has been in place successfully for a number of years. The dispute resolution service provides an alternative-to-court action, giving parties another mechanism to resolve disputes.

Of New Zealand's 1.46 million Internet subscribers at 31 March 2007, 84.9 percent were residential (household) subscribers, who provided 73.1 percent of the revenue. Business/government subscribers accounted for 15.1 percent of subscribers and provided 26.8 percent of the revenue. In the six months to September 2007, the number of broadband subscribers overtook the number of dial-up subscribers.

Figure 11.01.

E-government

The information and communication technology branch of the State Services Commission (SSC) is responsible for implementing the Government's vision to enable all New Zealanders to use information and communication technology (ICT) to access government information and services, and to participate in democratic processes.

The E-government Strategy is the whole-of-government approach to transforming how agencies use technology to deliver services, provide information, and interact with people, as they work to achieve the outcomes sought by Government. Government agencies will use technology to provide complete services for both simple and complex transactions. These might be handled by agencies on their own or in conjunction with others. The strategy anticipates that by 2020, people's engagement with government will have been transformed, as increasing and innovative use is made of the opportunities offered by network technologies.

All government agencies are using the Internet, including websites, to provide ready access to government information and services. Technology is also being used to group services at a single point of entry, making online access to services more convenient, allowing multiple transactions on one site. Customers forming a company online can register for goods and services tax (GST) and apply for an IRD number at the same time. These numbers are returned to the customer and all changes immediately updated between Inland Revenue and the Companies Office.

The government portal, www.newzealand.govt.nz, enables convenient public access to government information and services in one place, without needing to know in advance which agency provides the resources. The portal searches not only government web pages, news and images, but also some government information sets that are not available on the World Wide Web.

The business portal, www.business.govt.nz, groups business services at a single point of entry, providing information and tools designed to help people start, manage or grow their business, and deal with the day-to-day challenges along the way. It brings together government and non-government business-related information.

Agencies are increasingly sharing electronic data through the use of the Internet and CDs. In June 2007 there were 44 active authorised information-matching programmes out of an estimated 76 authorised programmes permitted by the Privacy Commissioner. This compares with an estimated 21 authorised programmes in June 1998.

Widespread adoption of information-sharing standards, such as the e-government interoperability framework (e-GIF) developed by the SSC, is helping to make information-sharing easier and less expensive for agencies. The use of the e-GIF is mandatory for all public service departments. Updated web standards released in 2007 are an important part of ensuring that online government information and services are accessible to everyone. They give government agencies clarity and direction on how to use the Internet to deliver information and services.

The SSC is developing infrastructure to help agencies integrate information and services. The ongoing development of a whole-of-government network infrastructure supports information-sharing across agencies and reduces the transaction burden on the end-user. The government log on service and the identity verification service will provide government agencies with a high level of confidence as to the identity of the online user, place people in control of their transactions, and protect their privacy. The government shared network is a high-speed inter-agency network that enables State-sector agencies to share information securely and more cost-effectively.

Indications are that e-government is welcomed by New Zealanders, with Nielsen NetRatings research showing that government websites (as a group) are in the top six websites accessed by New Zealanders. The two main reasons for visiting government websites are to find information and to download a form or brochure. An increasing number of government forms can be fully completed online, and the number of sites where people can carry out an online transaction with government is growing. Fifty-six percent of all government organisations' websites contained interactive information (for example, online forms), 28 percent had dynamic information (for example, webcams) and 26 percent offered online transaction services.

Figure 11.02.

E-commerce

New Zealand has a highly competitive information and communication technology (ICT) market, with a range of equipment and software companies supplying both the domestic market and niche markets overseas. Total sales of ICT goods and services were valued at $17,643 million in 2005/06. Of these sales, 90.9 percent ($16,033 million) were solely domestic and 9.1 percent ($1,610 million) were to export markets. This represents a 7.9 percent increase in total sales, with domestic sales rising 6.9 percent and export sales rising 19.9 percent from sales in 2004/05.

In 2005/06, sales of ICT services increased 7 percent to reach $9,518 million, while sales of ICT goods (including published software) increased 9.1 percent to $8,125 million. Sales of telecommunications and program distribution services increased 5.8 percent, to reach $5,803 million. Additionally, sales of Internet access and Internet telecommunication services increased 32.5 percent to reach $595 million in 2005/06.

In 2005/06, export sales of ICT goods were 78.3 percent ($ 1,260 million) of the total export value ($1,610 million), while ICT services accounted for 21.7 percent ($350 million) of the total. The highest value exported commodity category is electronic devices and equipment, which increased from $97 million in 2004/05 to $523 million in 2005/06. This represents 32.5 percent of the total value of exports in 2005/06.

Spam is a term generally used in relation to unsolicited and unwelcome electronic messaging, normally in the form of unsolicited bulk emails that market products. Spam uses up network resources and the productive time of computer users, is a vehicle for viruses and scams, and undermines user confidence in the use of electronic communications.

The government has adopted a multilateral strategy to combat spam, which includes legislation in the form of the Unsolicited Electronic Messages Act 2007; self-regulation in the form of industry codes of practice; technical measures, education and awareness-raising for users; and international cooperation. The Unsolicited Electronic Messages Act prohibits the sending of commercial electronic messages (as defined by the Act) without the consent of the recipient, which may be express, inferred or deemed. The Act is enforced by the Department of Internal Affairs.

Industry codes of practice have been developed by service providers for text messaging and email. The Direct Marketing Association has also developed a code of practice for e-marketing.

Broadcasting

Broadcasting policy

The Government has given renewed priority to the role of broadcasting in contributing to the nation's culture and identity, and to the promotion of a well-informed participatory democracy. Broadcasting is also undergoing rapid technological change, presenting the sector with new opportunities and challenges.

In July 2000, the Government formulated a set of broadcasting content objectives that guided subsequent decisions, such as reorientation of Television New Zealand's (TVNZ) direction and the allocation of non-commercial spectrum. The objectives are designed to:

  • ensure that all New Zealanders have reasonable and regular access to broadcasting that represents the uniqueness and diversity of New Zealand life, recognising that the histories and stories of whānau (family), hapū (subtribe) and iwi (tribe) are integral to any description of that life

  • meet the information and entertainment needs of as many interests as reasonably possible, including those that cannot be met by commercial broadcasting

  • contribute to public awareness of, and participation in, the political and social debates of the day

  • provide for minority interests and increased choice

  • encourage innovation and creativity in broadcasting, while aiming to continually increase audience satisfaction with the quality of content.

One of the most significant changes resulting from these objectives was the Television New Zealand Act 2003, which transformed TVNZ from a state-owned enterprise into a Crown company. Its charter sets out, in broad terms, the kind of programming it is to provide. The Act requires TVNZ to keep a balance between giving effect to the public broadcasting objectives embodied in the charter and maintaining its commercial performance. In 2006/07, the Government granted direct funding of $24,808 million to TVNZ for charter purposes.

In February 2005, the Government published a broadcasting programme of action setting out a series of priority areas for broadcasting policy to the end of the decade. The programme encompasses work on the funding of broadcasting, the future role of public broadcasters, the transition to digital transmission, and the enhancement of regional broadcasting, among other tasks.

The Ministry for Culture and Heritage's policy work on New Zealand's transition to digital television contributed, in May 2007, to the launch of the Freeview satellite service – a consortium of free-to-air broadcasters whose founding members are TVNZ, Media Works, Māori Television and Radio New Zealand.

A new policy framework to guide the development of regional and community broadcasting policy was established. Its goals are to enable a range of broadcasting services, content and formats for regional, local and community, and minority audiences, including ethnic minorities, communities of interest and students. The framework promotes local and diverse broadcasting in ways that are accessible to audiences both culturally and technically, as well as future-proofed for long-term developments affecting broadcasting.

Broadcasting Commission (NZ On Air)

The role of NZ On Air is to promote cultural and social objectives in broadcasting that are seen as unlikely to receive sufficient commercial provision. Members of the commission are appointed by the Minister of Broadcasting. The statutory objectives of NZ On Air are to:

  • reflect and develop New Zealand identity and culture by promoting programmes about New Zealand interests and by promoting Māori language and culture

  • maintain and, where considered appropriate, extend radio coverage to New Zealand communities that otherwise would not receive a commercially-viable signal

  • ensure programmes are available to provide for the interests of women, youth, children, people with disabilities, and minorities in the community, including ethnic minorities, and encourage broadcasts that reflect the diverse religious and ethical beliefs of New Zealanders

  • encourage the archiving of programmes likely to be of historical interest to New Zealand.

NZ On Air fulfils these objectives by providing funds for the broadcasting, production and archiving of programmes. When allocating funds 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.

NZ On Air's activities are funded by the government under the Vote Culture and Heritage allocation. In the 2005/06 financial year, NZ On Air spent $70.04 million on production of television programmes, and $27.32 million on National Radio and Concert FM. It also spent $4.83 million on New Zealand music projects, $1.16 million on broadcasting archives and more than $820,000 on a variety of programmes for commercial radio.

Broadcasting Standards Authority

The Broadcasting Standards Authority is a Crown entity set up by the Broadcasting Act 1989, reporting to Parliament through the Minister of Broadcasting.

The authority's mission is to support fairness and freedom in broadcasting through impartial complaints determination and research, and through stakeholder engagement.

The authority does not deal with complaints about advertisements, except for party political and parliamentary candidate advertising on radio and television during the lead-up to an election.

The authority consists of four members, one of whom is appointed after consultation with broadcasters and another who is appointed after consultation with public interest groups.

Soccer superstar David Beckham tackles the media after the Wellington Phoenix FC versus LA Galaxy game at Wellington's Westpac Stadium in 200/.

Of the 156 decisions issued by the authority in the year ending 30 June 2006,19 were upheld in part or in total, 127 were not upheld, four were interlocutory and six were unable to be determined. Of the complaints upheld, 11 related to balance, fairness and accuracy standards and three related to matters of good taste and decency (including language).

Māori broadcasting

Under the Radio Communications Act 1989, frequencies suitable for radio and television were reserved throughout New Zealand for the promotion of Māori language and culture.

From 1989 to 1994, NZ On Air provided public funding for operating and capital costs of iwi radio stations and for the production of Māori programmes broadcast on network television.

The Broadcasting Amendment Act 1993 established the Māori broadcasting funding agency Te Reo Whakapuaki Irirangi, which operates as Te Māngai Pāho. Te Māngai Pāho has the function of promoting Māori language and Māori culture by making funds available for broadcasting and the production of programmes to be broadcast.

On 1 January 1995, Te Māngai Pāho assumed primary responsibility for allocation of public funding for Māori broadcasting. This includes the purchase of Māori language programming broadcast on national television and Māori language content from 21 iwi radio stations. Māori radio programming is also purchased from programme providers through contestable funding rounds and the programmes made available to Māori stations by means of a nationwide radio programme distribution service. Te Māngai Pāho also funds the production of music singles and albums in the Māori language.

In 2001, the Government confirmed its intention to establish a Māori television channel, and the Māori Television Service Act was passed in 2003. The channel, known as Māori Television, began transmission on 28 March 2004 on free-to-air digital and UHF frequencies.

The principal function of the television service is to promote te reo Māori me nga tikanga Māori (Māori language, culture and heritage) through provision of a high-quality, cost-effective Māori television service, in both Māori and English, which informs, educates and entertains, and in doing so enriches New Zealand's society, culture and heritage.

Television programme funding is provided by Te Māngai Pāho through direct funding to Māori Television (for in-house production and acquisitions), and through contestable funding to other broadcasters and independent production houses (for programmes destined for Māori Television or the other national networks). In the year ending 30 June 2008, appropriation for Te Māngai Pāho's broadcasting funding was $40.3 million for television and $10.7 million for radio.

New Zealand's first 100 percent Māori language television channel, Te Reo, was launched on 25 March 2008.

Telecommunications

The level of telecommunications service in New Zealand is comparable with most other OECD countries. Market penetration is high, with more than 96 percent of households taking up fixed-line telephone services and 80 percent of individuals having had personal use of a mobile phone in the 12 months to the December 2006 quarter.

Telecom New Zealand Ltd, provider of the most extensive range of telecommunication services throughout the country, was established as a state-owned enterprise in 1987, following the break-up of the New Zealand Post Office. The telecommunications market was opened fully to competition in 1989, and up until 2001 the telecommunications sector was subject to relatively light-handed regulatory control. During this time, the government relied on competition to drive efficiency in telecommunications markets, within the bounds of general competition law.

In 2000 a ministerial inquiry into telecommunications recommended changes to the New Zealand telecommunications regulatory regime, to better meet government policy objectives. Subsequently, the regulatory regime was reformed with the passing of the Telecommunications Act 2001, which established an industry-specific telecommunications regulatory regime in New Zealand. This included setting up a Telecommunications Commissioner in the Commerce Commission, who administers regulated telecommunication services that include network interconnection, telephone number portability and wholesale telecommunication services.

The commissioner's key functions are to resolve disputes over regulated services, to report to the Minister of Communications on the desirability of regulating additional services, and to calculate and allocate the net cost of telecommunication service obligations (TSO).

In 2005, a stocktake of the New Zealand telecommunications sector was undertaken, and consequently the Telecommunications Act was amended in 2006.

Telecom's major competitors are TelstraClear and Vodafone, although there are several other small telecommunications operators in New Zealand who primarily use Telecom's fixed-line network or offer wireless solutions. Telecom and Vodafone provide cellular mobile phone services, with their networks providing extensive coverage within New Zealand. There is particularly high use of prepaid phones and SMS (short message service) messaging in New Zealand.

Given New Zealand's small population and relatively large geographic area, the more advanced telecommunication services (for example higher broadband speeds) are more available in urban areas. Nevertheless, 93 percent of the population has access to broadband via the fixed-line network, with satellite access available to all.

Regulatory bodies

The Commerce Commission is the independent regulatory body with the authority to enforce competition law in New Zealand. The Ministry of Economic Development provides advice to the government on telecommunications policy issues, manages the radio spectrum, and carries out some regulatory functions relating to communications. The ministry administers the Telecommunications Act 2001, Postal Services Act 1998, and Radiocommunications Act 1989.

Regulated services

There are two levels of access regulation provided for in the Telecommunications Act 2001 – designated services and specified services. Both are services for which there is an enforceable obligation on an access provider to supply service in accordance with any prescribed conditions. Designated services include pricing principles, while specified services exclude pricing principles.

Declared regulated services are as follows:

Designated access services, which include

  • interconnection with Telecom's fixed public switched telephone network (PSTN)

  • interconnection with fixed PSTN other than Telecom's

  • retail services offered by means of Telecom's fixed network

  • residential local access and calling service offered by means of Telecom's fixed network

  • bundle of retail services offered by means of Telecom's fixed network

  • retail services offered by means of Telecom's fixed network as part of bundle of retail services.

Designated multi-network services, which include:

  • local telephone number portability service

  • cellular telephone number portability service.

Specified services, which include:

  • national roaming

  • co-location on cellular mobile transmission sites.

Telecommunications service obligations

The Telecommunications Act 2001 provides for telecommunications service obligations (TSO) instruments for the supply of telecommunications services to meet social objectives.

The Kiwi Share TSO between the Crown and Telecom New Zealand controls the supply of local residential telephone services. The Kiwi Share TSO requires that a price-capped local telephone service (including an option for unlimited non-chargeable local calls) be available to residential users.

The Kiwi Share TSO commits Telecom to:

  • not increasing in real terms the standard line rental, provided that the overall profitability of Telecom's fixed business is not unreasonably impaired

  • the standard line rental for customers in rural areas being no higher than for customers in urban areas

  • local residential telephone service being as widely available as it was in December 2001

  • 99 percent of residential telephone lines being capable of supporting a connect speed of at least 9.6 kbps

  • a range of specific service quality standards

  • reporting of service performance to the Crown and the Telecommunications Commissioner.

A TSO instrument has been established for a telecommunications relay service to meet the communications needs of people who are deaf, hearing impaired, and speech impaired. The service was launched in November 2004.

The TSO framework is currently being reviewed. This review will focus on:

  • TSO requirements for the supply of telephone and Internet access services

  • TSO role in the supply of emergency call services

  • TSO role in the supply of rural broadband services

  • rules for the application of TSO levies on the industry to recover charges for services supplied under TSO instruments.

Recent changes to the regulatory regime

In December 2005, the Government commenced a stocktake of the New Zealand telecommunications sector. The purpose of the stocktake was to consider developments in the telecommunications sector as a whole over the medium term (three to five years).

As a result of the stocktake, a package was announced in May 2006 that included:

  • requiring unbundling of the local loop and sub-loop copper-wire lines between telephone exchanges and homes and businesses

  • regulatory action, such as information disclosure, accounting separation of Telecom's business operations, and an enhanced Commerce Commission monitoring role to ensure improved competition

  • removing constraints on the existing regulated unbundled bit-stream service (UBS) ensures Internet service providers (ISPs) can offer better and cheaper broadband at upload speeds faster than 128kbps

  • encouraging investment in alternative infrastructure, such as fibre, wireless and satellite networks by measures including a review of public sector investment in telecommunications infrastructure, to encourage a whole-of-government approach

  • developing a rural package and expansion of the Digital Strategy Broadband Challenge Fund (a fund established to assist development of open access networks to offer affordable broadband).

The Telecommunications Amendment Bill was passed in December 2006, and since its introduction the Commerce Commission has initiated standard term determination processes for the following sub-loop related services (in addition to already regulated services that were rolled over in 2007):

  • unbundled copper local loop from Telecom's distribution cabinets

  • backhaul from Telecom's distribution cabinet to the exchange

  • co-location services at Telecom's distribution cabinets.

The Commerce Commission also recommended regulation of mobile termination, however, the minister rejected this recommendation. Both Telecom and Vodafone have separately provided deeds setting out binding commitments related to mobile termination that they are willing to implement if mobile termination services are not regulated.

In September 2007, the Minister of Communications made a determination of further requirements, additional to those already set out in the Telecommunications Act 2001, with which Telecom's three-way operational separation plan must comply. The Minister of Communications received Telecom's draft separation plan in October 2007, which was amended following public consultation. In December 2007, the minister released an amending determination updating this determination of requirements for Telecom's operational separation and called for public submissions on Telecom's amended separation plan.

Telecommunications relay service (TRS) was established under the TSO framework of the Telecommunications Act 2001. The TRS was launched in November 2004, and is designed to meet the telephone communication needs of deaf, deaf-blind, hearing impaired and speech-impaired people. Sign language became the third official language of New Zealand (after English and Māori) when the New Zealand Sign Language Act 2006 was passed.

Telecom Corporation of New Zealand Ltd The Telecom group provides a full range of Internet, data, voice, mobile and fixed-line calling services to customers in New Zealand and in Australia. Telecom has been privately owned since September 1990 and listed on stockmarkets in New Zealand, Australia and New York. It has 50,000 New Zealand shareholders, representing about 28 percent of its total shareholders, with a further 28 percent in Australia.

Telecom has New Zealand's most extensive telecommunications network and directly employs almost 7,000 staff in New Zealand. Telecom provides trans-Tasman solutions through Gen-i, and owns AAPT/PowerTel – the third-largest telecommunications provider in Australia.

Telecom has been investing increasing amounts in its New Zealand operations and its forecast capital expenditure for 2007/08 is $865 million. Recent New Zealand capital expenditure was $701 million for 2006/07 and $620 million for 2005/06. Investments include a new W-CDMA mobile network and faster broadband technology.

Telecom's network was one of the earliest in the world to be digitised and is now being transitioned to a next-generation Internet protocol-based network. The new network will deliver voice, video and data services over one connection. About 20,000km of fibre-optic cable already forms a central part of Telecom's network.

At 30 September 2007, Telecom had more than 2 million mobile connections, 1.4 million fixed-line residential customers in New Zealand and 694,000 broadband customers (including residential, business, wholesale and mobile broadband connections). Telecom Wholesale had 192,000 access lines and 188,000 broadband connections.

In late 2006 Telecom announced a new partnership with Yahoo! to form a joint venture called Yahoo!Xtra. In March 2007, Telecom sold its Yellow Pages Group business to a private equity consortium for $2.24 billion.

TelstraClear Ltd is a voice and data company providing innovative products and services to the business, government, wholesale and residential sectors. TelstraClear has a customer base of around 400,000, made up of residential users around New Zealand, and business clients in every major central business district and in more than 30 regional centres. TelstraClear Ltd is wholly owned by Telstra Corporation Ltd, Australia's largest telecommunications company.

Vodafone New Zealand is New Zealand's leading mobile operator, providing a wide range of services, including voice and data solutions, to more than 2.3 million customers.

Vodafone Group acquired its New Zealand business (previously known as BellSouth New Zealand) in November 1998. At the time of purchase, BellSouth had 138,000 customers.

At 31 December 2007, Vodafone New Zealand had 2.3 million customers and a 52 percent share of connections in the New Zealand mobile market. Vodafone has more than 1,500 mobile phone sites around New Zealand making up its GSM digital network, covering 97 percent of the population. Since its arrival in New Zealand, Vodafone has brought competition to the mobile market and introduced a raft of products and services for business and consumers, including prepay, TXT, PXT, video PXT, the BlackBerry™ handheld device, and international voice and data roaming.

In August 2005, Vodafone launched its new 3G network, which supports real-time, face-to-face video calling, full-track music downloads to mobile, mobile television and the high-speed Vodafone mobile connect datacard. Vodafone has extended that service with 3G broadband, offering New Zealanders an affordable, viable alternative to fixed-line options.

Vodafone has invested more than $2 billion in New Zealand since 1998 and supports a wide range of community, sporting and charitable initiatives, including the Vodafone New Zealand Foundation. Vodafone employs around 1,600 people, with most based in Auckland.

TUANZ the Telecommunications Users' Association of New Zealand (TUANZ) recognises the value of effective and efficient use of information technology in business, and is committed to leading the innovative use of e-commerce in New Zealand. The purpose of TUANZ is to lead informed and sophisticated usage of technology-based communications by New Zealand businesses.

Broadband (high-speed Internet) data services share the characteristics of high speed and being ‘always on’ (that is, users do not need to establish specific connections to a service provider, apart from an initial set-up). Almost nationwide broadband coverage is available either through terrestrial wire and wireless services, accounting for approximately 95 percent (predominantly DSL), or via satellite technologies. Residential uptake has been relatively low compared with other OECD countries, but is accelerating quickly as prices reduce, following decisions made by the Telecommunications Commissioner with regard to regulating an unbundled bit-stream service (UBS).

Non-analog (broadband) became the main connection technology in the six months to September 2007, when the number of broadband connections overtook the number of analog (dial-up) connections for the first time, with 829,300 broadband subscribers and 675,800 dial-up subscribers.

Text messaging is the most widely used mobile data service on the planet, with over 70 percent of all mobile phone users worldwide (or 1.9 billion out of 2.7 billion phone subscribers) at the end of 2006 being active users of text messaging.

Broadband subscribers continued to increase over this period, up 14.4 percent, but this growth rate was slower than the 28.6 percent increase recorded in September 2006, and the 18.5 percent increase in March 2007. Subscribers with dial-up connections fell 8.6 percent in the six months to September 2007.

A number of relatively small, localised wireless operators have entered the telecommunications market offering broadband wireless services using general user radio licence spectrum (2.4 and 5 GHz bands). In addition, there are many private or semi-private networks using the general user licence spectrum. Since operators are not required to obtain permits or to register services, the number of such networks is not known.

Advanced network The New Zealand Government has committed to development and construction of an advanced network for New Zealand. The network will be made up of an optical network ‘backbone’ linking research and educational institutions in Auckland, Hamilton, Palmerston North, Wellington, Christchurch and Dunedin, with regional connections to Hawke's Bay, Nelson and Rotorua. Its members will include New Zealand's tertiary education institutions, Crown research institutes and the National Library.

The advanced network is focused on the specific needs of the research, education and innovation communities. The network will deliver at least 1 gigabit/second data to research institutions, with backbone speeds expected to exceed 40 gigabits/second within a few years.

High performance computing centres There are several centres in the North Island, and the Canterbury Development Corporation is developing a proposal for another in the South Island. The National Institute of Water and Atmospheric Research (NIWA) has a CRAY 3TE parallel supercomputer (Maui) with 17.6 terabytes of storage capacity. When first installed in 1999, it was ranked as the 64th most powerful computer in the world. It has very-high-speed interconnection between 32 powerful microprocessors and its theoretical peak performance is 638 gigaflops (638 x 109 operations a second). It is mainly used for modelling climate, ocean, fisheries and the atmosphere.

The University of Auckland has an IBM eServer POWER4-based supercomputer, the Regatta H 32 processor with 32 gigabytes of operating memory. It is mainly used for biological modelling and bioengineering, such as that used for the Physiome Project, the world's first accurate computer model of a human heart – it behaves like a human heart when subjected to chemical or electrical changes, drugs or other influences.

The New Zealand Supercomputing Centre (NZSC) in central Wellington is one of the world's largest commercially-available supercomputing clusters, and is a joint venture between Weta Digital and Telecom subsidiary Gen-i. The servers were originally set up for use by Weta Digital to help create special effects for The Lord of the Rings films. The NZSC can provide up to 5.6 teraflops of pure processing power for high-intensity computing applications and projects.

Victoria University of Wellington (VUW) has implemented a computational grid consisting of 175 Unix workstations any or all of which can be brought to bear on a single problem, such as gravitational lens and random evolution modelling. VUW is in the process of expanding the grid to include 900 Windows workstations located in various student computing suites. Sun's Grid Engine has been used to implement the Unix Grid and Condor has been used to build the Windows-based grid. Globus will be used to integrate the two into a single computational resource.

Television broadcasting

Television New Zealand (TVNZ) is a Crown entity company under the Crown Entities Act 2004. TVNZ is New Zealand's largest free-to-air public broadcaster. It operates under a charter incorporated into the Television New Zealand Act 2003.

TVNZ operates four channels, TV ONE and TV2, and another two digital-only channels, TVNZ 6 and TVNZ 7, which are broadcast through the Freeview platform.

TVNZ also runs an online ‘catch-up TV’ service called TVNZ on demand, which makes some popular television shows and some shows that have screened in the past week available to download and view. Most of the locally made content is free to download, while most of the international content has a cost, and therefore a licence has to be purchased to download it.

About 90 percent of TVNZ's revenue is gained through commercial activity, such as advertising, licensing and merchandising, and hiring out production resources. Approximately 10 percent of its revenue comes from government sources.

The TVNZ charter provides a guide to its broadcasting responsibilities and makes it clear that TVNZ's role is to reflect and explore what it means to be a New Zealander.

As a Crown entity incorporated under the Companies Act 1993, it has a board of directors appointed by the company's shareholding ministers – the Minister of Broadcasting and the Minister of Finance. Day-to-day management of the company is delegated to the chief executive officer. TVNZ's editorial independence is enshrined in legislation (the Television New Zealand Act 2003) and freedom from political influence is a fundamental principle.

Table 11.01. Hours of local content on network television(1)

YearTV ONETV2TV3PrimeMāori TVC4Total

(1) From 2004, local content on television is measured on an 18-hour clock (6am to midnight) basis. Prior to this, a 24-hour clock was used.

Symbol: ... not applicable

Source: NZ On Air

19962,4071,2551,404.........5,066
19972,6381,3241,639.........5,601
19983,5031,3071,487.........6,297
19993,5161,3341,292.........6,142
20003,5441,1581,484.........6,186
20013,5871,2981,305.........6,190
20024,0031,7581,439.........7,200
20033,5861,7421,347.........6,675
20043,4011,6031,420.........6,424
20053,5511,5231,381571......7,025
20063,4921,2701,3008632,3231,00810,256

TVNZ earned $375.2 million in operating revenue in 2006/07, mostly from advertising ($312.8 million) and commercial production funding ($27.7 million). The remainder ($34.7 million) came primarily from government sources, including charter funding, New Zealand On Air, and Te Māngai Pāho.

TV3 is a free-to-air television station that primarily targets viewers aged 18–49. With strong emphasis on news, current affairs, and quality local and international entertainment programming, it is the leading privately-owned free-to-air television station in New Zealand.

TV3 began operating and was floated in 1989, when New Zealand's broadcast industry was deregulated. After a shaky start, it was placed in receivership in 1990, and was then de-listed in 1991. The company remained in receivership until the Government relaxed restrictions on foreign ownership in December 1991, allowing the Canadian broadcaster Can West Global Group to buy 20 percent of TV3. Over the course of the next few years, CanWest gradually bought more of the station, until it gained 100 percent ownership in November 1997.

Over the next 10 years, CanWest continued its move into New Zealand media ownership, launching TV4 (now C4) and purchasing the companies and stations that now make up the Radio Works stable. It also launched the new media section of the company, known as Networks.

On 29 July 2004, the MediaWorks IPO (Initial Public Offering) took place. At this time, CanWest MediaWorks (NZ) Limited acquired the New Zealand radio and television businesses of the CanWest Global Group (RadioWorks and TVWorks). Thirty percent of its interest was sold to the investing public.

Between 2004 and 2007, TV3 launched the current affairs show Campbell Live and the breakfast television show Sunrise, as well as securing the rights to the 2007 Rugby World Cup. This was also a period of growth for 3 News.

On 15 June 2007, Ironbridge Capital, a leading independent Australasian private equity group (through its subsidiary HT Media), purchased CanWest's controlling 69.99 percent share in MediaWorks. Over the course of the next month, Ironbridge continued to accumulate additional shares, and on 20 July 2007 it announced an arrangement with Brook Asset Management to acquire its 8.7 percent stake in the company. This pushed the ownership over the 90 percent threshold necessary to make it compulsory for the outstanding shareholders to sell. The parent company, now known simply as MediaWorks NZ, was consequently de-listed from the New Zealand Stock Exchange.

Prime Television (Prime) acquired 34 UHF licences covering all major cities and towns in New Zealand in 1997, and started broadcasting in August 1998. Prime is a free-to-air terrestrial broadcaster, with its main office in Auckland, and regional sales offices in Hamilton, Tauranga, Wellington, Christchurch and Dunedin. An initial potential reach of 65 percent of the population expanded to 71 percent by the end of 2001, and to more than 90 percent by November 2003. In March 2002, Prime began broadcasting an entertainment-based programme schedule following a joint-venture agreement with Nine Network of Australia, departing from its initial British programming line-up. In February 2006, the Commerce Commission approved a $30.26 million takeover of Prime by SKY.

SKY Network Television Ltd (SKY) is primarily a pay television company. It began broadcasting in May 1990 using scrambled UHF channels. At 31 December 2007, SKY had 720,919 subscribers. SKY's UFIF signal reaches more than 83 percent of New Zealand households. In December 1998, SKY launched its digital direct broadcast satellite service, which reaches all of the estimated 1.5 million households that have a television.

SKY broadcasts more than 100 entertainment channels on its digital satellite platform and four on its UHF terrestrial platform. SKY owns and operates 11 of its channels, including SKY sports channels, the Box, Vibe, the Rugby Channel and SKY movie channels. In February 2006, the Commerce Commission approved a $30.26 million takeover bid by SKY for the free-to-air channel operated by Prime Television.

Trackside broadcasts live racing, race results and programmes about racing on a nationwide basis, using UHF and satellite frequencies. It is owned by the New Zealand Racing Board.

Non-commercial television The government has reserved UHF frequencies nationwide for the provision of non-commercial (community access) television services. Since 1998, the Ministry of Economic Development, latterly on the recommendation of the Ministry for Culture and Heritage, has offered licences for non-commercial use to broadcasters in the Far North, Whangarei, Auckland, Waikato, Bay of Plenty, Wellington, the Wairarapa, the East Coast, Christchurch and Oamaru regions. Many of these stations are getting national exposure on the Freeview and SKY satellite services via the Stratos network. In Budget 2005, public funding was made available for regional television for the first time, and funding support was significantly increased for noncommercial local radio. This funding is channelled through NZ On Air.

Regional and local television services A number of small regional television services operate throughout New Zealand, providing schedules with diverse programmes, including music television and mixed local and international news and entertainment. Other services provide information about local events and attractions, targeted primarily at tourists.

Local television services operating in 2007 included Te Hiku TV (Kaitaia), Family Television Network (Warkworth), Triangle Television (Auckland), Shine TV (Auckland), Family TV (Waikato), ITV Live (Matamata), Family TV (Rotorua), East Coast Television (Gisborne), Tararua Television (Tararua), Triangle Television (Wellington), Channel 61 (Taupo), TV Hawke's Bay (Hawke's Bay), Canterbury Television (Christchurch), 45 South Television (Oamaru), Channel 5 (Queenstown), Channel 9 (Dunedin), and Cue TV (Invercargill).

Radio broadcasting

The radio broadcasting sector consists of: public radio service Radio New Zealand; two major private owners of radio networks; other private stations; a publicly-funded Pacific radio service, Niu FM; a series of non-profit community stations; student radio stations; and a network of 21 iwi radio stations.

Radio New Zealand broadcasts over three nationwide networks: Radio New Zealand National, Radio New Zealand Concert, and the AM Network, which relays parliamentary proceedings. Radio New Zealand International (RNZI) is the overseas shortwave service, broadcasting to the South Pacific and beyond, while Radio New Zealand News provides comprehensive, up-to-the-minute news and current affairs information.

In November 2001, the Government gave priority to reserving frequencies for:

  • National Radio to be simulcast on reserved FM frequencies. Concert FM to migrate to a designated group of frequencies in the upper FM band. Following a decision that Concert FM will not now make use of these frequencies, they remain in reserve pending future decisions on the nature of youth radio services.

  • Establishment of a national service for promotion of Māori language and culture. Further decisions on the use of these frequencies are pending.

  • Establishment of a national service for Pacific peoples in New Zealand. The National Pacific Radio Trust (NPRT) is a private trust established under the Charitable Trusts Act 1957. NPRT is responsible for providing a national Pacific radio network, which is broadcast as Niu FM. In early 2007, NPRT merged with Radio 531 pi and established the media network Pacific Radio News.

Radiocommunications The radio spectrum is an important resource managed by the Crown, through the Ministry of Economic Development, on behalf of the people of New Zealand. The efficient use of this resource to support telecommunications and broadcasting services is essential to the functioning of a modern economy.

The main legislative vehicle for managing the radio spectrum in New Zealand is the Radiocommunications Act 1989, which provides for a market-based system of spectrum management, with up to 20-year tradable spectrum access rights.

Some classes of licences remain under an administrative licensing regime. In 2007, amendments to regulations introduced a five-year notice period before such licences could be revoked, with provision for a shorter period (as long as a suitable transition plan is developed in consultation with licensees).

Allocation by tender/auction The Radiocommunications Act 1989 heralded a new era for radio spectrum management, enabling use of market-driven allocation mechanisms for distribution of spectrum rights. Radio spectrum was initially sold in 1989 and 1990 using a second-price tender system, then later by first-price tender. In 1996, an Internet-based computer system was developed for the sale of spectrum by auction. There were seven rounds of tenders and nine auctions between 1989 and 2007.

From 2003, Government policy on the renewal of spectrum rights determined that, subject to a case-by-case review five years before expiry, right-holders would be offered renewal at a fair market value.

Frequencies auctioned included bands suitable for UHF television, AM and FM radio broadcasting, mobile telephony (including 3G) and wireless broadband telecommunications. Once spectrum rights have been sold by the Crown, the purchaser has the right, subject to any such conditions as acquisition caps, conditions of ownership, or use-or-lose provisions that may be attached to the rights, to resell and transfer them to other parties.

Other allocation methods The administrative licensing regime that existed before 1989 still exists in many bands. These bands are planned for various services, and licences are available on application by people wanting to use these frequencies in accordance with these plans. Examples include land mobile and various public safety and civil aviation agencies. Spectrum rights will begin to expire from 2010–2011 and, in 2003, the Government agreed on a policy regarding renewal of commercial rights.

The policy creates a presumption that current right-holders will receive an offer for the renewal of their rights for a further 20 years at a price to be determined by a price-setting formula being developed by the Ministry of Economic Development. Finally, not all use of the spectrum is on an individually-licensed basis. There are also spectrum ‘public parks’, which anyone may use in accordance with terms of the corresponding general user licence. These are often used for consumer devices, such as garage door openers.

Radio New Zealand (RNZ), a Crown entity established by the Radio New Zealand Act 1995, is the country's public service radio broadcaster. The Act established the Radio New Zealand Charter, which sets out the company's broadcasting functions. RNZ receives annual funding of about $30 million (including GST) from NZ On Air to maintain and enhance its services. Funding for Radio New Zealand International, which broadcasts primarily to the Pacific region, is provided through the Ministry for Culture and Heritage.

RNZ operates three non-commercial radio networks (Radio New Zealand National, Radio New Zealand Concert and the AM Network), a shortwave service (Radio New Zealand International), a news service (Radio New Zealand News and Current Affairs) and Radio New Zealand Sound Archives Ngā Taonga Kōrero. Radio New Zealand National and Radio New Zealand Concert began to be carried by SKY Television's digital satellite in 2000, and the networks are also carried on the new Freeview platform introduced in 2007.

  • Radio New Zealand National focuses primarily on news and information, with a mix of features, drama and entertainment programmes. Broadcasting 24 hours a day, the network reaches most New Zealanders on the AM band, and on FM in all main metropolitan centres and in several provincial areas, and also via satellite through SKY and Freeview.

  • Radio New Zealand Concert is Radio New Zealand's fine music network, broadcasting a programme of mainly classical music and spoken features about music 24 hours a day on the FM band.

  • The AM Network broadcasts all sittings of Parliament from transmitters in Auckland, Napier, Wellington, Christchurch and Dunedin. When not used for Parliament, the network is leased out.

Renee Haumaha, a breakfast announcer on air for Radio Tainui in Ngaruawahia, Radio Tainui is one of 21 iwi stations delivering programming for Māori audiences. It broadcasts 24 hours a day, seven days a week.

  • Radio New Zealand International is the country's international shortwave service, providing news and information programmes to listeners in the Pacific 24 hours a day. Radio New Zealand 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.

  • Radio New Zealand News and Current Affairs provides news coverage, current affairs and specialist reporting for Radio New Zealand National and Radio New Zealand Concert. International news services, correspondents overseas, and reporters throughout New Zealand deliver news to listeners throughout the day.

  • Radio New Zealand Sound Archives Ngā Taonga Kōrero is a subsidiary of Radio New Zealand, which gained archive status under section 90 of the Copyright Act in 1994, allowing material broadcast by any New Zealand network or station to be archived without breaching copyright. This enabled Radio New Zealand Sound Archives Ngā Taonga Kōrero to become a national collection, representing all broadcast radio providers in New Zealand, as well as preserving existing collections largely created during the era of state-owned radio.

The Radio New Zealand website was redesigned in 2005 and now carries live streaming, audio on demand and podcast services, allowing programmes to be accessed worldwide.

The Radio Network of New Zealand Ltd (TRN) owns 123 radio stations, operating in 26 markets across New Zealand.

TRN was formed following the sale of Radio New Zealand Commercial (a state-owned enterprise) by the New Zealand Government in 1996. TRN is a wholly-owned subsidiary of Australian Radio Network (ARN). Shareholders in ARN are Clear Channel Communications (US) and APN News & Media (Australia).

TRN's programme brands are Classic Hits (26 stations), Newstalk ZB (25 stations), Radio Sport (19 stations), ZM (18 stations), Radio Hauraki (14 stations), Coast (12 stations), Easy Mix (four stations), Flava (three stations) and Hokonui Gold (one station).

TRN stations reach a listening audience of 1.327 million New Zealanders aged 10 and over on a weekly basis. TRN is a joint venture partner in The Radio Bureau, which represents nearly all of the radio industry to advertising agencies and their clients.

Non-commercial radio broadcasting The Crown has reserved AM and FM radio frequencies throughout New Zealand 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, who are responsible for ensuring that all interested groups have access to airtime on the frequencies. Access radio stations operating on reserved frequencies provide airtime on a non-profit basis to a range of minority groups in the community. In 2005/06, and also 2006/07, there were 11 access radio stations in New Zealand. All were assisted by NZ On Air, whose funding for access radio was $2.29 million in 2005/06, and $2.34 million in 2006/07.

Applications for frequencies are received by the Ministry of Economic Development and allocated on the advice of the Ministry for Culture and Heritage.

Newspapers and magazines

New Zealand has a high number of daily newspapers in relation to its population. There are 23 daily newspapers, with 15 of these being afternoon papers published in provincial towns and cities. According to figures released by the Audit Bureau of Circulations, Auckland-based The New Zealand Herald had the largest audited net circulation of a daily newspaper in 2007, with a circulation of 195,681. The biggest provincial paper in 2007 was Hamilton's Waikato Times, with an audited net circulation of 41,430. Other daily newspapers have circulations ranging from about 2,000 to nearly 100,000.

The majority of daily newspapers are owned by two major publishing groups, Fairfax New Zealand Ltd and APN New Zealand Ltd. Between them, these groups account for just over 90 percent of New Zealand's aggregate daily newspaper circulation of about 720,000. The largest independent newspaper is the Otago Daily Times in Dunedin.

Table 11.02. Newspaper circulation
At 31 March

Paper (date founded)200220032004200520062007

(1) Formed by the integration of The Evening Post (1865) and The Dominion (1907).

(2) Formerly The Horowhenua-Kapiti Chronicle – Levin.

Symbols: .. figure not available ... not applicable

Source: Audit Bureau of Circulations

Dailies
The New Zealand Herald – Auckland (1863)210,841210,910211,490204,549200,309195,681
The Dominion Post(1) – Wellington (2002)101,51199,08999,12398,23298,25198,326
The Press – Christchurch (1869)92,713,91,11192,43692,45892,46590,030
Otago Daily Times – Dunedin (1861)44,35244,54645,40044,92843,24643,469
Waikato Times – Hamilton (1872)41,12140,97041,00941,01741,08341,430
The Southland Times – Invercargill (1862)30,84029,92829,55729,56729,57129,059
Hawke's Bay Today – Hastings (1998)31,66530,07930,19730,07328,03726,946
Taranaki Daily News – New Plymouth (1857)26,78426,68726,74926,75426,50626,522
Bay of Plenty Times – Tauranga (1872)22,72623,28522,72623,91924,03823,179
Manawatu Standard – Palmerston North (1880)20,84020,35720,56620,57620,57820,165
The Nelson Mail (1866)18,27418,31218,42518,43718,44517,497
The Northern Advocate – Whangarei (1877)15,31915,11215,32114,89014,98715,012
The Timaru Herald (1864)14,30814,36014,32914,33514,11414,120
Wanganui Chronicle (1856)14,05913,10312,48312,65212,48612,532
The Daily Post – Rotorua (1885)11,95511,97912,12012,06312,05611,796
The Marlborough Express – Blenheim (1866)10,11310,17310,29610,36210,37110,381
The Gisborne Herald (1874)8,6238,5738,6208,6318,5868,667
Wairarapa Times-Age – Masterton (1878)7,7137,5857,6197,6647,6987,276
Ashburton Guardian (1879)5,4975,5545,5255,4605,5295,670
The Greymouth Evening Star (1866)4,2664,2194,3034,289..4,883
The Oamaru Mail (1876)3,6443,4643,5453,5613,5173,446
Daily Chronicle(2) – Levin (1893)3,78937,89237,8922,868..2,661
The Westport News (1872)2,010..2,016....1,998
Sundays
Sunday Star Times (1994)202,511203,901209,143203,647200,991181,127
Herald on Sunday (2004).........101,35593,19391,521
Sunday News (1963)108,869110,136110,759101,27995,54690,857

Table 11.03. Magazine circulation(1)

 200220032004200520062007

(1) Audit period of selected magazines: January-June.

(2) From 2005, Family Times appears in four metropolitan editions, with aggregated circulation. Circulation figures for 2007 are Auckland Family Times (98,480), Wellington Family Times (43,054), Christchurch Family Times (44,843) and Dunedin Family Times (13,263).

Source: Audit Bureau of Circulations

AA Directions (quarterly)542,219540,395573,864548,327546,968546,407
SkyWatch (monthly)358,589390,571416,290455,411492,408504,882
TV Guide (weekly)225,648222,931217,492203,456195,072189,215
New Zealand Woman's Day (weekly)141,781147,124142,610151,074152,609136,702
New Zealand Woman's Weekly (weekly)97,013101,39797,769102,54298,84798,738
Reader's Digest NZ (monthly)101,75692,25885,03688,26793,93495,872
Straight Furrow (monthly)80,00685,23185,00984,74184,80187,288
AgTrader (monthly)77,72385,24184,66581,03683,04785,911
Australian Woman's Weekly NZ (monthly)92,62798,88897,34293,69885,01483,834
Rural News (fortnightly)84,60786,13487,85485,88884,20381,585
Cuisine (alternative months)79,76076,97775,81071,03064,10364,761
New Zealand Listener (weekly)76,84476,17175,17773,03471,50863,902
NZ House & Garden (monthly)80,66979,29977,65575,61965,21562,598
New Idea (weekly)54,42757,40858,59161,48465,44062,315
Next (monthly)63,07067,47166,83670,60663,74758,052
That's Life (weekly)44,36645,64046,13444,91945,41145,739
Your Home & Garden (monthly)50,38250,07347,17946,76941,51038,511
New Zealand Gardener (monthly)50,61945,09438,19637,73434,74535,332
Little Treasures (alternative months)46,18443,97445,19645,58140,19034,208
Family Times (quarterly)(2)41,55841,99642,795180,596199,131199,640

Figure 11.03.

At 31 March 2007, there were three Sunday newspapers – the Sunday Star Times and Sunday News, both published by Fairfax New Zealand, and the Herald on Sunday, published by APN New Zealand. All three newspapers are distributed nationwide, with a collective circulation of about 360,000. The Sunday Star Times had the largest audited net circulation of a Sunday newspaper, with a circulation of 181,127 in 2007.

Daily and Sunday newspapers are widely read. On a typical day, nearly 1.6 million New Zealanders aged 15 years and over read a newspaper.

There are also approximately 120 community newspapers in New Zealand, the majority of which are tabloid in format. Many of these are owned by the two big newspaper publishing groups, or by publishers of other newspapers outside the groups. Some are owned by individuals or small companies. More than 6,000 magazines are available on a regular basis in New Zealand, 650 of which are published in New Zealand.

New Zealand Press Association (NZPA) Through international agreements with Reuters, Australian Associated Press and other news organisations, the cooperatively-owned NZPA provides an international and domestic news service to all daily and Sunday newspapers. A major change in 2005 was that the NZPA newswire was no longer exclusive to daily and Sunday newspapers, but available for sale to broadcast and electronic media as well.

New Zealand Press Council is a self-regulatory body founded in 1972 with the primary function of investigating and adjudicating complaints against newspapers and other publications. Its constituent members are the Newspaper Publishers Association (NPA) and the New Zealand Engineering, Printing and Manufacturing Union (EPMU). The council consists of an independent chairperson, five members representing the public, and five members representing the industry. Two of the five industry representatives are nominated by the NPA, two are nominated by the EPMU and one by magazine publishers. A panel, which includes the chief ombudsman, appoints public members.

The principal objectives of the Press Council are to:

  • consider complaints against the editorial content of newspapers and other publications (a separate body deals with complaints against advertising)

  • promote freedom of speech and freedom of the press in New Zealand

  • maintain the New Zealand press in accordance with the highest professional standards.

The council may also consider complaints about the conduct of people and organisations towards the press.

The council does not set standards for newspapers, but from time to time it issues recommendations to editors in general terms. To make a complaint to the council, complainants are first required to complain in writing to the editor of the publication concerned. This allows the editor the opportunity of righting a possible wrong. If complainants are still not satisfied, they can then approach the council.

Eventual third place winners (from left) Max Gunn (13), Alison Macharg (13), and Caleb Dawson-Swale (14) of Wakatipu High School, scan the Otago Daily Times for answers at the September 2007 Otago Daily Times social studies quiz for schools in the Central Otago Region.

Table 11.04. New Zealand Press Council statistics
Year ending 31 December

 2003200420052006
Source: New Zealand Press Council
Decisions issued52454132
Upheld14946
Upheld with dissent0001
Part upheld5342
Part upheld with dissent0002
Not upheld with dissent2000
Not upheld with dissent on casting vote of chairman0001
Not upheld31333319
Declined0001
Not adjudicated27303923
Mediated/resolved3330
Withdrawn2152
Withdrawn at late stage2111
Not followed through912116
Out of time2022
Not accepted2220
Outside jurisdiction0372
In action at end of year78810
Total complaints79758055

There is no charge for the council's service. In circumstances where legally actionable issues may be involved, complainants are required to provide a waiver that, having referred the matter to the council, no legal proceedings will be taken against the newspaper or journalist concerned. The council is funded entirely by the industry.

Advertising

Approximately 1,000 people are employed in New Zealand 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. Mainstream media advertising for the year ending December 2006 totalled $2.2 billion.

At the beginning of 2007, there were approximately 200 advertising agencies, most of them New Zealand-owned, but with 25 percent (mostly larger agencies) affiliated to multinationals by total or part ownership.

Industry organisations and self-regulation The Communication Agencies Association of New Zealand (CAANZ) is an incorporated body representing the interests of members on issues affecting the advertising industry and agencies. There are 65 member agencies that collectively represent 80 percent of agency billings in New Zealand, with combined turnover of approximately $900 million.

Table 11.05. Advertising expenditure in media(1)
Year ending 31 December

Media20022003200420052006
Expenditure $(million)Share (percent)Expenditure $(million)Share (percent)Expenditure $(million)Share (percent)Expenditure $(million)Share (percent)Expenditure $(million)Share (percent)

(1) All cash advertising revenue, plus agency commission where applicable.

(2) Includes daily and community newspapers.

(3) Addressed advertising mail is an actual return for 2004. The 2003 figure is an estimate.

Note: Figures may not add up to stated totals, due to rounding.

Symbol: .. figure not available

Source: CAANZ

Newspapers(2)62840.168937.179038.183037.281036.4
Television51633.059231.964331.166629.964128.8
Radio20313.022412.124711.925611.526912.1
Magazines17311.019410.422310.726011.725111.3
Unaddressed mail....563.1592.8723.2793.6
Outdoor and cinemas combined372.4472.5512.5110.5100.4
Addressed mail(3)....351.9341.6341.5351.6
Online....80.4150.7562.5642.9
Cinema only80.5120.6130.6442.0652.9
Total1,565100.01,857100.02,075100.02,229100.02,224100.0

Table 11.06. Advertising expenditure
By consumer sector
Year ending 31 December 2007

SectionTotal media ($000)
Source: Nielsen Media Research
Leisure and entertainment334,063
Retail285,483
Foodstuffs268,107
Government departments, services and community209,649
Automotive178,138
Investment, finance and banking155,501
Toiletries and cosmetics153,422
Home improvements103,480
Pharmaceuticals and health101,950
Travel94,219
Beverages84,185
Household electrical products83,657
Household furnishings82,420
Telecommunications80,239
Computers77,524
Clothing61,368
Business services44,633
Real estate39,341
Agricultural27,297
Insurance8,518
Total2,473,192

The Association of New Zealand Advertisers (ANZA) represents the interests of advertisers and has 100 members. ANZA administers two pre-placement vetting systems – one for liquor advertising and one for therapeutic advertising.

The advertising industry has a self-regulatory system managed by the Advertising Standards Authority (ASA) 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.

Postal services

The Postal Services Act 1998 permitted full competition in all areas of the postal services market. All mail must carry a mark to identify the postal operator that carried it.

Postal operators have the right to open mail in certain circumstances (for example, so it can be returned to the sender when an address is illegible). They also have the right to erect letterboxes.

To carry out a business involving carriage of letters, a person or company must be registered as a postal operator with the Ministry of Economic Development. At 23 November 2007, there were 27 registered postal operators.

New Zealand Post Ltd

Under a deed of understanding with the government, New Zealand Post is required to meet certain social obligations, including maintaining a minimum number of delivery points and postal outlets, maintaining five- or six-day a week delivery to 99.88 percent of delivery points, and providing competitors with access to its network on terms and conditions no less favourable than those offered to equivalent customers.

New Zealand Post is designated as New Zealand's ‘postal administration’ to the Universal Postal Union (UPU) and has the exclusive right to issue New Zealand stamps.

New Zealand Post is a state-owned enterprise, which has been operating in a deregulated postal environment since 1998. The Postal Services Act of that year removed New Zealand Post's monopoly on the standard letter, allowing full competition in postal services. The price of standard letter postage was reduced from 45 cents to 40 cents on 2 October 1995 and was maintained at that level until 5 April 2004, when it returned to 45 cents. On 1 June 2007, the price was increased to 50 cents. The price of postage in New Zealand compares favourably with many overseas countries and, in real terms, the price of postage is significantly cheaper than before the introduction of competition in 1998.

New Zealand Post's service delivery – the independent measure of mail delivered on time – was 95.5 percent for the year to 30 June 2007, putting its service standards among the best in the world.

While it continues the tradition of carrying and delivering letters and parcels, New Zealand Post has responded to customers' growing communications needs by providing electronic solutions to residential, business and international markets.

Its business activities include letters, courier services, banking and financial transactions, mail and stamp production, as well as data processing and electronic billing, commerce and messaging.

Table 11.07. Mail delivery points
Year ending 30 June

 200220032004200520062007
Source: New Zealand Post
Residential1,253,6931,243,6131,258,3021,319,0171,330,3031,335,999
Private box and bag181,999189,244202,278205,6426,330216,330
Rural delivery177,727180,495191,363200,673206,299208,892
Business57,31459,50858,270114,77383,94167,748
Other23,83725,09614,75213,50113,30613,306
Total1,694,5701,697,9561,724,9651,853,6061,845,0291,842,275

Table 11.08. Postal outlets
Year ending 30 June

Outlet20032004200520062007
Source: New Zealand Post
PostShops (including franchises)315323323325325
Post Centres697698672667663
Stamp resellers2,7352,6471,6011,6201,622
Total3,7473,6682,5962,6122,610

Recent performance New Zealand Post reported a net profit of $70.2 million after tax for the 2006/07 financial year, compared with $68.7 million in 2005/06, $ 137.2 million in 2004/05, and $36.5 million in 2003/04.

Mail services

Inland services Fast post or standard post can be used in New Zealand to send letters up to 20 millimetres thick and up to 1 kilogram in weight. Fast post targets next working day delivery between major towns and cities, with standard post delivery targets of next working day delivery across town, and two-to-three working days across New Zealand.

Packet post is used to send parcels up to 1.5 kilograms either fast post or standard post. Parcel post is used for parcels up to 2 5 kilograms, with delivery targets of next working day for delivery across town, and two-to-three working days nationwide. Other services include BoxLink, registered post, business mail centres, and postage included envelopes. In December 2004, New Zealand Post and DHL announced the formation of Express Couriers Limited, a 50:50 joint venture encompassing the express and logistics units of New Zealand Post and the brands Pace, CourierPost and Contract Logistics. In July 2007, Roadstar Transport was added to the family, providing palletised freight services.

New Zealand Post also provides bulk mail services (starting at 300 same-sized items) which include volume post, GoFlexible and print post, and offers direct mail services through the mail marketing services division. New Zealand Post subsidiary the Letterbox Channel handles delivery of unaddressed mail (circulars).

Overseas services New Zealand Post International operates several overseas mail and courier services. International express is a premium track-and-trace courier service delivering to more than 220 countries, with next-day delivery to Australian main cities and targeting delivery within days to the rest of the world. It includes built-in compensation cover and additional cover options.

International economy courier is a recently-launched cost-effective courier service to selected key destinations around the world. The delivery target is in two to six working days and includes built-in compensation cover and additional cover options.

International air offers air mail delivery in approximately one to two weeks, with built-in compensation cover and the option of additional cover and/or track and trace facilities to selected countries.

Table 11.09. Stamp issues
1 January 2006 – 30 June 2008

Date of issueIssue nameDenomination
Source: New Zealand Post
2006
4 JanuaryYear of the Dog45c, 90c, $1.35, $1.50, $2.00
3 February75th Anniversary of the Hawke's Bay Earthquake45c x 20
1 MarchTourism 2006$1.50x6
21 April80th Birthday of Her Majesty the Queen$5.00
3 MayPersonalised Stamps45c x 7, $1.50, $2.00x2
5 JulyScenic – Renewable Energy45c, 90c, $1.35, $1.50, $2.00
2 AugustChildren's Health$1.35, $1.50, $2.00
6 SeptemberGold Rush45c, 90c, $1.35, $1.50, $2.00
4 OctoberChristmas Stamps45c x 6,90c, $1.35, $1.50, $2.00
1 NovemberSummer Festivals45c, 90c, $1.35, $1.50, $2.00
1 November2006 Ross Dependency45c, 90c, $1.35, $1.50, $2.00
2007
2 FebruaryYear of the Pig45c, 90c, $1.35, $1.50, $2.00
7 MarchNew Zealand Native Wildlife45c, 90c, $1.35, $1.50, $2.00
24 April2007 Centenaries50c & $1.00, 50c & $1.50, 50c & $2.00, 50c & $2.50
9 MayScenic definitives5c, 10c, 20c, 50c, $1.00, $2.50, $3.00
6 JuneSouthern Skies50C, $1.00, $1.50, $2.00, $2.50
4 JulyClassic Kiwi50c x 20
1 AugustClever Kiwis50c, $1.00, $1.50, $2.00, $2.50
5 SeptemberRoyal Diamond Wedding Anniversary50C, $2.00
5 SeptemberHealth, Annual Collector Pack50c x 2, $1.00
3 OctoberChristmas50c, $1.00, $1.50, $2.00, $2.50
7 November2007 Ross Dependency50c, $1.00, $1.50, $2.00, $2.50
2008
9 JanuaryUnderwater Reefs50c, $1.00, $1.50, $2.00
2 FebruaryFish and Game$10.00
7 FebruaryYear of the Rat50c, $1.00, $1.50, $2.00
5 MarchWeather Extremes50c X 2, $1.00, $1.50, $2.00, $2.50
2 AprilANZAC50c x 2, $1.00, $1.50, $2.00, $2.50
2 MayKingitanga50c, $1.50, $2.00
7 MayPrince Caspian50C, $1.00, $1.50, $2.00
4 JuneMatariki50c x 2, $1.00, $1.50, $2.00, $2.50

International economy offers cost-effective delivery to anywhere in the world within approximately three to five weeks.

Retail network New Zealand Post's retail network at 30 June 2007 consisted of 325 PostShops (including franchises), with postal services available at a further 663 Post Centres. There were also 1,622 stamp resellers. More than 140 different payments, to 80 different agencies, can be made through the retail network. In 2005/06, 85 percent of adult New Zealanders used at least one agency service through the retail network. New Zealand Post processed around 20 million financial transactions on behalf of the 80 agencies, collecting $3.1 billion in payments.

Stamp issues

New Zealand Post's stamp unit produces around 12 commemorative stamp issues each year and up to three definitive stamp issues. Table 11.09 (previous page) lists stamps issued from 1 January 2006 to 30 June 2008.

A variety of products, including commemorative coins on behalf of the Reserve Bank of New Zealand, are sold by mail order through the Philatelic Bureau at Wanganui, at stamp sales centres, through PostShops, and from the stamps website www.stamps.co.nz.

Contributors and related websites

Broadcasting Standards Authority – www.bsa.govt.nz

Commerce Commission – www.comcom.govt.nz

Communication Agencies Association of New Zealand – www.caanz.co.nz

Department of Internal Affairs – www.dia.govt.nz

Freeview NZ – www.freeviewnz.tv

InternetNZ – www.internetnz.net.nz

Māori Television – www.maoritelevision.com

Ministry for Culture and Heritage – www.mch.govt.nz

Ministry of Economic Development – www.med.govt.nz

New Zealand Audit Bureau of Circulations – www.abc.org.nz

New Zealand Post – www.nzpost.co.nz

New Zealand Press Council – www.presscouncil.org.nz

Nielsen Media Research – www.nielsenmedia.co.nz

NZ On Air – www.nzonair.govt.nz

Radio Network – www.radionetwork.co.nz

Radio New Zealand – www.radionz.co.nz

Radio New Zealand International – www.rnzi.com

SKY Network Television – www.skytv.co.nz

Sound Archives – www.soundarchives.co.nz

State Services Commission – www.ssc.govt.nz

Te Māngai Pāho – www.tmp.govt.nz

Telecom – www.telecom.co.nz

Telecommunications Users' Association of New Zealand – www.tuanz.org.nz

Television New Zealand – www.tvnz.co.nz

TelstraClear – www.teistraclear.co.nz

TV3 Network – www.rv3.co.nz

Vodafone – www.vodafone.co.nz

Chapter 12. Arts and cultural heritage

The painting, Josepha from Les Martinique, by New Zealand artist Sydney Lough Thompson, is returned to storage at the University of Otago's Hocken Collections by curator Anna Peterson. The collections include 13,610 paintings and more than 1 million photographs.

Successive governments have recognised the value of culture for individuals, communities and the country as a whole. Increasing recognition by government of the strategic and intrinsic importance of arts, culture and heritage has been reflected in increased investment in these activities. Central government spending on culture, adjusted for inflation, rose from $388 million in 1990/91 to $675 million in 2003/04, an increase of 73 percent. A small and increasingly diverse population and the relative absence of private patronage make this government assistance necessary if all New Zealanders are to have access to meaningful cultural experiences.

New Zealanders actively engage with their culture. The Cultural Experiences Survey in 2002 provided a snapshot of New Zealanders' cultural activity, which included listening to popular music, visiting museums and art galleries, visiting marae and buying original art works and craft objects. Around 93 percent of the population aged 15 and over had participated in at least one cultural activity, and there was a very high level of interest in New Zealand content, including theatre, music and literature. These cultural activities and experiences are essential in the development of strong, but overlapping cultural identities, and promote a cohesive society that accepts and encourages diversity.

The development of creative talent and cultural industries also enhances economic growth. Worldwide, the creative, cultural and heritage sectors are key growth industries for the 21st century, and New Zealand is following this trend. Between 1996 and 2001, the number of people in paid cultural employment in New Zealand rose 17 percent, almost three times the growth in total employment over the same period. From 1997 to 2001 cultural activity contributed an average of $3.0 billion a year to GDP, or 3.1 percent of New Zealand's total industry contribution.

Taonga tuku iho

Ngā taonga tuku iho nō ngā tūpuna, or the treasures handed down by our ancestors, make New Zealand's cultural heritage unique, and successive governments have made special provision to support them.

The government does this through a number of agencies, including the Museum of New Zealand Te Papa Tongarewa which actively promotes the significance of Māori cultural heritage through its collections and programmes.

The government also provides capital funding, from time to time, to regional museums that have nationally significant Māori taonga collections.

The Māori Heritage Council (part of the New Zealand Historic Places Trust) registers and protects wāhi tapu (sacred places), provides assistance to whānau (families), hapū (subtribes) and iwi (tribes) to preserve heritage resources, and makes recommendations on archaeological sites.

Te Waka Toi fulfils Creative New Zealand's statutory responsibility to recognise in the arts the role of Māori as tangata whenua (‘people of the land’).

The Māori Arts and Crafts Institute, based at Te Puia (Rotorua), trains students in traditional skills, such as carving and weaving, and promotes Māori culture.

The Māori Language Commission Te Taura Whiri i te Reo Māori promotes the use of Māori as a living language and encourages Māori-English bilingualism as a valued part of New Zealand culture.

Te Māngai Pāho provides broadcasting funding for production of Māori language television programmes, Māori music and the national network of Māori radio stations. Māori Television provides a high-quality bilingual broadcasting service. The first 100 percent Māori television channel, Te Reo, was launched in March 2008.

The government also supports Te Matatini Society Inc, which focuses on Māori performance arts, including national kapa haka competitions, the South Pacific Arts Festival and the biennial Te Matatini National Festival.

Further support for taonga tuku iho comes from the Lottery Grants Board, which allocates profits to community enterprises, including restoration of marae.

The Protected Objects Act 1975 regulates the export of antiquities, including taonga, and provides protection for newly-discovered artefacts.

A student at the New Zealand Māori Arts and Crafts Institute at Te Puia, Rotorua, carves a tekoteko (figure). For 38 years, students have been learning traditional crafts here, keeping stories alive. Today, students study full time for three years at the carving school.

Heritage

Museum of New Zealand

The Museum of New Zealand Te Papa Tongarewa (Te Papa) is New Zealand's national museum. Since opening on the Wellington waterfront in February 1998, it has established a national and international reputation as New Zealand's ‘must-see’ visitor attraction. Ten years later, in February 2008, more than 14 million visits had been made to Te Papa.

Te Papa's founding concept was developed through an extensive national consultative process and was adopted by the Government in 1990. It introduced: unified collections, the narratives of culture and place, the idea of forum, the bicultural partnership between tangata whenua (‘people of the land’) and tangata tiriti (‘people of the treaty’), and a multidisciplinary approach to delivering a national museum for diverse audiences.

Its mission, to be a forum for the nation to explore and preserve its unique cultural and natural heritage, is underpinned by the principles of the bicultural partnership; being a waharoa (entry) to exploring and reflecting on cultural identity; acknowledging and recognising the role of communities in the care, management and understanding of taonga (treasures) and collections; speaking with authority; being committed to providing excellent services; and being commercially positive.

The museum contains 19 major long-term exhibitions, and features innovative and exciting exhibitions that draw on the richness of its collections and bring the best of the rest of the world to New Zealand.

Permanent exhibitions include Bush City, an outdoor space that recreates distinctive aspects of the New Zealand landform and its associated plant life, and Toi Te Papa: Art of the Nation, a celebration of New Zealand's rich and diverse artistic heritage featuring over 300 artworks from Te Papa's collection.

Te Papa is the only museum in the world with its own living, functioning marae, Rongomaraeroa, Te Marae ō Te Papa Tongarewa.

Central to Te Papa's existence are its collections, spanning five main areas: art, natural history, New Zealand history and heritage, Pacific, and taonga Māori. Te Papa has particularly rich collections of New Zealand plants and animals, taonga Māori, and Pacific treasures.

As the national museum, Te Papa operates services for audiences and communities outside its premises. These include National Services Te Paerangi, through which Te Papa works with other museums, iwi (tribes) and related organisations on projects to build capacity and sustain the services they provide in their local communities.

Other services include Te Papa Press, touring exhibitions, a collections loans service, a programme of iwi partnership projects, and the Te Papa website.

Te Papa's presence has changed tourist visitor patterns to Wellington. Of 1.35 million visits to Te Papa in the 2006/07 year, more than 30 percent of domestic visitors were from outside Wellington city and 46 percent of visitors were from overseas. The ethnic pattern of Te Papa's New Zealand visitors is similar to that of the total population.

Te Papa's funding is from central government (55 percent), local government (5 percent) and self-generated funding from sponsors and commercial enterprises (40 percent).

Art galleries and museums

There are between 500 and 600 public museums and art galleries in New Zealand, ranging from small volunteer-run museums housing collections primarily of local importance, to larger institutions providing guardianship to collections of regional, national and international significance. As well as allowing access to their collections through exhibitions and public programmes, museums conduct research within their collecting areas, produce resources, give support to their communities, and provide educational services. Many museums are working on digitisation programmes aimed at making their collections more accessible to the wider public while ensuring their long-term care.

Many art galleries and museums are partly funded by local government. Funding for capital works may be provided by the Ministry for Culture and Heritage under the regional museums policy for capital construction projects, and by the Lottery Grants Board, community trusts, electricity trusts or other funding bodies.

New Zealand Historic Places Trust

The New Zealand Historic Places Trust Pouhere Taonga (NZHPT) is New Zealand's national historic heritage agency. The trust is established under the Historic Places Act 1993 and is an autonomous Crown entity governed by the Crown Entities Act 2004. Its board of trustees is assisted by the Māori Heritage Council, ensuring that the NZHPT reflects a bicultural view in exercising its powers and functions.

The NZHPT is funded by government through the Vote Arts, Culture and Heritage allocation.

The NZHPT's role in identifying, protecting, preserving and conserving historical and cultural heritage is extensive. This role includes:

  • leadership on heritage issues important to New Zealand

  • assisting Māori communities to identify and recognise wāhi tapu (sacred sites) and restore historic marae-related buildings and structures

  • management, administration and control of 46 nationally-significant heritage properties

  • establishment and maintenance of the register of historic places, historic areas, wāhi tapu and wāhi tapu areas

  • administration of archaeological authorities with regard to activities that may destroy, damage or modify archaeological sites

  • statutory advocacy for the protection of historic and cultural heritage, including issuing heritage orders and negotiating and executing heritage covenants

  • providing grants or advances to property owners for restoration and protection of heritage places under the National Heritage Preservation Incentive Fund

  • providing and distributing advice and information on protection and conservation of heritage places.

The NZHPT national office is in Wellington, with regional offices in Auckland, Wellington and Christchurch, and area offices in Kerikeri, Tauranga and Dunedin. The NZHPT has approximately 26,000 members who elect branch committees. Branches work closely with the trust's area managers, coordinators and the community to raise awareness of heritage issues, and provide opportunities for participation in heritage-related activities.

Māori communities are increasingly concerned with, and active in, the protection and management of their heritage. The NZHPT provides conservation and funding advice, and practical training, to support whānau (families), hapū (subtribes) and iwi (tribes) in managing their heritage.

The NZHPT is custodian of a portfolio of nationally important heritage properties such as the Kerikeri Stone Store, Pompallier at Russell, Alberton in Auckland, Te Pōrere redoubts near Turangi, Old St Paul's in Wellington, the Timeball Station in Lyttelton, and Totara Estate near Oamaru.

New Zealand's rich archaeological resource includes shipwrecks, historic pa and villages, battle sites, rock art sites, stone walls, gardens, whaling stations and gold mining landscapes. The NZHPT administers a process to protect archaeological sites, and it is unlawful to disturb a site without their approval. Where a site is to be destroyed, damaged or modified, NZHPT ensures that significant information is retained and documented in a credible, consistent and coherent way.

Incentive funds are critical to achieve positive heritage outcomes, by assisting private owners to maintain historic buildings and structures. The NZHPT administers the National Heritage Preservation Incentive Fund ($500,000 annually) to encourage conservation of nationally significant heritage in private ownership.

Protection of antiquities and archaeological and traditional sites New Zealand has legal provisions to protect items and sites of historical and cultural significance. The Antiquities Act 1975, administered by the Ministry for Culture and Heritage, 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 culturally significant items: Māori artefacts; chattels relating to 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 shipwreck items. The Historic Places Act 1993 defines an archaeological site as a place associated with pre-1900 human activity, where there may be evidence relating to the history of New Zealand. The Act makes it unlawful for any person to destroy, damage or modify the whole or any part of an archaeological site (including archaeological investigations) without an archaeological authority from the NZHPT.

Remains of the Māori pa (fortified place) site at Maungakiekie/One Tree Hill, in Auckland. Pa are protected by the Historic Places Act 1993.

Archives New Zealand

Archives New Zealand has three roles:

  • to preserve and provide access to the archived records of government

  • to ensure government records are created and maintained

  • to provide leadership and advice to the New Zealand record keeping and archiving community.

Archives are important, both as the raw material for the history of New Zealand and for ensuring citizens can hold the government to account for its actions. In addition, a verifiable record provides the government with the protection that comes from its citizens trusting it to be truthful and accountable in its dealings.

Archives New Zealand stores, arranges, describes, and gives access to records from government agencies (past and present), and provides standards and advice to government agencies regarding best practice in record keeping. It has repositories and reading rooms in Dunedin, Christchurch, Wellington and Auckland. The Wellington repository includes the Constitution Room, which houses some of New Zealand's most significant documents, including the Treaty of Waitangi, the Women's Suffrage Petition and the Declaration of Independence.

In its leadership role, Archives New Zealand advises and assists local bodies and community groups in the care, preservation and disposal of their records.

It is also responsible for administration of the Public Records Act 2005 and the National Register of Archives and Manuscripts. Archives New Zealand has partnerships with other repositories to promote awareness and use of archives generally, and to support development of professional skills in record keeping and archiving throughout New Zealand.

New Zealand Cartoon Archive

The New Zealand Cartoon Archive was founded by Ian F Grant as a result of researching his cartoon history of New Zealand, and launched on April Fool's Day (1 April) 1992.

The archive's purpose is to collect historical and contemporary New Zealand editorial cartoons and to promote the collection to the New Zealand public. Cartoon images are increasingly used by teachers, researchers, writers, publishers and film makers.

The New Zealand Cartoon Archive is New Zealand's principal cartoon collection. It holds more than 30,000 cartoons – originals and copies – given by cartoonists and their relatives, collectors, politicians and organisations. The collection includes the work of more than 60 local and expatriate New Zealand cartoonists.

Since 1992, it has been receiving copies (and some originals) of cartoons that appear in New Zealand newspapers and periodicals. Many are now received electronically.

In 2005, the New Zealand Cartoon Trust, which had run the cartoon archive for its first 13 years, was wound up. The archive was fully integrated into the Alexander Turnbull Library, retaining its name and identity within the drawings and prints department.

The collection is indexed on the National Library's Tapuhi website. The archive also has several hundred cartoon images on the National Library's Timeframes website.

By December 2007, the archive had curated 14 cartoon exhibitions, most touring to several New Zealand centres, and published five books.

Library services

National Library of New Zealand

The National Library of New Zealand Te Puna Mātauranga o Aotearoa was established in 1965 by an act of Parliament, which also incorporated the Alexander Turnbull Library into the National Library.

The National Library of New Zealand (Te Puna Mātauranga o Aotearoa) Act 2003 replaced the earlier Act and confirmed the Crown's undertaking to preserve, protect, develop and make accessible the collections of the Alexander Turnbull Library forever. It also created an independent advisory body to the government – the Library and Information Advisory Commission.

In its general collections the library holds 308 e-books, 22,341 e-serials, 910,555 books, 26,735 print serial titles (of which 8,135 are current), 12 main microform collections, 10,790 audio-book titles, and 586,000 items in the schools collections.

Family history, music and children's literature are strengths within the collections.

The Alexander Turnbull Library has more than 350,000 books, mostly relating to New Zealand and the Pacific. There are 44,000 rare books, dating mainly from before 1801. Special collections include works by John Milton and Katherine Mansfield. There are 54,000 maps, and more than 140,000 items of printed ephemera (including 17,000 posters). The national newspaper collection is approximately 1,600 metres in total, and there are more than four kilometres of serials/magazines.

The library holds over eight kilometres of manuscripts and archives; in excess of three million photographs, negatives, and albums; more than 78,000 paintings, drawings, prints, and cartoons; and approximately 40,000 discs, tapes, and cassettes – recording music and oral history. There are about 124,000 microfilm reels.

The National Library provides access to its general collections on site and by lending to other libraries through the interloan system. Alexander Turnbull Library collections are not available for borrowing, but material can be selected and used in special areas of the library. Some items, such as microform copies of serials, newspapers, books and manuscripts, and some oral history interviews and other unpublished sound recordings, may be available through inter-library lending.

With a programme of exhibitions and public events, the library's gallery provides access to, and interpretation of, the heritage collections held by the Alexander Turnbull Library.

Access to the records of most collections is available through the Internet.

Services available from the National Library include:

  • Collection and reference services – under the 2003 Act, publishers are required to deposit copies of every publication produced in New Zealand, including electronic published material. The library lists these publications in the New Zealand National Bibliography, published monthly and often used by buyers to order new titles. The general collection includes the family history area, where people trace their family tree using books, CD-ROMs and microfiche information from New Zealand and overseas.

  • Te Puna – the web-based gateway to the library's online collections, catalogues and directories.

  • School services – located in 13 centres around the country, this service is available to all New Zealand schools. School services provides advisory support on school library management and development through courses, seminars and consultancy services. Curriculum information service provides reference services and loans of curriculum-related resources to teachers and home-schoolers, from the schools collection and online information resources.

  • Services to Māori – helps Māori gain optimum use of the library's resources and services.

  • National Preservation Office – the National Library and National Archives established New Zealand's National Preservation Office Te Tari Tohu Taonga in 1997. This provides an advisory service, including training in preservation management and conservation assessments.

  • Print disabilities service – provides audio books (cassettes and CDs) to people with print disabilities who cannot independently access information in a print form.

The Alexander Turnbull Library Part of the National Library of New Zealand, the Alexander Turnbull Library holds collections of books, photos, manuscripts and archives, letters, drawings and prints, music, newspapers, maps and sound recordings that document the history of New Zealand and the Pacific. Other significant holdings are the major research collection on John Milton and his times, a selection of illuminated manuscripts, and New Zealand's largest collection of early printed books and fine printing. The library was started by Alexander Horsburgh Turnbull, a wealthy Wellington merchant who died in 1918 and bequeathed to the nation 55,000 volumes, as well as manuscripts, photographs, paintings and sketches collected during his lifetime.

Oral History Centre The many different voices of New Zealanders are recorded by the Alexander Turnbull Library's Oral History Centre. The recordings provide valuable information about language, accent, inflection, emphasis and tone. The centre conducts weekly or monthly interviews with people such as leading politicians or the long-term unemployed. With more than 12,000 hours of spoken recording on disc, reel and cassette tape, the Alexander Turnbull Library has the most extensive collection of oral history recordings in the country.

Parliamentary Library

The Parliamentary Library provides information, research and reference services for Parliament as required by the Parliamentary Service Act 2000. Services include providing desktop access to electronic resources such as legislative, statistical, legal and news databases.

The library's print collection of more than 500,000 volumes is strongest in economics, politics, public administration, law, social sciences and statistics. A complete set of New Zealand parliamentary publications is maintained. As a result of longstanding exchange and depository arrangements, the library has a significant number of international official publications. These become part of the International Documents Collection, which includes publications from other countries and inter-governmental agencies (eg the United Nations).

The International Documents Collection is available for public use, as is the Parliamentary Information Service, which responds to public enquiries on all aspects of the New Zealand Parliament. Research papers written by library staff are available on Parliament's website at www.parliament.nz/en-NZ/PubRes/Research.

In 2008, the Parliamentary Library celebrated its 150th anniversary. The building, opened in 1899, is a striking example of 19th century Gothic architecture. It was extensively refurbished and earthquake strengthened between 1992 and 1996.

Hocken Collections

Founded in 1910 through a gift from Dr T M Hocken, Dunedin physician, bibliographer and collector, the Hocken Collections contain major research collections about New Zealand, the Pacific and early Australia.

Administered in trust by the University of Otago, the library includes more than 231,150 books and periodicals, 2,750 linear metres of newspapers, 12,930 sound recordings, 2,350 pieces of sheet music, 440 videos, 16,220 microforms, 11,040 maps, 1,079,250 photographs, 17,670 posters, and 13,610 paintings, including modern works of art.

Archives and manuscripts total 8,113 linear metres and are rich in sources for early missionary history; literary study; Otago businesses, local government, education, health, sport, community organisations and churches; and the University of Otago.

Public libraries

The library needs of the majority of New Zealanders are met through public libraries provided by local authorities. Most cities and districts provide a coordinated library service to the whole district's population. There may be a number of service points, which could include a central district or city library.

At the end of 2006, there were more than 400 libraries in New Zealand – covering public, specialist, commercial, government and educational needs.

Other libraries

There are more than 60 libraries in tertiary education institutions, including very significant research collections at the universities. These collections are recorded in Te Puna, the national catalogue, and underpin New Zealand's inter-library loan and document delivery systems.

There is provision for a library or library room in every New Zealand school.

Developments in information technology, including easy access to the Internet, have enabled much more intensive use of remote electronic databases, and the sourcing of material from external databases and collections.

Children listen to Dame Kate Harcourt reading at the Wellington Public Library. Most cities and districts provide a library service to residents.

More than 200 specialist libraries and information centres serve government departments, businesses and other organisations.

A cooperative inter-library lending system allows resource sharing among libraries.

Literature

New Zealand Society of Authors

The New Zealand Society of Authors (PEN NZ Inc) is the principal advocate for the professional interests of writers, protecting basic rights to freedom of expression, working to improve income and conditions, and promoting New Zealand writing and literary culture.

Membership is open to anyone interested in writing. The society had 1,260 members at 31 December 2007.

The society provides professional development leaflets, contracts, publications, programmes and communications services. It also represents writers on boards and committees of industry partners in publishing, bookselling and audience development, and with Creative New Zealand and government departments.

New Zealand was one of the first English-speaking countries to compensate writers for lost royalties on books held in public libraries, and the society continues to advocate on their behalf.

The society's mentor and manuscript assessment programmes provide emerging writers with qualified professional feedback on their writing, while contract and publishing advisory services provide advice on all aspects of the publishing process.

The society maintains an involvement with International PEN, which works on behalf of writers whose lives and freedoms are endangered.

PEN NZ Inc has representatives on: the Montana New Zealand, and New Zealand Post book awards management committees, Whitireia Polytechnic, Creative New Zealand's audience and market development reference group, the Robert Burns Fellowship selection committee, the Copyright Council, and the Coalition of Creative Unions and Guilds. It has members on the board of Copyright Licensing Ltd, which distributes fees to authors and publishers for institutional photocopying of their work. It has close ties with the Australian and United Kingdom's societies of authors.

The society administers four awards: the Ashton Wylie Charitable Trust Awards, the Foxton Fellowship, the Janet Frame Memorial Award and the Lillian Ida Smith Award, and provides the three Best First Book Awards (fiction, poetry and non-fiction) at the Montana New Zealand Book Awards each year.

New Zealand Authors' Fund

Administered by Creative New Zealand, the New Zealand Authors' Fund compensates authors for loss of earnings when their books are held by public libraries. Every year, approximately $1.5 million is distributed among more than 1,600 New Zealand writers.

Booksellers New Zealand

Booksellers New Zealand is committed to fostering a strong, efficient and professional book industry by increasing the sales of books, developing industry knowledge, and assisting with business operating costs.

As the trade organisation representing the majority of booksellers and publishers in the country, Booksellers New Zealand undertakes national book promotions.

The organisation also generates opportunities for debating industry issues, lobbies government, and ensures industry awareness and visibility. It works closely with other arts sector groups, book organisations, the media and sponsors.

Booksellers New Zealand organises the Montana New Zealand book awards, Montana Poetry Day, the New Zealand Post book awards and festival, and is a sponsor of NZ Book Month.

The Montana New Zealand book awards recognise excellence and provide recognition for the best books published annually in New Zealand. In 2007, the winners were: Mister Pip by Lloyd Jones (Montana Medal for Fiction), Eagle's Complete Trees and Shrubs of New Zealand by Audrey Eagle (Montana Medal for Non-Fiction), The Sound of Butterflies by Rachael King (New Zealand Society of Authors Hubert Church Best First Book of Fiction Award), Secret Heart by Airini Beautrais (New Zealand Society of Authors Jessie Mackay Best First Book of Poetry Award), and Furniture of the New Zealand Colonial Era: An Illustrated History 1830–1900 by William Cottrell (New Zealand Society of Authors E H McCormick Best First Book of Non-Fiction Award).

The New Zealand Post Book Awards for Children and Young Adults recognise the best in books for children and teens. In 2007, Illustrated History of the South Pacific by Marcia Stenson won New Zealand Post Book of the Year and was also the winner of the non-fiction category. The young adult fiction category was won by Genesis by Bernard Beckett, and the junior fiction category by Janice Marriott's Thor's Tale. Kiss! Kiss! Yuck! Yuck! written by Kyle Mewburn and illustrated by Ali Teo and John O'Reilly won the Children's Choice Award, and the Best First Book Award went to The Three Fishing Brothers Gruff by Ben Galbraith.

Booksellers New Zealand also administers Radio New Zealand's weekday book reviews, produces a fortnightly bestsellers list and the trade magazine Booksellers News, along with a weekly electronic newsletter to booksellers and publishers.

Each year, Booksellers New Zealand updates the Premier New Zealand Bestsellers list of books that have sold at least 5,000 copies.

Book publishing

It is estimated there are around 600 book publishers in New Zealand, with most being New Zealand-owned and employing one or two people.

A survey commissioned by the Book Publishers Association of New Zealand showed there were 2,394 new book titles published in New Zealand in 2007. Education was the largest category, followed by technical/professional, and general non-fiction and children's books.

Total New Zealand publishing industry turnover in 2007 was $266 million, of which $36 million came from export sales. New Zealand titles generated turnover of $127 million in 2007, against $117 million from sales of imported published titles. The 21 largest companies generated the bulk of revenue.

Of the publishers surveyed, 36 percent considered their businesses to be growing.

Performing arts

New Zealand Music Commission

The New Zealand Music Commission was established in June 2000 as a government-funded charitable trust, to facilitate growth in the New Zealand music industry through specific projects such as New Zealand Music Month.

One of its main functions is to help the information flow within the industry, which it does through its website. Here, music companies can register, gain information about projects, and get advice on matters such as tours, media and taxation.

The commission also promotes New Zealand music internationally. Outward Sound is a programme that assists music industry practitioners to develop an international market.

New Zealand Symphony Orchestra

The New Zealand Symphony Orchestra (NZSO), founded in 1946, is the country's leading professional orchestra. It has 90 players and performs over 100 concerts annually. Touring within New Zealand looms large for the orchestra – while all its main symphonic programmes are presented in Auckland and Wellington, the orchestra also visits some 30 other towns and cities each year.

The New Zealand Symphony Orchestra's new musical director, Pietari Inkinen, conducts the orchestra in 2007. The NZSO performs over 100 concerts each year.

In 2005 the NZSO undertook a highly successful tour that included performances at the BBC Proms in the United Kingdom, at the Concertgebouw (Amsterdam), and the World Expo at Aichi in Japan.

Pietari Inkinen became the NZSO's music director in January 2008, succeeding James Judd who is now music director emeritus. Other conductors who worked with the NZSO in the past decade are: Alexander Lazarev, Dimitri Sitkovetsky, David Atherton, Yan Pascal Tortelier and Edo de Waart. Recent international soloists include musicians Lynn Harrell, Lang Lang, Hilary Hahn, Vadim Repin and Steven Isserlis, and singers Jonathan Lemalu and Dame Kiri Te Kanawa.

The NZSO has an extensive catalogue of CD recordings. As part of a commitment to promote music by New Zealand composers, the NZSO records at least one CD of New Zealand music annually. The orchestra has a recording repertoire which includes Elgar, Ries, Beethoven, Bernstein, Copland, Lilburn, Sculthorpe, Bridge, Akutagawa, Mendelssohn, Honegger, Liszt and Vaughan Williams. Over half a million CDs have been sold in the last decade. Douglas Lilburn's Orchestral Works was chosen for the Editor's Choice section of Gramophone magazine in 2006.

National Youth Orchestra

Since 1959, the National Youth Orchestra has each year brought together about 100 young instrumental musicians aged 13–25 years for an intensive week of rehearsal, culminating in a public concert.

Live auditions, which take place nationally during April, are independently assessed by NZSO principals. The principals also assist with teaching workshops and coaching during the six days of pre-concert preparation.

Many members of the National Youth Orchestra later become NZSO and regional orchestra players. Others develop careers overseas as orchestral players, soloists, chamber musicians and teachers.

The National Youth Orchestra is administered and funded by the NZSO.

Chamber Music New Zealand

Chamber Music New Zealand is the major presenter of chamber music concerts in New Zealand. International and New Zealand artists perform in Celebrity Season concerts in nine centres, with additional concerts in 22 smaller cities and towns. There were more than 150 concerts and events in 2007.

With almost 60 years' experience, Chamber Music New Zealand has strong ties with artist management and concert presenters worldwide. While this offers the opportunity to tour the best of both established and emerging international ensembles, there is also a strong commitment to develop New Zealand musicians and composers.

In 1987, Chamber Music New Zealand established the New Zealand String Quartet, a professional, full-time quartet which has an international reputation.

Chamber Music New Zealand organises contests for secondary school students in both instrumental performance and composition. Many contestants have subsequently enjoyed distinguished international careers. The 2007 contest attracted more than 520 groups, involving 2,020 young musicians from throughout New Zealand.

Ticket sales are the major source of Chamber Music New Zealand's funding, with the rest coming from grants from Creative New Zealand and sponsorship.

New Zealand Choral Federation

The New Zealand Choral Federation Te Kotahitanga Manu Reo 0 Aotearoa (NZCF) is an incorporated society representing 390 member choirs. It has a governance board and management group.

The NZCF, whose Māori name means ‘the assembly of the chorus of birds of New Zealand’, promotes choral music in all forms and aims 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, NZCF provides advisory and information services on all group singing matters, and is the link to the International Federation for Choral Music. NZCF income is from membership fees, events management, sponsorship and Creative New Zealand.

The NZCF has developed a ‘family’ of national events to promote group singing and raise its profile. These events encourage participation and promote excellence in group singing from an early age through the Kids Sing (young voices' awards), the Big Sing (secondary school choral festivals) and the Classic Sing (community choirs' festival.) In 2007, 238 choirs from 212 schools entered the secondary school festivals, with 20 choirs at the national final in Christchurch.

The NZCF also holds the Sing Aotearoa Festival every three years, a multi-cultural, multi-art event first held in 1990 to commemorate the 150th anniversary of the signing of the Treaty of Waitangi. Sing Aotearoa brings together singers, writers, composers and dancers for an intensive weekend of workshops, performances, forums and cultural exchange with international music educators.

Royal New Zealand Ballet

The Royal New Zealand Ballet is one of New Zealand's largest performing arts organisations, with 32 dancers, and 25 staff in artistic support, production, marketing and management.

Established in 1953, it is the oldest professional ballet company in Australasia.

With a strong classical base, and a healthy attitude towards innovation, the company presents an eclectic repertoire of choreographic styles – from 19th century classics to 21st century contemporary works. Through these productions, the Royal New Zealand Ballet aims to inspire and challenge both the artists and audiences.

Dancers of the Royal New Zealand Ballet possess physical strength and versatility, and a well-developed sense of individuality. New international and New Zealand choreography expresses these qualities, and features prominently in the company's repertoire.

The Royal New Zealand Ballet tours New Zealand more extensively and frequently than any other major performing arts organisation. In 2007, more than 100,000 people attended performances in 50 centres across the country. International tours have taken the ballet to the United States, Europe, Asia and Australia.

In 2008, the company marked the 50th anniversary of one of its most-loved performers, Sir Jon Trimmer.

The company receives 40 percent of its income directly from central government through the Vote Arts Culture and Heritage allocation, and 60 percent from box office sales and sponsorship.

New Zealand School of Dance

Founded in 1967, the New Zealand School of Dance provides comprehensive full-time training for about 65 young dancers a year. Based in Wellington, the school offers a two-year Certificate in Dance Performance and a three-year Diploma in Dance Performance. Students come from New Zealand, Australia and a few other countries.

The school has a close relationship with national and international professional dance companies and students are often seconded to companies as part of their training. Students are also able to work with a number of artists-in-residence and international tutors each year, and they present two performance seasons. The school also offers junior associate and regional associate programmes for aspiring young dancers.

The New Zealand School of Dance shares Te Whaea National Dance and Drama Centre with Toi Whakaari: New Zealand Drama School.

The New Zealand School of Dance is funded by the Tertiary Education Commission, and from tuition fees, sponsorships and grants. Fees for 2008 were $4,230.

Toi Whakaari: New Zealand Drama School

Te Kura Toi Whakaari O Aotearoa: New Zealand Drama School, established in 1970, is the premier training ground for entertainment professionals in New Zealand. Nearly 500 graduates have gone on to successful careers in theatre, television, film, radio and performance, both in New Zealand and internationally.

The Wellington-based tertiary institution offers students the following courses: Master of Theatre Arts in Directing, Bachelor of Performing Arts (Acting or Management), Bachelor of Design for Stage and Screen, Diploma and Advanced Diploma in Entertainment Technology, Diploma in Costume Construction – for theatre, film and allied industries.

The school is funded by the Tertiary Education Commission, tuition fees, sponsorship and grants. In 2007, annual fees ranged from $4,850 to $5,350.

New Zealand Opera Ltd

New Zealand Opera Ltd was formed in 2000 with the merging of the National Opera of Wellington and Auckland's Opera New Zealand.

The company's aim is to provide a high calibre arts experience through theatrical productions that engage the audience and create excitement about the art form.

In its first eight years, the company has significantly increased its audience throughout the country, through both main city and national touring productions. Productions have included several New Zealand premieres and involved talented New Zealand opera performers and creative teams, as well as international artists. Integral to the company's productions are the Auckland and Wellington-based Chapman Tripp Opera Choruses. The company also collaborates with regional orchestras and festivals around New Zealand.

In 2008 the company staged Puccini's La Bohème and Janáček's Jenufa, and took Humperdinck's Hansel and Gretel on a national tour.

The company actively seeks to develop and nurture young talent through the new three-tier internship structure: The Price water house Coopers Dame Malvina Major Emerging Artists, and Young Artists programmes, and The NBR New Zealand Opera Resident Artists programme. Development training focuses on all aspects of building a career in opera, including voice and performance, with regular tuition from leading opera professionals.

New Zealand Opera Ltd at a performance of Lucia di Lammermoor in 200/. The eight-year-old company helps develop young singers through a new internship structure.

Opera Outreach is an initiative designed to make opera more accessible to young people. This is achieved by hosting creative workshops that give school students the chance to create and perform in their own opera or musical drama, and by having school children attend final dress rehearsals of each opera season.

Film and video

New Zealand Film Commission

The New Zealand Film Commission (NZFC) finances distinctly New Zealand films, with the aim of reaching significant New Zealand audiences and producing high returns on investment, in both cultural and financial terms.

More than 200 feature films have been made in New Zealand since the commission was established in 1978. Approximately 100 of these have had NZFC finance and five have also had finance from the New Zealand Film Fund.

Recent successes at international film festivals include Black Sheep (Toronto, and San Sebastian in Spain), and Eagle vs Shark (in the United States and Europe). Two short films were honoured with official selection at the 2007 Cannes Film Festival. It was the fourth consecutive year that a NZFC-supported short film was in competition – Run received a Special Mention from the jury.

The NZFC also administers the Large Budget Screen Production Grant. Aimed at attracting large-budget film and television production to New Zealand, the incentive has been in place since 2003, and provides a rebate on production expenditure over a certain value.

The functions, powers and duties of the NZFC are defined in the New Zealand Film Commission Act 1978. The budget comes from the Lottery Grants Board, central government (through the Ministry for Culture and Heritage), and from film investments and sales. The budget varies year by year according to public funding and returns on film investments.

Distribution and exhibition

Film-going peaked at 40.6 million admissions in 1960/61, but declined dramatically after the introduction of television in 1961 and later, of home videos.

However, as figure 12.01 shows, cinema admissions were showing steady growth in recent years, from 6.6 million in 1992 to a latter-day peak of more than 18.3 million in 2003, before dropping to around 15.3 million in 2006.

According to Motion Picture Distributors' Association figures, box office takings in 2006 were $146.4 million, compared with $146.8 million in 2005 and $152.8 million in 2004.

New Zealand Film Archive

The New Zealand Film Archive Ngā Kaitiaki 0 Ngā Taonga Whitiāhua has three principal functions – to collect, protect and project New Zealand's moving image heritage.

Established in Wellington in 1981, the archive's collections reflect the breadth of New Zealand's moving image history, from the earliest days of cinema to contemporary film, video and digital productions. The film and video collection includes features and short films, newsreels, documentaries, home movies, music videos, broadcast programmes, commercials and video art.

The archive also maintains the national television collection on behalf of NZ On Air. This collection represents a diverse range of broadcasters and programming, including television news, drama, documentaries, game shows, music videos, infomercials, youth programming and sport.

The documentation collection has promotional, critical and historical materials from 1896 onwards. The collection also includes stills, posters, scripts, clippings, programmes, publicity material, production records and files, personal records, storyboards, props and costumes, animation cels, taped interviews and equipment.

The New Zealand Film Archive's catalogue is described on its website at www.filmarchive.org.nz.

While based in central Wellington, the archive has a national focus. In addition to a library, screenings and exhibitions in Wellington, the archive has an Auckland branch, and video access sites in art galleries and museums in Whangarei, Hamilton, New Plymouth, Palmerston North, Otaki, Christchurch and Dunedin.

The archive receives public funding through the Vote Arts, Culture and Heritage allocation, and the New Zealand Lottery Grants Board, New Zealand Film Commission and NZ On Air.

Figure 12.01.

Censorship

The Films, Videos, and Publications Classification Act 1993 covers a range of media, and defines a ‘publication’ as:

  • any film, book, sound recording, picture, newspaper, photograph, photographic negative, photographic plate or photographic slide

  • any print or writing

  • a paper or other thing that has printed or impressed upon it, or otherwise shown upon it, one or more (or a combination of one or more) images, representations, signs, statements or words

  • a thing (including, but not limited to, a disc, or an electronic or computer file) on which is recorded or stored information that, by the use of a computer or other electronic device, is capable of being reproduced or shown as one or more (or a combination of one or more) images, representations, signs, statements or words.

Crew of New Zealand feature film Black Sheep filming at Titahi Bay near Wellington in 2007.

Film is further defined as including cinematographic film, video recordings, DVDs, computer games and any other material record of visual moving images.

Administration The Act established the following bodies:

  • Office of Film and Literature Classification – an independent Crown entity with censors, classification officers, an information unit and support staff. The office classifies publications likely to be restricted or objectionable, provides information on the classification system to the public, and conducts research.

  • The Film and Video Labelling Body – an industry-based body responsible for rating unrestricted films and videos and issuing labels. New Zealand ratings may be based on those assigned by Australian or British authorities. Ratings are consumer guides, not legal restrictions. If a film is likely to be restricted, or if the labelling body is having difficulty assigning a rating, the film is referred to the Office of Film and Literature Classification. The body submits publications to the office on behalf of distributors.

  • Film and Literature Board of Review – consists of members of the public appointed by the governor-general on the recommendation of the Minister of Internal Affairs. The Act provides for the original applicant, the owner, maker, publisher or authorised distributor, or any other person the Secretary for Internal Affairs allows, to submit a publication for a review of its classification. The board re-examines the publication, without considering the decision of the Office of Film and Literature Classification. The president of the board can also make a decision on any application for an interim restriction order on any publication, preventing a publication being available before the board issues its decision. The board is an independent statutory body supported by the Department of Internal Affairs.

Classification The Films, Videos, and Publications Classification Act 1993 established a legal test that considers whether availability of a publication would be injurious to the public good. This test is applied before deciding if restriction is required, and if so, at what level – to people over a certain age (up to 18 years), to a person or class of persons, or to a specified purpose. It can ban a publication and can also place no restriction on one. Publications classified by the Office of Film and Literature Classification deal with sex, horror, crime, cruelty or violence.

After classification, films are labelled by the Film and Video Labelling Body. Films rated G (suitable for general audiences) have green labels. Yellow labels (PG and M) are issued for unrestricted films recommended for a certain age or group. A PG rating means that younger persons may require parental guidance. An M rating recommends a film for mature audiences 16 years and over. Red labels signify a restricted film. Computer games fall under the definition of films, and the Act requires that films intended for supply to the public must be labelled. However, games are exempt from labelling unless they are likely to be restricted – those with restricted content must be classified. Publications other than films are not required to be labelled before being supplied to the public. However, distributors or publishers can ask to submit publications such as magazines and books for classification. If the chief censor grants leave, the Office of Film and Literature Classification will classify the material as unrestricted, restricted or objectionable. In addition to labelling, display conditions may be imposed.

Publications can also be submitted to the Office of Film and Literature Classification by the Secretary for Internal Affairs, the Comptroller of Customs, Commissioner of Police or anyone else the chief censor allows. The chief censor can also ‘call in’ publications. Classifications assigned are legally enforceable. Under the Act, it is illegal to possess or supply an objectionable publication, whether or not the publication has been classified. It is illegal to supply or exhibit a restricted publication to people under the age of the restriction.

Enforcement The Department of Internal Affairs enforces the Act. It aims to increase compliance with New Zealand's censorship laws by ensuring that the film and video industry, magazine distributors and shops adhere to the Office of Film and Literature Classification decisions. Inspectors check compliance, to ensure that restricted material is correctly labelled and displayed, and objectionable material is not available. The unit also inspects New Zealand websites. It is the primary agency for monitoring, investigating and prosecuting offences involving objectionable material – across all publication formats.

The unit investigates the making and distribution of child pornography on the Internet, with strong links to overseas law enforcement agencies. Staff regularly exchange intelligence on offenders. The New Zealand Police are also inspectors of publications under the Act, with the same powers as censorship compliance inspectors. The New Zealand Customs Service ensures that material imported into New Zealand complies with the law. Customs may refer material it seizes to the Office of Film and Literature Classification.

Copyright

Copyright in New Zealand is based on the Copyright Act 1994, and administered by the Ministry of Economic Development.

The Copyright (New Technologies and Performers' Rights) Amendment Bill amends the Act to clarify the application of existing rights and exceptions in the digital environment and to take account of international developments.

Copyright protection in New Zealand exists automatically on the creation of any original literary, dramatic, musical or artistic work (including photographs), sound recording, film, broadcast, cable programme and typographical arrangement of published editions. Computer programs are protected under ‘literary work’.

No registration is necessary (or possible), nor is any other formality required to secure copyright protection.

Duration of copyright For literary, dramatic, musical and artistic works (including photographs), copyright continues for the lifetime of the author, plus 50 years after the year the author dies. For sound recordings and films, copyright generally continues for 50 years after the year in which they were made, or made available (whichever is later). For broadcasts and cable programmes, copyright continues for 50 years after they were made (broadcasts), or included in a service (cable programmes). Copyright in typographical arrangements of published editions is for 25 years after they were first published. Shorter periods apply to works that are industrially applied.

Ownership of copyright The first owner of copyright is usually the work's author – the person who created the work. However, if this person created the work in the course of employment, then the employer is the first owner. For some work (such as sound recordings, films, photographs and computer programs), if the author was commissioned to make the work, the first owner is the commissioner. For works commissioned or created by an employee, the parties can vary the first ownership rule. Ownership can also be assigned in writing to another person. The commissioning rule is under review.

New Zealand School of Dance student Allan Anderson. Copyright protection exists automatically when an original artistic work is created.

Moral rights Authors and directors have certain ‘moral rights’ in addition to the economic rights provided under the Copyright Act. These include the rights to be identified as the author of a work, to object to derogatory treatment of the work, and to not have a work falsely attributed to them. Moral rights cannot be assigned to another person except on the death of the author.

Exclusive rights of copyright owners The copyright owner has the exclusive right to do, and authorise others to do, ‘restricted acts’ in relation to the work or an adaptation of the work in New Zealand. These include rights to make copies; issue copies to the public, including the rental of films, computer programs and sound recordings; perform, play or show the work in public; broadcast the work or include the work in a cable service; and make an adaptation of the work. Copyright is infringed when someone does this without the permission of, or a licence from, the copyright owner.

Exceptions to copyright Exceptions to exclusive rights, called ‘permitted acts’, allow copyright works to be used without the permission of the copyright owner. These include fair dealing for criticism, review, and news reporting; fair dealing for research and private study; recording broadcasts or cable programmes for listening or watching at another time; and backing-up computer programs. Libraries, archives and educational institutions have specific exceptions.

Performers' rights Performers have certain limited rights to control exploitation of their performances where they have not given consent. This includes, for example, the right to control the recording, broadcast or inclusion in a cable programme of a live performance. Protected performances include dramatic, musical and variety performances, and readings and recitations of literary works. Protection is provided for 50 years from when the performance takes place.

Enforcement of copyright Action for copyright infringement in New Zealand is generally through civil action by the owner. Remedies include damages, injunctions, or an order for delivery up. Criminal offences apply to certain commercial activities and can result in fines up to $150,000, or five years imprisonment.

Copyright Tribunal The role of the Copyright Tribunal is to resolve disputes regarding licences or proposed licences for the copying, performing or broadcasting of copyright works.

Protection overseas New Zealand is a signatory to various international copyright agreements. Participation in these agreements means that when an original work is created in New Zealand, it is also automatically protected in countries that are signatories to these agreements. And original works created in other countries are protected in New Zealand.

Administration

Ministry for Culture and Heritage

The Ministry for Culture and Heritage is one of many agencies through which government manages its involvement with culture. Its role is “to help make culture visible and accessible”.

Other organisations also supply services to the Crown. For example, Te Puni Kōkiri, Archives New Zealand, and the National Library provide cultural advice and services to government in their areas of responsibility. However, the Ministry for Culture and Heritage is government's key advisor across the broad range of culture and heritage issues.

Tyne Cot cemetery in Belgium, where 520 New Zealanders are buried, and 1,166 are listed on the memorial to the missing among 34,857 World War I Commonwealth casualties. The Ministry for Culture and Heritage helps care for the war graves through the Commonwealth War Graves Commission.

The ministry serves the government of the day by implementing and overseeing its cultural support programme. It advises on the programme's shape, which includes identifying new opportunities to contribute to cultural and other objectives.

The ministry advises on funding, legislation, organisational arrangements and implementing cultural initiatives. It also supplies input to other government work where a cultural perspective is desirable.

The ministry administers the funding of, and monitors and supports the work of, cultural and broadcasting agencies that deliver government-funded cultural services. These range from major Crown entities, such as the Museum of New Zealand Te Papa Tongarewa and NZ On Air, to small, independent, single-focus organisations like the Antarctic Heritage Trust. The ministry monitors the performance of each agency to confirm that government funding is used to support agreed outcomes, and assists with agency planning and development.

The Ministry for Culture and Heritage also researches and produces online and published work on New Zealand history, and war veterans' oral history. It produces websites to provide easily-accessible cultural content, and support cultural activities: the Dictionary of New Zealand Biography (www.dbnz.govt.nz), New Zealand History Online (www.nzhistory.net.nz), New Zealand Culture Online (www.nzlive.com), and Te Ara – the Encyclopedia of New Zealand (www.teara.govt.nz).

The ministry manages and maintains a number of heritage properties, including the National War Memorial, the Tomb of the Unknown Warrior and war graves throughout the country. It also commissions new memorials, such as those in Korea (2005) and London (2007).

It administers laws aimed at protecting objects and symbols of national identity, and promoting New Zealand's heritage, including the Protected Objects Act 1975, the Flags, Emblems and Names Protection Act 1981 and the Waitangi Day Act 1976.

The ministry is also the lead agency for the Cultural Diplomacy International Programme, in collaboration with the Ministry of Foreign Affairs and Trade, New Zealand Trade and Enterprise and Tourism New Zealand. This programme aims to establish and maintain a cultural presence in key overseas regions or countries, to boost New Zealand's profile, and economic, trade, tourism, diplomatic and cultural interests.

The ministry's statement of intent for the four years from 2007 outlines four key priorities: advancing digital and online delivery of cultural content, developing new symbols of nationhood, promoting New Zealand internationally through culture, and enhancing the performance of other agencies that contribute to a strong sense of cultural and national identity.

The Ministry for Cultural and Heritage's budget for 2007/08 was $15.03 million.

Table 12.01. Government funding for the arts, culture and heritage sector
Year ending 30 June 2007

 Government funding $(000)
Source: Ministry for Culture and Heritage
Broadcasting Commission (NZ On Air)106,671
National Library of New Zealand53,266
Television New Zealand Ltd22,051
Museum of New Zealand Te Papa Tongarewa20,574
Archives New Zealand19,751
Museum of New Zealand Te Papa Tongarewa (capital contribution)15,500
Ministry for Culture and Heritage15,511
Arts Council of New Zealand Toi Aotearoa (Creative New Zealand)15,452
New Zealand Symphony Orchestra12,346
New Zealand Film Commission10,111
New Zealand Historic Places Trust9,903
Regional museums (for construction projects)6,489
Royal New Zealand Ballet3,534
National Pacific Radio Trust3,390
Commonwealth War Graves Commission2,330
Radio New Zealand International1,900
New Zealand Memorial in London1,323
Te Matatini1,248
New Zealand Music Commission1,156
New Zealand Historic Places Trust (capital contribution)850
New Zealand Film Archive670
Broadcasting Standards Authority609
Maintenance of war graves, historic graves and monuments516
Antarctic Heritage Trust356
Treaty of Waitangi celebrations288
New Zealand Archaeological Association150
Gallipoli memorial projects48
Regional museums (for advice on antiquities)19
Kerikeri heritage bypass15

Creative New Zealand

Creative New Zealand, the main arts development organisation in New Zealand, was established as a Crown entity under the Arts Council of New Zealand Toi Aotearoa Act 1994. It works to develop and promote New Zealand arts and artists, both at home and internationally.

All Creative New Zealand's work is guided by its strategic plan, Te Mahere Rautaki 2007–2010. Its four strategic priorities are to ensure: New Zealanders are engaged in the arts, high-quality New Zealand art is developed, New Zealanders have access to high-quality arts experiences, and New Zealand arts gain international success.

Creative New Zealand's work includes arts advocacy, funding programmes, special initiatives and research. It works in partnership with the arts sector, central and local government, the business sector, and communities to achieve its vision, ‘a flourishing arts environment in which New Zealanders value, support and are inspired by the arts’.

The governing body is the New Zealand Arts Council and its three funding decision-making bodies are the Arts Board, Te Waka Toi (the Māori Arts Board) and the Pacific Arts Committee.

Staff in Wellington, Christchurch and Auckland offer services which include funding advice, professional development opportunities, arts advocacy, research, communications and information services.

Creative New Zealand's funding comes from the government through the Vote Arts, Culture and Heritage allocation and from the New Zealand Lottery Grants Board.

Advocacy Arts advocacy underpins all Creative New Zealand's work. The organisation works in partnership with other organisations, to promote the benefits of the arts and artists to New Zealand society as an integral part of everyday life. Creative New Zealand supports several awards to acknowledge contributions to the arts, for example, Te Waka Toi Awards, Arts Pasifika Awards, the Prime Minister's Awards for Literary Achievement, and the Montana New Zealand Book Awards.

Arts infrastructure and development Creative New Zealand supports 36 professional arts organisations on an annual or multi-year basis. It monitors their funding, and works with them to provide capability-building opportunities so they can take a leadership role for the arts sector. These organisations include the New Zealand String Quartet; the New Zealand International Arts Festival; national advocacy and service organisations such as Arts Access Aotearoa, Toi Māori Aotearoa and the New Zealand Book Council; regional theatre companies and orchestras; galleries and opera companies. These organisations were offered $15,186,780 for their activity programmes in 2008.

Project funding, residencies, fellowships, partnerships and audience work by Creative New Zealand all contribute to arts development. The organisation receives 1,500 applications a year for grants through two project funding rounds. It supports approximately 500 of these through three funding bodies – the Arts Board, Te Waka Toi and the Pacific Arts Committee. Creative New Zealand's work in audience and market development focuses on increasing audiences and markets, and on professional development opportunities for artists and arts organisations – both in New Zealand and internationally. Test Drive the Arts was a recent initiative led by four theatre companies and designed to build new audiences. Creative New Zealand also published Full House: Turning Data into Audiences, a ticketing and marketing manual to assist arts organisations maximise the value of customer data for marketing and audience development.

Recipients of the Arts Pasifika Awards 2007. From left, Pele Walker (Creative New Zealand), Sale Pepe (visual artist), Nina Nawalowalo (theatre director), Iga Olivia Muliaumaseali'i (for opera singer Sani Muliaumaseali'i), Justine Simei-Barton (film company owner and director), and Dr Okusitino Mahina (academic and writer).

Members of Taki Rua Productions, a national theatre company that provides Māori drama to audiences around New Zealand, here present Strange Resting Places, a play based on the Māori Battalion's role in Italy during World War II.

Special initiatives Creative New Zealand identifies opportunities and responds by developing appropriate initiatives. These include fellowships, such as their annual Craft/Object Art Fellowship, and the Michael King Writers' Fellowship. Another initiative is the Smash Palace Fund, a partnership between Creative New Zealand and the Ministry of Research, Science and Technology aimed at encouraging and supporting collaborations between the arts and sciences as a building block for innovation and creativity. This has the potential to increase public understanding of these two disciplines. The registered trademark toi iho™, denoting authenticity and quality of Māori arts, was launched in 2002. This initiative was developed by Creative New Zealand through Te Waka Toi.

The organisation offers a range of international residencies, which provide opportunities for New Zealand artists to develop their practice, build international networks and enhance their careers.

Research Creative New Zealand's research programme identifies key questions about the role the arts play in the lives of New Zealanders, and provides answers and insights through rigorous research projects. Research activities inform Creative New Zealand's strategic planning and policy development, support advocacy work and provide valuable information to the wider arts sector. In 2006, Creative New Zealand, Auckland City Council and the ASB Community Trust jointly commissioned market research for the project ‘Asian Aucklanders and the Arts: Attitudes, attendance, and participation’. The qualitative study explored the perceptions, experiences, and attitudes towards the arts held by Chinese, Japanese, Korean and Indian families, community leaders and artists.

Regional arts development Support for regional arts development is delivered through Creative New Zealand's partnerships, funding programmes, initiatives and advocacy work. The Creative Communities Scheme, a long-standing partnership with all local authorities, distributes grants from the Far North to Southland and the Chatham Islands. Established in 1995, the scheme is administered by local authorities and funded by Creative New Zealand. Every year, approximately 2,600 grants are allocated and distributed to local arts projects by assessment committees of representatives from iwi (tribes) and the local arts sector, including community arts councils and local government.

Contributors and related websites

Archives New Zealand – www.archives.govt.nz

Book Publishers Association of New Zealand – www.bpanz.org.nz

Booksellers New Zealand – www.booksellers.co.nz

Chamber Music New Zealand – www.chambermusic.co.nz

Copyright Licensing Ltd – www.copyright.co.nz

Creative New Zealand – www.creativenz.govt.nz

Hocken Collections – www.library.otago.ac.nz

Library and Information Association of New Zealand Aotearoa – www.lianza.org.nz

Ministry for Culture and Heritage – www.mch.govt.nz

Ministry of Economic Development – www.med.govt.nz

Motion Pictures Distributors' Association of New Zealand – www.mpda.org.nz

Museum of New Zealand Te Papa Tongarewa – www.tepapa.govt.nz

National Library of New Zealand – www.natlib.govt.nz

New Zealand Drama School – www.toiwhakaari.ac.nz

New Zealand Film Archive – www.filmarchive.org.nz

New Zealand Film Commission – www.nzfilm.co.nz

New Zealand Historic Places Trust – www.historic.org.nz

New Zealand Music Commission – www.nzmusic.org.nz

New Zealand Opera Company – www.nzopera.com

New Zealand School of Dance – www.nzschoolofdance.co.nz

New Zealand Society of Authors – www.authors.org.nz

New Zealand Symphony Orchestra – www.nzso.co.nz

Office of Film and Literature Classification – www.censorship.govt.nz

Parliamentary Library – www.parliament.nz

Royal New Zealand Ballet – www.nzballet.org.nz

Statistics New Zealand – www.stats.govt.nz

Chapter 13. Leisure and tourism

The Rangimarie Kapa Haka group performed a traditional Māori dance at the opening of the giant rugby ball in Paris, kicking off New Zealand's Rugby World Cup 2011 campaign.

Physical recreation and sport

Physical recreation and sport play a huge part in the lives of most New Zealanders. They impact positively on the nation's health and well-being and create a sense of community and nationhood. Sport and physical recreation provide opportunities for New Zealanders to express and reinforce their cultural identity. They also contribute to the development of communities and to economic growth.

Outdoor physical recreation is very popular in New Zealand's scenic natural environment. Ensuring it remains popular, and sustainable, is part of the broad mandate of Sport and Recreation New Zealand (SPARC). SPARC works with partners in the sector to help create opportunities for all New Zealanders to be active, and to reach their potential in their chosen sport or physical activity.

Sport and Recreation New Zealand

SPARC aims to get more New Zealanders more active more often. That means everything from supporting elite athletes, to encouraging people to get active in their local communities.

SPARC'S vision is for New Zealand to be a nation inspired to be active, participate, and win.

To realise this vision SPARC aims to foster an environment where more New Zealanders will:

  • be physically active in sport and recreation

  • participate in supporting and delivering sport and recreation

  • win on the world stage.

SPARC invests in organisations that contribute to achieving this vision, and partners with national sport organisations, national recreation organisations, regional sports trusts and many other organisations that have the capability to get people and programmes moving in their areas.

SPARC provides specialist services and programmes for coaches and elite athletes, as well as developing programmes aimed at getting ordinary New Zealanders to be more active.

SPARC represents the sport and physical recreation sector to government and provides a research base for the sector.

Measuring physical activity rates The New Zealand Sport and Physical Activity Survey is the key measure of participation in sport, recreation and physical activity for New Zealanders aged 16 years and over. The survey collects data from each participant on their involvement in sport, recreation, and physical activity over the previous 12 months, over the past four weeks and over the past seven days. The survey asks respondents if they are members of clubs, participate in organised competitions, receive coaching, or are involved in sport and recreation volunteering. This provides national and regional sport organisations with important information.

The 2007/08 survey was extensively re-designed to improve the quality of the information. In particular, each participant completes a seven-day physical activity recall diary. This recall diary collects in-depth information on physical activity (sport and recreation, active transport, occupational physical activity, unpaid work and other physical activities), and sedentary behaviour (TV/DVD/video use, and computer use). Participants record the physical activities they undertook each day and the associated intensity and duration of that activity.

Measuring the broader aspects of physical activity provides a comprehensive picture of total physical activity patterns and the proportion of New Zealand adults who are active to a level that maintains good health.

New Zealand Academy of Sport (NZAS) The academy provides a comprehensive network of world-class expertise, services and facilities for New Zealand's best athletes, promising young athletes, and their coaches.

The NZAS provides technical support for high-performance programmes at national sporting organisations. It also provides support services in sports science, sports medicine, and athlete and career education to eligible national sports organisations, athletes, and coaches.

To access services, athletes are recognised at one of four levels – world, international, development, and junior. Athletes at one of these levels receive a card and are entitled to access services from the academy in accordance with their sport's service agreement.

In 2007, there were approximately 800 carded athletes in New Zealand representing 35 sports. The NZAS is funded by the government, with SPARC spending approximately $33 million in 2006/07 on high-performance sport.

There is also a separate Prime Minister's Athlete Scholarship fund, managed by SPARC and administered by the NZAS. The $4.25 million programme enables talented New Zealanders to study at tertiary level while developing skills that contribute to sporting performance at the elite level. The scholarships are available to athletes, coaches, support team members and officials, to help them with professional development. In 2008, 300 athletes, 27 coaches, 34 support team members and 16 officials received scholarships across national sport organisations and NZAS regional operations.

Oamaru cricket coach Lachlan Kingan, 12 (right) gives his team some catching practice.

Changes in 2006/07 mean the academy now operates from two bases. The Auckland base delivers performance services across the North Island, and the Dunedin base delivers across the South Island.

Physical recreation and sport in the community

Active Communities SPARC supports local government's community development, and recreation and transportation planning. SPARC'S Active Communities initiative provides investment which enables communities to become more active, more often. Nearly 70 local authorities receive investment and services from SPARC.

Green Prescriptions (GRx) This SPARC programme encourages general practitioners and practice nurses to give ‘green prescriptions’ – written advice for a patient to be physically active as part of the patient's health management – to patients whose health could benefit from increased physical activity.

In 2006/07, 20,211 patients were referred to regional sports trusts and primary health organisations (PHOs) for GRx support, up from 16,100 in 2005/06 and 14,600 in 2004/05.

GRx is increasingly being integrated into the health system. A survey in November 2007 showed 99 percent of general practitioners were aware of GRx, and 87 percent have used them. In 2007, more PHOs had become involved by:

  • integrating GRx into training for general practitioners and practice nurses (40 PHOs)

  • including GRx in plans and policies (31 PHOs)

  • investing in GRx (26 PHOs).

Most GRx referrals are in response to patients' weight and obesity issues, diabetes and cardiovascular disease. However, a survey of patients showed that the rewards go far beyond weight alone – 74 percent reported other positive health benefits.

Informing and supporting general practitioners is key to the success of GRx. Seventeen GRx area managers perform this vital role by visiting practitioners, advising on how to integrate the electronic GRx script into the practice system, and offering ongoing information and support.

The 2007 General Practitioner Survey showed that 72 percent of general practitioners were satisfied with GRx as a whole, while 79 percent were satisfied with the support delivered to patients.

Coaching Quality coaches have a positive impact on their communities. Their work has a huge influence on the lives and values of those they come into contact with.

The New Zealand Coaching Strategy was developed by coaches to meet the needs of coaches as well as athletes. It delivers a coordinated coaching approach that links regional and national activities and outcomes. SPARC creates opportunities for coaches at all levels of experience to develop and share their knowledge. This includes supporting coach and athlete development by establishing coaching communities and flexible learning opportunities.

CoachForce is a nationwide programme that provides the ‘workforce’ to support coaches and regional coach development and education programmes. There are now 107 full-time CoachForce officers across New Zealand who implement SPARC'S coaching strategy.

CoachCorp is a SPARC programme that gets employees out of the office and into volunteering, as coaches, managers and officials, with the support of their employers (who provide flexitime). CoachCorp aims to increase the number and quality of coaches, and to get more people into sport and physical recreation, by building relationships between companies and community sport. During 2006/07 approximately 50 companies and over 230 employees were involved in CoachCorp.

Mission-On for young Kiwis is a set of initiatives from SPARC and the Ministries of Education, Health, and Youth Development that aim to improve the lifestyles of young New Zealanders through improved nutrition and increased physical activity.

The Mission-On target audience is children and young people aged 0–24 years. Strategies to improve nutrition and increase physical activity include ‘lifestyle ambassadors’ promoting healthy messages, a website for 5–12 year olds rewarding those who get active, and the Weird World of Sport competition challenging people to invent a new sport and become a world champion.

Mission-On was launched in September 2006. It has gained strong awareness and positive feedback from children, young adults, parents and schools. SPARC is the lead agency and is responsible for delivering six of Mission-On's 10 initiatives.

No Exceptions is intended to guide and coordinate the strategies and actions of all agencies involved in providing physical recreation and sports opportunities for disabled people. It aims to increase their participation in sports and physical recreation by making more activities inclusive and accessible for disabled people.

The No Exceptions strategy comes with responsibilities for many organisations, many of which have identified the strategies and actions they will implement. At November 2007, nine national sporting organisations had committed to disability action plans and policies. Of these, five had begun developing planning and policy templates.

Push Play is SPARC'S national physical-activity campaign to encourage more New Zealanders to be more active. While primarily targeting adults, there are components of the campaign that are designed to improve outcomes for children.

Push Play Nation is an initiative under the Push Play brand that ran from 17 September 2007 through to Push Play Day on 3 November 2007. The campaign included television commercials, featuring five high-profile New Zealanders, who encouraged people to get active. Viewers could download an activity programme from SPARC'S website.

Forty thousand New Zealanders registered, choosing one of the ‘celebrities’ and their preferred month-long activity programme (options included walking, running, cycling, swimming or gym). To keep them motivated, participants received an email message from their celebrity.

SPARC'S survey results show a positive change in attitude, with 19 percent of New Zealand adults saying they had started to be more active as a result of the campaign, and another 23 percent were thinking about it.

Te Roopu Manaaki is an advisory board of national and regional representatives, who provide strategic advice to the SPARC board about Māori issues. It also provides assistance to He Oranga Poutama (Steps to health), a SPARC programme targeted at increasing physical activity levels among Māori.

The functions of Te Roopu Manaaki are to:

  • ensure all SPARC activities are culturally appropriate to Māori

  • provide strategic advice to SPARC to increase Māori participation in the sports and recreation sector

  • help communicate with iwi (tribes), hapū (subtribes) and individual Māori, and encourage interested groups to participate.

Other central government bodies are also involved in sport and physical recreation. SPARC has close relationships with the Ministry of Health and the Ministry of Education, who share the objective of helping New Zealanders to be healthy and physically active.

Outdoor leisure activities

Physical recreation

Cycling Many New Zealanders incorporate cycling into their lifestyles, whether they are going cross country through national parks, bunch riding through the city, down at the local BMX park with the kids, or competing on the world stage.

The New Zealand landscape creates some of the world's most outstanding mountain bike rides, including Woodhill Forest near Auckland, Whakarewarewa in Rotorua, the Karapoti Classic near Wellington, the Otago Central Rail Trail from Clyde to Middlemarch, and the tracks around Lake Wanaka.

Bike NZ Inc represents the interests of several cycling organisations, including Cycling New Zealand, Mountain Bike NZ, BMX New Zealand, Cycling Advocates Network, and the New Zealand Schools Cycling Association. Bike NZ Inc has about 8,000 members and is affiliated to international cycling body International Cycling Union.

Mountaineering New Zealand provides a superb environment for mountaineering. The mountains are a dominant feature of the New Zealand landscape, with both islands providing opportunities for climbers of all abilities. The South Island is well known for the spectacular Southern Alps, forming the backbone of the island. They offer an impressive selection of challenging climbs, with 19 peaks over 3,000 metres high, including the well known Aoraki-Mt Cook, New Zealand's highest mountain.

Most tracks are accessible year-round, although some of the high-altitude tracks in the South Island are restricted by winter weather. Commercial guides are available and specialist companies run courses covering a range of climbing experiences. The climbing season is generally November to March, but for experienced climbers this can extend into winter, where there can be extended calm, fine spells. However the New Zealand climate can be changeable, with winds and storms picking up extremely fast.

Skiing and snowboarding The skiing and snowboarding season extends from June to late October/early November, with many ski areas in both the North and South Islands having snow-making equipment to ensure reliable snow depth and quality. New Zealand has 13 commercial ski areas, 11 club ski fields, one commercial cross-country ski area, and a commercial indoor ski slope in Auckland.

In the North Island, the main snow sports centre is Mt Ruapehu in the Tongariro National Park. There are two commercial ski areas, Whakapapa and Turoa, and one club field at Tukino. The Maunganui Ski Club operates on Mt Egmont/Taranaki.

In the South Island, the commercial ski areas are in the Queenstown/Wanaka area at Coronet Peak, the Remarkables, Cardrona, Treble Cone, Snow Park and Snow Farm; in the Aoraki/McKenzie area at Ohau, Mt Dobson and Round Hill; and in Canterbury at Porters, Mt Hutt and Mt Lyford. There are nine club fields in the South Island.

The Snow Farm, on the Pisa Range near Queenstown/Wanaka, offers 50 kilometres of cross-country skiing. Glacier skiing on the Tasman and Fox Glaciers is accessible by ski-plane and helicopter. Guided heli-skiing and ski touring give access to the Ben Ohau Ranges, the Harris Mountains, the Two Thumb Range, the Aoraki-Mt Cook/Tasman Glacier area, Mt Hutt and Queenstown.

The International Ski Federation has authorised annual international snow sports competitions at Whakapapa, Mt Hutt, Turoa, Coronet Peak, Cardrona, Snow Park, Snow Farm and Treble Cone.

Tramping/hiking The closeness of mountains and forests to urban centres gives New Zealanders the opportunity to get away from the cities and enjoy nature. There are many tracks through beautiful scenery, from the Waitakere and Hunua Ranges near Auckland, to the many national and forest parks and reserves of the North Island, and through to the extensive parks and protected natural areas of the South Island. Tramping tracks range from half-day, family-oriented walks to challenging tramps in back-country and alpine isolation.

The Great Walks are New Zealand's most famous tramping tracks. They include Lake Waikaremoana in Urewera National Park, Tongariro northern circuit in Tongariro National Park, Abel Tasman Coastal Track in Abel Tasman National Park, Heaphy Track in Kahurangi National Park, Routeburn Track in Mt Aspiring and Fiordland National Parks, Milford and Kepler Tracks in Fiordland National Park, and Rakiura Track in Rakiura National Park.

Most of these tracks take two to four days to complete and are well marked. Huts and campsites are provided for overnight accommodation. The Abel Tasman Coastal Track is the most popular, with about 30,000 overnight visitors a year. Information on tramping is available through commercial guiding companies and the Department of Conservation.

Walking Government agencies and local authorities develop and maintain public walking tracks throughout New Zealand. The walkways system offers walking opportunities over primarily private land, and complements the network of back-country tramping tracks. Walkways vary from half-hour walks, to four or five days for the St James Walkway in North Canterbury.

Fishing and hunting

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 tiger shark, hammerhead shark, mako shark, thresher shark, kingfish (yellow tail) and tuna. Best catches are usually made in February, but fishing is good from December to April.

Freshwater fishing Rainbow and brown trout are found in most lakes and rivers of both the North Island and South Island. The South Island also has sea-run brown trout in western coastal rivers, sea-run quinnat salmon in eastern coastal rivers, and land-locked salmon in several waterways. Average trout size varies depending on environment, climate, food and the number of anglers.

Shooting and hunting New Zealand's principal game birds are duck, swan, pheasant, quail, geese and chukors. The season traditionally starts on the first weekend in May and extends for six to eight weeks for most species, depending on the region. Special seasons for paradise shelduck and geese are run on a regional basis. Daily bag limits apply in most regions.

A group of climbers descend the Hooker Valley after crossing Ball Pass in the Aoraki-Mount Cook National Park.

Deer of several species, chamois, tahr, wild pigs, goats and wallabies are numerous in several areas. There are few restrictions on big game hunting and there is generally no limit on the number of big game animals that can be taken. The season is open for most species all year round. For tourists and inexperienced hunters, the service of an experienced guide is recommended.

Fish and Game New Zealand is responsible for protecting, managing and enhancing freshwater sport fishing and gamebird hunting on behalf of anglers and hunters.

With the exception of the Lake Taupo fishery, which is managed by the Department of Conservation, all trout and salmon fisheries are managed by Fish and Game New Zealand. A licence is required for all sport fishing and game bird hunting, and permits are required to hunt big game in some areas.

Public conservation land

The Department of Conservation (DOC) is charged with fostering and promoting recreation, and making areas of public conservation land accessible for the enjoyment and appreciation of all.

This involves providing and maintaining tracks, huts and other amenities for visitors. The department is responsible for 12,900 kilometres of walking tracks, 938 huts, 1,710 toilets, 665 car parks, 420 amenity areas, 13,600 bridges, boardwalks and other structures, 17,400 signs and 323 campsites.

It is estimated that, currently, at least 20 percent of New Zealand residents visit one or more national parks in a year. Thirty percent of international visitors to the country visit at least one national park during their stay.

The nine Great Walks – all of which are located within national parks – are some of the highest profile tracks in the country. In 2006/07, 58,000 people stayed overnight on these tracks, 60 percent of whom were overseas visitors. During the 2006/07 walking season, which started in late October 2006 and finished in April 2007, hut occupancy on the Milford track was 97 percent, while occupancy for the busiest huts on the Abel Tasman was 90 percent, and on the Routeburn, 82 percent. There is slightly less demand for the Kepler, where the busiest hut had a 74 percent occupancy rate, while the huts on the Heaphy Track had an occupancy rate of just over 50 percent.

Commercial operations exist on some of the Great Walks and at many other DOC-managed locations as well. Commercial tourism operators work hand-in-hand with the department, enabling a wider range of recreational opportunities to be enjoyed. The department regards public enjoyment of national parks, other conservation areas, historic reserves, and marine reserves as a key part of its conservation role.

Racing and gaming

Racing

The New Zealand racing industry is a major contributor to the country's economy and to local communities. Racing generates more than $1.4 billion each year, and creates the equivalent of 18,300 full-time jobs. Accommodation, travel, fashion and entertainment providers also benefit from the industry. In 2007, more than 1 million people attended race meetings across New Zealand, spending more than $55 million on bets, food, beverages, transport and accommodation.

A major source of funding for the racing industry is the returns from betting on racing and sports, which is administered by the New Zealand Totalisator Agency Board (TAB), the retail arm of the New Zealand Racing Board.

There are 69 thoroughbred, 51 harness and 12 greyhound clubs licensed to race in New Zealand, with racecourses situated in 59 locations. In the racing year, from August 2006 to July 2007, 8,969 races were held throughout the country.

The bloodstock industry is of international importance to New Zealand, with the sale of horses for export – mainly to Australia and Asia – generating more than $120 million a year. New Zealand-bred runners compete very well overseas and regularly win major races.

New Zealand Racing Board The board facilitates all racing and sports betting in New Zealand. Under the Racing Act 2003, the New Zealand Racing Board is responsible for facilitating and promoting racing and sports betting to maximise profits for the long-term benefit of New Zealand racing and those who derive their livelihood from the industry.

The board coordinates:

  • the TAB – which runs all betting on racing and sport in New Zealand

  • the three racing codes – New Zealand Thoroughbred Racing (gallops), Harness Racing New Zealand (trotting and pacing) and New Zealand Greyhound Racing (greyhounds)

  • the Judicial Control Authority – the legal body that administers the rules of racing and conducts inquiries into breaches of the rules for all three codes.

Totalisator Agency Board (TAB) The New Zealand Racing Board's income comes from betting revenue from the TAB. There are 750 TAB outlets throughout New Zealand, as well as on-course tote terminals, Internet, Phonebet, Touch Tone and SKYbet betting channels. More than 100,000 TAB account holders use the TAB's electronic Touch Tone, Phonebet and Internet services.

The TAB offers a wide range of totalisator and fixed-odds betting products. Just over 80 percent of the betting dollar is returned to the customer. The rest goes to the racing and sporting codes, after tax and New Zealand Racing Board costs.

In 2006/07, $112.7 million was returned to the New Zealand racing codes and more than $2 million was returned to sporting bodies.

Trackside Television and Radio Trackside The New Zealand Racing Board owns Trackside Television and Radio Trackside which have a combined audience of more than 250,000. Trackside Television broadcasts every race the TAB takes bets on and has the highest amount of homegrown content of any channel in New Zealand. Trackside Live broadcasts live action and race information 12 hours a day, seven days per week, 363 days a year.

Table 13.01. Non-inflation adjusted gambling statistics
By gambling outlet
Year ending 30 June(1)

Gambling outlet19801990200020052006
$million

(1) The balance dates for different gaming operators can differ from 30 June – no adjustment has been made for this.

(2) Racing data for 2000 and onwards is not strictly comparable with previous years.

(3) Expenditure is the amount lost or spent by players, or the gross profit of the gaming operator.

(4) Turnover is the total gross amount wagered by punters. It includes re-investment where the same dollar is counted more than once. Turnover is not an indicator of the amount spent by players or of the profit of the operator.

(5) Figures may not add up to stated totals due to rounding.

Symbol: ... not applicable

Source: Department of Internal Affairs

Racing(2)
Expenditure(3)96230227247258
Dividends4088159311,0261,106
Turnover(4)5041,0451,1581,2731,364
New Zealand Lotteries Commission
Expenditure(3)22252277280321
Prizes32292348350398
Turnover(4)54544625630719
Gaming machines (outside casinos)
Expenditure(3)......4501,027906
Casinos
Expenditure(3)......343472493
Total expenditure(5)1184821,2972,0271,977

To celebrate Lotto's 20th birthday on 25 August 2007, extra prizes worth S5.5 million were available, the largest ever bonus prize offer.

Lotteries and gaming

The Gambling Act 2003 aims to minimise or prevent harm or distress of any kind, including personal, social or economic harm that is caused, or exacerbated by, a person's gambling. Its purpose is to:

  • control the growth of gambling

  • prevent and minimise the harm caused by gambling, including problem gambling

  • authorise some gambling and prohibit the rest

  • facilitate responsible gambling

  • ensure the integrity and fairness of games

  • limit opportunities for crime or dishonesty

  • ensure profits from gambling benefit the community

  • facilitate community involvement in decisions about the provision of gambling.

The Act's risk-based approach to gambling regulation makes it harder to get licences to operate more harmful forms of gambling, and imposes additional obligations on those forms.

City and district councils control the number of gaming machines in their area and decide the location of gambling venues. The Department of Internal Affairs is responsible for licensing, auditing, reporting, and other controls on gaming machines in pubs and clubs to ensure that profits go to community groups.

Problem gambling is a public health issue and the gambling sector is required to pay a levy to cover the cost of a problem gambling strategy. The Gambling Act established the Gambling Commission, which has an appeal function and a role in regulating casinos. The Act prohibits any new casino licences being issued and prevents existing casinos from expanding their gambling operations.

New Zealand Lotteries Commission (NZ Lotteries) is responsible for promoting and conducting New Zealand lotteries. Net profits from NZ Lotteries' games are distributed to arts, sports, charitable and community causes by the New Zealand Lottery Grants Board.

In the year ending 30 June 2007, NZ Lotteries' sales were $744.8 million, of which $ 147.5 million was transferred to the Lottery Grants Board. This compares with sales of $719.2 million and a transfer of $138.6 million in the previous year. For every dollar spent on lotteries, 56 cents is paid in prizes, 20 cents is transferred to the Lottery Grants Board, 10 cents is paid in taxes, seven cents is paid in retail commission, and seven cents covers operating costs.

New Zealand Lottery Grants Board Te Puna Tahua is responsible for distributing profits from lotteries run by the New Zealand Lotteries Commission for the benefit of the New Zealand community. It is governed by the Gambling Act 2003.

The board has six members: three community members appointed by the governor-general, representatives of the prime minister and the leader of the opposition, and the Minister of Internal Affairs who chairs the board.

Social, community, arts, heritage, sport, recreation, and health research services and projects are funded through 20 lottery distribution committees and three statutory bodies – Creative New Zealand, the New Zealand Film Commission, and Sport and Recreation New Zealand.

Table 13.02. Allocation of lottery profits
By organisation
Year ending 30 June

Recipient20032004200520062007
$(million)

(1) Pacific Provider Development Fund.

Note: Figures may not add up to stated totals due to rounding.

Source: New Zealand Lottery Grants Board

Sport and Recreation New Zealand24.724.724.728.230.9
Creative New Zealand18.618.618.618.621.3
NZ Film Commission8.08.08.08.19.0
NZ Film Archive0.60.60.60.60.7
Total56.356.355.455.561.9
Regional community committees0.00.015.017.822.1
National community committee0.00.010.810.811.9
Environment and heritage5.55.56.67.48.4
Outdoor safety committee0.00.06.06.77.3
Marae heritage and facilities4.14.15.05.57.0
Individuals/disabilities3.03.03.23.66.0
Health research1.91.92.32.62.8
Lottery community PPDF(1)0.00.00.00.20.4
Minister's fund0.10.20.20.20.3
Total43.739.749.154.666.2
Grand total100.096.1104.5110.1128.2

Gambling Commission is an independent statutory decision-making body established under the Gambling Act 2003. The commission:

  • specifies, varies and revokes casino licence conditions

  • decides on applications by the Secretary for Internal Affairs to suspend or cancel casino licences

  • decides on applications for casino operator's licences, and the renewal of casino venue licences

  • determines appeals against regulatory and licensing decisions made by the Department of internal Affairs in respect of some classes of gambling

  • hears complaints about the way the department has handled complaints in relation to gambling activities

  • advises ministers and facilitates consultation on the setting of the problem gambling levy

  • advises the Minister of Internal Affairs on matters relating to the performance of the commission's functions and the administration of the Gambling Act 2003.

Problem gambling is a significant social and health issue. New Zealand has seen a marked increase in the consumption of gambling products and in player losses in the past decade. There has also been an increased awareness of the risk of gambling-related harm to various population groups. The Ministry of Health is responsible for funding and coordinating services and activities pertaining to gambling-related harm. The Preventing and Minimising Gambling Harm Strategic Plan 2004–10 includes primary prevention and population approaches, and more selected intervention services for individuals and their families. The ministry funds problem gambling services through a Vote Health appropriation, and the Crown then recovers these costs through a levy on gambling operators.

Tourism

Situated at the edge of the Pacific Ocean, New Zealand's attractions have made tourism one of the country's largest foreign-exchange earners. Traditionally, international tourists have been drawn to New Zealand to experience unpolluted air and water, open spaces, and unique flora and fauna. Today, as well as these traditional attractions, the international traveller is looking for adventure, sophistication and cultural activities. New Zealand tourism has developed to meet these needs.

The tourism market New Zealand tourism caters for international visitors, and New Zealanders, travelling for pleasure, business or education. The tourism industry meets their needs by providing accommodation, food, tours, activities and transport.

Tourism is an important source of income for New Zealand, so it is important that industry members work together to provide a rewarding experience for travellers. New Zealand has two government-funded tourism organisations: the Ministry of Tourism and Tourism New Zealand. Tourism New Zealand is the marketing agency, and works with the tourism industry to take a cohesive, coordinated approach to marketing New Zealand overseas.

Attractions It is not only New Zealand's landscape, but its distinctive culture, people and sense of adventure that attract overseas visitors. New Zealand culture is reflected in its distinctive stamp on world cuisine, sport, fashion, film-making, and contemporary and wearable art.

Skylump® is a 192 metre fall from Auckland's iconic Sky Tower in the central business district.

New Zealanders themselves complete the visitor experience. Ingenious, passionate, inspiring yet straightforward people, New Zealanders are famous for looking at things in new ways and doing things with an attitude and an eye for adventure. Combining a breathtaking landscape and an adventurous soul, ‘Kiwis’ explore nature by extremes – inventing the ski-plane and the jetboat, and popularising bungy jumping.

Events Sporting and cultural events, such as wine, food, art and flower festivals, Māori cultural competitions, triathlons, fashion events, and rugby matches put New Zealand in the international spotlight. Together with conferences and conventions, these events help to promote New Zealand as a tourist destination.

New Zealand Tourism Strategy 2015 Recognising the importance of sustainability and that New Zealand is a small player in the global tourism market, a group representing the tourism industry, local and central government, Māori, and conservation interests, joined together to review the New Zealand Tourism Strategy 2010 (released in 2001). The result is the New Zealand Tourism Strategy 2015 (2007). This document has far-reaching implications for the structure of the tourism industry and should ensure the industry's sustainability.

The strategy looks at how the tourism sector can deliver sustainable tourism that provides the maximum economic, social, cultural and environmental benefits, with the least negative effects possible. Kaitiakitanga (guardianship) and manākitanga (hospitality) are important values that underpin the strategy.

The strategy's vision is that, in 2015, tourism is valued as the leading contributor to a sustainable New Zealand economy. The sector faces a number of challenges in achieving this, including the impact of climate change on worldwide travel patterns, exchange rate fluctuations, restricted aviation capacity, and the availability of appropriately qualified and skilled staff.

The strategy sets out four outcomes to guide the industry towards its vision:

  • New Zealand delivers a world-class visitor experience

  • New Zealand's tourism sector is prosperous and attracts ongoing investment

  • the tourism sector takes a leading role in protecting and enhancing New Zealand's environment

  • the tourism sector and communities work together for mutual benefit.

The updated strategy was released in November 2007, following input from the tourism industry, local and central government, the education and training sector and related organisations, who will work together to deliver on this strategy.

Tourism organisations

Tourism New Zealand is responsible for coordinating overseas marketing and promotion of New Zealand as a tourist destination. Its objective is to ensure that New Zealand is marketed as a tourism destination to maximise the long-term benefits to the country.

The ‘100% Pure New Zealand’ marketing campaign, introduced in 1999, works on the basis of a single, concise brand position across all its offshore markets. Tourism New Zealand works with the tourism industry to develop quality systems and new tourism products, and on international marketing, to encourage international visitors to ‘come now, do more and tell others’.

Tourism New Zealand maintains offices in Wellington, Auckland, Sydney, Bangkok, Mumbai, London, Los Angeles, New York, Tokyo, Osaka, Singapore, Seoul and Shanghai, and has general service agents in Taipei and Johannesburg.

Tourism Industry Association New Zealand (T1A) is the largest representative body of tourism operators in the country. It is a private sector, membership-based organisation that represents around 2,000 businesses and organisations – from small owner-operator businesses through to large stock-exchange-listed companies – who collectively represent 85 percent of the country's tourism turnover.

TIA advocates to central and local government, and other decision makers, for the interests of those who deliver the visitor experience in New Zealand. It provides information, advice and tools to help members run successful businesses, and organises major tourism industry events each year. These include the international business-to-business trade shows, TRENZ (Tourism Rendezvous New Zealand) and PURE LUXURY New Zealand, the Tourism Industry Awards and the Tourism Industry Conference.

Established in 1953 as the New Zealand Travel and Holiday Association, the functions of TIA have evolved as the New Zealand tourism industry has increased in economic importance.

Other agencies with tourism functions are involved in the tourism sector. The New Zealand Customs Service and the Ministry of Agriculture and Forestry's quarantine service screen all visitors entering New Zealand to ensure that no prohibited or restricted materials are brought into the country. New Zealand Police investigate crimes committed by or against visitors. Statistics New Zealand is a key provider of data needed for the management of tourism, and the Foundation for Research, Science and Technology allocates funds for tourism research.

International tourism

Tourism is an important industry throughout the world. The World Tourism Organisation reported that the total number of international visitor arrivals reached 898 million in 2007. New Zealand has hosted more than 2 million international visitors annually since March 2003.

Reasons for visiting New Zealand have changed. In the 20 years to 2007, the proportion of international visitors travelling to New Zealand for a holiday dropped – from 53 percent in 1988 to 49 percent in 2007. The proportion of visitors coming to stay with friends and relatives increased in the same period, up from 23 to 29 percent.

Karen Funnell (left) from CentrePort talks with cruise-ship passengers, Gert and Elke Vogt, in Wellington.

Table 13.03 shows the number of international visitors to New Zealand, by their main reason for visiting.

Tourism is an important foreign exchange earner for New Zealand, with international tourism revenue rising from $5.0 billion in 1999 to $8.3 billion in 2006 (19.2 percent of total export earnings). Direct tourism contributed $6.9 billion, or 4.8 percent, to gross domestic product. The indirect value-added of industries supporting tourism generated an additional $5.9 billion.

An estimated 108,600 full-time equivalent employees were directly engaged in producing goods and services purchased by tourists in the year ending 31 March 2006. This is equal to 5.9 percent of total employment in New Zealand.

Total tourism expenditure in New Zealand increased from $12.4 billion in 1999 to $18.6 billion in 2006.

International visitors Over 2.4 million international visitors arrived in New Zealand in the year ending 31 March 2007, an increase of 3 percent from the previous year.

Australia was the largest source of visitors, accounting for 37 percent of all visitors in 2007. The top seven visitors source countries – Australia, the United Kingdom, the United States, Japan, China, Korea and Germany – contributed three-quarters of all visitor arrivals to New Zealand.

Table 13.05 shows the country or region of last permanent residence of New Zealand's international visitors.

Accommodation A wide range of accommodation is available for visitors. Qualmark New Zealand Ltd has developed an independent and comprehensive rating system for assessing hotels, self-contained and serviced accommodation, holiday parks, and backpacker accommodation.

In August 2007, 37 percent of travellers stayed in motels, motor inns or apartments; 37 percent in hotels and resorts; 13 percent in backpacker accommodation or hostels; 12 percent in caravan parks or camping grounds; and 1 percent in hosted accommodation.

Table 13.03. International visitors
By main reason for visit
Year ending 31 March

Reason for visit19972004200520062007

(1) Includes conferences and conventions, education, medical, stopover and unspecified reasons.

(2) Totals are actual counts and may not equal the sum of figures, which are derived from samples.

Source: Statistics New Zealand

Holiday860,2081,105,3441,208,3291,183,0281,205,315
Visit friends and relatives354,226601,803676,027672,384700,822
Business163,976224,061249,164264,812270,191
Other(1)172,931230,091233,871242,067259,340
Total(2)1,551,3412,163,4272,387,6632,378,7972,445,130

Table 13.04. International visitor spending
By country of last permanent residence
Year ending 31 December 2006

Country/region of last permanent residenceAverage expenditure per personTotal foreign exchange earnings(1)
per dayper visit
($)

(1) Excluding international airfares.

(2) Special Administrative Region.

Symbol:... not applicable

Source: Ministry of Tourism

Japan1883,739475,475,989
People's Republic of China1863,341325,996,797
United States1843,513696,503,688
Republic of Korea1763,458327,274,561
Thailand1685,80282,554,153
Singapore1622,60860,508,576
Australia1611,7951,466,918,197
Canada1334,312178,262,975
Netherlands1313,859112,797,839
United Kingdom1253,534946,930,863
Switzerland1215,41582,179,475
Taiwan1193,86298,383,634
Hong Kong (SAR)(2)1163,17371,539,554
Nordic countries1123,893104,690,568
Germany1104,753266,733,345
Malaysia962,92254,252,671
Other Central Europe1433,746240,377,012
Other South-East Asia722,45632,643,617
Other countries1073,049753,096,651
Total......6,377,120,166

Table 13.05. International visitors(1)
By country of last permanent residence
Year ending 31 March

Country200520062007

(1) Intended length of stay in New Zealand less than 12 months.

(2) Special Administrative Region.

(3) Includes unspecified.

(4) Totals are actual counts. They may differ from the sum of individual figures for different countries, which are derived from samples.

Source: Statistics New Zealand

Australia875,337870,731913,994
United Kingdom293,554306,608302,812
United States220,004219,882222,454
Japan163,293153,208130,121
People's Republic of China84,22690,774114,364
Republic of Korea112,676107,422111,676
Germany57,23357,46658,790
Canada41,62743,27746,680
Singapore32,58629,36527,744
Taiwan27,56228,61627,647
Netherlands25,91626,40627,380
Hong Kong (SAR)(2)28,00624,50223,844
Fiji18,14921,07822,113
India16,35917,90920,706
Ireland18,20421,44120,335
Malaysia24,50822,66219,917
South Africa15,84817,32919,617
France16,36717,94919,109
Thailand20,33718,81018,313
Samoa14,71016,69517,707
French Polynesia17,54117,84016,626
Switzerland14,97413,89814,688
Tonga10,49510,38312,026
Sweden13,01412,20311,979
New Caledonia10,32310,52411,398
Denmark9,4619,82111,029
Cook Islands8,96810,57010,595
Brazil6,2527,7629,282
Spain6,3347,3938,130
Italy7,3467,8487,912
Philippines5,6666,0417,343
Indonesia7,8557,0617,198
Austria6,6656,1966,464
Israel6,8886,5435,985
Belgium4,7114,3134,718
United Arab Emirates4,2734,3444,527
Argentina2,7343,4394,363
Chile2,4223,1164,111
Other(3)114,967100,866111,971
Total(4)2,387,6632,378,7972,445,130

Transport In the year ending 31 March 2007, at some stage of their New Zealand visit, an estimated 44 percent of all international visitors aged 15 and over used a private car or van; 31 percent took a domestic air trip; 31 percent used a scheduled bus service; 29 percent used a rental car/van; 21 percent used a ferry or boat; and 20 percent took a bus tour.

Managing the effects of tourism

The increasing importance of tourism has led to a strong interest in 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 for investors, and be acceptable to host communities – providing them with real economic and social benefits. But it must also protect and develop the environmental, cultural and social values on which tourism depends.

Local government plays an important role in creating an environment for sustainable tourism. It contributes to the marketing of the region as a tourist destination and is responsible for enforcing laws and rules associated with managing the effects of tourism. It must also plan for, and in some cases fund, much of the infrastructure on which tourism depends, ensuring that water supply and sewerage systems, roads and car parks can cope with additional demands.

The Department of Conservation (DOC) manages many of the natural areas enjoyed by visitors. Private sector firms provide a variety of facilities or services for visitors, including ski fields, scenic flights, and guiding services, to complement those provided by the department. 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.

Tourism company Stray runs its Auckland-orientation tour bus on 100 percent recycled cooking oil. Managing director Neil Geddes says this produces cleaner emissions and lower running costs, and attracts environmentally conscious travellers.

Table 13.06. Commercial accommodation use(1)(2)
By accommodation type
Year ending 31 March

Accommodation typeNumber of establishmentsCapacity (stay unit nights)(3) (000)Guest nights (000)Occupancy rate (percent)Average stay (nights)

(1) Establishments that are temporarily closed for more than 14 days during a month are excluded from the results.

(2) Establishments primarily offering accommodation for periods of one month or more are excluded.

(3) An establishment's accommodation capacity is measured by multiplying the number of units in the establishment by the number of nights in the period.

(4) Hosted accommodation includes private hotels, guest houses, bed and breakfasts, and farmstays.

Source: Statistics New Zealand

Hotels/resorts
200454710,1559,34156.21.8
200556710,3589,86158.21.8
200657411,1249,89655.21.8
200756811,28310,14755.71.8
Motels/motor inns/apartments
20041,6308,99010,33656.11.8
20051,6839,23010,67756.71.8
20061,7179,48710,55455.01.8
20071,7699,76210,84254.91.8
Hosted accommodation(4)
200451999053830.41.9
20056261,03756429.51.8
20066591,14156126.11.8
20076791,17758726.61.9
Backpackers/hostels
20043436,7023,69349.72.0
20054107,6874,05747.21.9
20064418,6374,20843.61.9
20074458,8814,37044.31.9
Caravan parks/camping grounds
200439918,3506,07814.32.1
200541118,7626,36014.62.0
200641918,7356,07114.02.0
200741618,4156,29815.12.1
Total
20043,43845,18729,98637.61.9
20053,69747,07531,51938.11.9
20063,81049,12431,28836.71.9
20073,87749,51832,24437.71.9

Contributors and related websites

BikeNZ Inc – www.bikenz.org.nz

Department of Conservation – www.doc.govt.nz

Department of Internal Affairs – www.dia.govt.nz

Fish and Game New Zealand – www.fishandgame.org.nz

Gambling Commission – www.gamblingcom.govt.nz

Ministry of Health – www.moh.govt.nz

Ministry of Tourism – www.tourism.govt.nz

New Zealand Lotteries Commission – www.nzlotteries.co.nz

New Zealand Olympic Committee – www.olympic.org.nz

New Zealand Racing Board – www.nzracingboard.co.nz

New Zealand Snowsports Council – www.gosnow.co.nz

Qualmark New Zealand Ltd – www.qualmark.co.nz

Sport and Recreation New Zealand – www.sparc.govt.nz

Statistics New Zealand – www.stats.govt.nz

Totalisator Agency Board – www.tab.co.nz

Tourism Industry Association of New Zealand – www.tianz.org.nz

Tourism New Zealand – www.tourismnewzealand.com

Tourism Research Council of New Zealand – www.trcnz.govt.nz

Chapter 14. Labour market

Department of Conservation biosecurity ranger David Wilson replaces fairy tern eggs at Pakiri Beach on the east coast north of Auckland. There were 2,222,000 people in New Zealand's labour force in the March 2008 quarter, 67.7 percent of the working-age population.

Labour relations

New Zealand has a range of legislation dealing with employment relations, with the main framework being set out in the Employment Relations Act 2000. Other employment legislation sets out minimum statutory conditions of employment, including minimum entitlements to wages and leave. These laws are administered by the Department of Labour.

Employment Relations Act 2000

The Employment Relations Act 2000 has good faith as its central principle, requiring employers, employees and unions to deal with each other honestly and openly. Specifically, the Act:

  • promotes good employment relations and mutual respect and confidence among employers, employees and unions

  • sets the environment for individual and collective employment relationships

  • sets out requirements for negotiation of collective and individual employment agreements

  • provides prompt and flexible options for resolving problems in employment relationships.

The key objective of the Act is to build productive employment relationships through promotion of mutual trust and confidence in all aspects of the employment environment and the employment relationship. In particular, the Act aims to promote productive employment relationships by:

  • recognising that employment relationships must be built on good faith

  • acknowledging and addressing the inherent inequality of bargaining power in employment relationships

  • promoting collective bargaining

  • protecting the integrity of individual choice

  • promoting mediation as the primary problem-solving mechanism, reducing the need for judicial intervention.

The Act also aims to promote observance in New Zealand of the principles underlying International Labour Organization Convention 87 on freedom of association, and Convention 98 on the right to organize and bargain collectively.

The Act affirms the right of employees to have the freedom to choose whether or not to form a union, or be a member of a union, for the purpose of advancing their collective employment interests.

Unions are legally recognised by the Act, and collective agreements can be negotiated only between unions and employers. In formally recognising the unions' role in promoting their members' collective employment interests, the Act views unions as providing a counterbalance to power differences in direct bargaining between employees and employers.

Minimal barriers to the formation of unions allow employees to form their own unions to represent their collective interests when bargaining, and provide protection to union and non-union members.

In relation to an employment issue, no one may give any preference or apply any undue influence on another because that person is or is not a member of a union.

Union representatives are entitled to enter a workplace, within certain limitations, for purposes related to the employment of union members, or the union's business.

The Act recognises that despite the requirement for all parties to an employment relationship to act in good faith, certain employment relationship problems require specialised assistance and institutions to promote and restore productive employment relationships.

An underlying assumption of the Employment Relations Act 2000 is that if problems in employment relationships are to be resolved promptly, expert problem-solving support, information and assistance needs to be available at short notice. The Act accordingly established mediation services and the Employment Relations Authority, while maintaining the Employment Court.

Mediation Services are provided by the Department of Labour to parties with an employment relationship problem. The services are professional, impartial, and provided by experienced mediators who offer responsive problem-solving assistance to parties. This assistance is available at short notice and at no cost. Mediation services are provided from offices in Auckland, Hamilton, Napier, Palmerston North, Wellington, Christchurch and Dunedin. Staff involved can provide services in other locations, including workplaces. Mediation focuses on providing a balanced and fair environment, empowering parties to solve their own problems.

Once parties reach a settlement in mediation, they can agree to ask the mediator to sign it. Once signed, the settlement cannot be challenged and is enforceable in the Employment Relations Authority or the district court. If the employer and employee cannot reach agreement in mediation, they can agree, in writing, to the mediator making a final and binding decision, which is also enforceable in the authority or the court. If either or both parties do not want the mediator to make a decision, the problem may be taken to the Employment Relations Authority for determination.

Employees and employers can reach a settlement without using mediation, and make it binding by having the written settlement signed by a mediator. Once the settlement is certified, it is enforceable in the authority or the court.

In the year ending 30 June 2007, the department completed 7,216 requests for mediation, and 2,338 recorded settlements were completed. Of the settlements achieved in mediation, 59 percent of complaints involved unjustified dismissal, while 33 percent involved disadvantage.

Seventeen-year-old supermarket worker Adam Frain is supported by 69-year-old manager Eileen Herbert. Since April 2008, there has been no specific minimum wage for those under 18 years. More people are now staying in work beyond 65 years.

Employment Relations Authority The authority makes decisions on employment relations problems by establishing facts and considering the merits of a case without being bound by technicalities. It sits between mediation services offered by the Department of Labour and more formal court procedures. As such, the authority is the first judicial intervention for employment relations problem resolution.

The authority has exclusive jurisdiction to make decisions about employment relationship problems generally. Its work includes resolving disputes about the interpretation of employment agreements, matters relating to the breach of those agreements, and personal grievances. It also makes decisions relating to the recovery of wages and other monies, including the recovery of penalties incurred for breaches of employment agreements and minimum employment codes. In addition the authority decides matters relating to good faith bargaining, the registration of unions, union rules, and proceedings about strikes and lockouts.

The authority operates from offices in Auckland, Wellington and Christchurch, although it can travel to other locations. The Department of Labour provides administrative support to the authority, which currently has 17 members including the Chief of the Employment Relations Authority.

In the year ending 30 June 2007, the authority received 2,304 applications for problem resolution. Fifty-five percent of employment complaints involved unjustified dismissal, while 39 percent involved disadvantage.

Minimum entitlements

Statutory minimum entitlements apply to all employees. These include:

  • an adult minimum wage for employees aged 18 and over. Since 1 April 2008, there has been no specific minimum wage for youth – instead, there is a new entrant minimum wage, which applies to some 16 and 17-year-old workers

  • protection from unlawful deductions from wages

  • 11 paid public holidays, if the holidays fall on days that would otherwise be working days for the employee

  • time-and-a-half payment for all employees who work on public holidays and, if the day would otherwise be a working day for the employee, they are entitled to a whole day's alternative holiday

  • four weeks paid annual holiday after 12 months employment – the minimum entitlement increased from three to four weeks on 1 April 2007

  • paid parental leave, and employment protection for employees on parental leave

  • equal pay for men and women doing substantially the same work.

Minimum wage The Minimum Wage Act 1983 determines national minimum wages for adults and young people, below which wages cannot generally fall. Since 1 April 2008, the minimum wage for people aged 16 years and over has been $12.00 per hour before tax, $96.00 for an eight-hour day, and $480.00 for a 40-hour week. The new entrant rate for those entering the labour market for the first time is $9.60 an hour before tax. The minimum training wage is $9.60 an hour before tax.

Table 14.01. Movable public holidays

Holiday200920102011

(1) The Queen's actual birth date was 21 April 1926.

Source: Department of Labour

Good Friday10 Apr2 Apr22 Apr
Easter Monday13 Apr5 Apr25 Apr
Queen's Birthday(1)1 Jun7 Jun6 Jun
Labour Day26 Oct25 Oct24 Oct

Those not entitled to the minimum wage are those under the age of 16, people doing recognised industry training (involving at least 60 credits a year), holders of minimum wage exemptions (issued by the Department of Labour to those with recognised disabilities who are incapable of earning the minimum wage), and employees with disabilities in sheltered workshops. People doing recognised industry training are paid the minimum training wage.

Legislative changes A review of the Holidays Act 1981 resulted in new legislation governing minimum entitlements to annual, sick and bereavement leave; arrangements for those who work on public holidays; and the calculation of holiday pay entitlements. The new legislation also introduced a minimum of four weeks annual leave for all employees, effective from 1 April 2007. For further information, see ‘Holidays’ below.

A review of the Employment Relations Act's operation led to the Employment Relations Law Reform Bill, which aims to strengthen the Act's key objectives of promoting good faith collective bargaining and effective resolution of employment relationship problems.

Hours of work Working hours are generally negotiated into employment agreements. However, the employer may not unilaterally impose more than 40 hours of work (exclusive of overtime) a week.

Holidays

The Holidays Act 2003 contains minimum rights and obligations concerning annual leave, public holidays, sick leave and bereavement leave. These apply to employees whether they are full time, part time, permanent, casual or temporary. Employers and employees cannot contract out of the Act, but can agree to better terms and conditions.

Public holidays Legislation ensures that all employees receive 11 paid public holidays, as of right, if they fall on days which would otherwise be their working days. The statutory and public holidays are New Year's Day (1 January), 2 January, 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 day of a province or the day observed locally as that day.

Where employees work on a public holiday, and that day falls on one they would normally work, they are entitled to be paid at time-and-a-half for the hours they work, and to a whole day's alternative holiday. If the employee works on a public holiday and that day is one they would not normally work, the employee is entitled to time-and-a-half pay for the hours they work, but is not entitled to an alternative holiday. Where the Christmas/New Year period falls on either a Saturday or Sunday, the holidays are transferred to a Monday or Tuesday.

Annual holidays Under the Holidays Act 2003, employees are entitled to a minimum of four weeks annual holiday after the first year of employment. The minimum entitlement increased from three to four weeks on 1 April 2007. On each anniversary of the date of starting employment, on or after 1 April 2007, the employee is entitled to four weeks paid annual holiday. The leave can be taken at any time agreed between the employer and employee. Employees must be given the opportunity to take at least two of the four weeks leave in a continuous period, if they wish to.

Parental leave Eligible employees are entitled to up to 52 weeks parental leave, including 14 weeks of paid parental leave. There are several types of parental leave, each with its own entitlements and eligibility requirements. Eligible self-employed parents are entitled to 14 weeks paid parental leave. To be eligible, employees and self-employed people and their partners (including same-sex partners) must be expecting a baby, or adopting a child not more than five years old. Evidence of the pregnancy or adoption may be required by the employer to ensure eligibility for leave. Self-employed people must attach this evidence to their application for paid parental leave. Employees must have worked at least an average of 10 hours a week for the same employer for the six or 12 months preceding the expected date of delivery or adoption. Self-employed people must have been self-employed for at least an average of 10 hours a week for the six or 12 months preceding the expected date of delivery or adoption. In most cases, applications for parental leave should be made in writing to employers at least three months before the expected date of delivery. Following approval from their employer, an employee can apply for paid parental leave from Inland Revenue. Self-employed people apply for paid parental leave directly from Inland Revenue.

Sick and bereavement leave Employees are entitled to sick and bereavement leave whether they are full time, part time, permanent, casual or temporary. After six months with an employer, an employee is entitled to five days sick leave on pay for each subsequent 12 months of employment. Unused sick leave can be carried over, to a maximum of 20 days. Sick leave can be taken if an employee is sick, or if their spouse, dependent child, or a dependent parent of an employee or their spouse is sick. In addition, after six months employment, an employee is entitled to paid bereavement leave. On the death of an employee's spouse, parent, child, sibling, grandparent, father-in-law or mother-in-law, the employee is entitled to three days paid leave. The employee is also entitled to one day's paid leave when the employer accepts that due to the death of any person, an employee has suffered bereavement.

Equal employment opportunities

An equal employment opportunities (EEO) environment helps ensure employers tap the full potential of a diverse workforce. EEO principles are supported in New Zealand by anti discrimination legislation.

Under the Human Rights Act 1993, an employer cannot discriminate in hiring, training, promoting or dismissing because of an employee's sex, marital status, religious or ethical belief, colour, race, ethnic or national origin, disability, age, political opinion, employment status, family status or sexual orientation.

Discrimination in terms and conditions of employment, training, promotion and dismissal because of an employee's colour, race, ethnic or national origin, sex, age, marital status, or religious or ethical belief, and sexual harassment, are grounds for taking a personal grievance under the Employment Relations Act 2001.

The Equal Pay Act 1972 provides that employers cannot differentiate in pay rates between employees on the basis of their sex.

Employees may make a complaint under the Human Rights Act, or may use personal grievance procedures under the Employment Relations Act, to enforce their rights in cases of alleged discrimination or sexual harassment.

New Zealand Council of Trade Unions

The New Zealand Council of Trade Unions Te Kauae Kaimahi (CTU) is the national voice and advocate for worker interests.

The CTU is made up of unions representing workers in all sectors of the workforce and unites private and public sector unions. It has active local and representative structures and represents New Zealand workers internationally.

The council promotes a wide economic and social development agenda, as well as organising around core issues such as collective bargaining, and health and safety.

Business New Zealand

Business New Zealand is New Zealand's largest business advocacy body, representing the combined members of five regional business organisations and more than 60 industry associations.

Business New Zealand promotes public policy that supports an open, competitive economy and private enterprise. The organisation resulted from a merger between the New Zealand Employers' Federation and the New Zealand Manufacturers' Federation.

Work stoppages

Work stoppage information is used as an indicator of the state of industrial relations in New Zealand. It focuses particularly on the economic impact of events such as strikes and lockouts, but does not cover stop-work meetings, strike notices, protest marches and public rallies. Demarcation and coverage disputes are included only where participants are on strike or locked out.

Table 14.02. EEO groups represented in the Public Service
and the employed labour force

EEO group20002001200220032004200520062007
Percent

(1) Public Service ethnicity data double-counts people with more than one ethnicity, 50 a person who is Māori and Samoan is counted as both Māori and Pacific peoples. The labour force figures are sourced from Statistics New Zealand's Household Labour Force Survey and use a priority reporting system that slightly reduces the Pacific peoples' figure. The figures are the percentage of people whose ethnicity is known, not the total population.

(2) Data from the State Services Commission's Human Resource Capability Survey of Public Service Departments, at 30 June each year.

(3) Ethnicity data from 2000 to 2004 was revised in 2005 due to substantial amendments made to data by one department.

(4) Disability data comes from the five-yearly Statistics New Zealand Disability Survey. Disability statistics are no longer collected in the Human Resource Capability survey because of concerns about data quality. The 2005 Career Progression and Development Survey indicated that the proportion of people who self-identified as having a disability was 7 percent, compared with 8 percent in the 2000 survey. These figures are not comparable with Statistics New Zealand's figures because of different definitions and collection methods.

(5) Disability rates for those in the labour force were not published as part of the initial release from the 2006 survey.

Symbol:.. figure not available

Source: State Services Commission

Ethnicity(1)
    MāoriPublic Service(2)(3)16.917.017.617.617.417.516.716.8
Employed labour force8.98.89.59.48.78.89.09.2
    Pacific peoplesPublic Service(2)(3)6.66.66.87.17.17.37.47.6
Employed labour force4.04.04.54.44.44.04.43.8
People with disabilities(4)Public Service..18.5..........(5)..
Employed labour force..14.6..........(5)..
WomenPublic Service(2)56.256.557.557.859.059.159.459.2
Employed labour force45.145.745.745.845.346.246.246.2

Waterside workers picket the entrance at Auckland's container wharf in October 2007. They were on a 48-hour strike over award negotiations. Since 1986 the number of work stoppages has fallen to levels last seen in the 1930s.

For statistical purposes, work stoppages are defined not only as those disputes which result in the complete withdrawal of labour by workers, or a lockout by employers, but also disputes in which there is an organised ‘go-slow’, refusal to work overtime, or another method of passive resistance.

Table 14.03 shows that since 1986 the number of work stoppages has fallen to levels last recorded in the early 1930s.

There were 42 work stoppages in the year ending 31 December 2006, compared with 71 in 1991 and 215 in 1986 (before the Employment Contracts Act 1991). The number of employees involved in work stoppages has also decreased. In 2006, 10,079 people were involved; fewer than the 23,309 people in 2002 and considerably lower than the hundreds of thousands involved in stoppages during the 1970s and 1980s.

The manufacturing industry accounted for around 31 percent of the 42 stoppages in 2006. However, the health and community services industry had the greatest number of employees involved (3,495), the greatest number of days lost (11,562) and the greatest estimated loss in wages and salaries ($2,726,000).

Table 14.03. Work stoppages
Year ending 31 December

YearStoppagesEmployees involvedTotal person days of work lostAverage person days of work lost per employee involvedEstimated loss of wages/salaries
Number$(000)
Sources: Department of Labour, Statistics New Zealand
19217710,433119,20811.4180
1926596,26447,8117.665
1931246,35648,4867.689
1936437,35416,9802.326
19418915,26126,2371.769
19469615,69630,3931.980
195110936,8781,157,39031.46,223
19565013,57923,8701.8168
19617116,62638,1852.3299
196614533,13299,0953.0878
197131386,009162,5631.92,109
1976487201,085488,4412.410,840
1981291135,006388,0862.920,411
1986215100,6331,329,05413.2119,496
19917151,96299,0321.911,577
19967242,30769,5141.69,768
20014222,02254,4402.57,682
20024623,30934,3981.54,979
2003285,09819,4633.84,250
2004346,1276,1621.01,025
20056017,75230,0281.74,813
20064210,07927,9832.85,211

Labour force

The Household labour Force Survey (HLFS) produces estimates on statistics relating to the New Zealand labour market. Each quarter the HLFS publishes statistics on employment, unemployment and people not in the labour force, for the working-age population – the usually resident, non-institutionalised, civilian population aged 15 years and over.

In general terms, the labour force includes those in the working-age population who are either ‘employed’ or ‘unemployed’.

The employed category includes all people in the working-age population who work for one hour or more a week for pay or profit, either as an employee or self-employed, or who work without pay for one hour or more in a family business.

The unemployed category includes all people in the working-age population who are without a paid job, are available for work and have either actively sought work in the past four weeks, or have a new job to start within the next four weeks.

These definitions are used by Statistics New Zealand's quarterly HLFS and conform closely to standard definitions of the International Labour Organization.

Table 14.04 shows that between September 2004 and September 2007, the number of people in employment increased by 127,700. At the same time, the number of people unemployed decreased by 800.

Table 14.04. Labour force(1)
By sex
Quarterly, 2004–2007

QuarterEmployedUnemployedTotal labour forceNot in the labour forceWorking-age population(2)Labour force participation rateUnemployment rate
(000)Percent

(1) Unadjusted figures.

(2) The civilian, non-institutionalised, usually resident New Zealand population aged 15 and over.

Source: Statistics New Zealand

Male
2004Sep1,089.538.71,128.3395.81,524.174.03.4
Dec1,119.437.21,156.7373.51,530.275.63.2
2005Mar1,112.445.51,157.9378.61,536.675.43.9
Jun1,105.340.41,145.7395.31,541.074.33.5
Sep1,116.736.81,153.5391.31,544.774.73.2
Dec1,139.235.11,174.3376.81,551.175.73.0
2006Mar1,138.545.61,184.2374.31,558.576.03.9
Jun1,138.537.11,175.6387.51,563.175.23.2
Sep1,136.141.21,177.4390.71,568.175.13.5
Dec1,158.140.71,198.8376.01,574.876.13.4
2007Mar1,158.445.31,203.7377.61,581.376.13.8
Jun1,155.537.81,193.3391.81,585.175.33.2
Sep1,158.038.01,196.0393.11,589.175.33.2
Female
2004Sep925.037.6962.5648.91,611.459.73.9
Dec954.437.7992.1625.91,618.061.33.8
2005Mar942.444.2986.6636.81,623.560.84.5
Jun947.335.7983.0644.51,627.560.43.6
Sep961.938.91,000.7630.61,631.361.33.9
Dec966.440.41,006.8630.61,637.461.54.0
2006Mar969.449.71,019.1625.31,644.462.04.9
Jun977.039.21,016.2632.71,648.961.63.9
Sep973.638.41,012.1641.71,653.861.23.8
Dec977.438.41,015.8644.71,660.661.23.8
2007Mar985.848.51,034.3631.91,666.362.14.7
Jun992.539.41,031.9637.61,669.561.83.8
Sep984.137.61,021.7651.21,672.961.13.7
Total
2004Sep2,014.576.32,090.81,044.73,135.566.73.6
Dec2,073.875.02,148.8999.43,148.268.33.5
2005Mar2,054.889.72,144.61,015.53,160.167.94.2
Jun2,052.676.22,128.71,039.83,168.567.23.6
Sep2,078.675.62,154.21,021.83,176.067.83.5
Dec2,105.675.52,181.11,007.43,188.568.43.5
2006Mar2,107.995.32,203.3999.63,202.868.84.3
Jun2,115.576.32,191.81,020.13,212.068.23.5
Sep2,109.879.72,189.41,032.53,221.968.03.6
Dec2,135.579.12,214.71,020.73,235.468.53.6
2007Mar2,144.293.82,238.01,009.53,247.568.94.2
Jun2,148.177.22,225.21,029.43,254.668.43.5
Sep2,142.275.52,217.71,044.33,262.068.03.4

Table 14.05. Labour force participation rates(1)
By sex and age group
Average for year ending 30 Sep 2007

Age group (years)MaleFemaleTotal
Percent

(1) Unadjusted figures.

Source: Statistics New Zealand

15–1955.557.256.3
20–2480.668.074.4
25–2991.572.982.0
30–3492.372.882.1
35–3993.372.482.4
40–4492.779.285.7
45–4992.881.286.9
50–5491.179.485.2
55–5986.872.279.4
60–6475.752.964.2
65+19.59.314.0
All ages75.761.568.4

Nancy Todd, a nurse with a Dunedin mobile nursing service for Māori and Pacific people, attends to patient John Whatuira in his home. For the year ending September 2007, the labour force participation rate for females was 61.5 percent.

The total labour force grew by 126,900 (6.1 percent) in the three years, to reach 2,217,700 in the September 2007 quarter. The working-age population increased by 126,500 (4.0 percent) in the same period.

Between the September 2004 and September 2007 quarters, the male labour force increased 6.0 percent, while the female labour force increased 6.2 percent. Both male and female unemployment rates decreased between the quarters.

Labour force participation rates by sex

Labour force participation rates for both males and females increased in the four years ending 30 September 2007.

The female rate increased more than the male rate, but there was still a large gap between them. For the year ending 30 September 2007, the overall labour force participation rate for males was 75.7 percent and for females it was 61.5 percent.

Table 14.05 shows female participation in the labour force is lower than male participation for every age group, except the 15–19-year group. This trend was most marked in the 25–39-year group, which includes the main childbearing ages.

Employment

For the year ending 30 September 2007, there were 1,664,000 people employed in full-time work and 478,500 in part-time work. (Full-time work involves working 30 or more hours a week.)

Table 14.06 shows that between the years ending 30 September 1991 and 2007, part-time employment growth was stronger than full-time employment growth. Full-time employment increased by 37.9 percent and part-time by 50.0 percent.

In 2007, there were 347,900 women in part-time work and 130,600 men. For the same period there were 1,026,900 men and 637,100 women in full-time work.

Status in employment

Table 14.07 shows that the majority of employed people (82.7 percent) were employees (wage or salary earners) in their main Job in the year ending 30 September 2007. Those who were self-employed (and not employing others) were the next largest group – at 10.9 percent of the employed population.

While the number of employees is similar for males and females, males dominated the employer (72.0 percent) and self-employed (67.2 percent) categories in the year ending 30 September 2007. The ‘unpaid relative assisting’ category is dominated by females, who make up 64.7 percent of this group.

Table 14.06. Full-time and part-time employment(1)
By sex
Average for year ending 30 September

YearEmployed full timeEmployed part timeEmployed total
MaleFemaleTotalMaleFemaleTotalMaleFemaleTotal
(000)

(1) Unadjusted figures.

Note: Figures may not add up to stated totals due to rounding.

Source: Statistics New Zealand

1991774.0432.41,206.479.4239.5318.9853.4671.91,525.3
1996865.6491.71,357.398.4287.4385.8964.0779.11,743.2
2001887.8539.41,427.2113.7302.5416.11,001.5841.81,843.3
2002912.7549.11,461.8118.6316.7435.31,031.3865.81,897.1
2003935.3564.91,500.2115.8322.5438.41,051.1887.51,938.6
2004964.8590.31,555.1118.3321.8440.11,083.1912.01,995.2
2005996.3613.81,610.1117.1337.7454.91,113.5951.52,064.9
20061,021.8629.81,651.6116.3341.8458.11,138.1971.62,109.7
20071,026.9637.11,664.0130.6347.9478.51,157.5984.92,142.5

Table 14.07. People employed in 2002 and 2007(1)(2)
By employment status and sex

StatusMaleFemaleTotal
20022007Change20022007Change20022007Change
(000)Percent(000)Percent(000)Percent

(1) Average for year ending 30 September.

(2) Unadjusted figures.

Note: Figures may not add up to stated totals due to rounding.

Symbol: — estimates are fewer than 1,000 and subject to sampling error too great for most purposes.

Source: Statistics New Zealand

Employee778.0910.417.0749.4859.914.71,527.41,770.315.9
Employer93.279.5-14.738.530.9-19.6131.7110.5-16.1
Self employed154.2157.11.968.576.611.9222.7233.85.0
Unpaid relative assisting5.79.056.49.316.577.115.025.569.2
Not specified..1.5....1.0....2.5..
Total1,031.31,157.512.2865.8984.913.81,897.12,142.512.9

There were a number of shifts in employment status between 2002 and 2007, when the total number of employed people increased by 245,400 (12.9 percent). The number of employees rose by 242,900 (15.9 percent), and the number of employers fell by 21,300 (16.1 percent). There was an 11,100 increase (5.0 percent) in the number who were self-employed (and not employing others), while the number of unpaid relatives assisting grew by 10,400 (69.2 percent).

Industry structure of the labour force

More people are employed in the services sector (wholesale and retail trade, restaurants and hotels; finance and insurance, property and business services; education, health and community, and other services) than manufacturing. Table 14.08 (overleaf) shows the average number of employed people by industry and by sex in the year ending 30 September 2007.

The largest number of employed people worked in the education, health and community, and other services area (27.7 percent); followed by wholesale and retail trade, restaurants and hotels (22.4 percent); and finance and insurance, property and business services (14.7 percent). Industries that employed the least number of people were mining; and electricity, gas and water supply; each with less than 1.0 percent of the total employed.

Male employment was highest in wholesale and retail trade, restaurants and hotels (which employed 20.3 percent of males), followed by manufacturing (17.3 percent), and education, health and community, and other services (16.4 percent). Combined, those industries accounted for 54.0 percent of male employment.

Female employment was highest in education, health and community, and other services (41.1 percent), and wholesale and retail trade, restaurants and hotels (24.7 percent).

Table 14.08. People employed in 2007(1)
By sex and industry
Average for year ending 30 September

Industry groupNumberProportion of total
MaleFemaleTotalMaleFemaleTotal
(000)Percent

(1) Unadjusted figures.

Note: Figures may not add up to stated totals due to rounding.

Source: Statistics New Zealand

Agriculture, forestry and fishing104.049.3153.49.05.07.2
Mining5.61.26.90.50.10.3
Manufacturing199.974.2274.117.37.512.8
Electricity, gas and water supply6.81.98.70.60.20.4
Construction164.221.2185.514.22.28.7
Wholesale and retail trade, restaurants and hotels235.5243.3478.920.324.722.4
Transport, storage and communications83.633.5117.17.23.45.5
Finance and insurance, property and business services162.4152.0314.414.015.414.7
Education, health and community, and other services189.4404.5593.916.441.127.7
Not specified6.03.69.60.50.40.4
Total1,157.5984.92,142.5100.0100.0100.0

Occupational structure of the labour force

Statistics New Zealand classifies occupations into nine major groups for the purpose of statistical collection and reporting.

Table 14.09 shows the spread of employed people across these groups. In the year ending 30 September 2007, the proportions of people in each occupation remained relatively constant compared with previous years. The largest occupational groups in the September 2007 year were service and sales workers, and professionals. Together, these groups accounted for 31.5 percent of all employed people.

The smallest occupation group was elementary occupations, accounting for 5.5 percent of all employed people. The largest group for males was trades workers, where 18.3 percent of males were employed. The largest group for females was service and sales workers, accounting for 21.6 percent of female employment.

Traditional ‘male’ and ‘female’ occupations continue to exist in the New Zealand labour force. Men are over-represented as trades workers, and plant and machine operators and assemblers. Women are over-represented in the service and sales, and clerk occupations.

Table 14.09. People employed in 2007
By sex and occupation
Average for year ending 30 September

Major occupation groupNumberProportion of total
MaleFemaleTotalMaleFemaleTotal
(000)Percent

Note: Figures may not add up to stated totals due to rounding.

Source: Statistics New Zealand

Legislators, administrators, managers166.4111.0277.314.411.312.9
Professionals166.6187.4354.114.419.016.5
Technicians and associate professionals116.6141.3257.910.114.312.0
Clerks58.5201.4259.95.120.412.1
Service and sales workers109.0212.3321.39.421.615.0
Agriculture and fishery workers107.043.4150.49.24.47.0
Trades workers212.29.5221.618.31.010.3
Plant and machine operators and assemblers145.229.9175.112.53.08.2
Elementary occupations72.145.9118.06.24.75.5
Not specified3.92.86.70.30.30.3
Total1,157.5984.92,142.5100.0100.0100.0

Unemployment

The official measure of unemployment in New Zealand comes from the Household Labour Force Survey. Unemployed people are defined as those in the working-age population (the usually resident, non-institutionalised civilian population aged 15 years and over) who, during the reference week, were without a paid job, were available for work and had actively sought work in the past four weeks, or had a new job to start within four weeks.

A person whose only job search method in the previous four weeks had been to look at job advertisements in newspapers is not considered to be actively seeking work.

Apprentice Kevin Young (right) achieved a national certificate in flat glass glazing. Watching are industry and training representatives Bill Cubitt, John Lister and Deborah Paul. More than 10,000 ‘modern apprentices’ were in structured workplace learning in 2007.

Demographic and social characteristics of the unemployed

An average 81,400 people (3.7 percent of the labour force) were estimated to be unemployed in New Zealand in the year ending 30 September 2007. The male unemployment rate was 3.4 percent and the female rate 4.0 percent.

Table 14.10 shows the average number of unemployed in the year ending 30 September 2007 by sex and educational attainment. The unemployment rate is highest for those with no qualifications (6.2 percent), and lowest for those with post-school and school qualifications (2.3 percent).

Table 14.11 (overleaf) compares the number of unemployed people by educational attainment for census years 1991, 1996 and 2001, and in the years ending 30 September 2002 to 2007.

Figure 14.01.

Table 14.1. People unemployed in 2007
By sex and educational attainment
Average for year ending 30 September

Educational attainmentNumber (000)Unemployment rate (percent)
MaleFemaleTotalMaleFemaleTotal

Note: Figures may not add up to stated totals due to rounding.

Symbol: .. estimates are fewer than 1,000 and subject to sampling errors too great for most purposes.

Source: Statistics New Zealand

No qualifications13.711.625.46.06.56.2
School qualification10.711.422.14.24.44.3
No school but post-school qualification4.64.28.83.35.03.9
Post-school and school qualification11.013.224.22.02.72.3
Not specified............
Total40.441.081.43.44.03.7

Table 14.11. People unemployed 1991–2007(1)
By educational attainment

YearNo qualificationSchool qualificationNo school but post-school qualificationPost-school and school qualificationNot specifiedTotal unemployed
(00)

(1) Averages for census years 1991, 1996, and 2001, then for year ending 30 September.

Note: Figures may not add up to stated totals due to rounding.

Symbol: – estimates are fewer than 1,000 and subject to sampling errors too great for most purposes.

Source: Statistics New Zealand

199168.542.517.735.71.6166.0
199644.328.811.529.1..114.1
200134.028.110.131.6..104.1
200233.027.413.231.3..105.5
200328.125.511.630.3..96.0
200425.922.410.327.6..86.4
200524.821.18.624.3..79.1
200624.322.88.925.2..81.7
200725.422.18.824.2..81.4

Table 14.12. People unemployed in 2007
By sex and age group
Average for year ending 30 September

Age group (years)Number (00)Unemployment rate (percent)
MaleFemaleTotalMaleFemaleTotal

Note: Figures may not add up to stated totals due to rounding.

Symbol: .. estimates are fewer than 1,000 and subject to sampling errors too great for most purposes.

Source: Statistics New Zealand

15–1913.512.125.715.113.814.4
20–247.17.014.15.97.26.5
25–294.44.38.73.84.44.1
30–342.93.05.92.42.92.6
35–392.53.35.81.82.92.3
40–442.23.96.11.63.02.3
45–492.93.66.52.12.82.4
50–541.91.73.61.61.61.6
55–591.71.22.91.71.31.5
60–64....1.5....1.3
65+............
Total40.441.081.43.44.03.7

Table 14.13. Proportions of people unemployed(1)
By age group (years)
1991–2007(2)

Year15–192–2425–2930–3435–3940–4445–4950–5455–5960–6465+
Percent

(1) Number of unemployed in each age group divided by total unemployed.

(2) Averages for years ending 30 September.

Symbol: – estimates are fewer than 1,000 and subject to sampling errors too great for most purposes.

Source: Statistics New Zealand

199121.120.414.812.28.87.85.74.73.4....
199621.717.412.110.810.29.37.65.23.71.5..
200122.216.710.210.09.49.76.76.85.22.9..
200222.416.111.110.39.89.36.76.63.93.1..
200323.615.010.410.99.99.25.26.15.33.9..
200424.116.610.410.09.08.06.35.95.83.3..
200526.617.810.98.88.66.96.16.34.82.4..
200626.917.19.88.37.78.57.55.34.92.81.2
200731.517.310.77.27.17.58.04.43.51.9..

Table 14.12 shows that unemployment was highest in the younger age groups of the working-age population in the year ending 30 September 2007. The unemployment rate for the 15–19-year group was 14.4 percent, compared with the overall rate of 3.7 percent. The lowest unemployment rate (1.3 percent) was for the 60–64-year group.

Table 14.13 shows the proportions of the total unemployed represented by each age group. The trend in recent years has been for the highest proportion to be in the 15–19-year group. In general, the older the age group the less it contributes to total unemployment. The 15–19-year group has shown increases in its proportion over time, while most other age groups have shown decreases.

Table 14.14. People unemployed in 2007
By sex and ethnicity(1)
Average for year ending 30 September

EthnicityNumber (00)Unemployment rate (percent)
MaleFemaleTotalMaleFemaleTotal

(1) Ethnicity is self-determined. Respondents choose up to three ethnicities, which are then prioritised.

Note: Figures may not add up to stated totals due to rounding.

Symbol: – estimates are fewer than 1,000 and subject to sampling errors too great for most purposes.

Source: Statistics New Zealand

New Zealand European23.120.643.72.62.72.6
Māori7.59.617.26.68.87.7
Pacific peoples3.43.67.06.18.27.1
Other6.47.213.54.86.65.6
Not specified............
Total40.441.081.43.44.03.7

The unemployment rate for New Zealand Europeans is lower than for all other ethnic groups. Table 14.14 shows that the average unemployment rate for the year ending 30 September 2007 was 2.6 percent for New Zealand Europeans, 7.7 percent for Māori, 7.1 percent for Pacific peoples, and 5.6 percent for the Other ethnic group.

Employment assistance

One of the roles of the Ministry of Social Development is to provide employment assistance to New Zealanders. These services are supplied from more than 190 locations throughout the country, including seven contact centres and 11 regional offices.

Decreasing use of employment assistance in recent years largely reflects the lower number of registered job seekers.

Work and Income offers a range of services to assist job seekers into paid employment – including job search skills and work confidence programmes.

  • Information services and work confidence – programmes which help with motivation and confidence when seeking paid work, and supply information on job search techniques and resources. In the year ending June 2007, clients participated in information services programmes 2,726 times, compared with 3,711 in the June 2006 year. Clients also took part in work confidence courses 4,936 times in the June 2007 year, compared with 4,322 times in 2006.

ZooDoo is produced by Second Chance Enterprises on the condition that all money made goes back to people with disabilities. The scheme takes manure from city zoos, then composts and bags it for sale, employing over 60 people and at the same time saving ratepayers' money in dumping fees.

Table 14.15. Personal income group(1) by sex
Year ended 30 June 2007

Income groupPeople aged 15 years and over
MaleFemaleTotal
(000)(2)

(1) Income is before tax, from regular recurring sources only, for those aged 15 years or over. Income groups are deciles (to the nearest $100) of personal income. Deciles are formed by dividing the population into 10 groups, by ranking individuals according to the income they receive. The bottom decile (decile 1) is the 10 percent of the population with the lowest income, while the top decile (decile 10) is the highest 10 percent of the population.

(2) People counts are rounded to the nearest hundred. Figures may not add up to stated totals due to rounding.

(3) This decile includes loss from investment or self-employment income, or no source of income received.

Source: Statistics New Zealand

Under $800(3)146.4181.4327.7
$800–8,999125.5196.6322.1
$9,000–13,599132.3188.4320.7
$13,600–18,399121.8206.4328.2
$18,400–25,399116.8210.5327.4
$25,400–32,899142.6183.6326.2
$32,900–41,299157.2165.6322.8
$41,300–50,499183.0141.9324.8
$50,500–65,999219.7105.2324.9
$66,000+226.397.5323.8
All income groups1,571.61,677.13,248.7
  • Work experience – programmes providing unpaid experience in a workplace or in a situation resembling work that help develop or maintain self-esteem, motivation, work discipline, work ethic and dignity. In the year ending June 2007, clients took part 761 times, compared with 1,162 times in the previous year.

  • Wage subsidies – subsidies act as incentives for employers to provide work for job seekers. In the year ending June 2007, 11,078 subsidies were paid, compared with 12,300 in the June 2006 year.

  • Skills training – programmes which aim to improve job-related skills, to increase the client's chance of finding employment. In the year ending June 2007, clients participated in these programmes 1,593 times, down from 1,676 in the previous year.

  • Self-employment assistance – programmes which offer financial help and advice for long-term unemployed people moving into self-employment. In the year ending June 2007, clients participated in these programmes 2,065 times, compared with 2,181 times in 2006.

  • Innovation and market responsiveness – programmes developed by Work and Income to respond to local labour markets, to meet the emerging needs of job seekers, employers and communities, to trial employment services, and to promote learning and awareness of best practice in the design and delivery of work services. In the year ending June 2007, clients participated in these programmes 29,768 times, up from 27,831 in the June 2006 year.

  • Job search skills – programmes to assist clients to develop skills required to seek paid work, and identify types of work they may find most suitable. In the year ending June 2007, clients participated in these programmes 19,132 times, well down from 41,126 in 2006.

In addition to providing the above programmes, Work and Income undertakes intensive case management – to assist clients to identify, apply for, and take up suitable work opportunities. This case management is available to a wide range of clients, including many who are not registered as job seekers.

Income

Income strongly influences people's well-being and life circumstances. It is a means for people to achieve many economic and social objectives. Information on sources of income and distribution trends, for both individuals and households, is vital for monitoring social change.

Personal income

Personal income is an individual's pay, profit, or other receipts received on an occasional or regular basis. People receive personal income from sources such as wages and salaries, self-employment, investments, government transfers and private superannuation.

Table 14.15 shows the distribution of income, by sex, for the year ended 30 June 2007. More males than females were at the highest income level ($66,000 or more). There were more males in the top decile than in any other decile. By contrast, the $18,400-$25,399 group (decile 5) contained the most females.

Table 14.16. Average weekly earnings
By sex
Year ending 31 March

YearMalesFemalesTotal
Ordinary timeOvertimeTotalOrdinary timeOvertimeTotalOrdinary timeOvertimeTotal
$

Note: Figures may not add up to stated totals due to rounding.

Source: Statistics New Zealand

199367.1540.20647.35468.6611.68480.33545.0627.41572.47
1994615.2439.05654.29474.5811.72486.30551.9826.76578.73
1995631.1241.65672.77485.4812.26497.75565.6728.44594.11
1996652.5540.00692.55500.3511.15511.49583.7026.95610.65
1997676.1838.01714.18521.8811.13533.02606.6625.90632.56
1998689.1235.82724.94536.0611.09547.15619.1924.52643.71
1999711.9431.85743.79554.049.69563.73638.7921.59660.38
2000725.1931.74756.93563.0511.03574.07649.4622.07671.53
2001751.7131.65783.36574.5710.82585.40667.9521.80689.75
2002776.5732.85809.42614.0910.78624.87700.8022.56723.36
2003802.9335.91838.84633.2011.16644.36722.6424.20746.84
2004827.7733.99861.76657.6211.74669.36747.4423.48770.93
2005853.8235.33889.15676.3312.03688.36770.4424.38794.83
2006882.0434.88916.92712.2510.99723.24802.4023.67826.08
2007927.7635.26963.02747.9012.24760.14843.7124.50868.21

The median annual gross personal income for all those aged 15 years and over was $25,400 – that is, half received more, and half received less than this amount. Overall, more males than females received income of $41,300 or over, and more females than males received less than $41,300.

Earnings

The major component of an individual's income is what they earn from employment. In the 10 years ending 31 March 2007, Statistics New Zealand recorded a 37.3 percent increase in average weekly earnings, up from $632.56 to $868.21.

Table 14.16 shows that male average weekly earnings increased to $963.02 (up 34.8 percent), while female earnings rose to $760.14 (up 42.6 percent). At 31 March 2007, female average weekly earnings were 78.9 percent of male average weekly earnings, compared with 74.6 percent in March 1997.

Income by region

Table 14.18 shows that according to the 2006 Census of Population and Dwellings, people in the Wellington region had the highest median annual income ($28,000), followed by the Auckland ($26,800) and Waikato ($24,100) regions.

Wellington region had the highest proportion of people (24 percent) earning an annual income above $50,000.

Household income

Table 14.19 (overleaf) shows the distribution of household income by the composition of the household, for the year ending 30 June 2007. The median annual gross household income was $55,800 – that is, half the households received more, and half received less than this amount. Almost 87 percent of ‘one parent with dependent child(ren) only’ households had an income below the median amount.

Most ‘couple only’ households had an income of $68,000–$80,899 (decile 7) for the June 2007 year, while most ‘couple with one dependent child’ households received $98,800–$131,299 (decile 9). In contrast, the greatest number of ‘one person’ households received under $17,600 (decile 1).

Salary and wage rates

Surveyed salary and wage rates (including overtime) for the June 2007 quarter were 3.2 percent higher than a year earlier, as shown in table 14.20 (overleaf). This followed an annual increase of 3.1 percent in the year to the March 2007 quarter.

Pay rates for the private sector for the year to the June 2007 quarter increased 3.2 percent, the largest annual increase in salary and wage rates (including overtime) for the private sector since the series began in the December 1992 quarter. The increase for the public sector was 3.0 percent.

Table 14.17. Median weekly earnings
Full-time wage / salary workers
By sex and age
Quarter ending 30 June 2007

Age group (years)MalesFemalesDifference
$
Source: Statistics New Zealand
15–1951649917
2–2465060842
25–2979876731
30–3495986396
35–39997849148
40–44978784194
45–49997780217
50–541,016754262
55–59959729230
60–64923710213
65+730620110
All ages882750132

Table 14.18. Median personal income(1)
By region
2006 Census

Regional council areaMedian income ($)

(1) Personal income is for the year ending 31 March 2006, and includes income from all sources.

Symbol: S suppressed

Source: Statistics New Zealand

Wellington28,000
Auckland26,800
Waikato24,100
Canterbury23,500
Marlborough23,300
Taranaki23,200
Southland23,200
Nelson23,100
Bay of Plenty22,600
Hawke's Bay22,600
Manawatu-Wanganui21,600
Tasman21,600
Otago21,600
Northland20,900
Gisborne20,600
West Coast20,400
Area outside regionS
Total24,400

Business owner Emily Cooper works with Catherine Broad and Janelle Quigley to reuse packaging available through the Dunedin City Council's waste exchange initiative. The service helps businesses connect their unwanted materials and recyclables with new owners.

Fifty-eight percent of surveyed salary and ordinary time wage rates increased in the year ending 30 June 2007. Twenty-seven percent of these reported an increase of more than 3 percent, but not more than 5 percent, the highest proportion recorded since the survey began.

Labour costs

The labour cost index measures movements in base salary and ordinary time wage rates, overtime wage rates, and non-wage labour costs.

The index began in the December 1992 quarter and is a quality-controlled measure, meaning it reflects only changes in salary and wage rates for the same quality and quantity of work. Increases due to service increments and merit promotions are excluded.

Each quarter, businesses in the sample are asked to provide information about wage and salary costs for specific job descriptions in a variety of occupations. Businesses are also asked to provide information on non-wage labour costs in the June quarter of each year.

Table 14.19. Household income group(1) by household composition
Year ended 30 June 2007

Income groupHousehold composition
Couple onlyCouple with one dependent childCouple with two dependent childrenCouple with three or more dependent childrenAll other ‘couple with child(ren) only’ households(2)One parent with dependent child(ren) onlyAll other ‘one parent with child(ren) only’ households(3)Other one-family households(4)One-person householdAll other households(5)Total(6)
Number of households (00)(7)

(1) Income is before tax. from regular and recurring sources only, for those aged 15 years or over. Income groups are deciles (to the nearest $100) of household income. Deciles are formed by dividing the population into 10 groups by ranking households according to the income they receive. The bottom decile (decile 1) is the 10 percent of the population with the lowest income, while the top decile (decile 10) is the highest 10 percent of the population.

(2) Includes couple with adult children only, as well as couple with adult and dependent children.

(3) Includes one parent with adult children only, as well as one parent with dependent and adult children.

(4) Contains all one-family households where ‘other people’ are present who are related or unrelated to the family nucleus.

(5) This category is an aggregation of: two-family households, three-or-more-family households or any other multi-person household.

(6) Total includes the ‘not specified’ category.

(7) Household counts are rounded to the nearest hundred. Figures may not add up to stated totals due to rounding.

(8) This decile includes loss from investment or self-employment income, or no source of income received.

Symbol: S suppressed, for confidentiality and quality reasons.

Source: Statistics New Zealand

Under $17,600(8)19.33.6S3.3S9.73.6S110.7S154.7
$17,600–25,79937.86.07.7SS17.93.5S79.2S160.1
$25,800–33,39954.710.12.43.9S26.58.65.738.93.4155.5
$33,400–44,89939.29.06.710.07.414.85.913.037.114.9158.0
$44,900–55,79936.118.021.413.510.29.43.68.329.76.5156.7
$55,800–67,99939.816.519.711.417.56.62.212.320.79.8156.5
$68,000–80,89958.118.221.85.213.5S3.811.312.412.0158.0
$80,900–98,79939.914.820.314.926.12.14.111.95.417.0156.5
$98,800–131,29945.821.227.98.317.6SS11.76.113.5157.2
$131,300 +42.413.119.76.032.9S4.215.63.618.0156.1
All income groups413.1130.3149.076.9130.590.343.494.4343.897.51,569.2

The majority of labour costs come from salaries and wages. Labour costs increased by 3.9 percent overall from the June 2006 quarter to the June 2007 quarter. This increase was due to rises in salary and wage rates (including overtime) of 3.2 percent, and 8.1 percent in non-wage labour costs.

The rise in non-wage labour costs was due to increases in the cost of annual leave and statutory holidays, superannuation, workplace accident insurance, and other non-wage labour costs.

The cost to employers of annual leave and statutory holidays rose 9.3 percent from the June 2006 quarter to the June 2007 quarter, the largest annual increase since the series began in the December 1992 quarter. In the same period, salary and wage rates (including overtime) increased 3.2 percent.

Workplace accident insurance costs increased 9.3 percent from the June 2006 quarter to the June 2007 quarter and employer superannuation costs increased 4.2 percent. The superannuation increase was influenced by a 3.1 percent rise in salary and ordinary time wage rates.

The other surveyed non-wage costs (which include motor vehicles available for private use, medical insurance and employer-related low interest loans) are subject to fringe benefit tax. These costs rose 1.8 percent from the June 2006 quarter to the June 2007 quarter. The cost of providing motor vehicles for private use and medical insurance rose, while the cost of providing low interest loans fell.

Table 14.2. Salary and wage rates index (including overtime)(1)
By sector

QuarterLocal government sectorCentral government sectorTotal public sectorPrivate sectorAll sectors combined

(1) Base: December 1992 quarter (=1000).

Source: Statistics New Zealand

2005Sep11061129112611031108
Dec11221141113911121117
2006Mar11301146114411191125
Jun11371157115511261132
Sep11451174117011361143
Dec11521184118011461153
2007Mar11601190118711531160
Jun11681193119011621168
Percentage change from same quarter of previous year
2005Sep2.53.93.62.83.1
Dec3.74.03.92.93.0
2006Mar3.94.04.03.03.3
Jun3.94.14.12.93.2
Sep3.54.03.93.03.2
Dec2.73.83.63.13.2
2007Mar2.73.83.83.03.1
Jun2.73.13.03.23.2

Table 14.21. Labour cost index(1)
By type of cost

June quarterSalary and ordinary time wage ratesOvertime wage rates(2)All salary and wage rates(3)All non-wage labour costs(4)(5)All labour costs(5)(6)

(1) Base: June 2001 quarter (=1000).

(2) Measures changes in rates paid for actual hours worked as overtime in the base period. Some of these pay rates have fallen to ordinary time levels in subsequent quarters.

(3) Including overtime.

(4) Measures changes in all surveyed non-wage labour costs (ie annual leave and statutory holidays, superannuation, workplace accident insurance, medical insurance, motor vehicles available for private use and low interest loans).

(5) Measures changes in all surveyed labour costs (ie all salary and wage rates and all non-wage labour costs).

(6) Revisions to series were made in the June 2005 quarter as the result of quality improvement to the non-wage labour cost indexes.

Source: Statistics New Zealand

1999966975967962966
200983983983978982
200110001000100010001000
200210211023102110051018
200310441048104410191040
200410681077106810131059
200510961109109710431088
200611321141113211081128
200711671185116811981172
Percentage change from previous June quarter
19991.50.11.4-4.00.5
20001.70.91.61.61.6
20011.81.71.82.31.9
20022.12.32.10.51.8
20032.32.42.31.42.2
20042.32.82.3-0.61.8
20052.63.02.73.02.7
20063.32.93.26.23.7
20073.13.93.28.13.9

Contributors and related websites

Business New Zealand – www.businessnz.org.nz

Department of Labour – www.dol.govt.nz

Employment Relations Service – www.ers.dol.govt.nz

Equal Employment Opportunities Trust – www.eeotrust.org.nz

Industrial Relations Centre, Victoria University of Wellington – www.victoria.ac.nz

Ministry of Social Development – www.msd.govt.nz

New Zealand Council of Trade Unions – www.union.org.nz

State Services Commission – www.ssc.govt.nz

Statistics New Zealand – www.stats.govt.nz

Tertiary Education Commission – www.tec.govt.nz

Chapter 15. Science and technology

Fisher and Paykel Healthcare's portable monitoring machine allows home diagnosis of obstructive sleep apnoea (OSA), a disorder which disrupts breathing during sleep. The company had strong growth in international demand for its OSA, respiratory, and acute medical care products in 2007. Their products are sold in more than 110 countries.

New Zealand's science sector has many organisations with specialised roles. These include a policy agency, research-funding agencies, and organisations that carry out research. Research organisations include universities and polytechnics, Crown research institutes, private companies and research associations.

Ministry of Research, Science and Technology

The Ministry of Research, Science and Technology Te Manatū Pūtaiao (MoRST) is the main policy agency for research, science and technology (RS&T) in New Zealand. MoRST's major planned outcome for the next 10 to 15 years is, ‘Science and technology transforming New Zealanders’ lives'. The ministry's main role is to:

  • provide policy advice to the government on RS&T, including investment priorities, science matters and international science issues

  • apply RS&T policies for sustainable development and economic growth

  • manage contracts with agencies that directly invest in RS&T on behalf of the Minister of Research, Science and Technology

  • evaluate how various funding schemes are performing

  • promote positive relationships between the RS&T sector, the business community and others, so that ideas generated by researchers are passed on to those who can use them to generate new products, services and processes

  • promote New Zealand RS&T internationally

  • raise the profile of RS&T with those making career choices, and with the social, environmental and business sectors in New Zealand.

Crown Company Monitoring Advisory Unit

The Crown Company Monitoring Advisory Unit (CCMAU) provides ownership monitoring advice to, and manages issues on behalf of, shareholding ministers of Crown research institutes, state-owned enterprises and other Crown companies. In addition, CCMAU is responsible for ensuring the best qualified candidates are recommended to ministers for appointment as directors of these companies.

Research and development expenditure
Percentage of GDP 2005
CountryPercent

(1) Figures are for 2004.

Source: OECD

Sweden3.89
Finland3.48
Japan3.33
Korea2.98
Switzerland(1)2.90
Iceland2.78
United States2.62
Germany2.48
Denmark2.45
Austria2.41
OECD2.25
France2.13
Canada1.98
Belgium1.86
United Kingdom1.78
Australia(1)1.78
Netherlands1.73
Luxembourg1.61
Norway1.52
Czech Republic1.41
Ireland1.26
New Zealand1.17
Spain1.12
Italy1.10
Hungary0.94
Portugal0.81
Turkey0.79
Poland0.57
Greece0.51
Slovak Republic0.51
Mexico0.50

Investment in research, science and technology

Research and development (R&D) in New Zealand is funded by the government, universities and the private sector. Total 2005/06 government funding of R&D, including general university funds and local government funding, was estimated to be $785 million, which is 0.50 percent of gross domestic product (GDP). Government funds provided 43 percent of total R&D funding. Major government R&D funding sources in 2006/07 included Vote Research, Science and Technology ($570 million) and Vote Education ($218 million).

Budget 2007 included a 15 percent tax credit for eligible business R&D, applying from 1 April 2008. Estimated to indirectly fund $630 million of R&D over the first four years, it is hoped this initiative will significantly increase the level of business R&D in New Zealand, which is low by international standards. In 2005/06, New Zealand businesses carried out $763 million of R&D (0.49 percent of GDP), which is approximately one-third of the OECD average (1.53 percent of GDP).

Vote Research, Science and Technology

Vote Research, Science and Technology invests in four major goal areas: economic, knowledge, environmental and social. These proportions are illustrated in figure 15.01.

Economic ($262 million in the 2007/08 financial year). The goal is to increase the contribution that knowledge and technology make to the competitiveness of New Zealand enterprises.

  • Research for Industry aims to increase the competitiveness of sectors such as the food and fibre industries, manufacturing and services industries, and infrastructures such as communications, energy, water and waste. An example is the Algal Technologies programme at the Cawthron Institute. This aims to understand micro-algal biotoxins, and to benefit New Zealand through the ‘quality/safe food’ brand of seafood products, ensuring access to desired markets. Knowledge of toxins, and development of rapid molecular and chemical detection systems, will enable government and industry end-users to carry out informed risk analysis and make regulatory decisions about public health standards. The budget was $200.7 million in 2007/08.

  • Technology New Zealand supports businesses by improving their ability to adopt and use new technology and innovation. For example, it helped Survey lab to develop its handheld data-capture tool known as Ike (1 know everything). Ike's unique point-and-shoot technology combines a global positioning system, compass, inclinometer, laser distance meter and digital camera facility into a geographic information system database. It can capture data accurately at approximately one kilometre from a target, making it ideal for dangerous or inaccessible environments – from rivers to busy street intersections. The budget was $47.2 million in 2007/08.

  • The Pre-Seed Accelerator Fund aims to increase the commercialising of innovations from publicly-funded research done by public research providers. It assists Crown research institutes and tertiary education institutes to develop a discovery to the point where its commercial potential is apparent, and private-sector investors are willing to invest the funds required for full commercialisation. For example, this fund helped Otago Innovation Ltd advance their research on blood-borne bone markers to where a potentially valuable licence agreement was signed with Biosite, a leading provider of rapid diagnostic products and antibody development. The fund was $8.3 million in 2007/08.

  • National Measurement Standards funds the Measurement Standards Laboratory, to provide specified national measurement standards and the related services needed to satisfy accurate measurement and internationally accepted standards for New Zealand products, processes and services. It meets the obligations of the Minister of Research, Science and Technology under the Measurement Standards Act 1992. In 2007/08, funding was $5.8 million.

Knowledge ($189 million in 2007/08). The goal is to accelerate knowledge creation and develop people, learning systems and networks to enhance New Zealand's capacity to innovate.

  • The Marsden Fund encourages excellence in the advancement of knowledge by supporting research that explores the frontiers of new knowledge. It has supported research that has opened new insights in the physical, life, mathematical and social sciences, and the humanities. For example, it supported geological projects that will provide further understanding of destructive natural processes. Marsden funding was critical in New Zealand's involvement in the international ANDRILL Project which successfully obtained the deepest-ever Antarctic sedimentary core. This will enable future behaviour of the Antarctic ice sheets to be more accurately predicted. The fund also contributed to the collection and analysis of the most comprehensive dataset yet for a lahar – that from Ruapehu in March 2007. The budget was $35.9 million in 2007/08.

  • The New Economy Research Fund develops research capability and knowledge in areas of science and technology where new industries and enterprises are emerging. For example, the fund is supporting the development of a computational bioengineering software package called CM1SS. CMISS models biological processes using anatomically-based geometric models and biophysically-based tissue and cell models. Medical and health applications currently being developed with CMISS include the diagnosis and treatment of diseases of the heart, lungs, digestive system, musculo-skeletal system and lymphatic/immune system. The fund had a $65.8 million budget in 2007/08.

  • The Crown Research Institute Capability Fund helps Crown research institutes (CRIs) retain and develop research programmes that they identify as important, including new areas of science. For example, HortResearch has used this fund to minimise the environmental footprint of New Zealand's horticulture industry. In collaboration with other CRIs and universities, they have built capability that will allow greater investigation of greenhouse gas flow in soils, efficient water allocation, and carbon sequestration in production soils such as vineyards. A budget of $50.6 million was available in 2007/08.

  • Supporting Promising Individuals (SP1) supports people in research, science and technology and contributes to their development with knowledge, skills and ideas. SPI consists of a large number of schemes and funding and investment agents, with $18.7 million available in 2007/08. For example, a Te Tipu Pūtaiao Fellowship was awarded by the Foundation for Research, Science and Technology to Dr Bronwyn Lowe from the University of Otago for the study of a unique collection of harakeke and wharariki (New Zealand flax) growing in the Dunedin Botanic Garden. The study aims to establish where the Dunedin collection came from, describe the plants' botanic, textile science and traditional weaving properties, and determine their relationship with other harakeke.

  • Development of International Linkages promotes and supports New Zealand RS&T internationally by accessing and using the best global ideas, and encouraging New Zealanders to use international linkages to enhance knowledge and innovative capacity. It funds activities that access large funding pools and international expertise. For example, in 2007 New Zealand gained access to the Human Frontier Science Programme, which promotes basic life science research that is innovative, interdisciplinary and requires international collaboration. As a result of membership, New Zealand researchers gained funding for two projects, partnering with researchers in Germany, the United States and the Czech Republic. Funding of $3.2 million was available in 2007/08.

  • International Investment Opportunities Fund supports research providers and funders in international research collaborations and the recruitment of highly experienced researchers from overseas. This fund enabled the Carbohydrate Chemistry Team at Industrial Research, led by Drs Richard Furneaux and Peter Tyler, to work with researchers from Singapore's Institute of Molecular and Cell Biology on the factors that control the differentiation of stem cells. There was $9.6 million funding available in 2007/08.

Environmental ($93 million in 2007/08). The goal is to increase understanding of the environment and factors that affect it in order to establish and maintain a healthy environment.

  • Environmental Research builds understanding of the environment through research on New Zealand's ecosystems, and the biophysical and human environments, and in sustainable management of the environment by the production sector. For example, the fund supports a project that aims to improve the water quality of New Zealand's largest lake, Lake Taupo. Lake Taupo's water quality is declining due to nitrogen run-off from surrounding farmland. Funding of $93.4 million was available in 2007/08.

GNS Science geodesic surveyor Neville Palmer uses a global positioning system receiver to record the location and size of the Mt Ruapehu lahar, following the September 2007 eruption.

Figure 15.01.

Social ($65 million in 2007/08). The goal is to increase knowledge of what constitutes well-being, in order to build a society in which all New Zealanders enjoy health and independence and a strong sense of belonging, identity and partnership.

  • Health Research supports public-good RS&T to improve the health of New Zealanders. For example, the Health Research Council is supporting a project at the University of Auckland to develop and test the potential effectiveness of a community-based childhood nutrition intervention. The intervention will focus on the role of micronutrients – such as vitamins, minerals and amino acids – in early-childhood nutrition. A key goal is to reduce the number of children who contract pneumonia or gastroenteritis and require hospital admission. Funding of $59 million was available in 2007/08.

  • Social Research supports public-good RS&T to improve social well-being. For example, it supports Auckland University of Technology's Pacific Islands Families study. This longitudinal study is aimed at providing information on Pacific people's health, and cultural, economic, environmental and psycho-social factors that are important influences on child health and development and family functioning. There was $5.9 million available in 2007/08.

Shaping the system About 5 percent ($35 million in 2007/08) of the government's total investment is spent on ‘shaping the system’. This funding supports agencies that advise the government on policies for innovation, and provides management and monitoring of the government's investment in RS&T. It also allows the Minister of Research, Science and Technology to take a wider view across the entire RS&T system.

Foundation for Research, Science and Technology

The Foundation for Research, Science and Technology Tūapapa Rangahau Pūtaiao is a Crown entity with an independent board reporting to the Minister of Research, Science and Technology. The Foundation for Research Science and Technology Act 1990 governs its operations.

It is responsible for: investing in research, science and technology on behalf of the government in order to enhance the wealth and well-being of New Zealanders; providing independent policy advice on science and technology to the government; encouraging technological innovation through the Technology New Zealand suite of schemes; and administering various scholarship schemes.

‘Investing in innovation for New Zealand's future’ is the mission statement of the foundation, which considers innovation a key to a prosperous and productive future for New Zealand.

The foundation receives applications from Crown research institutes, research associations, government departments, incorporated societies, non-profit private trusts, private individuals, private companies, state-owned enterprises and universities to undertake agreed research programmes which contribute to the achievement of the government's science goals.

Royal Society of New Zealand

The Royal Society of New Zealand is an independent, statutory body incorporating the National Academy of Sciences and scientific and technological societies. It encourages professional development through research grants, fellowships, communication courses, awards and prizes.

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 and publishes scientific journals, reports and educational resources.

Established in 1867 as the New Zealand Institute, the society is incorporated under The Royal Society of New Zealand Act 1997. It takes responsibility for fostering a culture supportive of science and technology in New Zealand and of initiating appropriate international linkages. It also provides expert advice on important public issues to the government and the community.

Membership includes elected fellows, regional branches, constituent scientific and technological societies and more than 15,000 professional people in New Zealand and overseas.

New Zealand Venture Investment Fund Ltd

The New Zealand Venture Investment Fund (NZV1F) was established as part of the Government's 2001 Budget and on 1 July 2002 it became a Crown-owned company, the New Zealand Venture Investment Fund Ltd. The fund administers two equity investment programmes on behalf of the New Zealand Government: the VIF Venture Capital Fund and, more recently, the Seed Co-investment Fund.

The Venture Capital Fund is a $160–$200 million investment programme to accelerate development of the venture capital market in New Zealand. NZVIF invests its capital, alongside private investors, in selected venture capital investment funds operated by professional fund managers. Each fund operates for 10 years, investing in a portfolio of New Zealand companies with high growth potential and assisting those companies to build and develop successful commercial strategies. The programme targets early-stage venture capital investment, and a buy-out option for investors is an integral aspect of the programme.

The Seed Co-investment Fund provides seed funding for early stage businesses with strong potential for high growth. The fund is managed by NZVIF and has $40 million of seed funding available for co-investment alongside selected private investor groups. There is an upper funding cap of $250,000 per investment, with a requirement for at least 50:50 matching funding from private investors.

University funding

In 2005, expenditure by New Zealand universities on research and development (R&D) was estimated at $593 million – 32 percent of New Zealand's total expenditure on R&D. Of this, $105 million (ex-GST) was general university funds from Vote Education, $241 million was from government research contracts, and $157 million came from universities' own funds (which include student fees). The remainder came from business, overseas and other sources.

Figure 15.02.

Research agencies

Scientist Uwe Morgenstern prepares to determine the age of some water samples. In 2007, the GNS Science laboratory came top in a test of 70 water-dating labs around the world, a result which is likely to secure more business from overseas for the lab. Water-dating uses tritium, a rare isotope of hydrogen that occurs naturally in rain and snow, to determine when water fell to earth.

Crown research institutes

There are nine autonomous Crown research institutes (CRIs). Government-owned, they are collectively New Zealand's largest science enterprises. Each manages its own assets and has its own independent board of directors reporting to shareholding ministers.

Their purpose is to do research of benefit to New Zealand, while remaining financially viable. The government is represented by two shareholding ministers, the Minister of Research, Science and Technology and the Minister of Finance.

CRIs employ more than 4,230 staff and directly generate revenues of more than $625 million, gained by competing for public and private sector business. Additionally, their research and commercial activity underpins the economic, environmental and social values being created by businesses, departments, and central and local government agencies.

CRIs returned an after-tax and non-operating items surplus of $17.2 million for the year ending 30 June 2007, and paid dividends of $835,000.

Science New Zealand coordinates policy and advocacy on matters of shared interest among members and liaises with other science enterprises, such as businesses and universities.

Scion, formerly the Forest Research Institute, has been recognised as a leader in plantation forestry research and development since its inception in 1947.

In 2003, Scion extended its expertise in forestry to meet the growing consumer demand for renewable materials and products. The organisation is now a leader in the development of next-generation plant-based biomaterials and solutions that utilise the single largest source of renewable industrial materials – forestry.

Research is centred on:

  • biomaterials – for example, alternatives to plastics and other oil-based materials

  • bioenergy – for example, biofuels and cleaner, healthier heating alternatives created from wood processing residues

  • sustainable building practices – for example, warmer, energy-efficient housing.

Forestry research remains a key component of Scion's operation. This is carried out through Ensis, a collaborative agreement between Scion and Australia's Commonwealth Scientific and Industrial Research Organisation. The partnership delivers the largest research and development capability to the forestry, wood and fibre industries in Australasia.

Scion is committed to developing innovative global and local partnerships that provide local benefit, particularly by partnering with Māori to unlock the innovation potential of Māori knowledge, resources and people.

With approximately 350 staff, Scion has its headquarters in Rotorua and offices in Auckland, Wellington and Christchurch.

AgResearch (AgResearch Ltd) is New Zealand's largest Crown research institute. It has a number of farms and renowned research centres: Ruakura, Grasslands, Lincoln and Invermay, and most importantly, teams of scientists, engineers, technicians and support staff. Their work targets the key opportunities and issues faced by the farming, food, textiles and biotechnology sectors, and leads to innovative products and knowledge that benefit all New Zealanders. AgResearch's mission is to create sustainable wealth in the pastoral and biotechnology sectors through science and technology.

The pastoral sector is the backbone of New Zealand's economy and its continued success is essential to the living standard of all New Zealanders. AgResearch was established in 1992 as a government-owned company charged with operating on a full commercial basis. The company has about 1,050 permanent staff members, nearly 300 of whom hold a doctorate. It uses a range of vehicles to commercialise its technologies, including subsidiary companies, associate companies, unincorporated joint ventures, incorporated joint ventures and partnerships.

HortResearch (Horticultural and Food Research Institute of New Zealand) is a New Zealand-based science company which is a world leader in integrated fruit research. Using unique resources in fruit, plants and sustainable production systems, HortResearch provides novel technologies, and innovative fruit and food products with high consumer appeal.

Home to leading-edge scientific capability in plant breeding, and tree, vine and fruit physiology, HortResearch has developed the trademarked Zespri gold kiwifruit and ENZA jazz apples, and other successful cultivars including blueberries, peaches and pears.

The company also developed the world's first intelligent fruit labelling system – which changes colour as the fruit ripens.

HortResearch is enhancing its commercial science capability in plant molecular biology, nutrigenomics, food chemistry and human physiology, to find new ways to improve health, well-being and performance. This includes meeting emerging markets for functional foods and naturally-produced flavours and fragrances.

HortResearch employs more than 400 scientists throughout New Zealand as well as business leaders in international markets such as Australia, Europe and the United States.

Crop & Food Research (New Zealand Institute for Crop and Food Research Ltd) is a New Zealand-based biological science company that carries out both government-funded research and work for commercial clients. Research is around five centres of innovation: sustainable land and water use, high performance plants, personalised foods, high value marine products, and biomolecules and biomaterials.

To promote the application of science, the company undertakes research in partnership with a range of national and international industry and government clients. Many research collaborations are commercialised with business partners. Employing 360 staff, the Crown research institute is based at Lincoln, Canterbury, with research stations in Auckland, Hawke's Bay, Palmerston North, Nelson, Dunedin, Invermay, Gore, and Albury in Australia.

Landcare Research (Landcare Research New Zealand Ltd Manaaki Whenua) is an independent Crown research institute, with approximately 400 staff at nine locations in New Zealand. As New Zealand's foremost environmental research organisation, research and technology development is focused on enhancing the sustainable management of resources in the natural, primary-producing, urban and business environments. Because research is directed towards sustaining the environment, the company is conscious of managing and mitigating any adverse impact of its activities.

The cornerstones of activity are:

  • generating and sharing new knowledge from scientific research

  • integrating environmental, social and economic sciences to maximise valuable outcomes

  • proactively working in partnership with government, business, communities and Māori

  • practising the sustainability principles the company espouses.

Research is strongly aligned to key terrestrial environmental issues that New Zealand and many other countries face, which are:

  • conserving and restoring biodiversity and the healthy resilience of natural ecosystems

  • reducing pest, disease and weed impact on the natural and managed environments

  • understanding, mitigating and adapting to the impact of climate change

  • sustaining the long-term health of soils, waterways and landscapes for the continued viability of rural environments

  • enhancing urban biodiversity and developing low-impact approaches for built environments

  • fostering environmentally sustainable and globally competitive business practices.

While Landcare Research has 10 teams working across the biological systems, and environment and society portfolios, staff can also work across teams to provide the best multi-disciplinary capability to address particular issues.

GNS Science (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; marine geology; and the application of isotope sciences to age dating and to the medical, environmental and manufacturing industries.

GNS Science has a 130-year history in earth sciences. It has 330 staff, with offices in Wellington, Wairakei and Dunedin. The library, databases and fossil collections are of national importance.

GNS Science has 11 science sections: mapping; earthquakes, volcanoes, tectonics; geohazard monitoring; geohazard solutions; volcanology; environmental isotopes; isoscan; ocean exploration; hydrocarbons; geothermal, minerals and groundwater; and paleontology.

Industrial Research (Industrial Research Ltd) is a technology company based on world-class science and engineering capability, with the New Zealand Government as a shareholder. The company has an emphasis on manufacturing, processing, biopharmaceutical, medical and energy industries. Technologies are also developed which benefit the horticultural, agricultural and forestry sectors, and defence and security.

Industrial Research engages with industry through research and development, pilot scale production, consultancy services, and sales and licensing. The company is also active in commercialising technology-based innovation.

Industrial Research focuses on biochemistry, physics, mathematics, mechanical engineering, chemical and biological engineering, organic and inorganic chemistry, electrical and electronic engineering, metrology, and information science and technology. The company has nine key technology platforms: carbohydrate chemistry, integrated bioactive technologies, assistive devices, imaging and detecting, high temperature superconducting (HTS), hydrogen and distributed energy, photonics, nanotechnology, and measurement for industry.

HTS-110 Ltd is a subsidiary company of Industrial Research. It designs and manufactures HTS-based magnet solutions, including current leads, magnets and coils, and offers a range of HTS-support services including modelling, development, fabrication and testing.

As a Crown research institute, Industrial Research is a stand-alone company with its own board of directors. It employs approximately 350 staff in Auckland, Wellington and Christchurch.

NIWA The National Institute of Water and Atmospheric Research Ltd Taihoro Nukurangi (NIWA) is an environmental science research organisation creating and delivering science-based products and services that enable people and businesses to make the best use of the natural environment and its living resources, and to derive benefit from them in a sustainable manner.

NIWA's science provides the basis for sustainable resource management, and its consultancy services help clients solve problems relating to:

  • aquaculture and marine natural products – all species breeding, early life history, growth and survival, hatchery technology, and other research designed to lead to commercial development; biotechnology; bioactive compounds including anti-inflammatories, anti-cancer; probiotics; skincare; anti-fouling

  • aquatic biodiversity and biosecurity – biodiversity surveys, aquatic pests, introduced species, toxic algae, ecosystems including seamounts, DNA analysis

  • climate change – the physical and chemical processes affecting the atmosphere and climate, including global effects, stratospheric research and atmosphere-ocean interactions; greenhouse gases; sea-level rise; glaciers; adaptation to climate change; ozone; UV

  • coasts and oceans – the geological, biological and physical properties of oceans, coastal waters, estuaries and harbours; seafloor mapping; coastal development and pollution; sediment; wave forecasting, tides, currents; continental shelf, submarine volcanoes; algal blooms

  • energy – renewable energy, energy efficiency, vehicle emissions, air quality, hydro inflows

  • fisheries – fisheries stock assessment, fisheries modelling and population dynamics; fish biology, ecology, genetics and pathology

  • fresh water – the chemistry, physics and biology of lakes, rivers and wetlands; complex interactions influencing ecosystems and their response to environmental disturbances; water quality and quantity, algal blooms

  • natural hazards – floods and droughts, extreme weather, coastal erosion, undersea earthquakes and landslides, tsunamis.

NIWA was established in 1992 as a stand-alone company with its own board of directors. In 2007, NIWA had 667 staff at 15 sites around New Zealand, and i 5 staff in Perth, Australia; with revenue of $114 million, and assets of $78 million.

The corporate office is in Auckland; the main research campuses are in Auckland, Hamilton, Wellington, Nelson, Christchurch and Lauder (Central Otago), and there are field offices in smaller centres. The company has subsidiaries in Australia and the United States, and a vessel company which owns and operates the deepwater research vessel Tangaroa and the coastal research vessel Kaharoa.

ESR (Institute of Environmental Science and Research Ltd) provides science-related research 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. ESR employs about 400 staff at: Mt Albert Science Centre in Auckland, Kenepuru Science Centre in Porirua (head office), the National Centre for Biosecurity and Infectious Disease in Wallaceville, Upper Hutt, and Christchurch Science Centre. Each centre has advanced technologies and information systems to support teams of nationally and internationally-recognised scientists.

Other research organisations

Cawthron Institute The Cawthron Institute, a private scientific research centre with 150 staff, was established in 1924. Operations are based in Nelson, with an aquaculture research field station near the city. Its testing laboratories are International Accreditation New Zealand registered, and accredited by the United States Food and Drug Agency for biotoxin monitoring of shellfish.

The institute undertakes research into marine and freshwater biology and ecology, with much of the work being funded by government. Research interests include aquaculture (particularly shellfish), shellfish selective breeding and husbandry, microalgae culturing, and biochemistry.

Biosecurity is another area of interest, with invasions by foreign marine organisms representing a threat to New Zealand's biosecurity. Joint projects with other laboratories and shipping companies examined the efficiency of ballast water exchange practices, and methods of treatment to remove unwanted organisms. Recent work has centred on hull fouling as a source of introduction and dispersal.

The institute also provides commercial services to industry, specialist scientific advice on environmental issues to resource managers and users, and analytical laboratory testing services for New Zealand clients. This includes resource surveys and impact assessments – such as the effects of discharges and land use on the aquatic environment – baseline surveys, monitoring of coastal and freshwater environs, and oil spill contingency planning.

Cawthron Institute scientists work closely with other research organisations and have good links with overseas groups. Research on toxic algal blooms resulted in a close relationship with researchers in Japan, the United States and Ireland.

BRANZ Ltd is an independent and impartial research testing, consulting and information company, based near Wellington, which provides resources for the building industry. BRANZ has two principal areas of responsibility: to research and investigate the technical aspects of construction and buildings which impact on the built environment in New Zealand, and to enable the transfer of knowledge from the research community to the building and construction industry.

Government departments Several government departments carry out R&D to support their own activities, including development and implementation of policy. Departments with a substantial research interest include the Ministry of Fisheries, Ministry of Social Development, Department of Conservation, Ministry of Agriculture and Forestry (in particular, Biosecurity New Zealand), Ministry of Education, Ministry of Health, Ministry of Justice, and the Museum of New Zealand Te Papa Tongarewa. Government agencies such as the Accident Compensation Corporation, the Earthquake Commission, and Land Transport New Zealand are other important funders of research. In local government, regional councils contract significant amounts of environmental research as part of their role in managing the environment.

Higher education sector Universities, polytechnics and wānanga (Māori tertiary education institutions) offer a broad range of tertiary education services that include science in all cases, and aspects of technology in most. As well as this education and training function, these institutions carry out basic and strategic research and make substantial contributions in applied science and technology – they carry out one-quarter of the research funded by Vote Research, Science and Technology. The majority of this work is performed by the eight universities. Several universities have formal links with Crown research institutes.

Centres of research excellence were introduced during 2002/03 and are funded through Vote Education to encourage development of world-class research in New Zealand. There are seven centres, each hosted by a university and having a number of partner organisations, including other universities, Crown research institutes and wānanga (Māori tertiary education institutions). They cover fields as diverse as bio-protection, Māori development, nanotechnology and molecular ecology.

Research consortia funding was introduced in 2002/03 to bring researchers and end users closer together and promote collaboration among universities, Crown research institutes and businesses. There are 10 research consortia, many carrying out research related to New Zealand's primary production sector.

Research associations are non-government, industry-linked institutions that provide research and technology transfer capabilities that may be beyond the reach of individual companies. Major research associations include: Building Research, Dairy NZ, CRL Energy, the Heavy Engineering Research Association, the New Zealand Fertiliser Manufacturer's Research Association, Leather and Shoe Research Association of New Zealand, and Meat and Wool New Zealand.

Other research associations are private-sector organisations that focus on specific areas of expertise. These include the Malaghan Institute (medical research), New Zealand Council for Educational Research, and the New Zealand Institute for Economic Research. Research is also carried out by commercial market-research firms, private research consultancies and research or analysis units within private enterprises, and voluntary agencies.

Technology services

Patents, trademarks and designs

Intellectual Property Office of New Zealand (IPONZ) is a business unit of the Ministry of Economic Development and operates under the Patents Act 1953, the Trade Marks Act 2002, the Designs Act 1953 and the Plant Variety Rights Act 1987. These acts place statutory obligations on IPONZ and the Commissioner of Patents, Trade Marks, Designs and Plant Varieties in relation to the filing, examination, registration, granting and renewal of intellectual property rights. IPONZ also maintains registers of these rights and interests for clients to search. IPONZ is a receiving office for applications filed under the Patent Cooperation Treaty (PCT), administered by the World Intellectual Property Organisation (WIPO).

Patents The owner of an invention may apply to IPONZ 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 Patents Act 1953 has been reviewed, and a new Patents Bill drafted, to ensure that New Zealand's patent legislation reflects developments in international patent practice, and continues to promote innovation and competition within New Zealand. IPONZ holds a comprehensive collection of patent specifications from other countries.

IPONZ receives newly-published patents from New Zealand and other industrialised countries on CD-ROM. These patents, available to the public, describe the latest advances worldwide in every field of manufacture and have the potential to save New Zealand manufacturers substantial time and money in research and development. In the year ending 30 June 2007, letters patent were sealed on 3,607 applications. The total number of patents on the register is 34,394. The IPONZ patent database is at www.iponz.govt.nz.

Trademarks The owner of a trademark may apply to register it under the New Zealand Trade Marks Act 2002. Once the trademark 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 legal remedy.

Trademarks may remain registered indefinitely by the payment of a renewal fee every 10 years. Anyone may search the online trademark database at www.iponz.govt.nz. Anyone planning to apply to register a trademark may request IPONZ to (for a fee) conduct a search of its records and report if a similar mark has already been registered, or request an official opinion on whether the mark is eligible for registration. There were 13,027 trademarks (22,996 classes) registered in the year ending 30 June 2007. The total number of trademarks on the register is 196,790.

Designs The owner of an industrial design (a novel shape or surface pattern on a manufactured article) 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. The Intellectual Property Office of New Zealand (IPONZ) maintains a public register of designs, which anyone may search. There were 1,227 designs registered in the year ending 30 June 2007. The total number of designs on the register is 8,411.

Karori scouts Andrew Dewar and Ashleigh Dale explore Island Bay's inter-tidal zone. A month-long marine bioblitz, carried out in Wellington's southern waters in October 2007, uncovered great diversity and richness in the marine environment. Professional and amateur scientists identified 551 species, including four new ones. Six others that are potentially new will be examined in more detail before experts decide if they are indeed new species.

Table 15.01. Applications for patents, trademarks, designs and plant varieties
Year ending 30 June

YearPatentsTrademarks(1)DesignsPlant varieties

(1)The Trade Marks Act 2002, which came into force in August 2003, introduced a provision for filing multi-class applications. The trademark statistics from 2003 onward reflect these changes.

Source: Intellectual Property Office of New Zealand

19995,72517,364887155
20006,26922,771967185
20016,62222,620886160
20026,71819,173937165
20036,63221,256919193
20046,33416,604 (25,687)(1)1,366143
20056,39716,641 (27,937)(1)1,321148
20067,52617,754 (30,691)(1)1,44899
20078,55820,173 (35,730)(1)1,487157

Other intellectual property rights

Plant variety rights are intellectual property rights provided under the Plant Variety Rights Act 1987. This right gives the breeder of a new plant variety the exclusive right to sell, or license others to sell, reproductive material of the variety. During the year ending 30 June 2007, 104 grants were issued and 95 grants were terminated. The total number of valid grants on the register is 1,304. Applications for ornamental varieties are the largest group (71 percent of all applications) followed by fruit varieties (14 percent), crop varieties (8 percent), pasture varieties (5 percent) and varieties of fungi (2 percent).

Patent, trademark, design and plant variety applications are shown in table 15.01. Not all applications result in registration.

Copyright is granted automatically upon the creation of any original literary, dramatic, musical or artistic work, sound recording, film, broadcast, cable programme or published edition. The Copyright Act 1994 is administered by the competition, trade and investment branch of the Ministry of Economic Development.

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 up to 15 years. The Act is administered by the competition, trade and investment branch of the Ministry of Economic Development.

Telarc SAI Ltd

Telarc SAI Ltd is a registered company owned by the Testing Laboratory Registration Council. Telarc SAI provides recognition and assessment services for management systems, and operates from Auckland, Hamilton, Tauranga, Wellington and Christchurch.

Recognition services Telarc SAI Ltd provides recognition of achieving the standards below.

  • Quality management systems certification to ISO 9001 standard – Telarc SAI has provided the ISO 9000 certification service since 1983, being the first organisation in New Zealand to achieve formal accreditation by the Joint Accreditation System of Australia and New Zealand (JAS-ANZ).

  • Telarc Q-Base – a basic, entry-level management system based on the ISO 9001 standard, that identifies the basic quality management disciplines essential for managing the quality of small to medium enterprises.

  • Environmental management systems certification to ISO 14001 standard – Telarc SAI has provided this service since 1994, and in 1996, was the first organisation in New Zealand to be accredited by JAS-ANZ to certify ISO 14001.

  • Certification of health and disability service providers to meet the requirements of the Ministry of Health – this recognition service is provided by Quality Health New Zealand, a division of Telarc SAI.

  • Customer 1st – for approving an organisation's commitment to its customers.

Assessments Telarc SAI Ltd provides assessment services for a wide range of management systems, including occupational health and safety, Accident Compensation Corporation workplace safety management practices, product certification, and rail safety.

Training Telarc SAI works closely with the New Zealand Quality College to provide training courses to promote excellence in management system practices.

International Accreditation New Zealand

International Accreditation New Zealand (IANZ) is the national body for the accreditation of testing and calibration laboratories, radiology services and inspection services. It is part of the Testing Laboratory Registration Council, a user-funded Crown entity established by an act of Parliament in 1972. IANZ's functions include:

  • laboratory and calibration accreditation – assessing the technical competence of testing, measurement and calibration laboratories in all fields of science and technology, including biological, chemical, dairy, water, electrical, gas cylinder, mechanical, medical, physical and wool testing; and metrology and calibration. All categories are accredited to NZS 1SO/IEC 17025 standard, except medical testing, which is accredited to NZS/ISO 15189

  • inspection body accreditation – providing formal recognition that an inspection body or food safety assessment body is capable of meeting standards of quality, performance, technical expertise and competence. Accreditation is to AS/NZS ISO/TEC 17020 standard

  • radiology service accreditation – providing radiology services with formal recognition of their skills, expertise, competence, systems, procedures and facilities, based on independent peer group assessment. Accreditation is to the New Zealand Code of Radiological Management Practice

  • OECD good laboratory practice – IANZ is the compliance monitoring authority in New Zealand for the Organisation for Economic Co-operation and Development's 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 – IANZ is the designating authority for conformity assessment bodies approved to undertake testing or inspection against European directives for CE product standard marking purposes. This appointment is under the New Zealand/European Union Governmental Mutual Recognition Agreement

  • meat industry laboratory approval – IANZ accredits meat industry testing laboratories under the New Zealand Food Safety Authority Laboratory Approval Scheme

  • building consent authorities – are assessed by IANZ against the requirements of the Building (Accreditation of Building Consent Authorities) Regulations 2006 on behalf of the Department of Building and Housing.

International arrangements IANZ represents New Zealand at international conformity assessment forums and maintains mutual recognition arrangements with other national laboratory and inspection body accreditation authorities. The economies involved include: Argentina, Australia, Austria, Belgium, Brazil, Canada, People's Republic of China, Cuba, Czech Republic, Denmark, Egypt, Estonia, Finland, France, Germany, Greece, Hong Kong China, India, Indonesia, Ireland, Israel, Italy, Japan, Republic of Korea, Latvia, Lithuania, Malaysia, Mexico, the Netherlands, Norway, Philippines, Poland, Portugal, Romania, Singapore, Slovak Republic, Slovenia, South Africa, Spain, Sweden, Switzerland, Chinese Taipei, Thailand, Turkey, United Kingdom, United States and Viet Nam.

Training The New Zealand Quality College is the training division of IANZ and provides training in association with IANZ and Telarc SAL Topics cover laboratory management, inspection body management, quality and environmental management, health and safety management, food safety management and auditing skills.

Experienced staff from IANZ and Telarc SAI, and others who are national experts in their fields, present these courses. The college is registered as a private training establishment with the New Zealand Qualifications Authority.

Standards New Zealand

Standards New Zealand is the operating arm of the Standards Council, an autonomous Crown entity under the Standards Act 1988. The Standards Council, an appointed body with representatives from a wide range of community sectors, is the governing body for Standards New Zealand.

Standards New Zealand is the country's leading developer of standards and standard-based solutions, providing solutions in areas such as health and disability, environmental management, legal risk, information technology, sport and recreation, and fertility services.

There are 60 full-time staff, supported by more than 2,000 New Zealanders who voluntarily serve on boards and committees. Revenue comes from contracts with industry and government organisations for development and support of standards, and from the sale of standards and standards-related publications.

The majority of standards are developed in partnership with Standards Australia. As New Zealand's representative for the International Organization for Standardization (ISO) and the International Electrotechnical Commission (IEC), Standards New Zealand ensures New Zealand has a voice in the international community.

Standards New Zealand is the enquiry point for the World Trade Organization and supplies specialist advice on overseas standards, regulations, codes of practice, and testing and approval procedures in foreign markets.

Contributors and related websites

AgResearch Ltd – www.agresearch.co.nz

BRANZ Ltd – www.branz.co.nz

Cawthron Institute – www.cawthron.org.nz

Crown Company Monitoring Advisory Unit – www.ccmau.govt.nz

Foundation for Research, Science and Technology – www.frst.govt.nz

GNS Science – www.gns.cri.nz

Health Research Council of New Zealand – www.hrc.govt.nz

HortResearch – www.hortresearch.co.nz

Industrial Research Ltd – www.irl.cri.nz

Institute of Environmental Science and Research Ltd – www.esr.cri.nz

Intellectual Property Office of New Zealand – www.iponz.govt.nz

International Accreditation New Zealand – www.ianz.govt.nz

Landcare Research New Zealand Ltd – www.landcareresearch.co.nz

Ministry of Economic Development – www.med.govt.nz

Ministry of Research, Science and Technology – www.morst.govt.nz

National Institute of Water and Atmospheric Research Ltd – www.niwa.cri.nz

New Zealand Institute for Crop and Food Research – www.crop.cri.nz

New Zealand Post – www.nzpost.co.nz

New Zealand Venture Investment Fund Ltd – www.nzvif.com

Plant Variety Rights Office – www.pvr.govt.nz

Royal Society of New Zealand – www.rsnz.org

Science New Zealand – www.sciencenewzealand.org

Scion – www.scionresearch.com

Standards New Zealand – www.standards.co.nz

Statistics New Zealand – www.stats.govt.nz

Telarc SAI Ltd – www.telarcsai.co.nz

Chapter 16. Land and environment

Lake Roundabout near Ashburton in the South Island. Wetlands create a rich and diverse habitat for native plants and animals. They filter water, reduce the severity of floods, and contribute generally to the health of the environment. Wetlands are also among the world's most threatened habitats. In New Zealand only about 10 percent of wetlands remain.

Land, freshwater, and sea resources are core to New Zealand's valuable primary industries and are a large part of the life and culture of New Zealanders. But New Zealand, like every other country, has environmental issues to address. Decades of human activity – production, consumption and growth – have impacted dramatically on the environment. This has increased the need to measure the effect of human activities and to protect the environment in order to secure a sustainable future.

New Zealand's low population and limited industrial base means that its environmental issues are generally less severe than those of many other industrialised countries. Using water more sustainably, managing marine resources, reducing waste, and improving energy efficiency are all essential for a secure economy and quality of life, as well as for environmental sustainability.

New Zealand's big export earners – agriculture, horticulture, forestry and tourism – rely on a stable, predictable climate. International scientists now agree the global climate is changing. It is projected that the world's average temperature could rise by 0.2 degrees Celsius over each of the next two decades.

New Zealand is not immune to the effects of global climate change and the country's climate patterns are changing. The latest forecasts are for more frequent droughts and floods (drier in the east and wetter in the west), rising sea and snow levels, and changing rainfall patterns.

Biodiversity

New Zealand's unique biodiversity – the variety of all biological life, which includes plants, animals, micro-organisms and fungi, the genes they contain, and the ecosystems on land or in water where they live – results from geographic isolation of more than 80 million years. There are an estimated 80,000 native animal, plant, and fungi species in New Zealand.

Biologically diverse ecosystems provide important resources such as clean air and water, help to decompose wastes and recycle nutrients, maintain healthy soils, aid pollination, regulate local climates, and reduce flooding. Protection from pests, weeds and diseases is important for New Zealand's natural resources and for the introduced species on which our primary industry depends.

In the past 700–800 years, two-thirds of New Zealand's land has been extensively modified. Humans and their accompanying animals and pests have caused the extinction of 31 percent of indigenous land and freshwater bird species, 18 percent of endemic seabird species, three of seven species of frogs, and at least 12 invertebrate species (such as snails and insects). Today, almost 2,500 native land-based and freshwater species are listed as threatened.

Figure 16.01.

About 44 percent of New Zealand's land area is covered by native vegetation, most of which is in hill country and alpine areas. Little forest remains intact in lowland areas, where the predominant land cover is pastoral or urban open space. It is estimated that wetland areas have reduced by 90 percent from their original area.

Weeds and introduced animals, particularly those that have become feral (for example stoats, deer and rats), pose the greatest threats to remaining native species and ecosystems.

About 31 percent of New Zealand's land area is legally protected for conservation purposes, either as public conservation land or through conservation initiatives on private land. Most of this land is in upland areas and mountains. Lowlands, river margins, wetlands, dune lands and coastal areas remain under-represented in the protected areas network.

A new national statement of priorities for biodiversity has been established to help local authorities make decisions when trying to regenerate or protect biodiversity on private land. A government fund is also provided to support the protection of the country's biodiversity by individuals and communities.

Air quality

Compared with other countries, New Zealand has relatively good air quality because of its small population, its limited heavy industry, its distance from other countries, and regular westerly winds in most places.

Nevertheless, air pollution gets high enough to cause health problems in many urban areas. About 1,100 New Zealanders die prematurely each year from exposure to air pollution. Common pollutants are fine particles (PM10), sulphur dioxide, nitrogen oxides, carbon monoxide, and ground level ozone. The main contributions to air pollution are from transport and home heating (coal and wood fires).

New Zealand's small and dispersed population relies heavily on private transport. Motor vehicle emissions are a significant source of air pollution, emitting pollutants such as carbon monoxide, dioxins, nitrogen oxides, volatile organic compounds and fine particles. Increased vehicle numbers, larger average engine sizes, and traffic congestion all put increasing pressure on air quality.

In the winter, home heating is the main cause of air pollution in populated areas. Wood and coal used in home heating are major sources of air pollution in the form of fine particles and sulphur dioxide. In New Zealand, 45 percent of households burn wood or coal for home heating.

The main focus for improving air quality is to reduce PM10 particles from home heating and traffic. In September 2005, national environmental standards were set for five commonly recognised air pollutants: PM10 particles, nitrogen dioxide, carbon monoxide, sulphur dioxide, and ground-level ozone. Regional councils are required to measure air quality and publicly report whenever pollution levels exceed standard limits.

Through the Warm Homes project, central and local government are working together to help New Zealanders stay warm while reducing the pollution effects of home heating. The number of households with open fires has decreased in recent years, while the number of homes with more efficient slow-combustion fires, such as wood burners, has increased.

Climate change

Atmospheric gases such as carbon dioxide, methane, and nitrous oxide keep the temperature near the earth's surface within a stable range – around 30 degrees Celsius higher than it would be without them – providing climate conditions suitable for humans.

Air pollution increases the concentration of these greenhouse gases, and temperatures rise as more heat from solar energy is trapped in the earth's atmosphere than before – this is the ‘greenhouse effect’. Air pollution increasing the concentrations of these greenhouse gases is thought to play a major role in climate change. The result is more extreme weather events – floods, storms, cyclones, droughts and slips – and rising sea levels and coastal erosion.

In 2005, total emissions of greenhouse gases in New Zealand were 77.2 million tonnes of carbon dioxide equivalents. Between 1990 and 2005, total greenhouse gas emissions increased by 25 percent, reflecting the growing population and economy. While New Zealand's greenhouse gas emissions represent much less than 1 percent of global emissions, New Zealand has the 12th highest rate of emissions per head of population.

New Zealand has a unique profile of greenhouse gas emissions for a developed nation, with the agricultural sector contributing nearly 50 percent of total emissions. Carbon dioxide emissions, largely from energy generation and transport, contribute most of the other 50 percent.

Between 1990 and 2005, carbon dioxide removed from the atmosphere by forest growth (forest sinks) increased by 29 percent, largely because of increases in plantation forestry in the mid 1990s.

Figure 16.02 shows changes in levels of greenhouse gas emissions in New Zealand.

The effects of climate change are potentially far-reaching. In New Zealand, climate change is likely to bring about rising sea levels, increase floods and droughts, change wind and rainfall patterns, increase temperatures, reduce frosts, put pressure on ecosystems, and increase the threat of pest species becoming established.

There is global consensus on the urgent need to respond to climate change, both in terms of reducing greenhouse gas emissions and in preparing for its impact. In response to this, the New Zealand Government has programmes already in place to reduce emissions and is developing more.

To ensure New Zealand meets its Kyoto Protocol commitments, the Government has introduced legislation for a carbon emissions trading scheme and has implemented a moratorium on new fossil-fuelled thermal electricity generation, to create a preference for renewable electricity generation. It has also proposed initiatives for environmentally-friendly land management. An existing programme, the New Zealand Energy Efficiency and Conservation Strategy, also addresses the drive to reduce energy use by developing new sources of renewable energy that are less polluting, and by using energy more efficiently.

Ozone layer

The ozone layer, between 15 and 30 kilometres above the earth's surface, shields the earth from the sun's ultraviolet radiation. In the 1980s, a hole in the ozone layer over Antarctica was identified. A reducing ozone layer has serious implications for New Zealand, as ultraviolet radiation can cause skin cancer, damage the marine environment, and distort plant growth.

Depletion of the ozone layer has been caused primarily by emissions of gases containing chlorine and bromine (chlorofluorocarbons or CFCs). These chemicals were used widely in the past as refrigerants, and in some industrial processes. The identification of the ozone hole over Antarctica led to international agreements to control the use of ozone-depleting substances.

Atmospheric ozone levels over Antarctica are now reducing more slowly than they were during the 1980s and 1990s, and ozone measured over Central Otago has stabilised since the late 1990s. Monitored summer-time levels of ultraviolet radiation in New Zealand have also improved.

Many ozone-depleting gases are also greenhouse gases. Reducing the use of ozone-depleting gases can both protect the ozone layer and reduce climate change.

Figure 16.02.

Figure 16.03.

Figure 16.03 shows changes in the level of ozone measured in Lauder, Central Otago, which is considered to be representative of the ozone layer above New Zealand.

Water quality

By international standards, fresh water in New Zealand is both clean and plentiful. Most areas of New Zealand have between 600 and 1,500 millimetres of rainfall a year. However, availability varies significantly between regions, with higher annual rainfall levels on the western side and generally decreasing levels towards the east coast of both the North and South Islands.

The demand for water is increasingly putting pressure on both the availability and quality of the resource. In areas that are dominated by intensive land use, some aspects of water quality are declining. Urban development, clearance of land and intensification of agriculture have increased sedimentation, nutrients and harmful micro-organisms in rivers and streams. As a result, water quality in many lowland streams and rivers has been affected.

Coastal water quality Over the 2006/07 summer, 80 percent of the 380 monitored beaches had safe levels of bacteria almost all the time. Only 1 percent of sites breached bacterial guidelines regularly.

Common sources of coastal water contamination include sewage and stormwater outfalls, septic tanks, sanitation discharges from boats, and effluent run-off from agricultural areas. Generally, concentrations of contaminants are lower at sites on the open coastline than at inland freshwater sites, with coastal beaches more frequently flushed by tides and currents.

Freshwater quality Fresh water is one of New Zealand's most valuable natural assets and is a vital part of the economy. It is used to irrigate crops and pastures, dispose or dilute trade wastes and sewage, and produce hydroelectric energy.

New Zealand has 425,000 kilometres of rivers and streams. When compared internationally, New Zealand's rivers have very high quality water because they contain low concentrations of dissolved material and nutrients. Rivers in catchments that have little or no farming or urban development make up about half of the total length of New Zealand's rivers and have good water quality.

Water quality is generally poorest in rivers and streams in urban and farmed catchments. Until the 1970s, the major cause of deterioration in water quality in New Zealand was the discharge of poorly treated sewage, stock effluent, and other organic wastes directly into water bodies from sources such as wastewater treatment stations, meat works and dairy factories. However, this type of river pollution has reduced over the past 30 years, as a result of improved management.

Today, the most serious pollutants of fresh water come from diffuse sources. In recent years, the impact of agricultural land use on water quality has grown as a result of increased stocking rates and use of nitrogen fertilisers. Both nitrogen and phosphorus levels in rivers have increased over the past two decades. Excessive levels of these nutrients in waterways can cause algal blooms and degrade water quality. However, even in the most polluted rivers for which data is available, the level of nutrients is only about half the average for all rivers reported by Organisation for Economic Co-operation and Development (OECD) countries.

Of the ground waters that are monitored, 61 percent have normal nitrate levels and only 5 percent have nitrate levels that make the water unsafe for infants to drink. However, it is not known how many of these monitored ground waters are used to supply human drinking water.

Marine environment

New Zealand's marine area is about 14 times bigger than its land area. At more than 4.4 million hectares, New Zealand's marine environment supports a diverse range of ecosystems, plants, animals and food resources, and is immensely valuable. New Zealand's marine environment is home to a large number of species found nowhere else in the world.

The marine area is used for a range of purposes, including transportation, fisheries, recreation, and tourism. New Zealand's marine industries are worth an estimated $3.3 billion (about 3 percent of gross domestic product), including $1.3 billion in fisheries exports in 2007.

Fishing activities are widespread throughout New Zealand and take place in virtually every habitat type, except the deepest sea floor. A quota management system is used in New Zealand to ensure fishing activity is sustainable. The system sets catch limits for each species, based on their abundance and characteristics.

Regional councils manage marine farming in coastal areas under the Aquaculture Reform Act 2004, and the discharge of contaminants into coastal marine areas under the Resource Management Act 1991.

Most of New Zealand's population lives close to the coast. Construction, land reclamation, drainage, urban infrastructure and shoreline developments affect the coastal environment, through the alteration of physical characteristics of shorelines and the discharge of pollutants into the sea. The impact on the marine environment has been less than in other developed countries because of New Zealand's small population and abundant marine resources offshore, where much of the environment is not easily accessible.

Marine reserves are expected to play a significant role in protecting New Zealand's marine biodiversity. Currently, 31 marine reserves cover 7 percent of New Zealand's marine territory. Nearly half these reserves have been established since 2000, and the area designated as marine reserves has almost doubled in that period. However, 99 percent of the area protected is in only two offshore marine reserves, and some key habitats remain unprotected.

Energy

New Zealand has access to a wide range of energy sources, both renewable (hydro, geothermal, wood, wind, biogas and solar) and non-renewable (oil, gas and coal). Energy is an essential element of life, but its production, distribution and use can have an adverse impact on the environment.

New Zealand's total primary energy supply is growing to meet increased consumer demand. Between 1996 and 2006, New Zealand's total primary energy supply increased by 6 percent. In 2006, 70 percent of this supply came from fossil-fuel-based oil, natural gas, and coal. The remaining 30 percent came from renewable sources.

Renewable energy resources, such as hydro, geothermal, wind, and wood, accounted for approximately 66 percent of electricity generation in New Zealand in 2006. Of this, hydro generation was the major supplier of electricity, producing about 56 percent.

The largest energy consumer is the transport sector. Oil accounted for about 51 percent of New Zealand's consumer energy demand in 2006, and the transport sector used approximately 86 percent of this oil. New Zealand's heavy use of oil in transport can largely be attributed to its small and sparsely-distributed population. Although self-sufficient in electricity, gas and coal, New Zealand relies on imported oil to meet most of its domestic oil demand.

While New Zealand's energy needs are increasing, they are not increasing as fast as the economy is growing. Statistics New Zealand's energy account measures energy intensity – the amount of energy needed to produce goods and services. In the 1997–2005 period, energy intensity decreased by nearly 5 percent at a national level. This indicates that New Zealand's economy has become more efficient in its use of energy.

New Zealand's growth in greenhouse gas emissions is largely attributable to two sectors: agriculture and energy. In the energy sector, the growth is associated with increased electricity generation (from coal), and increased use of transport fuels. The New Zealand Energy Strategy (2007) and the New Zealand Energy Efficiency and Conservation Strategy (revised 2007) include policies to encourage an increasing role for renewable resources in energy supply, and improved energy efficiency in energy demand, in order to help reduce greenhouse gas emissions.

Minerals

New Zealand has a large variety of mineral deposits and is well known for its production of gold and coal.

The mineral industry is a significant contributor to the New Zealand economy, not only in terms of export revenues, but also as a substantial employer of a highly skilled workforce.

Some minerals are also of cultural importance to New Zealanders. For example, pounamu, or New Zealand greenstone, is of particular significance to Māori, specifically Ngai Tahu who have ownership of the resource.

Figure 16.04.

Gold was first discovered in New Zealand in the 1850s and was retrieved either by washing alluvial gravels, silts and sands, by crushing gold-bearing veins of quartz, or by hydraulic sluicing. In 1881, the first dredge was used to work riverbeds to recover gold.

There are three large open-cast goldmines in New Zealand, with a number of medium and small-sized mines. Mining is subject to strict environmental standards.

Coal is New Zealand's largest energy resource, with recoverable reserves of approximately 8.6 billion tonnes, most of which is lignite. Some New Zealand coals have special properties, which make them valuable for steel making and other specialist uses.

While coal has a long history of use in New Zealand, quantities exported have increased markedly in the past decade, with Japan, India, China and South Africa the main markets. The largest domestic users of coal are the electricity and steel production industries.

Tools for mineral exploration and mine design and measurement include aerial photography, photogrammetric mapping and the use of geographic information systems (GIS) in digital terrain modelling, and three-dimensional modelling of subsurface ore bodies. Remote sensing is being used to provide high-resolution images of the earth's crust, which, when combined with other information, can identify targets for detailed ground investigation. Advances in technology have meant that minerals that were once inaccessible now have the potential to be extracted.

Soil quality

Soils play an integral part in supporting one of New Zealand's top export earners – primary production. In 2007, agriculture, forestry, horticulture, and viticulture generated $16.1 billion, $3.6 billion, $2.5 billion, and $662 million, respectively, in export earnings.

New Zealand soils are naturally acidic, with low levels of nitrogen, phosphorus and sulphur. Soils used to grow crops and pasture need to be developed and maintained with nitrogen-fixing plants (such as clover), fertilisers, and often lime, to sustain high-yield plant growth. As a result, farmed soils today have different biological, chemical and physical properties than soils farmed by early settlers.

Monitoring New Zealand's soils by major land-use types (for example, livestock farming, cropping, forestry) and soil orders (soil groups) helps primary producers and resource managers to understand how different soils respond to different land uses. Maintaining healthy soils is fundamental to maintaining sustained productive land use.

Soil health and intactness Soils underpin food, fibre, and timber production in New Zealand. Soils also protect the environment by:

  • acting as buffers and filters to reduce nutrient loss

  • limiting the need for irrigation

  • breaking down pollutants

  • regulating gas emissions

  • being a fundamental part of the water cycle.

Landcare Research soil scientist Dr Les Basher assesses the colour of soil in Motupiko valley, Nelson. Results of soil health monitoring provide the opportunity to evaluate and redesign land management systems to increase sustainability.

‘Soil health’ (or soil quality) is the biological, chemical and physical condition of different soil types under specific land uses. ‘Soil intactness’ is the ability of soils to stay in place. The Ministry for the Environment's core set of national environment indicators includes two indicators for soils: soil health, and the soil intactness of erosion-prone hill country.

To monitor soil health, the government has encouraged the development of practical indicators of soil quality, as well as techniques and monitoring tools that farmers can use to measure sustainable land management. For example, the 500 Soils Project monitored seven key measures of soil quality across seven major land-use categories and New Zealand's 15 soil orders. Monitoring soil health identifies whether soils are degraded.

Land and resource managers are primarily concerned with soil erosion caused by human activity (induced erosion), rather than natural erosion processes. Human induced hill-country erosion has been estimated to cost New Zealand between $100 million and $150 million each year through: loss of soil and nutrients; loss of production; damage to houses, fences, roads, phone and power lines; damage to waterways and aquatic habitats.

With 30 percent of New Zealand's land being hilly (slope of 25 degrees or more) and 10 percent of this classed as severely erodible, soil intactness on erosion-prone hill country is important. The removal of native forest for pastoral land use between the 1880s and 1920s increased erosion rates. Monitoring changes in land cover can be used to assess changes in pasture on erosion-prone hill country.

Environmental and resource management

Land cover

New Zealand's 26.9 million hectares are predominantly mountainous and hilly. More than two-thirds (18.5 million hectares) of the land slopes at greater than 12 degrees and nearly half at greater than 28 degrees. Nearly three-fifths of the country (16 million hectares) is more than 300 metres above sea level, with one-fifth above 900 metres.

Extensive changes have occurred in New Zealand's land cover since human occupation. The cover of indigenous forest has declined to 29 percent of its former extent and scrub and tussock have nearly doubled in area. Greatest losses of land cover have occurred in warm, dry environments, particularly those with soils and landforms suited to intensive agriculture.

Table 16.01 shows the major types of land use and land cover in New Zealand.

Bioethics Council

The Bioethics Council Toi te Taiao was established in October 2002 as a ministerial advisory committee, following recommendations from a Royal Commission of Inquiry into Genetic Modification. The goal of the council is to enhance New Zealand's understanding of the cultural, ethical and spiritual aspects of biotechnology and to ensure that the use of biotechnology has regard for values held by New Zealanders. The council provides information, promotes and participates in public discussion and gives advice to the government.

Environmental planning framework

The Resource Management Act 1991 (RMA) provides one of the key means through which the people of New Zealand plan and decide how to use, distribute, or protect natural and physical resources.

Resources include rivers, lakes, coastal and geothermal areas, land, (including soils) forests and farmlands, the air, and the built environment, such as buildings, bridges and other structures in cities and towns.

The purpose of the RMA is to promote sustainable management of natural and physical resources. This means local authorities look at the environment as a whole when planning and making decisions. The focus of the legislation is on the effects that proposed activities will have on the environment.

Local authorities prepare plans to help them manage natural and physical resources. While these plans are being formed, members of the community have the opportunity to say what they want to happen in their communities, during public consultation, or through making submissions and attending public hearings.

National policies In preparing plans to manage natural and physical resources under the RMA, local authorities must recognise and provide for matters of national importance by protecting the following from inappropriate subdivision, use and development:

  • the natural character of the coastal environment, wetlands, lakes and rivers, and their margins

  • outstanding natural features and landscapes

  • areas of significant indigenous vegetation, and significant habitats of indigenous fauna

  • heritage areas.

Table 16.01. Dominant land use and selected land cover
2004

Land use/coverHectares

Note: Figures may not add up to stated totals due to rounding.

Source: Ministry for the Environment

Land use
Dairy farming1,879,600
Intensive sheep and beef farming3,841,100
Hill-country sheep and beef farming4,023,200
High-country sheep and beef farming48,900
Deer farming249,700
Other animal farming64,900
Ungrazed659,800
Urban203,600
Planted forest1,957,000
Arable crops1,200
Vegetables2,200
Berry fruit1,200
Pip fruit10,200
Grapes18,800
Summer fruit1,800
Tropical fruit1,600
Kiwifruit6,400
Flowers57
Other land cover
Tussock2,645,200
Native forest6,567,200
Rivers, lakes, snow, and ice2,094,200
Scrub2,543,600
Total26,821,500

Local authorities must maintain and enhance public access to the coastal marine area, and to lakes and rivers. They must also recognise and provide for the relationship of Māori and their culture and traditions with their ancestral lands, water, sites, wāhi tapu (sacred places) and other taonga (treasures).

Plans must include national policy made under the RMA. A national policy can relate to any matter that is of national significance and is relevant to achieving sustainable management of natural and physical resources.

The RMA requires decision makers to consider:

  • kaitiakitanga, the ethic of stewardship

  • efficient use and development of natural and physical resources

  • maintenance and enhancement of amenity values

  • intrinsic values of ecosystems

  • maintenance and enhancement of the quality of the environment

  • any finite characteristics of natural and physical resources

  • protection of the habitat of trout and salmon.

Sustainable management Under the RMA, sustainable management involves managing natural and physical resources in a way that enables people to provide for their own well-being, while sustaining the potential of natural and physical resources to meet the foreseeable needs of future generations. This involves safeguarding the life-supporting capacity of air, water, soil and ecosystems, and avoiding, remedying or mitigating any adverse effects of human activities on the environment.

Regional policies and plans Regional councils have an important role in managing natural and physical resources. Regional councils must each prepare a regional policy statement that provides an overview of the resource management issues in their region, and the policies and methods that will be used to achieve the integrated management of natural and physical resources. Regional and district plans must put the regional policy statement into effect.

Regional councils are responsible for managing water, soil, and geothermal resources; pollution control; and strategic integration of infrastructure with land use. Regional, city, and district councils are jointly responsible for natural hazard mitigation; hazardous substances; contaminated land; and maintaining indigenous biodiversity. Regional councils and the Minister of Conservation are responsible for the coastal marine area. A regional council may produce one or more regional plans to assist them in managing these matters. Such plans contain rules that determine whether a resource consent is required. Regional councils are required to produce one or more regional coastal plan to help them manage the coastal marine area of their region.

District planning District and city councils are responsible for land use management. District and city councils also manage noise and activities on the surface of water. Each district and city council must prepare a district plan, which includes rules that allow, manage or prohibit activities.

Department of Conservation staff help dean cars and boats, and promote didymo awareness, at the 2007 Jet Boat Marathon held in Canterbury. The invasive alga was first discovered in Southland rivers in 2004.

Resource consents

A resource consent gives permission to use or develop a natural or physical resource and/or carry out an activity that affects the environment in some way. Rules in regional plans or district plans determine when a resource consent is required. There are five types of resource consent described in the RMA: land use (granted by district, city and, sometimes, regional councils); subdivision (district councils); water permit (regional councils); discharge permit (regional councils); and coastal permit (regional councils).

Applicants for consents need to assess potential impacts that the proposal is likely to have on the environment and submit this assessment to the authority responsible for consents. The applicant must also explain what consultation, if any, has taken place with anyone who may be affected by the proposal. Some resource consent applications require the public to be notified, giving them a chance to consider the application and make submissions.

Decisions to grant or decline resource consent applications are usually made by local authorities. If an applicant or submitter disagrees with the decision, they can appeal to the Environment Court.

Around 50,000 resource consent applications are made to local authorities each year. Of these applications, around 6 percent are normally notified, less than 1 percent declined, and around 1 percent appealed to the Environment Court.

Public involvement The RMA provides for members of the public to take part in managing the resources of their area. They can make submissions on proposed regional policy statements and regional and district plans, and on any changes to these.

Members of the public can also make submissions on publicly-notified applications for resource consents. The Environmental Legal Assistance fund was established in 2001 to provide community, environmental, and iwi (tribe) and hapū (subtribe) groups with financial assistance to participate in the environment court and other courts.

Use of land The RMA requires councils to address effects of activities rather than the activity itself. People can generally use their land in the way they wish, provided there are no adverse environmental effects, unless there is a rule in the plans that constrains that use. Constraints must be clearly identified in policy statements and plans.

Hazardous substances and new organisms

The Hazardous Substances and New Organisms Act 1996, protects the environment and the health and safety of people and communities by preventing or managing adverse effects of hazardous substances and new organisms. The Act is administered by the Environmental Risk Management Authority (ERMA). Hazardous substances managed under the Act are substances that are explosive, flammable, oxidising, corrosive, toxic or eco-toxic. Radioactive substances are managed under the Radiation Protection Act 1965. Controls are contained in a set of regulations that ERMA uses to set requirements for specific substances or groups of substances.

The controls are designed to set consistent national standards for resource consents involving hazardous substances. In addition, the controls are designed to provide consistent standards in workplace and transport legislation relating to hazardous substances. The Act is also designed to work closely with regulations for specific use, for example when hazardous substances are also medicines, agricultural components or veterinary medicines. The Act covers deliberate introduction of new species, such as for primary production or for biological control of pests, and development of genetically-modified organisms.

The development, testing, and release of genetically-modified organisms require separate approvals. This part of the Act stands alongside the Biosecurity Act 1993, which aims to prevent unintended introduction of unwanted species into New Zealand. Principles of the new legislation require that all hazardous substances and new organisms are assessed before they are introduced, developed or manufactured in New Zealand, and that they all follow a similar assessment process. Most assessments are publicised and open to public comment, and the final decision is also made public.

Mineral exploration and development

Exploration of Crown-owned minerals is governed by the Crown Minerals Act 1991, administered by the Ministry of Economic Development. Under the Act, the Minister of Energy is required to establish policies, procedures and provisions for managing Crown minerals.

The Minerals Programme for Minerals (Excluding Petroleum) 2008 came into effect on 1 February 2008, and replaced the Minerals Programme for Coal 1996, and the Minerals Programme for Minerals Other than Coal and Petroleum 1996.

The Minister of Energy issues permits allocating Crown-owned minerals, or the rights to search for them. Permits have conditions relating to managing the mineral resource and royalties. The Act provides that anyone prospecting, exploring or mining Crown minerals must also make land access arrangements with the surface landowner or tenant.

The Crown issues three types of permits:

  • prospecting permits for identifying land likely to contain mineral, coal or petroleum deposits. Permitted activities are very low impact, such as geological mapping, literature search, hand sampling and aerial surveys

  • exploration permits for identifying mineral, coal or petroleum deposits and evaluating the feasibility of mining. Permitted activities include drilling, bulk sampling, trenching and mine feasibility studies

  • mining permits for the economic recovery of an identified resource.

The environmental impact of prospecting, exploration and mining of minerals, whether Crown or private, is controlled through the RMA by local authorities. The Act controls the environmental impact of all mining activities, including the rehabilitation of land.

Water and soil management

New Zealand's water and soil resources are managed according to the RMA, with maintenance and construction of flood protection structures and soil conservation measures covered by the Soil Conservation and Rivers Control Act 1941. Both acts are administered by the Ministry for the Environment.

Under the RMA, regional councils are responsible for managing, monitoring and controlling wetlands and freshwater bodies, and issuing permits for extraction, discharge and damming of water. Regional councils also develop policies and plans which prevent erosion, landslip and flooding, and protect scenic and recreational waterways.

Water resources New Zealand's consumption of water is estimated at about 2 billion cubic metres a year, with households using 210 million cubic metres, industry 260 million cubic metres, livestock 350 million cubic metres and irrigation 1.1 billion cubic metres. About 87 percent of the population is supplied from public water supply systems, while the rest rely on independent domestic supplies, such as rainwater collection or aquifer bores. Industry obtains about 33 percent of its requirements from public supply systems and 66 percent from its own sources. These figures do not include water for hydroelectric generation, which exceeds 100 billion cubic metres a year. Water flowing through hydro station turbines can be used again. On the Waikato River, including its tributaries, 10 State-owned hydroelectric stations, and a number owned by local authorities, use and reuse a flow, which, at Karapiro (the final station), is more than 7 billion cubic metres a year.

In terms of total water resources, New Zealand has an estimated 300 billion cubic metres available annually, although this is by no means evenly distributed. High mountains, especially in the South Island, create substantial rain-shadow areas (relatively dry areas sheltered by hills from rain-bearing winds). In a few areas, such as Milford Sound, annual rainfalls of more than 10,000 millimetres have been measured, while in others, such as Alexandra, as little as 340 millimetres may fall in a year.

In some parts of New Zealand, 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 underground sources. Management of underground water, and its protection from contamination, is an increasing concern for regional councils in these areas.

Water quality Under the RMA, maintaining water quality is the responsibility of regional councils. The RMA controls discharges into waterways through resource consents. Regional policy statements and regional plans are the statutory vehicle for water quality policies, objectives and rules.

The RMA continues earlier legislation, which provided for water conservation orders to be placed over rivers, streams, wetlands and lakes that have outstanding amenity or intrinsic value. An order can preserve a water body in its natural state, or it can protect certain features by placing restrictions on the future issue of water permits.

River control River control projects carried out by local authorities are usually designed to prevent damage by erosion and protect property from flood damage. River training is designed to give the river channel a stable alignment to prevent bank erosion. Stopbanks are constructed to provide flood protection for communities, infrastructure, and low-lying and highly-productive agricultural lands.

A catchment-wide approach to water and soil problems is encouraged. District councils control subdivision and other urban development in designated flood hazard zones. Increasingly, flood plain management planning is being adopted to identify and mitigate the risks associated with flooding.

Soil conservation The change from forest cover to pastoral land use in many parts of New Zealand has resulted in changed soil conditions over time. 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 growing in compacted soils.

Natural erosion, caused by climatic factors such as intense rainfall and the inherent instability of surface rock types for much of the country, has been aggravated by human activities. Nearly 10 percent of land is classified as having severe to extreme erosion problems.

Successful techniques that have reduced the frequency and the severity of erosion include control of tussock burning and animal pests, over-sowing, topdressing, strict grazing control, soil conservation, fencing and gully control, tree planting, and permanently retiring land from productive uses.

Pollution and waste

Water pollution Problems of water pollution are addressed by regional councils under the RMA. Pollution of rivers and lakes is caused by soil erosion, farm run-off, industrial waste, domestic sewage, and urban run-off. The RMA provides for the control of waste discharges through resource consents and rules in plans. These include conditions ensuring that the discharge is of a sufficient quality not to harm the receiving river, lake or ocean. Pollution, such as erosion and farm run-off, requires different approaches, such as changing land-use practices or fencing streams.

The Ministry for the Environment has developed a sustainable land management strategy which addresses, in part, the impact of agriculture on aquatic ecosystems and water quality.

Regulations under the RMA control dumping of waste and other materials, and the discharge of contaminants from ships and offshore installations within the coastal marine area (12 nautical mile limit). Ballast water discharges are controlled by the Biosecurity Act 1993.

NIWA staff measure river flow on a South Island river during a didymo investigation.

Waste and landfills The Ministry for the Environment's New Zealand Waste Strategy includes targets for central government, local government and industry to reduce waste and improve waste management. The majority of solid waste in New Zealand has been disposed of in historically poorly-managed ‘rubbish tips’. However, many of the substandard landfills of the past have now closed, and there is a move towards landfills that are appropriately sited, designed and operated.

In many areas, regional landfills have been developed with a variety of ownership arrangements, ranging from full local authority ownership to fully commercial operations. In working to reduce waste, the Ministry for the Environment is:

  • working with producers and importers of used oil and tyres to identify appropriate solutions for collecting and managing these wastes

  • identifying and implementing ways to divert organic waste from landfills

  • supporting businesses to implement eco-efficiency concepts into everyday business

  • funding specific waste minimisation projects in the construction, demolition and agricultural sectors.

Contaminated sites A total of 1,238 sites have been reported as contaminated. Of these sites, 545 have been cleaned up, and 301 are being managed to make sure they do not significantly affect the environment. The remaining 392 sites have not yet been dealt with.

Land may be contaminated from historical activities or existing activities that use hazardous substances. The RMA provides controls on existing activities that could contaminate land.

The Ministry for the Environment is working with other government departments, local government, and industry to develop guidelines and standards for managing and cleaning up contaminated land. Guidelines have been produced to cover hazardous substances found on sawmills and timber treatment sites, petrol stations and oil storage depots, and old gasworks sites. Guidance is also provided on how to report, identify, collect and manage information, and investigate contaminated land.

The Contaminated Sites Remediation Fund was established in 2003 to help regional councils investigate and clean up contaminated sites. Over $10 million has been awarded to 33 projects since the fund was established. Funding for 2006–09 was increased to $3.7 million per year. High-profile projects include assisting Tasman District Council to clean up the former Fruitgrowers Chemical Company site at Mapua. The site is heavily contaminated with the organochlorine pesticides DDT and dieldrin, and has adversely affected the marine environment nearby. Environment Waikato is being assisted to clean up the historical Tui mine site on Mt Te Aroha, which is leaching contaminants into local rivers and streams.

International environmental coordination

The coordination of New Zealand's international response to environmental issues is carried out by the environment division of the Ministry of Foreign Affairs and Trade.

The division manages New Zealand's participation in the work of a number of international forums, including United Nations (UN) organisations such as the Framework Convention on Climate Change, the Commission on Sustainable Development, the Informal Consultative Process on Oceans and the Law of the Sea, the Convention on Biological Diversity, the Global Environment Facility, and the International Whaling Commission.

The division is responsible for coordinating the international aspects of issues such as sustainability, climate change, biodiversity, biosafety, oceans, atmosphere, and the transboundary movement of hazardous substances.

It provides leadership and support for New Zealand's participation in international discussions on these issues at regional and international meetings, and for negotiations on related international legal instruments. It also works closely with other government departments and domestic agencies to identify, protect and advance New Zealand's interests in these negotiations.

In addition, the division consults with a large number of other interest groups, including Māori, public interest groups, non-government organisations, and businesses, as it seeks to promote environmental values held by New Zealanders, such as the conservation of whales.

Global environmental issues

Some of the most pressing environmental problems extend beyond national borders. Two of these issues are climate change, and ozone depletion.

Under international law, the main method available for countries to work together on global environmental issues is through multilateral environmental agreements. These formal agreements can be non-legally-binding principles that parties will regard when considering actions that affect particular environmental issues, or specific legally-binding actions required to be taken, which work towards an environmental objective. New Zealand is a signatory to many multilateral environmental agreements and its interest in international environmental work is wide ranging.

Priority issues in recent years have included sustainable development, biodiversity, ocean management and protection of marine mammals, South Pacific environmental issues, climate change, ozone depletion, and hazardous substances.

New Zealand is also involved in the work of international institutions on environment issues. These issues are considered in New Zealand's trade policies, and in delivery of overseas development assistance.

International environmental policy The development of international environmental policy involves a wide range of government agencies. The environment division of the Ministry of Foreign Affairs and Trade advises the government on international aspects of global environmental issues.

The Ministry for the Environment provides advice on domestic environmental matters and is responsible for the implementation of several multilateral environment agreements that New Zealand has ratified, including the UN Framework Convention on Climate Change, the Montreal Protocol on Substances that Deplete the Ozone Layer, and the Stockholm Convention on Persistent Organic Pollutants. The Ministry for the Environment is also responsible for implementing environment cooperation agreements as part of New Zealand's free trade agreements with Thailand, and with Chile, Singapore and Brunei.

The ministry also works closely with the Department of Conservation on aspects of the UN Convention on Biological Diversity.

Climate change The 1992 UN Framework Convention on Climate Change (UNFCCC) developed a global response to stabilising greenhouse gas concentrations in the atmosphere. New Zealand ratified the UNFCCC in 1993 and, in December 2002, ratified the Kyoto Protocol, which builds on the concerns of the UNFCCC and makes new commitments that are stronger and more detailed. Having ratified the UNFCCC and the Kyoto Protocol, New Zealand has an obligation to reduce its greenhouse gas emissions and to protect and enhance forest sinks (forest growth that removes carbon from the atmosphere).

During 2005, the Government carried out a review of climate change policies. The review concluded that the existing policy package would not significantly reduce New Zealand's carbon dioxide emissions and announced that no broad-based tax would be introduced before 2012, which is the final year of the first commitment period under the Kyoto Protocol.

The Government is now exploring a number of policy options that may reduce greenhouse gas emissions. These options include:

  • alternative measures to the carbon tax (for example, emissions trading, a narrow carbon tax and voluntary agreements)

  • incentives for renewable energy

  • ways to manage deforestation and encourage reforestation

  • links between forestry and agriculture policies

  • incentives or disincentives for purchase and use of transport modes and vehicle efficiency.

The Government is also looking at the need for, and future shape of, cross-sector incentive programmes.

Current policies also support the government's climate change objectives, such as the National Energy Strategy, the National Energy Efficiency and Conservation Strategy (to promote energy efficiency, energy conservation and renewable energy), and waste and transport strategies. New Zealand remains committed to meeting its international obligations under the Kyoto Protocol.

Biodiversity New Zealand ratified the Convention for Biological Diversity in 1994 and produced the National Biodiversity Strategy in 2000. A new statement of national priorities was prepared in 2006, which is being developed further at a regional level.

New Zealand has also ratified several conventions that aim to protect specific animals, plants and ecosystems, including the Convention on International Trade in Endangered Species of Wild Fauna and Flora, the Ramsar Convention, and the Convention on the Conservation of Migratory Species of Wild Animals. New Zealand has five sites on the Ramsar list of wetlands of international importance. New Zealand has also ratified the Agreement on the Conservation of Albatrosses and Petrels, which came into force in 2004. This agreement focuses on the effects of incidental capture in fishing operations.

New Zealand has signed the Cartagena Protocol on Biosafety, which aims to protect biodiversity and human health from potential risks arising from the import and export of living modified organisms developed by modern biotechnology.

Ocean management New Zealand actively participated in the negotiations to amend the London Convention on the Prevention of Marine Pollution by Dumping of Wastes 1972, and ratified the Basel Convention on the Control of Transboundary Movements of Hazardous Wastes and their Disposal in 1995.

New Zealand was active in the UN Conference on Straddling Fish Stocks and Highly Migratory Fish Stocks, which, in 1995, resulted in a new convention to complement existing provisions of the United Nations Convention on the Law of the Sea. The convention contains innovative provisions on enforcement of conservation and management measures on the high seas. New Zealand has an active conservationist role in the International Whaling Commission. The Ministry of Foreign Affairs and Trade cooperates closely with the Department of Conservation to develop policy on whale conservation.

New Zealand played a major role in founding the UN Informal Consultative Process on Oceans and the Law of the Sea. The Government has been reviewing the management of New Zealand's oceans within the exclusive economic zone and extended continental shelf, to improve and integrate decisions about the use of marine space and resources.

South Pacific environment issues New Zealand recognises that South Pacific countries are especially vulnerable to global environmental problems. New Zealand has sought to support Pacific island countries, and to ensure their concerns are heard through the South Pacific Environment Programme, the South Pacific Forum and other international environmental negotiations.

New Zealand was involved in the Global Conference on the Sustainable Development of Small Island Developing States in Barbados in 1994, and in the 1999 United Nations special session to review the Barbados Programme of Action. In 1995, New Zealand signed the Waigani Convention to ban imports of hazardous and radioactive wastes into South Pacific Forum countries, and to control transboundary movement and management of hazardous wastes within the South Pacific region.

International environmental institutions

New Zealand participates in the governance and operation of several international environmental bodies. New Zealand is a member country of the UN Environment Programme and was a member of the governing council from 2000–03. New Zealand attends the Global Ministerial Environmental Forum, where environmental assessments, issues and actions are discussed by environment ministers from around the world.

The Global Environmental Facility (GEF) is an international body that provides finance to developing countries to help them address critical threats to the global environment. New Zealand is a donor country and a member of one of the constituencies of the GEF Council. New Zealand has contributed about $27.5 million since 1994 and pledged $8.4 million to the fourth replenishment of the facility from 2006–10. New Zealand is also involved in the South Pacific Regional Environment Programme and the Environment Policy Committee and various working groups (nanotechnology, climate change, trade and environment) of the Organisation for Economic Co-operation and Development.

Trade and the environment

The New Zealand Government includes environment and labour elements in all bilateral and regional trade agreements. The Ministry for the Environment works with the Ministry of Foreign Affairs and Trade to negotiate for environmental provisions in these agreements.

New Zealand has environmental cooperation agreements with Thailand, and with Chile, Singapore and Brunei. The Ministry for the Environment works closely with counterpart agencies in Thailand under a bilateral trade agreement, and with agencies in Chile, Singapore, and Brunei under a regional trade agreement. Environmental cooperation involves sharing knowledge and expertise, and building capacity to address common environmental challenges.

The Ministry for the Environment encourages new government, research, and business partnerships with our trade agreement partners by promoting New Zealand's expertise in the environment and in sustainability.

The World Trade Organization's (WTO) Doha Development Agenda continues to be the government's top trade priority. The government aims to harmonise its objectives for trade and for the environment through the WTO to achieve the overarching goal of promoting sustainable development worldwide.

The Ministry for the Environment works with the Ministry of Foreign Affairs and Trade to promote New Zealand's interests in the following areas:

  • The relationship between trade provisions contained in multilateral environment agreements and WTO rules – New Zealand promotes an approach that ensures policy is implemented in a manner consistent with both sets of rules.

  • Liberalising market access for environmental goods and services – New Zealand promotes sustainable development through better access to goods and services that prevent, minimise or clean up environmental damage, including cleaner technologies.

  • Labelling for environmental purposes – New Zealand's approach aims to balance legitimate environmental objectives with principles of transparency, non-discrimination and equal participation in standards-setting and access to labelling schemes.

Land resources and ownership

Land Information New Zealand

Land Information New Zealand (LINZ) provides New Zealand's authoritative land and seabed information. It advises the government on land-related laws and policies, and administers the government's land interests and regulations on foreign investment in New Zealand. It also provides a secure environment for buying or selling property, and ensures New Zealand has high quality core geographic information.

LINZ's day-to-day business includes:

  • providing policy advice to government

  • overseeing survey infrastructure

  • maintaining up-to-date topographic and hydrographic information

  • issuing, and registering land titles

  • setting standards for rating valuation

  • Crown property acquisition, management, and disposal

  • assisting the government to address land-related aspects of Treaty of Waitangi issues

  • administering and monitoring significant foreign investment into New Zealand and assessing applications by foreigners to make significant investments

  • processing and approving survey plans

  • providing search services for titles and survey plans.

Acts administered by LINZ include the Cadastral Survey Act 2002, Crown Grants Act 1908, Deeds Registration Act 1908, Land Act 1948, Land Transfer Act 1952, New Zealand Geographic Board Act 1946, Public Works Act 1981, Rating Valuations Act 1998, the Unit Titles Act 1972 and various reserves and other lands disposal acts.

The chief executive has statutory functions under the Public Works Act 1981 relating to disposal of surplus land. More than 450 other statutes give LINZ specific responsibilities for land transactions.

Surveying, mapping and land information

Surveying infrastructure The New Zealand survey system provides a national spatial reference framework to accurately locate land and seabed rights and resources. The spatial reference framework is based on a national network of survey control marks, including trigonometrical stations, which are connected to tidal gauges and to the global reference framework.

Land Information New Zealand (LINZ) administers the survey system, primarily to provide reliable identification and definition of land boundaries for recording land rights for Crown, Māori, leasehold and freehold tenures.

Supporting these systems is a database of all land parcels, together with street addresses and place names. The database can be used for:

  • defining electoral and other administrative boundaries

  • determining New Zealand's national and economic zone boundaries

  • land development

  • resource management

  • granting mining and marine licences

  • locating utilities

  • engineering and construction

  • topographic mapping and hydrographic charting

  • scientific studies

  • locating marine and air navigation aids.

The locations of boundaries and interests in land are defined and documented by licensed cadastral surveyors, mainly in the private sector. The surveyors submit surveys to LINZ to be validated against existing records. LINZ maintains registers of rights and interests in land, and checks to ensure new rights do not conflict with existing rights. This ensures certainty and security about the extent of land rights and interests.

Landonline is New Zealand's only authoritative titles and digital survey register, and is maintained by LINZ. Landonline enables professionals to access the New Zealand land titles system, and surveyors to digitally prepare and submit cadastral surveys directly with LINZ. Since 1 September 2007, it has been mandatory for all cadastral survey plans to be lodged electronically through Landonline.

Topography and hydrography National topographic information provides a reliable and authoritative record of New Zealand's land form and its features. The information includes 1:50,000 and other core topographic maps (including maps of the Pacific and the Antarctic), the digital topographic database, and Crown copyright aerial photographs. The National Topographic/Hydrographic Authority of Land Information New Zealand regulates information about national topography and hydrography.

Table 16.02. Land transfer documents processed
Year ending 30 June

YearInstruments(1) receivedCertificates of titlePlans lodgedGuaranteed searches(2)Title searchesDocument searches

(1) An electronic document or plan relating to dealings with land.

(2) Provides security to a property purchaser that the title will remain for a defined period as it appears in the land register at the time of the search. This is backed by a State guarantee.

Source: Land Information New Zealand

1996925,26350,66516,462182,3941,048,717287,394
1997859,16263,01218,995184,995948,565257,638
1998799,37056,64316,866183,275861,720226,624
1999777,23653,14313,610195,974862,449195,088
2000759,00352,98313,455195,125838,453197,993
2001662,94546,80311,700181,618824,708179,417
2002705,59041,89710,016215,337968,391194,737
2003818,22545,57110,836195,7911,317,569268,501
2004931,73451,21911,489229,3041,671,056312,709
2005891,77854,51012,809260,6092,066,238351,197
2006877,81559,54813,296295,6602,511,502453,019
2007886,37753,45913,025297,6722,642,396581,468

This information is used for planning, construction, development, environmental assessment, local government administration, emergency services, search and rescue, and defence. Commercial ships navigating New Zealand waters must carry hydrographic charts and s. This is a statutory requirement contributing to safety at sea. Recreational boaters are encouraged to use the information for small craft navigation. Charts range from detailed representations of harbours and their entrances to depictions of deep-sea passages.

Land title registration services Nearly all privately-owned land in New Zealand is held under the land title system, under the authority of the Land Transfer Act 1952. Registered land ownership details are a public record. The primary objective of the system is to provide State-guaranteed certainty of title to land.

The register provides ownership details for a piece of land and a record of any registered interests. Most land is defined in reference to a survey plan. Documents listed on a computer register may include mortgages, leases, various types of charges, and rights and restrictions that affect the land in some way.

LINZ provides land title registration services. Most of LINZ's professional customers access this information through the Landonline system, which allows title transactions to be submitted electronically for registration. Electronic registration through Landonline became mandatory in October 2008.

Table 16.03 lists sales of freehold rural land for each half year from 31 December 1997 to 30 June 2007.

A mountaineer stands on one of the peaks of Mt Ruapehu's crater rim, in the Tongariro National Park, reading the 1:80000 Tongariro National Park Map 273–04.

Table 16.03. Market sales of freehold rural land(1)
Half years ending 30 June and 31 December

Half year endingNumber of salesTotal sales $(million)Index number(2)Change from previous half year (percent)

(1) From the June 2000 half year onwards, sales are collated by sale date. Prior to that, sales are collated by the date the sale notice was received by Quotable Value.

(2) Base 1000 for half year ending 31 December 2003.

Symbol:... not applicable

Source: Quotable Value

1997December1,023411.5671...
1998June1,160559.2648-3.4
December718299.0657+1.4
1999June1,347701.9663+0.9
December952438.0666+0.5
2000June1,298720.4670+0.6
December1,192737.8700+4.5
2001June1,7121,179.4726+3.7
December1,5341,036.6780+7.4
2002June1,4841,118.7802+2.8
December1,235883.3835+4.1
2003June1,4421,215.8906+8.5
December839645.41000+10.4
2004June1,6771,672.61117+11.7
December1,3231,451.31228+9.9
2005June1,6222,175.91324+7.8
December1,0991,329.51552+17.2
2006June1,1841,687.91483-4.4
December1,0181,279.41522+2.6
2007June1,3232,012.21549+1.8

Acquisition of New Zealand land by overseas parties

Under the Overseas Investment Act 2005, consent is required for a transaction if it will result in an overseas investment in sensitive land, an overseas investment in significant business assets if the value exceeds NZ$100 million, or an overseas investment that concerns fishing quota.

The overseas investment office, within Land Information New Zealand, administers the legislation. The Minister of Finance is the minister responsible for the Act.

Consent is required for an overseas person to purchase or acquire an interest (for more than three years) in land that:

  • is more than five hectares in area (and is not urban land)

  • includes part of the foreshore or seabed or is more than 2,000 square metres and adjoins the foreshore

  • includes an island (other than the North or South Island, or certain specified islands).

Consent is also needed for an overseas person to purchase or acquire an interest (for more than three years) in land greater than 4,000 square metres that:

  • is held for conservation purposes

  • is provided as a reserve, a public park for recreation purposes, or as a private open space

  • is subject to a heritage order or a requirement for a heritage order

  • is a registered historic place, historic area, wāhi tapu (sacred place), or for which there is an application or proposal to be registered as such

  • includes the bed of a lake

  • includes part of certain specified islands

  • adjoins the bed of a lake, a regional park, or certain other classes of land

  • adjoins land that exceeds 4,000 square metres and: is held for conservation purposes, or is provided as a scientific, scenic, historic or nature reserve; is subject to a heritage order or a requirement for a heritage order; is a registered historic place, historic area, wāhi tapu (sacred place) or area for which there is an application or proposal for registration as such; adjoins the sea or lake and is an esplanade reserve or strip, recreation reserve, a road or Māori reservation.

Most land investment applications by overseas people are decided by the Minister of Finance and the Minister for Land Information. In considering whether or not to grant consent to an investment transaction, ministers must have regard to relevant criteria and factors in the Act and regulations. The Act also provides for conditions to be imposed on any consent granted and for those conditions to be monitored and enforced.

Table 16.04. Land administered by Māori Land Court
By land court district
At 22 November 2007

DistrictNumber of blocks administeredTotal area (hectares)
Source: Ministry of justice
Tai Tokerau5,376151,785
Waikato3,811136,140
Waiariki5,371348,022
Tai Rāwhiti5,442285,804
Aotea3,972415,631
Tākitimu1,36988,848
Te Wai Pounamu1,908103,247
Total27,2491,529,479

Māori land

Before European settlement, all land was held by various groups and tribes of Māori in accordance with traditional customs and usage. Land remaining in this tenure is termed ‘Māori customary land’. The right to purchase land from Māori was reserved to the Crown by the Treaty of Waitangi. Most of what had been Māori customary land was converted to other forms of title by one or other of the following processes:

  • purchase or other acquisition by the Crown, from whom European settlers obtained land

  • issue of a Crown grant to a Māori owner on recommendation of the Māori Land Court

  • issue of a freehold order by the Māori Land Court in favour of the Māori individual found to be entitled to the land after investigation.

Freehold orders were used instead of Crown grants after the land transfer system was introduced.

Land in the titles issued under the latter two processes became known as ‘Māori freehold land.’ Māori can buy or otherwise acquire land which is not Māori freehold land, so there is a considerable amount of general land owned by Māori in addition to holdings of Māori freehold land. Māori freehold land is subject to jurisdiction of the Māori Land Court, under the Te Ture Whenua Māori Act 1993. Some general land owned by Māori is also subject to certain provisions of that Act.

Māori Land Court The purpose of the Māori Land Court Te Kooti Whenua Māori is to help administer Māori land and preserve taonga Māori (Māori treasures), and to help owners manage Māori land. The court maintains records of title and ownership of Māori land, provides accurate and accessible information from court and Crown records, and provides support and services.

One of the strategic goals of the court is to make its services, in particular, title and ownership information, easily accessible to Māori. The court's website provides email access to all court offices and answers to frequently-asked questions about succession, trusts, Māori reservations and court processes. An online search tool provides title and ownership details. Table 16.04 lists the blocks of land administered by the Māori Land Court in each district.

Crown-owned land

Before 1987, Crown-owned land was administered by various Crown agencies under the Public Works Act 1981, the Land Act 1948, the Reserves Act 1977, the National Parks Act 1980 and the Forests Act 1949. After the reconstruction of the public sector, which began in 1987, most of the Crown's commercial or productive land was subsequently transferred to state-owned enterprises.

Land remaining in Crown ownership includes land administered by service delivery departments that use the land in the running of their business. The Department of Conservation administers reserves and Land Information New Zealand (LINZ) administers the remaining Crown-owned land.

Land administered by Land Information New Zealand LINZ oversees the management and disposal of the Crown's interest in land and property outside the conservation estate. LINZ administers 3 million hectares of Crown land including:

  • unalienated Crown land (2,860 properties), under the Land Act 1948 and various endowment acts

  • approximately 2.1 million hectares of South Island high country Crown pastoral leasehold land (303 properties), under the Crown Pastoral Land Act 1998

  • Crown forest licence land over which Crown forestry licences have been issued (71 licences), under the Crown Forest Assets Act 1989

  • land no longer required to be held by the Crown for the public work purpose for which it was acquired (105 properties), under the Public Works Act 1981

  • land no longer required for railway operations (772 properties), under the Railways Corporation Restructuring Act 1990.

LINZ manages the process and policy for reviewing South Island high country Crown pastoral leasehold land. This tenure review process provides the opportunity for land to be used in a better way and for sustainable land management. All Crown forest licence land administered by the department is retained by the Crown until the Crown has resolved Māori land claims lodged under the Treaty of Waitangi Act 1975.

LINZ also administers around 350 Crown land-related liabilities, such as contaminated sites and subsidence areas, as well as issues concerning the Treaty, Crown land, and historical claims that have arisen from actions of previous agencies. LINZ also controls pest plants and animals on its land and on Crown-owned river and lake beds.

Land administered by service delivery Crown agencies This land is held for government works under the Public Works Act 1981 and other legislation, including education, defence, and law and order legislation.

Land administered by the Department of Conservation The Department of Conservation administers public conservation land, which includes national and forest parks, world heritage areas, wilderness areas, marginal strips around lakes and rivers, and more than 1,000 other reserves. It also protects privately-owned land under special arrangements with landowners. The department is responsible for conservation in New Zealand's subantarctic islands.

Landcorp Farming Ltd

Landcorp Farming Ltd (Landcorp) is New Zealand's largest agricultural enterprise, farming nearly 950,000 animals on 108 farming units totalling 370,738 hectares. Its activities are pastoral livestock farming of beef cattle, sheep, dairy cattle, and deer; development and marketing of livestock genetics and systems; and the development of land for more productive and profitable agriculture.

Landcorp is a State-owned enterprise and a company formed and registered under the Companies Act 1993. Among assets purchased from the Crown following establishment in 1987 were 177 farms, along with about 20,000 leases, licences and loans. All of the leases and licences have now been purchased by the lessees and licencees, and all of the loans have been repaid, or otherwise disposed of by the company.

Landcorp manages a sustainable and profitable farming business and its continued development and growth. It sells land that has been identified as having a higher value for uses other than farming, subject to the provisions of the Protected Land Agreement with the Crown and the Crown's policies on sale of sensitive land.

Landcorp Group is structured into a parent company, Landcorp Farming Ltd, with four wholly-owned subsidiaries:

  • Landcorp Developments Ltd and Landcorp Pastoral Ltd – lease and develop former forestry land in the central North Island

  • Landcorp Estates Ltd – develops and sells land suitable for higher-value use than farming

  • Landcorp Holdings Ltd – holds land protected from sale.

Valuation of land

Fair land values are needed to decide rating levies across contributing local authorities. Land values are also used for assessing stamp, estate and gift duties, and for fixing prices for transfers of land to or from the Crown.

Valuers compete to gain contracts with local authorities to assess values of real estate for local rating purposes. The valuer-general audits the work of the valuers.

Valuers are required to determine the value of the land as if it were vacant, the capital value of the whole property (land and buildings, plus improvements), and the value of improvements (if any) on the land.

Valuation rolls show ownership, and a description and valuation of each property. District valuation rolls are revised at least once every three years. Objections can be lodged against revaluations and taken to the Land Valuation Tribunal.

Rating valuations The Local Government (Rating) Act 2002 provides for real estate valuations to be used as a basis for fair adjustment of rates and levies across a number of local authorities, or between parts of a district, city or region if they have been re-valued at different times.

Valuers' Registration Board This board is chaired by the valuer-general and sets standards of education and practical experience required for registration. The board maintains a register of valuers who meet required standards and issues annual practising certificates to public valuers.

The New Zealand Geographic Board

The New Zealand Geographic Board Ngā Pou Taunaha o Aotearoa is responsible for naming places in New Zealand, its offshore islands, and in the Ross Sea Dependency region of Antarctica. Naming responsibility also extends to undersea features within a 12 nautical mile limit.

The board, chaired by the surveyor-general, adopts naming rules, examines cases of doubtful spelling, investigates and determines the priority of discovery, collects original Māori place names for recording on official maps, encourages the use of original Māori place names, determines what foreign names should be replaced by Māori or English names, and investigates any proposed alteration of a place name or any proposed new name. The board also provides advice to the Office of Treaty Settlements on Māori place names included in Treaty of Waitangi settlements.

The process for assigning a new place name or changing an existing name is determined by the New Zealand Geographic Board Act 1946, with rules of nomenclature and guiding principles for naming developed by the board over time. Consultation with the general public and with Māori is an essential part of the process.

When objections are received to a publicly-notified intention to assign a new name or change an existing name, the final decision is made by the minister responsible for the legislation. Time frames for assigning or changing place names vary, but on average the process takes about a year.

Council workers put up a sign for the longest place name in the world, which names a hill near Poranagahau, in Central Hawke's Bay.

Public conservation land

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. The department administers more than 8 million hectares – approximately 30 percent of New Zealand's total land area.

New Zealand has 14 national parks, covering more than 3 million hectares; nearly 170 conservation parks, covering about 1.3 million hectares; and about 3,500 reserves, including marine reserves. More than 61,000 hectares of protected private land and covenants have been set aside for scenic, scientific or ecological reasons.

The department is responsible for preserving and managing wildlife, and has a role in managing the coastal marine area. It is responsible for fire control in State areas, which include national parks and reserves, forest parks and unalienated Crown land, together with a one-kilometre fire safety margin adjoining all these lands.

National parks

The National Parks Act 1980 provides for national parks to be established in areas where the scenery is of such distinctive quality, or the natural features or ecological systems are so scientifically important, that their preservation is in the national interest.

The Act also provides for public access to the parks, though this is subject to conditions and restrictions necessary for preservation of native plants and animals, or for the welfare of the parks in general. Specially protected areas, which total 55,000 hectares, are accessible by permit only.

National parks are 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 preserved, and introduced plants and animals are removed if their presence conflicts with aims of the Act.

Development in wilderness areas within national parks 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 and other buildings, hostels, huts, camping grounds, ski tows and similar facilities, parking areas, and roads and tracks within the parks.

Accommodation, transport, and other services at entry points to parks are provided by the department, other government agencies, voluntary organisations and private enterprise. Some services within parks, such as guided walks and skiing instruction, are provided by private firms with permission from the department.

World heritage areas

New Zealand has three sites in the United Nations Economic, Scientific and Cultural Organisation's World Heritage List. They are Te Wahipounamu (south-west New Zealand), Tongariro National Park and New Zealand's subantarctic islands.

As of November 2007, the World Heritage List contained 851 world heritage properties in 141 states. These properties have been recognised as the most outstanding natural and cultural places on earth.

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. It includes Fiordland, Mt Aspiring, Westland Tai Poutini and Aoraki-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 contains some of the most continuously active strato-volcanoes in the world, and was the first national park in the world to be freely gifted to the nation by an indigenous people, the Ngāti Tūwharetoa, to whom the mountains are sacred.

New Zealand's subantarctic islands consist of five island groups (the Snares, Bounty Islands, Antipodes Islands, Auckland Islands and Campbell Island) in the Southern Ocean south-east of New Zealand. The wildlife on the islands – birds, plants and invertebrates – have high productivity, biodiversity, population density and are highly endemic.

They are particularly notable for the large number and diversity of pelagic seabirds and penguins that nest there. There are 126 bird species in total, including 40 seabirds, of which five breed nowhere else in the world. The islands are major breeding places for several species of birds and animals, including the yellow-eyed penguin, the royal albatross and the Hooker's sea lion. The threat of rats or other predatory animals accidentally being introduced to the islands has led the Department of Conservation to only allow access by permit.

Figure 16.05.

Conservation parks

Conservation parks protect natural and historic resources and provide a space for public recreation and enjoyment. They provide a less restricted range of recreational activities than national parks and reserves; allowing tramping, camping, fishing and shooting for a variety of game.

There are nearly 50 conservation parks, covering coastal areas, forests, lakes, mountains, tablelands and tussock grasslands, with an approximate total area of more than 1.9 million hectares.

Reserves

Reserve land includes scenic, nature, scientific, historic, national and recreational reserves, wildlife reserves, protected private land and land protected under various conservation and open space covenants.

Scenic reserves 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. About 382,000 hectares are classified scenic reserves.

Nature reserves preserve native plants and animals. They generally consist of areas where rare plants are growing or which supply a suitable habitat for rare birds or other animals. There are 109,400 hectares of nature reserves, some 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 offer the second highest degree of protection, next to national parks. Total area of national reserves is 96,300 hectares.

Scientific reserves are generally smaller areas reserved to protect examples of rare or endangered plants, animals or unique geographical features for scientific research or education. Entry may be prohibited if it is considered necessary to prevent disturbance. Their total area is 15,200 hectares.

Historic reserves include sites with Māori rock drawings, sites of prehistoric fortifications, landing places of Captain Cook, 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 in investigating and administering reserve sites and buildings. There are 16,122 hectares of historic reserves.

Recreation reserves include public domains, camping grounds and other public recreational areas administered by the Department of Conservation. Their total area is 60,261 hectares.

Wildlife reserves can be on land of any tenure. Certain actions are prohibited in respect of wildlife, but land ownership is not affected. Their total area is just over 19,000 hectares.

Whale sanctuaries

Thirty-five species of whales and dolphins have been recorded in New Zealand waters, and four of the largest whale species – sperm, humpback, Bryde's, and southern right whale – are regular visitors.

New Zealand has been actively promoting a South Pacific whale sanctuary to provide long-term protection for the breeding grounds of the region's great whales. The proposal has regularly received the support of a significant majority of members of the International Whaling Commission (IWC), but has not achieved the 75 percent majority required to establish a sanctuary under 1WC rules.

Figure 16.06.

Two whale sanctuaries have been established by the IWC in the southern hemisphere, the Indian Ocean Sanctuary (established in 1978), and the Southern Ocean Sanctuary (1994). All New Zealand waters south of 40 degrees are included within the Southern Ocean Sanctuary.

New Zealand sponsored a regional workshop in Apia, Samoa, in April 2001, to promote a South Pacific whale sanctuary. The meeting, attended by 15 Pacific island nations and territories, strongly endorsed the sanctuary proposal. Since then, approximately 11 million square kilometres of the South Pacific have been declared whale sanctuaries by the governments of French Polynesia, Cook Islands, Niue, Fiji, New Caledonia, Samoa and American Samoa.

Figure 16.06 shows the Indian Ocean and the Southern Ocean whale sanctuaries.

Marine reserves and parks

There are more than 1,200 different fish species in the waters around New Zealand, as well as various species of seal, whale, dolphin and seabird. More species of albatross breed in New Zealand than anywhere else in the world.

New Zealand has 27 marine reserves, with the Kermadec Islands Reserve the largest at 748,000 hectares. The Cape Rodney-Okakari Point Marine Reserve (547 hectares) was the first marine reserve, in 1975, followed by the Poor Knights Islands Reserve (1,990 hectares) in 1981.

New Zealand has four marine parks – Mimiwhangata, Tawharanui, Sugar Loaf Islands and the Hauraki Gulf Marine Park. New Zealand also has two marine mammal sanctuaries, Auckland Islands and Banks Peninsula.

Forest funds

The Nature Heritage Fund and Ngā Whenua Rahui fund were established as part of New Zealand's indigenous forest policy. Both funds aim to permanently protect conservation-value forest on general and Māori land. The Nature Heritage Fund, works through land being gifted, covenanted, or purchased by the fund.

Ngā Whenua Rahui fund uses a range of mechanisms to achieve protection, with covenanting being the most suitable. Iwi perceive covenants as more acceptable as they lessen the sense of alienation from the land.

Both funds are contestable. Anyone can apply to the Nature Heritage Fund, but Ngā Whenua Rahui is restricted to Māori landowning interests. Applications for funds are considered by advisory committees, who make recommendations to the Minister of Conservation.

Contributors and related websites

Bioethics Council – www.bioethics.org.nz

Department of Conservation – www.doc.govt.nz

Land Information New Zealand – www.linz.govt.nz

Landcare Research – www.landcareresearch.co.nz

Landcorp Farming Ltd – www.landcorp.co.nz

Ministry for the Environment – www.mfe.govt.nz

Ministry of Agriculture and Forestry – www.maf.govt.nz

Ministry of Economic Development – www.med.govt.nz

Ministry of Foreign Affairs and Trade – www.mfat.govt.nz

Ministry of Justice – www.justice.govt.nz

National Institute of Water & Atmospheric Research – www.niwa.co.nz

Queen Elizabeth II National Trust – www.openspace.org.nz

Quotable Value New Zealand – www.qv.co.nz

Royal Forest and Bird Protection Society – www.forestandbird.org.nz

Statistics New Zealand – www.stats.govt.nz

Chapter 17. National economy

Walter Fielding-Cotterill rows out on Canterbury's Lake Ellesmere to go fishing in the spring of 2007, making use of two of New Zealand's natural resources. Environmental accounts for the country's natural resources, including fresh water and fish, measure the interaction between the environment and the economy in both monetary and physical terms.

New Zealand has a mixed economy that operates on free market principles. It has a sizeable service sector, which complements a highly efficient agricultural sector and related manufacturing industries. The economy is strongly trade oriented, with exports of goods and services accounting for just under one-third of expenditure on gross domestic product (GDP).

From around 1984, the direction of economic policy in New Zealand turned away from government intervention towards the removal of many forms of government assistance. On the macroeconomic level, policies were aimed at achieving low inflation and a sound fiscal position, while microeconomic reforms were introduced to open the economy to competitive pressures and world prices.

Reforms included: floating the exchange rate, abolishing controls on capital movements, ending industry assistance, removing price controls, deregulation across a number of sectors of the economy, corporatising and privatising State-owned assets, and labour market legislation aimed at facilitating more flexible patterns of wage bargaining. More recently, the reform process has shifted from one of rapid change to one of fine-tuning.

After a period of weak growth in the late 1980s, New Zealand's economic performance improved significantly during the 1990s. From late 1992 the economy grew strongly, with particularly strong output growth from 1993–96. Annual average growth in real GDP peaked at 6.8 percent in June 1994.

Growth slowed during 1997 and 1998, due to a slowdown in key Asian trading partner economies, together with a drought that affected large parts of the country in the summers of 1997/98 and 1998/99.

Since these twin ‘shocks’, the New Zealand economy has experienced its strongest period of growth in three decades. The years 2001 and 2002 saw two good agricultural seasons, relatively high world prices for New Zealand's export commodities, a low exchange rate, and a robust labour market. These factors boosted annual average GDP growth from 1.9 percent in June 2001 to 5.2 percent in December 2002.

Over the period 2002–04, annual average GDP growth was 3.5–4.5 percent. Growth then eased as a result of high oil prices, interest rate increases, and slowing permanent and long-term migration. The economy's output was flat in the second half of 2005.

Recent developments

Growth recovered slightly during 2006, helped by a rebound in domestic demand and exports. The resurgence in growth continued into the first half of 2007, with growth of 0.7 percent in the June 2007 quarter taking the annual average to 2.2 percent in the year to 30 June 2007.

Strong household spending was supported by renewed strength in house prices, a fall in petrol prices, and increases in export commodity prices. In addition, a growing labour market, low unemployment, and government spending provided continuing support for the economy, outweighing the impact of tighter monetary conditions.

Depreciation in the New Zealand dollar over the first half of 2006 and improved agricultural production helped to increase exports, although the exchange-rate depreciation proved to be short-lived. The terms of trade increased sharply in the December 2006 quarter, and continued to increase further during 2007, supporting export receipts in 2007. Dairy prices, which were 6 percent higher in the June 2007 quarter than the June 2005 quarter (despite the higher exchange rate) provided the largest contribution to the increase in the terms of trade.

Higher export receipts contributed to a fall in New Zealand's annual current account deficit – down to 8.2 percent of GDP in the year to June 2007, from 9.3 percent of GDP in the year to 30 September 2006.

Annual inflation, as measured by the consumers price index (CPI), fell to 1.8 percent in the September 2007 quarter, from 2.0 percent in June. The decrease was primarily due to increased government subsidies for medical visits, pharmaceuticals, and child care, which lowered prices to the consumer.

There were diverging trends between tradable and non-tradable inflation. Strength in the domestic economy, particularly in the housing market, resulted in an increase in non-tradable inflation, with an annual 3.7 percent recorded in the September 2007 quarter. In contrast, strength in the currency has resulted in relatively low tradable inflation, with tradable prices recording an annual decrease of 0.3 percent in the September 2007 quarter.

Fiscal policy

The fiscal responsibility provisions of the Public Finance Act 1989 promote consistent, good-quality fiscal management, enabling the government to make a major contribution to the economic health of the country and be better positioned to provide a range of services on a sustained basis.

The Act requires the Crown's financial reporting to be in accordance with New Zealand generally accepted accounting practice (GAAP).

The primary fiscal indicators are the operating balance, gross sovereign-issued debt, net debt and net worth.

The government is required to apply the principles of responsible fiscal management set out in the Act. These include:

  • reducing debt to prudent levels to provide a buffer against future adverse events

  • maintaining operating balances once prudent debt levels are reached – the government is to live within its means over time, with some scope for flexibility through the business cycle

  • achieving and maintaining levels of net worth to provide a buffer against adverse events

  • managing risks facing the Crown

  • following policies that are consistent with a reasonable degree of predictability about the level and stability of future tax rates.

Jo Le Grouw, a founder of Lockwood, in front of the company's new environmentally friendly Eco Smart home in Rotorua in March 2008. Strength in the housing market during 2007 contributed to an increase in non-tradable inflation in the September 2007 quarter.

Primary fiscal indicators

Operating balance Following a prolonged period of fiscal deficits, New Zealand achieved surpluses in 1993/94. The initial improvement in the operating balance from 1993/94 onwards reflected a growing economy, increasing tax revenues, and firm expense control. Reductions in the operating balance in the late 1990s largely reflected two rounds of tax reductions, and lower economic growth, which reduced tax revenue growth. Strong growth in the past few years has seen operating balances recovering.

The operating balance, excluding revaluations and accounting policy changes, reached $8.7 billion in 2006/07. Government operating expenses (core Crown) have been reduced as a percentage of GDP, from around 40 percent in 1992/93 to 32 percent in 2006/07. Core Crown expenses as a percentage of GDP are expected to rise to around 33 percent by 2010/11. Operating surpluses are expected to continue. Forecasts for 2008/09, 2009/10 and 2010/11 are $5.6 billion, $5.3 billion and $5.4 billion, respectively.

Net debt Net core Crown debt fell from 49 percent of GDP in 1992/93 to 2.1 percent in 2006/07. Debt repayments were financed from asset sales proceeds (during the 1990s) and operating surpluses. Net debt is projected to stay around 3.0 percent of GDP between 2007/08 and 2010/12. However, surpluses are also being used to build up financial assets in the New Zealand Superannuation Fund (NZSF) to partly pre-fund future superannuation costs, rather than solely paying off debt. These assets do not form part of reported net debt. The NZSF is forecast to contain assets worth around 13.8 percent of GDP by 2010/11.

Net worth In 2006/07, net worth was $95.8 billion. With operating surpluses forecast to continue, net worth is projected to reach $112.4 billion in 2010/11.

Public debt

Before March 1985, the government was borrowing externally to finance the balance of payments deficit and maintain a fixed exchange rate.

Since adoption of a freely floating exchange rate, the government has borrowed externally only to finance foreign-exchange reserves. All other borrowing has been in the domestic market.

Net foreign-currency debt was eliminated in September 1996, largely through proceeds from asset sales and, since 1994, sizeable fiscal surpluses.

Proceeds from the 2005/06 domestic bond programme were used to finance maturing domestic term debt and to partly pre-fund the 2006/07 borrowing requirement. Gross sovereign-issued debt amounted to 21.7 percent of GDP in the year ending 30 June 2007.

Monetary policy

Objectives The Reserve Bank of New Zealand Act 1989 requires the Reserve Bank of New Zealand to formulate and implement monetary policy with the objective of achieving and maintaining stability in the general level of prices. The policy targets agreement (PTA) between the Minister of Finance and the Governor of the Reserve Bank specifies the objective more precisely. Initially, the agreement required the bank to maintain CPI inflation in the range of 0–2 percent in any 12-month period. This changed to 0–3 percent in December 1996. In September 2002, a new PTA was signed requiring the bank to keep inflation within the .1–3 percent range ‘on average over the medium term’.

The requirement to deliver price stability ‘on average over the medium term’ means monetary policy can be a little more flexible than previously. The medium-term target allows inflation to be briefly above or below the target range. In certain circumstances, this allows a more gradual policy response, but in others a more pre-emptive approach is still necessary. A more gradual approach may help in situations where the effects of interest rate changes are uncertain, or where sharp changes in interest rates (to bring inflation back quickly within the target range) would be economically disruptive.

A more pre-emptive approach may be helpful in circumstances where the bank is reasonably confident that the economy has passed a turning point in terms of inflation pressures. Then, even if inflation is still comparatively high or low, an early change to policy settings can help the economy return to more normal conditions. This flexibility is expected to help the bank meet a requirement in the agreement that, in aiming to deliver price stability, it should ‘seek to avoid unnecessary instability in output, interest rates and the exchange rate’. The ability to use this extra flexibility depends on expectations of inflation remaining at low levels.

The Act contains provisions that allow the government to override the price stability objective and the PTA, although this can be done initially for a maximum of 12 months only (but can be further extended) and must be disclosed in parliament and publicly.

In May 2008, the cost of petrol to consumers passed $2 a litre, leading many to look to other forms of transport. Prices are a factor of supply and demand – when a commodity is limited in supply, or demand increases, the price to be paid rises. Petrol is sensitive to such fluctuations.

Implementation Under the Reserve Bank Act, there is a considerable degree of autonomy for the Reserve Bank in formulating and implementing monetary policy. The bank controls the cost of liquidity by setting the official cash rate (OCR). The bank can lend cash overnight at 50 basis points above the OCR and will take deposits at the OCR. By controlling the cost of liquidity for financial institutions, the bank has leverage over interest rates faced by households and firms.

There are eight pre-announced dates each year at which the bank reviews the OCR. Four coincide with publication of the bank's monetary policy statements, which contain projected paths for future conditions and the bank's policy response.

Both interest rates and the exchange rate can influence New Zealand's economic activity and inflation. The Reserve Bank takes the influence of both of these into account when setting the OCR. Other important factors considered include credit conditions, inflation expectations, and external conditions. The bank is generally looking at the inflation outlook up to three years ahead when forming policy response.

Prices

Prices are a key factor in the operation of the New Zealand economy. The prices that consumers pay for goods and services affect their purchasing power – the quantity of goods and services they can buy. They also influence choices consumers make about which goods and services they buy.

Prices are a factor of supply and demand. If a commodity is limited in supply, the price to be paid will increase. Examples of commodities that are often limited in supply include petrol, property, and construction trade services.

Similarly, if demand for commodities increases, due, for example, to population growth or higher disposable income, prices will also generally rise. In general, population and incomes do rise, and so demand for goods and services increases. This leads to inflation, or the upward movement of prices over time.

Price indexes provide a measure of inflation by presenting relative changes in prices. They can be constructed for any given commodity or group of commodities.

Consumers price index

The consumers price index (CPI) is the highest profile measure of inflation in the New Zealand economy and is widely used. The CPI measures changes in the prices of goods and services purchased by private New Zealand households. It is the best available measure of how changes in retail prices affect 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 reviewed regularly to ensure the basket of goods and services is current and relevant. The last review was in 2006, when goods and services, and the retail outlets where these prices are collected, were reselected. In addition, the index was re-expressed, with a new baseline of 1000 for June 2006.

Price collection More than 120,000 individual prices are collected each quarter. Prices are gathered by collectors in the field and through the Internet, postal and email surveys. How often prices are collected for each item depends on how volatile the price of that item is. For example, petrol prices can rise and fall quite significantly from week to week, so petrol prices are collected weekly. Prices are collected monthly for food items and quarterly for most other commodities.

A weighted average of all the prices collected within the quarter is calculated. Index values are constructed for each item, then compared against the previous period's index value. The change in the index value reflects the change in the average price of the items.

Expenditure weights Each item in the CP1 is given an expenditure weight, reflecting the percentage of total spending by private New Zealand households on that item. For example, the expenditure weight given to petrol is 5.37, meaning that 5.37 percent of total household spending is on petrol. By comparison, the expenditure weight given to milk is 0.74 percent. A change in the average price of petrol will have a greater impact on households than a change in the price of milk, and this is reflected in the CP1.

Expenditure weights are reviewed about every three years, to ensure that changes in consumer spending and consumption behaviours are accurately reflected in the CPI basket.

At this time, the basket of goods and services is also reviewed, to ensure that new items are added, or superseded items removed. New items, such as DVD recorders and MP3 players, are included in the CPI basket when they become available to consumers, while items no longer purchased in significant quantities by private households, such as video cassette recorders, are removed. The outlets that are surveyed are also reviewed every six years. Item expenditure weights are derived from the Household Economic Survey (HES), which is conducted every three years.

The 2006 CPI review saw items and outlets reweighted, based on HES information, which was supplemented by market research information.

Table 17.01 (overleaf) shows the June quarter expenditure weights assigned to the CPI's 11 groups, as derived from the HES.

Uses of the consumers price index

The main uses of the CPI include indexation of contracts, setting of monetary policy, and as a deflator of other economic series.

Indexation of contracts There are a number of situations where indexes are used to adjust payments. The following indexation arrangements can apply to both the public and private sectors.

  • Adjusting for changes in the cost of living – Many public sector arrangements are based on ensuring people have a sufficient level of income to enable them to continue to buy a range of goods and services. In the context of income support (benefits), much depends on whether the objective is to maintain the spending power of a benefit, or to match changes in the average wage. In the first case, the CPI is used to adjust payments, while in the latter it is more useful to use a measure of an average wage.

  • Compensating businesses for costs beyond their control – Commonly, in business contracts, service providers want to be compensated for changes in input costs that they have little or no control over. In determining which index to use to adjust a contract, firms typically use either an index that is closely related to the cost concerned, or they use a more general measure that the parties agree gives a picture of relevant price pressures.

  • Ensuring that regular payments maintain their value – A range of regular payments, for example rents, need to be adjusted from time to time. Adjustment methods used involve a wide variety of indexation practices.

Monetary policy Maintaining a stable general level of prices is seen as fundamental to a well-performing economy. The government aims to avoid large increases in the overall level of prices, because this causes erosion in the value of money, and consequently in consumers' purchasing power.

In the context of the CPI, this means maintaining inflation within a defined range. The Reserve Bank of New Zealand has a formal agreement with the government that it will use monetary policy to maintain inflation between 1–3 percent over the medium term. The bank uses the official cash rate (OCR) mechanism to achieve this outcome.

The OCR is the benchmark interest rate from which all borrowing and savings interest rates in New Zealand are set. By adjusting the OCR up or down, the Reserve Bank influences the cost to consumers of borrowing money for goods and services. The higher the OCR, the greater is the cost of borrowing money. An increased cost results in a reduction in consumer demand for goods and services, lessening inflationary pressures. Conversely, if inflation pressures are low, the bank can lower the OCR, reducing the cost to consumers of borrowing money. This has an upward influence on demand and inflation. The bank reviews the OCR approximately every six weeks to ensure that the cost of consumer borrowing is having the desired influence on demand and inflation.

Between December 2005 and December 2007 the bank made four upward adjustments to the OCR. These took the OCR from 7.25 percent in December 2005 to 8.25 percent in December 2007. The OCR was unchanged for all of 2006; the four increases were made from early to mid 2007.

Table 17.01. Consumers price index
Expenditure weights(1)
Quarter ending 30 June

Group20022006

(1) Values may not add up to stated totals due to rounding.

Source: Statistics New Zealand

Housing and household utilities21.5220.02
Food17.2117.38
Transport15.5117.24
Recreation and culture9.7310.21
Alcoholic beverages and tobacco8.727.20
Household contents and services5.135.49
Health4.835.23
Clothing and footwear4.774.75
Communication2.923.26
Education1.652.08
Miscellaneous goods and services8.017.13
All groups100.0100.0

Reserve Bank Governor Alan Bollard announced there was no change to the official cash rate (OCR) in September 2007, following four increases between March and July 2007. The bank uses the OCR to maintain inflation between 1–3 percent over the medium term, as formally agreed with the government.

Deflator Many economic series, such as the value of retail sales, can be deflated using relevant indexes from the CPI to produce ‘constant’ price series. The purpose of a constant price series is to compare values between different periods, without the effect of price changes. For example, if the total value of retail sales increased 10.6 percent between the June 2005 and June 2007 quarters, some of this increase could be due to price changes. If, after deflation, the total value of retail sales increased 7.3 percent over this same period, then this is the change in the volume of retail sales. That is, 7.3 percent of the increase is due to changes in the number of sales transactions and the remaining 3.3 percent is due to price changes. Other economic series that are deflated using price indexes include gross domestic product (GDP), business investment, and household consumption expenditure.

Organisation of the consumers price index

A new classification system has been adopted for the CPI and Household Economic Survey. Based on the United Nations Classification of Individual Consumption by Purpose, it allows for better cross-country comparisons.

The CPI is divided into 11 groups of items, each weighted according to the expenditure on those items by private New Zealand households. Each group is made up of one or more subgroups which, in turn, are made up of sections, subsections and, finally, individually priced items. The expenditure weight assigned to each group is equivalent to the sum of the expenditure weights for all the items in that group.

  • Housing and household utilities – The largest group in the CPI, the housing group includes rents, the cost of purchasing and constructing new dwellings, and home maintenance costs. Housing prices rose consistently between 1999 and 2005, except for a slight decline in the March 2001 quarter. The group has risen an average of 5.2 percent a year since the June 2005 quarter.

    The weight of this group fell from 21.52 percent in 2002 to 20.02 percent in 2006.

  • Food – All items within the food group are priced monthly. Items are mostly available in supermarkets, grocery, and convenience stores, and include: fruit, vegetables, meat, fish, poultry, grocery foods, and non-alcoholic drinks. Prices for restaurant meals and ready-to-eat food are also collected. Food is the second-largest group in the CPI. Food prices rose an average of 3.2 percent a year between the June 2000 and June 2003 quarters – with annual changes of 0.0 percent in the year to June 2000, 6.7 percent for the year to December 2001, then 0.0 percent in the year to June 2003. Prices rose 1.1 percent a year from the September 2003 quarter to the June 2006 quarter, and 3.8 percent a year from the September 2006 to 2007 quarters.

  • Transport – This group includes public and private transportation costs, including taxi, bus, train and ferry fares, the purchase of vehicles, and motor vehicle running and maintenance costs. Transport prices have been volatile historically. Significant increases were recorded between the June 1999 and December 2000 quarters, and between the March and December 2005 quarters. Prices have increased 3.8 percent a year since the June 2005 quarter.

  • Recreation and culture – This group includes stationery, books, magazines and newspapers, leisure and recreation supplies and services, accommodation and board, tuition and exam fees, and child care costs. The group rose fairly consistently between the June 1999 and December 2005 quarters. It has increased, on average, 0.7 percent a year since the June 2005 quarter.

  • Alcoholic beverages and tobacco – This group includes cigarettes, tobacco, beer, spirits, liqueurs and wine. From September 2006 to March 2008, the average yearly increase for the alcoholic beverages and tobacco group was 3.4 percent.

  • Household contents and services – This group includes electricity, household appliances, furnishings, household supplies and services, and water and refuse charges. Household operation prices have historically been stable. Prices fell slightly between the June 2000 and June 2001 quarters and then, except for two quarters, rose slightly to the December 2005 quarter. Since then, prices have fallen and risen, resulting in an average increase of 0.2 percent a year for the group.

  • Health – The health group includes medical supplies and services. It has increased by an average of 3.4 percent a year since the June 2005 quarter.

  • Clothing and footwear – This group has shown little movement since the June 2005 quarter, increasing just 0.3 percent.

  • Communication – The communication group includes postal services, but consists largely of telecommunication services and equipment. It has increased 1.2 percent a year, on average, since the June 2005 quarter.

  • Education – The education group includes pre-school, primary, secondary and tertiary education. It has increased by an average of 3.9 percent a year since the June 2005 quarter. This is the smallest group.

  • Miscellaneous goods and services – This group includes personal care and effects, as well as credit charges and various professional services. It has increased 3.2 percent a year, on average, since the June 2005 quarter. The weight of this group fell from 8.01 percent in 2002 to 7.13 percent in 2006, due largely to the insurance subgroup falling from 3.71 percent to 1.70 percent.

Retail prices of selected items

Table 17.02 shows weighted average retail prices of goods and services in the June quarters (or months) 2005–07. These weighted average prices of selected items are used in the calculation of the CPI and provide reliable indications of movements in price levels when compared with average prices for earlier periods. The quantity and price of any goods or service differs from shop to shop, and over time, so these prices are not designed to give a statistically accurate measure of absolute transaction prices.

Table 17.02. Retail prices of selected items(1)
June quarter or month(2)
2005–07

ItemUnit200520062007
$

(1) Calculated by applying index movements to weighted average prices for the June 2006 quarter or month. These are not statistically accurate measures of average transaction price levels, but do provide a reliable indicator of percentage changes in prices.

(2) Items within the food group (apples to fish and chips within table) are for the June month.

(3) Based on the cheapest available brand or variety in each retail outlet at the time of price collection.

Source: Statistics New Zealand

Apples1kg1.611.891.89
Bananas1kg1.881.662.29
Potatoes1kg0.971.111.22
Beef – mince1kg8.338.549.24
Lamb – chops1kg10.9010.8110.21
Bread – white sliced loaf(3)7oog1.371.301.22
Cheese – mild cheddar(3) (supermarket only)1kg6.876.776.60
Milk – standard homogenised(3)2 litres3.053.052.60
Fish and chips1 fish/chips4.204.384.62
Beer – bottles (supermarket & liquor store)1 dozen18.6318.2718.25
Beer – glass (licensed premises)400ml3.934.074.26
Whisky (liquor store)1,000ml37.8738.2339.09
Panty-hose – 15 denier, average size (supermarket)pair4.414.484.84
Socks – men's (clothing store & department store)pair9.619.359.56
Dry cleaning – men's 2-piece, woollen suiteach19.8820.0021.96
Concrete blocks – 390mm x 190mm x 190mmper 100303.05312.48318.89
House paint – acrylic, white10 litres134.72143.77146.07
Spouting/guttering – plasticper 3m27.4828.9329.57
Bleach (supermarket)2.5 litres3.343.423.58
Clothes washing powder – concentrate (supermarket)1kg4.484.314.39
GP visit – consultation, adult without community services cardeach43.1843.3137.18
Diesel10 litres8.6012.559.93
Petrol – 91 octane10 litres12.6716.7915.38
Warrant of fitness – private careach38.9241.0542.42
Postage – standard, medium-size envelopeeach0.450.450.47
CD – top 10 album (record store & department store)each27.9128.3027.91
DVD hire – overnight Friday, new release1 movie7.287.377.37
Envelopes – medium-size (supermarket)pk of 201.611.641.65
Hairdressing – women's, shampoo, cut & blow waveeach44.9148.4350.78
Bathroom soap – cake, 100g (supermarket)pk of 43.393.183.33
Shampoo (supermarket)400ml5.736.646.40
Toilet paper (supermarket)4 rolls2.912.792.75

Figure 17.01.

Figure 17.02.

International comparisons

Inflation, as measured by each country's CPI, rose in 29 of the 30 Organisation for Economic Co-operation and Development (OECD) countries in 2006.

Japan was the only country in the OECD to experience minimal price change between December 2002 and 2007. For this period the increase in New Zealand's CPI (13.9 percent) was marginally ahead of that for the OECD as a whole (13.3 percent). New Zealand's CPI rose 3.1 percent in 2007, compared with 2.6 percent in 2006 and 3.2 percent in 2005.

Figure 17.02 compares New Zealand's CPI with that of its major trading partners, Australia, the United States, the United Kingdom and Japan. For the period September 2002 to December 2007, New Zealand's rate of price change was less than that for the United States, Australia and the United Kingdom.

Figure 17.03.

Producers price index

The producers price index (PPI) is a series of quarterly economic indicators designed to measure price changes in the production sector of the economy. The consumers price index (CPI), in comparison, measures price changes in the household sector of the economy.

The PPI has two types of indexes: outputs and inputs. ‘Outputs’ measures changes in prices received by producers for the products and services they provide, while ‘inputs’ measures changes in the costs of production (excluding capital and labour costs).

Uses of the PPI The PPI can be used in the analysis of inflationary trends and in economic forecasting. It is a key input for the calculation of national accounts and gross domestic product – measuring changes in production at a constant price. The indexes that form the PPI are also widely used to determine increases allowable under escalation clauses and in commercial contracts.

Influences on the PPI In recent years, the two key influences on the PPI have been changes in electricity prices and wholesale trade prices.

Producers' output prices rose 3.7 percent during 2005, 4.1 percent during 2006, and 4.0 percent during 2007. Input prices also had three years of consecutive rises: 6.4 percent in 2005, 5.2 percent in 2006 and 3.4 percent in 2007. Several commodities significantly influenced these figures, including:

  • Electricity – The direction of significant price movements for electricity generation and supply varied from 2005–07. Prices for electricity generation and supply rose 28.9 percent for the year ending December 2005, to be followed by two annual falls for the years ending December 2006 (down 6.0 percent), and 2007 (down 0.8 percent). Fluctuation in spot market prices for electricity was the main reason for these movements.

  • Wholesale trade – The wholesale trade sector had continuous price increases from 2005–07. Higher prices in the mineral metal and chemical wholesaling sector (caused by increased energy prices) were the main contributors to the increases. Prices for the wholesale trade sector rose 5.9 percent for the year ending December 2007, after rises of 6.6 percent in 2006, and 3.8 percent for the year ending December 2005.

  • Dairy product manufacturing – Prices for dairy product manufacturing rose significantly in the year ending December 2007 (up 33.9 percent), and during 2005 (up 8.4 percent), driven mainly by higher prices for milk powder and butter. This compares with a fall of 1.1 percent for the year ending December 2006.

  • Construction – The construction sector recorded price increases from 2005–07 (up 5.0 percent during 2007, up 5.9 percent for 2006, and up 5.8 percent for the year ending December 2005). Increasing raw material and component prices, and the cost of labour, were the major contributors to rising output prices.

  • Livestock and cropping farming – Prices for livestock and cropping farming had mixed movements between 2005 and 2007. Falls were recorded during 2007 (down 4.3 percent), and 2005 (down 3.9 percent), while there was a 5.2 percent rise for the year ending December 2006. The main contributor to the price falls was lower farm-gate prices for livestock.

National accounts

Numerous transactions take place within the New Zealand economy every day. Businesses and individuals buy and sell goods and services, the government collects taxes and pays beneficiaries, and individuals are paid for their labour and buy groceries or pay the rent. Measuring all these transactions is a complex task, but it is essential to understanding how the economy operates.

In New Zealand, as in most other countries, myriad transactions are classified, measured and recorded in the national accounts, which provide a convenient summary of key economic and financial flows. Moreover, they provide a framework in which to analyse and compare important economic variables, such as household consumption and savings.

The national accounts capture all types of transactions, for the economy as a whole, or for certain groups or sectors within it, such as business, government or households.

Gross domestic product (GDP) represents 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 that New Zealand residents earn.

Gross national income is a better measure of New Zealanders' income, as it excludes income sent 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 the world give an even better measure of income (national disposable income).

In the year ending 31 March 2007, GDP in current prices rose 5.4 percent. When the effects of inflation are removed, there was an increase of 1.6 percent in real GDP for the March 2007 year, compared with 2.7 percent in the March 2006 year. The 2007 increase was the lowest level of economic growth since 1999 when the economy grew by 0.5 percent. Increased spending (final consumption) by general government and the private sector, in volume terms, was partly offset by falling business investment in fixed assets.

The main contributors to the lower rate of economic growth during the year ending March 2007 were goods producing industries. Measured in volume terms, construction (down 3.6 percent), and machinery and equipment manufacturing (down 7.0 percent), recorded large decreases. The construction industry contribution fall was due to a decrease in non-residential building activity and construction trade services. Several large-value non-residential building projects by government had been driving steady growth in previous periods. Rough weather also hampered the primary producing industries, with severe wet weather and snow in the 2006 winter being followed by high winds in autumn.

Table 17.03. Principal aggregates 1998–2007
Year ending 31 March

YearGross domestic productGross national income(1)National disposable income(2)GDP in chain-volume series(3)
$(million)

(1) GNI = GDP plus net investment income from the rest of the world.

(2) NDI = GNI less consumption of fixed capital plus net current transfers from the rest of the world.

(3) Chain-volume series expressed in 1995/96 prices. Chain-volume series are not additive.

Source: Statistics New Zealand

1998101,60495,20581,63098,323
1999103,38198,40284,06298,775
2000109,629103,02487,975104,041
2001115,906108,33992,366106,551
2002124,632117,549100,545110,554
2003130,996123,950106,168116,143
2004139,754132,426113,871120,220
2005149,153139,687119,859125,069
2006156,849145,593124,239128,428
2007165,379153,516130,573130,442

Coila Marr from Dunedin buys 10 cent ice creams from Jalani Ferguson. The Outram dairy had been selling so many ice creams that the manufacturer chose to subsidise their $1.50 product. Service-based industries, including retail trade, account for about two-thirds of all economic activity in New Zealand.

Consolidated accounts of the nation

The consolidated accounts of the nation consist of four accounts:

Gross domestic product and expenditure account GDP 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 final expenditure on available goods and services.

National income and outlay account National disposable income is the value of income available to New Zealanders, and consists mainly of incomes generated in New Zealand. Adjustments are made for income paid to, and received from, the rest of the world. The account also shows the part of disposable income spent by New Zealanders on current consumption, and the portion of income that was saved.

Table 17.04. Gross domestic product and expenditure account
Year ending 31 March

Item20032004200520062007
$(million)

(1) Production and expenditure measures of GDP are estimated independently, from diverse data sources. Combining survey and other measurements, and timing errors in various components, results in a difference between the estimates – the statistical discrepancy. This discrepancy does not occur after the two measures have been reconciled.

Note: Figures may not add up to stated totals due to rounding.

Source: Statistics New Zealand

Compensation of employees55,22259,48464,00568,54273,875
Gross operating surplus59,34262,73866,52468,48370,511
Taxes on production and imports16,84517,97219,11520,40621,591
Less subsidies413440491582598
Gross domestic product130,996139,754149,153156,849165,379
Final consumption expenditure
   Private households75,19280,22685,75091,55296,510
   Private non-profit organisations serving households1,6761,8261,9172,0132,113
   Central government19,90921,52523,19525,14027,158
   Local government2,6302,8623,0673,2763,480
Change in inventories10941,3291,650828-317
Gross fixed capital formation28,02531,58334,96537,74338,099
Gross national expenditure128,526139,351150,533160,552167,043
Exports of goods and services42,56540,65843,35443,78648,198
Less imports of goods and services40,09540,25444,51347,44450,528
Balance on external goods and services2,471403-1,159-3,858-2,330
Expenditure on gross domestic product130,996139,754149,385156,894164,714
Statistical discrepancy(1)00-232-45665

Table 17.05. National income and outlay account
Year ending 31 March

Item20032004200520062007
$(million)

Note: Figures may not add up to stated totals due to rounding.

Source: Statistics New Zealand

Use of income
Final consumption expenditure
   Private households75,19280,22685,75091,55296,510
   Private non-profit organisations serving households1,6761,8261,9172,0132,113
   Central government19,90921,52523,19525,14027,158
   Local government2,6302,8623,0673,2763,480
Total final consumption expenditure99,407106,440113,928121,981129,261
Saving6,7617,4315,9302,2581,312
Use of national disposable income106,168113,871119,859124,239130,573
Income
Compensation of employees55,22259,48464,00568,54273,875
Compensation of employees from the rest of the world (net)00000
Gross operating surplus59,34262,73866,52468,48370,511
Taxes on production and imports16,84517,97219,11520,40621,591
   Less subsidies413440491582598
Investment income from the rest of the world (net)-7,046-7,328-9,466-11,256-11,863
Gross national income123,950132,426139,687145,593153,516
Current transfers from the rest of the world (net)113237318372671
Gross national disposable income124,063132,663140,005145,965154,187
   Less consumption of fixed capital17,89518,79220,14621,72623,614
National disposable income106,168113,871119,859124,239130,573

National capital account The national capital account records capital expenditure. 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.

The two key components of national income – employment income and business profits – both increased in the March 2007 year, with the largest contributor being compensation of employees. National disposable income, which measures the income available to New Zealand residents for current consumption or saving, rose 5.1 percent.

Final consumption expenditure (private and government) increased 6.0 percent, while national saving decreased from $2.3 billion to $1.3 billion. As a proportion of national disposable income, saving was 1.0 percent in the March 2007 year, down from the 1.8 percent recorded in the March 2006 year.

Table 17.06. National capital account
Year ending 31 March

Item20032004200520062007
$(million)

(1) Includes all government-owned producer enterprises.

(2) Production and expenditure measures of GDP are estimated independently, from diverse data sources. Combining survey and other measurements, and timing errors in various components, results in a difference between the estimates – the statistical discrepancy. This discrepancy does not occur after the two measures have been reconciled.

Note: Figures may not add up to stated totals due to rounding.

Source: Statistics New Zealand

Change in inventories1,0941,3291,650828-317
Gross fixed capital formation
   Private21,74425,02328,09029,68429,988
   Central government(1)3,1883,8814,6425,4445,628
   Local government(1)3,0932,6782,2332,6162,483
Purchase of non-produced non-financial assets from the rest of the world (net)-473-625
Net lending to the rest of the world-2,877-5,965-10,199-14,869-13,983
Capital accumulation26,19526,94926,41123,70423,805
Saving6,7617,4315,9302,2581,312
Consumption of fixed capital17,89518,79220,14621,72623,614
Capital transfers from the rest of the world (net)1,538726102-325-457
Finance of capital accumulation26,19526,94926,17923,66024,469
Statistical discrepancy(2)0023245-665

Figure 17.04.

Cracks in the Kawarau Bridge near Queenstown are under repair. In the year ending 31 March 2007, in real terms, investment in fixed assets fell 2.3 percent, although there was increased investment in infrastructural assets such as bridges, roads and dams.

Investment in fixed assets, measured in current prices, rose 0.9 percent in the year ending 31 March 2007, to reach $38.1 billion. Increased investment in residential buildings, plant machinery and equipment, as well as infrastructural assets (such as roads, bridges and dams) was partly offset by falling investment in transport equipment. Measured in real terms, investment in fixed assets fell 2.3 percent in the year ending 31 March 2007.

Funds set aside for the replacement of capital (consumption of fixed capital) rose from $21.7 billion in the year ended March 2006 to $23.6 billion in the year ended March 2007. Net borrowing from the rest of the world decreased from $14.9 billion (9.5 percent of GDP) to $14.0 billion (8.5 percent of GDP) over the same period.

Table 17.07. External account
Year ending 31 March

Item20032004200520062007
$(million)

Note: Figures may not add up to stated totals due to rounding.

Source: Statistics New Zealand

Current
Income from the rest of the world
Exports of goods30,64829,05431,11431,58035,633
Exports of services11,91711,60412,24012,20612,565
Compensation of employees00000
Investment income2,5762,6942,8482,0462,851
Current transfers1,3761,4311,5551,6641,956
Total46,51844,78247,75747,49653,006
Payments to the rest of the world
Imports of goods29,98230,24633,34435,68538,464
Imports of services10,11310,00911,16911,75912,064
Compensation of employees00000
Investment income9,62210,02212,31413,30214,714
Current transfers1,2631,1941,2371,2921,285
Balance on the external current account-4,462-6,688-10,307-14,542-13,521
Total46,51844,78247,75747,49653,006
Capital
Capital transfers from the rest of the world2,3371,7741,347997957
Less capital transfers to the rest of the world7991,0471,2441,3221,414
Capital transfers from the rest of the world (net)1,538726102-325-457
Balance on the external current account-4,462-6,688-10,307-14,542-13,521
Capital receipts-2,924-5,962-10,205-14,867-13,978
Purchase of non-produced non-financial assets from the rest of the world (net)-473-625
Net lending to the rest of the world-2,877-5,965-10,199-14,869-13,983
Capital disbursements-2,924-5,962-10,205-14,867-13,978

External account The deficit balance on the external current account, which had increased consistently since the year ended March 2003, decreased from $ 14.5 billion (9.3 percent of GDP) in the year ended March 2006 to $ 13.5 billion in the March 2007 year (8.2 percent of GDP). This narrowing of the deficit could mainly be attributed to the increased value of exports of goods (up 12.8 percent). Depreciation of the New Zealand dollar against the currencies of most of the country's major trading partners, combined with higher international prices for New Zealand's main export commodities, pushed merchandise export prices higher. In addition, the volume of goods exported over the same period also rose.

Dairy export values rose 24.4 percent, mainly due to higher volumes (up 22.3 percent). A rise in export prices was the main reason behind higher export values of metal products, machinery and equipment, and other food, beverages and tobacco.

The weaker New Zealand dollar also lifted merchandise import prices in the year ending 31 March 2007. Consequently, payments for imported goods and services rose 6.5 percent, despite a decrease in the volume of goods and services imported (down 1.7 percent) in the March 2007 year.

Gross domestic product by industry

The ‘value added’ component of industrial production is measured by taking the value of goods and services produced by an industry (output) and deducting the cost of goods and services used by the industry in the production process (intermediate consumption). GDP is then obtained by totalling the value added for all industries.

GDP by industry is calculated annually in current prices and volume terms, and quarterly in volume terms. Industries are combined to form the following broad groupings:

  • primary industries (agriculture; fishing; forestry; mining and quarrying)

  • goods-producing industries (manufacturing; electricity, gas and water; construction)

  • service industries (wholesale trade; retail trade, accommodation and restaurants; transport and communications; finance, insurance, real estate and business services (including owner-occupied dwellings); government administration and defence; personal and community services).

Service-based industries account for about two-thirds of the activity within the New Zealand economy, and therefore tend to dominate the contribution to GDP growth. For the year ending 31 March 2007, service industries grew 2.9 percent, while primary and goods-producing industries declined 0.2 and 1.7 percent, respectively.

Tables 17.08 and 17.09 (overleaf) detail production-based GDP statistics. The decrease in both residential and non-residential building investment was reflected in the drop in the construction industry, which was down 3.6 percent in the March 2007 year. The growth in household expenditure was also evident in the increased activity in service-based industries, with the finance, insurance and business services, and the retail trade, accommodation and restaurant sectors being major contributors.

Figure 17.05.

Table 17.08. Gross domestic product by broad industry group
Chain-volume series expressed in 1995/96 prices(1)

 Primary industriesGoods-producing industriesService industriesGross domestic product
$(million)Percentage change$(million)Percentage change$(million)Percentage change$(million)Percentage change

(1) Chain-volume series are not additive.

Source: Statistics New Zealand

YearActual annual change from previous March year
20048,7741.826,8713.879,8013.3120,2203.5
20059,0192.827,8683.783,2054.3125,0694.0
20069,3203.327,657-0.886,3403.8128,4282.7
20079,300-0.227,194-1.788,8762.9130,4421.6
QuarterSeasonally adjusted change from previous quarter
2003Jun2,1410.86,490-1.019,6100.529,4510.3
 Sep2,1952.56,6682.719,7820.929,8681.4
 Dec2,1980.16,7591.420,0821.530,1851.1
2004Mar2,2321.66,9302.520,3461.330,7221.8
 Jun2,2450.66,9650.520,4870.731,0241.0
 Sep2,2540.47,0220.820,6320.731,2140.6
 Dec2,2610.36,946-1.120,9181.431,2840.2
2005Mar2,255-0.26,899-0.721,1731.231,5570.9
 Jun2,2891.56,9721.121,4041.131,9971.4
 Sep2,3281.76,908-0.921,5590.732,1310.4
 Dec2,3511.06,850-0.821,5950.232,019-0.3
2006Mar2,3500.06,9040.821,7920.932,2970.9
 Jun2,309-1.86,808-1.421,8650.332,2860.0
 Sep2,288-0.96,745-0.922,1021.132,4270.4
 Dec2,3583.16,7760.422,3271.032,6680.7
2007Mar2,347-0.56,8421.022,5861.233,0601.2
 Jun2,3731.16,8440.022,7860.933,3260.8
 Sep2,4663.96,748-1.422,9550.733,5030.5

Table 17.09. Gross domestic product by industry
Chain-volume series expressed in 1995/96 prices(1)
Year ending 31 March

YearAgricultureFishing, forestry & miningManufacturingElectricity, gas & waterConstructionWholesale tradeRetail, accommodation & restaurantsTransport & communicationFinance, insurance & business servicesGovernment administration & defencePersonal & community servicesGross domestic product
$(million)

(1) Chain-volume series are not additive.

Source: Statistics New Zealand

19985,4962,87716,1662,2304,2907,5777,1198,38524,7104,30511,43598,323
19995,2212,82415,5992,2893,9287,7267,1738,89425,0604,29511,99998,775
20005,3792,95116,3692,1894,6058,5427,5579,78526,0624,23312,439104,041
20015,5263,01316,7942,2104,2938,8927,70410,45026,6184,31212,912106,551
20025,5893,04216,9412,1324,5319,3478,00011,16028,2324,41713,444110,554
20035,5593,07818,3982,3155,1809,0258,41911,69629,7194,64114,045116,143
20045,9202,79318,8922,3705,6049,1958,86612,13930,4324,88514,557120,220
20056,1512,78219,3242,4786,0309,8239,40612,83631,3465,17414,988125,069
20066,4882,69819,0122,3386,30510,0829,83013,19332,7185,47815,361128,428
20076,4912,66818,6672,4026,08010,06910,11113,44033,8145,76515,927130,442

Expenditure on gross domestic product

Another way of measuring GDP is to total all final domestic expenditure on goods and services, add the value of exports, and subtract the value of imports.

There are three broad categories of final domestic expenditure:

  • final consumption expenditure of households, private non-profit institutions serving households, and general government

  • gross fixed capital formation by producers

  • change in inventories, which consists of increases/decreases in producers' stockholdings of raw materials, work in progress, and finished goods.

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 calculated annually and quarterly in current prices and in volume terms. It is summarised in table 17.10.

Table 17.1. Expenditure on gross domestic product
Year ending 31 March

YearPrivate final consumption expenditureGeneral government final consumption expenditureChange in inventoriesGross fixed capital formationGross national expenditureExports of goods & servicesLess imports of goods & servicesExpenditure on gross domestic product
$(million)

Note: Figures may not add up to stated totals due to rounding. Chain-volume series are not additive.

Source: Statistics New Zealand

Current prices
199860,56718,38081721,408101,17228,53128,099101,604
199963,46318,60227020,742103,07830,39430,091103,381
200065,98720,0621,53722,888110,47433,52634,371109,628
200168,69220,2621,41923,595113,96741,15939,219115,906
200272,16321,6981,88625,969121,71743,69440,778124,632
200376,86822,539109428,025128,52642,56640,095130,997
200482,05224,3871,32931,583139,35140,65840,254139,754
200587,66626,2621,65034,965150,53343,35344,512149,384
200693,56528,41682837,743160,55243,78647,444156,893
200798,62330,638-31738,099167,04348,19950,528164,713
Chain-volume series expressed in 1995/96 prices
199858,27617,91168221,69098,57329,50528,77699,256
199960,04417,82239321,18099,44930,35629,367100,399
200061,99818,8451,57623,417105,71632,59132,694105,564
200162,88518,4741,20723,504106,03234,64932,478108,136
200264,63619,2051,26825,097110,13135,70233,784111,942
200367,91419,4661,17427,058115,44238,50336,216117,657
200472,23920,3551,38230,540124,11538,85140,827122,093
200576,06421,1581,76432,867131,42840,66345,911126,496
200679,56022,2161,00934,567136,83140,60947,773130,206
200781,64023,192-13733,772138,15841,86946,950133,303

Growth in the economy for the year ending 31 March 2007 was driven by domestic demand. Both private and general government consumption grew for the year, as did exports. The increase in exports was dominated by increased volumes of dairy product exports.

Investments in fixed assets, measured in volume terms, decreased in the year ending 31 March 2007. This was due largely to decreased expenditure on transport equipment, residential buildings, and non-residential buildings.

Household sector

Households consist of New Zealand-resident individuals and families. Income is earned from businesses, as wages and salaries and entrepreneurial income, or from investments, as interest and dividends.

Adam checks a packet of butter and finds it 35 grams underweight while conducting a survey of the weights of packaged butter. During 2007 and 2008, dairy product prices soared, mainly due to a strong rise in global commodity prices. Consumer spending on goods and services is the largest part of a household's spending.

Table 17.11. Household consumption expenditure
By purpose
Year ending 31 March

YearFood & beveragesClothing & footwearHousingHousehold goods & servicesHealth & medicalTransportRecreation & educationHotels & restaurantsOther goods & servicesNet tourist expenditureTotal household consumption
$(million)

Note: Figures may not add up to stated totals due to rounding.

Symbol: .. figure not available

Source: Statistics New Zealand

Current prices
19958,8432,5111,3135,9321,6467,7125,3443,8105,339-1,24550,206
200010,9393,03813,9256,982..9,167..4,9457,215-2,00964,458
200515,1083,98116,6419,682..12,798..6,7869,553-4,01985,749
200616,0684,30717,28610,322..13,685..7,34210,093-3,51591,552
200717,2264,49217,88510,996..13,931..7,74810,732-3,51896,510
Actual chain-volume series expressed in 1995/96 prices
19958,9522,48611,0835,9131,7237,9345,5533,9085,472-1,38651,614
200010,2632,97711,9697,029..9,517..4,5617,125-2,07560,501
200512,7123,82412,9669,502..12,360..5,3388,212-2,82674,168
200613,3744,13713,18810,039..12,598..5,5858,529-2,18677,601
200713,9094,32613,38010,537..12,319..5,6878,772-2,26479,636

Figure 17.06.

Households buy goods and services from businesses and incur interest charges to service borrowing. Consumer spending on goods and services (such as motor vehicles, food, recreation, health and education) is by far the largest part of household outlay.

Following an increase of 6.8 percent in the March 2006 year, household consumption expenditure increased by 5.4 percent in the year ending 31 March 2007. A contributing factor was increased household income from both higher employment levels and higher earnings for paid employees.

Table 17.11 shows household spending, by the type of goods and services purchased. 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.

As figure 17.06 shows, the increase in household spending was most noticeable in purchases of non-durable or consumable goods, which rose 6.9 percent in the year ending 31 March 2007. Spending by households on services rose 5.6 percent while spending on durable goods increased 2.2 percent.

There has been consistent positive growth in the volume of household consumption spending since the year ending 31 March 1993.

Gross fixed capital formation

Table 17.12 records producers' outlay on durable real assets such as buildings, motor vehicles, plant and machinery, roading, and improvements to land.

Table 17.12. Gross fixed capital formation
By asset type
Year ending 31 March

YearResidential buildingsNon-residential buildingsOther constructionLand improvementsTransport equipmentPlant machinery & equipmentIntangible assetsTotal
$(million)

Note: Figures may not add up to stated totals due to rounding. Chain-volume series are not additive.

Source: Statistics New Zealand

Current prices
19954,8152,521,2262212,4736,1061,01118,355
20006,2222,7362,8073192,4446,5061,85422,888
200510,2914,4504,0884913,9139,1872,54534,965
200610,5315,4854,5285824,4659,4922,66137,743
200710,8125,3074,9776163,8669,7352,78638,099
Chain-volume series expressed in 1995/96 prices
19955,1582,5741,2452222,4435,9131,00618,543
20005,8392,7002,7033082,5257,2772,08523,417
20057,5033,6633,2913723,78711,4763,11732,867
20067,1654,3303,4474104,28112,1893,28534,567
20076,9733,9633,6274143,66912,3543,46433,772

In measuring outlay, sales of similar goods are deducted. Land is excluded from gross fixed capital formation, but the value of construction work done by a firm's own employees is included. The term ‘gross’ indicates that consumption of fixed capital (economic depreciation) has not been deducted from the value of the outlay.

Measured in volume terms, capital investment fell 2.3 percent in the year ending 31 March 2007. In the previous March year, capital investment rose 5.2 percent. Investment in aircraft and military equipment, which caused a strong increase in the volume measure of transport equipment in the March 2006 year, was not repeated in the March 2007 year. In addition, investment in non-residential buildings fell 8.5 percent in the March 2007 year.

Capital stock statistics

Statistics New Zealand produces two measures of capital stock:

  • net capital stock is a wealth measure of the current value of the stock of fixed assets still in use in New Zealand

  • productive capital stock is a volume measure of the stock of fixed assets in New Zealand, adjusted for the decline in efficiency as the assets age.

The capital stock series, shown in table 17.14, are calculated using a perpetual inventory model. Briefly, this involves progressively building up capital stock estimates using the following equation:

opening stock + acquisitions – disposals – consumption of fixed capital = closing stock

Consumption of fixed capital at replacement cost, which is represented as economic depreciation in the national accounts, is an important output from the model.

External trade

ExportsTable 17.13 records the export values and volumes of goods and services. The value of exports of goods and services rose 10.1 percent in the year ending 31 March 2007, compared with a 1.0 percent rise in the preceding year. A higher volume of dairy exports (up 22.3 percent) was the largest contributor to this increase. In addition, export prices increased as a result of the weaker New Zealand dollar and higher international prices for New Zealand's main export commodities.

Imports The value of imports of goods and services rose 6.5 percent in the year ending 31 March 2007. An increase in merchandise import prices, due mainly to a weaker New Zealand dollar, was partly offset by decreasing import volumes. Import volumes, which had been rising consistently since the March 2002 year, fell 1.7 percent in the year ending March 2007. Imports of services (down 4.3 percent) and capital equipment (down 3.2 percent) were the main contributors to the fall in import volumes.

Annual percentage changes in the current price value of exports and imports since 1997 are shown in figure 17.07.

Table 17.13. Exports of goods and services
Year ending 31 March

YearAgriculture & fishing primary productsForestry primary productsCoal, crude petroleum & ores, minerals & gasesMeat productsDairy productsOther food, beverages & tobaccoTextiles, apparel & leather productsWood & paper productsChemicals, rubber, plastic & other non-metallic productsMetal products, machinery & equipmentTotal exports of goodsExports of servicesTotal
$(million)

Note: Figures may not add up to stated totals due to rounding. Chain-volume series are not additive.

Symbol: C confidential

Source: Statistics New Zealand

Current prices
2032,8997507644,4046,0023,0271,7042,9562,7125,43030,64811,91742,566
20042,9446275804,3785,8362,8521,6092,4952,2855,44729,05411,60440,658
20052,9874147274,8725,7843,3691,5932,8392,5615,96731,11412,24043,353
20062,8024501,0184,6115,9933,6851,4942,6922,5496,28631,58012,20643,786
2007C640C5,0377,455CCCCC35,63312,56548,199
Chain-volume series expressed in 1995/96 prices
20032,6111,0114642,9786,8752,4821,8552,9872,1164,99028,31810,11238,503
20042,7499073913,2127,2302,6311,8272,8671,7715,40228,9199,88638,851
20053,0606503963,3236,5473,1681,8983,2531,9575,90330,40110,23540,663
20063,3576314273,2506,3923,3651,8783,2371,8196,01530,60110,01540,609
20073,2827513423,4687,8153,2751,8493,2461,9026,01932,1029,85941,869

Table 17.14. Capital stock
Year ending 31 March

 Net capital stock(1)Productive capital stock(1)
Year$(million)

(1) Current prices (replacement cost).

(2) Chain-volume series expressed in 1995/96 prices.

Source: Statistics New Zealand

2003359,054390,901
2004393,484404,559
2005432,793419,254
2006468,962434,772
2007504,233448,703

Figure 17.07.

Table 17.15. Imports of goods and services
Year ending 31 March

YearMotor spiritPassenger motor carsMilitary & other goodsConsumption goods(1)(2)Intermediate goods(2)Capital equipment(1)Total goodsTotal servicesTotal imports of goods & services
$(million)

(1) Excludes imports of passenger motor vehicles, which are recorded separately.

(2) Excludes imports of motor spirit, which are recorded separately.

Note: Figures may not add up to stated totals due to rounding. Chain-volume series are not additive.

Source: Statistics New Zealand

Current prices
2034712,881497,62013,2915,66929,98210,11340,095
20044783,1112217,65012,5866,19930,24610,00940,254
20056363,1253198,12514,5316,60733,34411,16944,512
20069312,964648,70315,7207,30135,68511,75947,444
20071,0882,7861099,54317,7167,22338,46412,06450,528
Chain-volume series expressed in 1995/96 prices
20032502,925366,85811,5516,70328,0018,33836,216
20042613,3472187,56812,2218,75531,7199,26840,827
20052843,5733098,36313,63010,22735,53910,53545,911
20063153,552619,04113,40211,89736,92411,01447,773
20073133,276939,56613,09011,52036,59710,54446,950

International accounts

New Zealand's international accounts consist of statistics on the balance of payments (BOP) and international investment position (IIP).

BOP statistics are statements of New Zealand's transactions in goods, services, income, and transfers with the rest of the world, net flows of foreign investment in New Zealand, and New Zealand investment abroad. IIP statistics show the value of foreign investment in New Zealand, and the value of New Zealand investment abroad at specific points in time.

The IIP statement includes statistics measuring New Zealand's gross and net overseas debt for both the government and private sectors.

Statistics New Zealand publishes BOP and IIP statements for each quarter. The level of detail in the quarterly series provides a useful basis for analysing and assessing the country's external financial situation.

Annual BOP and IIP statements are published using a March reference period and show the source of foreign investment into New Zealand, and destinations of New Zealand investment abroad.

BOP statistics are presented in a set of accounts consisting of two main groups: the current account, and the capital and financial account. Each of the BOP accounts is further subdivided into major components and balances. The balance of each component is the inflows (credits) less the outflows (debits).

Exchange rates for the New Zealand dollar in May 2008 are shown in a bank's window. In the year to 31 March 2007, a weaker New Zealand dollar and increased world commodity prices contributed to higher export and import prices. In the March 2008 year an appreciating New Zealand dollar had a downward impact on export and import prices.

Table 17.16. Balance of payments – major components(1)
Year ending 31 March

 2032004200520062007
$(million)

(1) Tables presented in general accordance with principles laid down by the International Monetary Fund in the fifth edition of the Balance of Payments Manual (1993).

Note: Figures may not add up to stated totals due to rounding.

Source: Statistics New Zealand

Current account summary
Balance on goods667-1,192-2,230-4,105-2,831
   Exports (free on board)30,64829,05431,11431,58035,633
   Imports (free on board)29,98230,24633,34435,68538,464
Balance on services1,8041,5951,071447501
   Exports11,91711,60412,24012,20612,565
   Imports10,11310,00911,16911,75912,064
Balance on income-7,046-7,328-9,466-11,256-11,863
   Income from investment abroad2,2792,4062,5131,6572,607
   Income from foreign investment in New Zealand9,3259,73411,97912,91314,470
Balance on current transfers113237318373671
   Inflow1,3761,4311,5551,6641,956
   Outflow1,2631,1941,2371,2921,285
Current account balance-4,462-6,688-10,307-14,542-13,521
Capital account summary
Balance on capital account1,585723108-327-462
   Inflow2,3841,7741,354998958
   Outflow7991,0511,2461,3251,420
Financial account summary
New Zealand investment abroad4,6998,3713,057-4,09010,912
   Direct investment2552,442230-4,0701,907
   Portfolio investment1,3192,9791,425-3773,808
   Other investment5296232,315-4,494-1,548
   Reserve assets2,5962,327-9134,8516,744
Foreign investment in New Zealand6,35213,78113,84110,58423,781
   Direct investment3,3224,0183,826R2,68312,449
   Portfolio investment6,6597,4143,8392,8433,839
   Other investment-3,6292,3496,1765,0597,492
Net errors and omissions1,224555-5851951,114

The current account

The current account records New Zealand's transactions in goods, services, income, and current transfers.

For goods, the balance on goods is the value of exports, less the value of imports. The primary source of data is export and import entry documents lodged with the New Zealand Customs Service by importers, exporters and their agents.

Services include: transportation of exports and imports of goods, passenger airfare revenue and expenditure, spending by New Zealand tourists abroad and foreign tourists in New Zealand, telecommunications, insurance and financial services, and other business services. Royalties and licence fees are also included.

Income encompasses income earned by foreign investors from their investments in New Zealand, and that earned by New Zealand investors from their investments abroad. Income from investments includes operating profits and losses, earnings retained in the business or distributed as dividends, and interest on debt instruments.

Current transfers include benefits and pensions received and paid, foreign aid, and withholding tax. Transfers are classified into either current transfers (which affect the level of disposable income of the donor and recipient), or capital transfers (which involve transfers in ownership of fixed assets or forgiveness of financial liabilities, and are included in the capital account).

Goods dominate New Zealand's current account. Exports of goods accounted for approximately 68 percent of total current account inflows (credits), and imports accounted for approximately 58 percent of total current account outflows (debits) for the year ending 31 March 2007.

Table 17.17 (overleaf) presents New Zealand's international trade in services for the five March years to 2007, and shows that the surplus balance on services has decreased to less than one-third of that recorded in 2003.

The balance on services moved from a surplus of $1,804 million in the year ending 31 March 2003 to a surplus of $501 million in the March 2007 year. Exports of services rose $648 million (5.4 percent) between 2003 and 2007, but this was more than offset by a $1,951 million (19.3 percent) increase in imports of services.

Growth in imports of transportation, travel and other business services were the key influences in the decrease of the balance on services.

A group of Swiss tourists camp out at a holiday park in Paihia in Northland, in early spring. New Zealand's current account records transactions in services, which include spending by foreign tourists in New Zealand and New Zealand tourists abroad.

Table 17.17. Trade in services
Year ending 31 March

 2032004200520062007
$(million)

Note: Figures may not add up to stated totals due to rounding.

Source: Statistics New Zealand

Exports
Transportation2,4702,2342,2312,3822,673
Travel7,0767,1787,4867,2717,387
   Business737660704721746
   Personal6,3396,5186,7836,5506,641
      Education1,6931,8921,8741,6911,550
      Health1111111111
      Other4,6334,6144,8974,8475,079
Communication465328331361224
Construction5254876327
Insurance3843443941
Financial3860108123114
Computer & information256221265272281
Royalties & licence fees181191146153184
Other business services9709141,0891,1581,253
Personal, cultural & recreational234252310235231
Government services not included elsewhere139129142149149
Total exports of services11,91711,60412,24012,20612,565
Imports
Transportation3,5163,4703,9263,9514,039
Travel2,8922,9003,4793,8183,935
Communication417319344417304
Construction117304285
Insurance285316339350325
Financial13199158152126
Computer & information258231324381398
Royalties & licence fees774807790778762
Other business services1,5471,5651,5711,6621,875
Personal, cultural & recreational128135665764
Government services not included elsewhere155159143149150
Total imports of services10,11310,00911,16911,75912,064
Balance on services1,8041,5951,071447501

The capital account

The capital account records debt forgiveness, migrant transfers, and sales and purchases of intangible assets, such as licences, patents, copyrights and franchises.

The financial account

The financial account records investment transactions between New Zealand residents and the rest of the world. These transactions increase or decrease the level of foreign investment in New Zealand, and the level of New Zealand investment abroad.

Investment instruments include equity capital (such as shares in companies), and debt instruments (such as bonds and notes), money market instruments, loans, deposits, and trade credits and debits).

Figure 17.08 shows that net inwards investment has consistently outweighed net outwards investment, reflecting New Zealand's dependency on foreign capital to finance its current account deficits.

Classification of investment categories in the financial account is further determined by the relationship between transactors, and is presented as direct, portfolio and other investment.

Direct investment is all financial capital transactions occurring between parties where there is an ownership relationship of 10 percent or more. For example, where a foreign investor owns 10 percent or more of the equity capital of a New Zealand company, then all the financial capital transactions between the New Zealand company (the direct investee) and the overseas investor (the direct investor) are classified as direct investment. These transactions increase or decrease the level of foreign direct investment in New Zealand.

Direct investment transactions include transactions in equity capital and debt instruments, including bonds, loans, trade credits and debits. Income from the foreign direct investor's investment in New Zealand is recorded in the current account as income from foreign investment in New Zealand – direct investment income.

Portfolio investment includes transactions in equity and debt instruments, where the ownership relationship between the transactors does not meet the criteria for direct investment. Therefore, in addition to equity securities, this category includes marketable debt instruments – bonds and notes, and money market instruments.

Banking sector funding transactions in marketable debt instruments between direct investors and direct investees are included within portfolio investment where these transactions are defined as being in the nature of usual banking business (financial intermediation), rather than transactions aimed at increasing or decreasing the direct investor's ownership role.

The main contributors to New Zealand portfolio equity investment abroad are New Zealand-resident fund managers. Foreign portfolio equity investment in New Zealand is dominated by investment into New Zealand companies through New Zealand-resident nominees.

New Zealand portfolio investment abroad, in the form of debt securities, is dominated by banks and fund managers. This form of foreign portfolio investment in New Zealand is spread more widely across the domestic sectors, with banks and government contributing significantly.

Other investment is a residual component within the financial account, and consists of financial assets and liabilities not classified as either direct or portfolio investment. Other investment includes loans, deposits, trade finance (trade credits and debits), and other instruments transacted with an unrelated party abroad.

Figure 17.08.

Figure 17.09.

International investment position

The international investment position (IIP) records the level of an economy's international financial assets and liabilities (the balance sheet) at a particular point in time. These are shown in figure 17.09.

The balance of payments (BOP) financial account and IIP statistics are closely related, with BOP measuring investment flows and IIP measuring stock positions. The New Zealand IIP statement includes position data on financial derivatives. Since no transaction data is collected for these, they do not appear in the BOP statistics.

Table 17.18. International investment position(1)
At 31 March

 2032004200520062007
$(million)

(1) Data may not add up to stated totals due to rounding.

Symbol: C confidential

Source: Statistics New Zealand

New Zealand investment abroad
Direct17,74718,38920,13417,96018,635
   Equity capital & reinvested earnings15,97016,36216,42015,33116,366
   Other capital1,7782,0273,7142,6292,269
      Claims on affiliated enterprises4,7205,109C5,673C
      Liabilities to affiliated enterprises-2,942-3,083C-3,044C
Portfolio24,28931,77133,59642,07244,223
   Equity securities13,63722,57024,56633,21733,876
   Debt securities10,6529,2019,0318,85410,347
Other22,87522,20625,37322,45821,355
   Trade credits2,934CC2,9743,755
   Loans16,37817,08019,50210,68510,767
   Currency & deposits2,9642,5333,0657,2415,710
   Other assets599CC1,5591,122
Financial derivatives6,7816,0815,3477,4866,411
Reserve assets9,11510,0938,82814,59620,381
Total80,80888,54093,278104,572111,005
Foreign investment in New Zealand
Direct58,34768,89873,57178,26590,691
   Equity capital & reinvested earnings39,85445,52946,99147,70753,051
   Other capital18,49323,36926,58030,55837,640
      Claims on direct investors-8,786-7,258-8,612-7,288-5,857
      Liabilities to direct investors27,27930,62635,19237,84643,496
Portfolio65,17773,22677,49583,11783,564
   Equity securities11,25114,70016,63117,43517,033
   Debt securities53,92658,52660,86465,68266,531
Other49,11547,59257,04865,83472,590
   Trade credits2,3882,.1931,8322,0851,740
   Loans33,60430,48138,17843,38247,363
   Currency & deposits12,71514,56816,49019,29122,051
   Other liabilities4073505471,0771,436
Financial derivatives8,7748,5446,0897,5037,235
Total181,414198,260214,203234,720254,080
Net international investment position-100,606-109,720-120,925-130,148-143,075

The difference in the level of international financial assets and liabilities between two points in time is due to BOP financial account transactions and other non-transaction changes that occur during the reference period.

Non-transaction changes are revaluations of assets and liabilities, changes arising from translation of overseas assets and liabilities in foreign currencies into New Zealand dollars, changes in market prices, and other adjustments such as write-offs.

Table 17.18 shows New Zealand's IIP at 31 March 2003–07. The value of New Zealand investment abroad (assets) is lower than the value of foreign investment in New Zealand (liabilities). At 31 March 2007, the net IIP (assets less liabilities) was negative $143.1 billion. This net debtor position is a reflection of the long-running current account deficits, which are financed by a net inflow of capital into New Zealand, recorded in the financial account.

Deficits and surpluses

The balance on the current account is the sum of the balances on goods, services, income, and current transfers. Because they involve the exchange of resources, current account surpluses and deficits have financial implications. Surpluses (net outflows of resources) result in increases in New Zealand's net financial claims over the rest of the world. Conversely, deficits (net inflows of resources) translate into decreases in New Zealand's net financial claims over the rest of the world.

Figure 17.10 shows the current account balance as a proportion (ratio) of gross domestic product (GDP), 1957–2007. This ratio measures New Zealand's net provision or acquisition of resources, to or from abroad, as a proportion of the value of New Zealand's annual output. The use of the ratio is an indication of the ability of the economy to sustain a current account imbalance.

Table 17.19. Direct investment(1)(2)
By regional groupings and selected countries
At 31 March

Grouping/country2032004200520062007
$(million)

(1) Only a limited country breakdown is shown in this table, therefore data does not add up to stated totals.

(2) Published under section 37(4)(a) of the Statistics Act 1975 with the consent of all significant contributors.

Note: APEC Asia-Pacific Economic Cooperation. ASEAN Association of Southeast Asian Nations, EU European Union, OECD Organisation for Economic Co-operation and Development.

Symbol: C confidential

Source: Statistics New Zealand

New Zealand's direct investment abroad
APEC13,80514,27116,72814,44316,302
ASEAN879564594493316
EU4205652781,9692,085
OECD10,21211,45613,13812,77614,982
Australia8,9609,82511,3219,46810,915
Bermuda610C75898C
CanadaCC387273
GermanyCCCCC
Hong Kong34734C102267
Japan71CCCC
NetherlandsCCCCC
Singapore495209CCC
United Kingdom555885C918897
United States6869541,3481,1741,778
Total17,74718,38920,13417,96018,635
Foreign direct investment in New Zealand
APEC34,03444,78051,72256,07566,801
ASEAN9611,0821,0871,0821,514
EU11,63710,48311,62711,16011,161
OECD41,76551,08258,94162,86473,040
Australia21,18929,43834,27439,46747,358
BermudaCCCCC
CanadaC8891,1001,0001,282
GermanyCCC605440
Hong Kong772757778585724
Japan1,2921,5321,7001,6521,819
Netherlands3,6323,4534,2304,2164,918
Singapore9861,2261,1761,1941,636
Switzerland1901611145275
United Kingdom6,3705,0324,4394,8643,974
United States5,9677,8379,3978,84410,492
Total58,34768,89873,57178,26590,691

Figure 17.1.

For example, an increasing current account deficit has different implications for a growing economy than for an economy in which GDP is static or falling.

New Zealand has incurred persistent current account deficits since the mid 1970s. These have ranged between -13.4 percent of GDP in 1975 (at the height of the 1970s' oil crisis), to -0.7 percent in 1989. More recently, the ratio has generally risen – from -3.1 percent for the March 2002 year, to -8.2 percent for the March 2007 year.

International investment

Table 17.19 (previous page) shows the main countries, economic groupings and regions that are the sources of foreign direct investment into New Zealand, and the destinations of New Zealand direct investment abroad. Direct investment occurs where there is an ownership relationship of 10 percent or more.

Australia is New Zealand's single most important direct investment partner country in terms of both the country's direct investment abroad, and foreign direct investment in New Zealand. The United States and the United Kingdom are significant sources of foreign direct investment in New Zealand.

New Zealand's most significant regional or group partners are the Asia-Pacific Economic Cooperation economies, the Organisation for Economic Co-operation and Development countries, and the European Union.

Table 17.20 shows New Zealand industries that hold international assets, and those in which foreign investors have invested (New Zealand's international liabilities) at 31 March 2005–07.

Table 17.2. International assets and liabilities
By industry(1)
At 31 March

 200520062007
$(million)

(1) These tables are prepared on a balance sheet basis.

Symbols: C confidential – figure too small to be expressed

Source: Statistics New Zealand

New Zealand's international assets
Agriculture, forestry & fishingCCC
MiningCCC
Manufacturing16,45614,28713,798
Electricity, gas & water supplyCCC
Construction166213201
Wholesale trade4,3414,5113,797
Retail trade400618953
Accommodation, cafes & restaurantsCCC
Transport & storage82144C
Communication servicesCCC
Finance & insurance63,69475,05481,135
Property & business services664714854
Government administration & defence7,64110,33611,003
EducationC
Health & community services
Cultural & recreational servicesCCC
Personal & other servicesCCC
Unallocated to industry2,7313,0992,245
Total105,571116,192119,809
New Zealand's international liabilities
Agriculture, forestry & fishing2,9233,3544,744
MiningCC2,414
Manufacturing22,41023,44926,728
Electricity, gas & water4,9964,8714,158
Construction575669702
Wholesale trade9,88810,86810,998
Retail trade3,6686,8866,130
Accommodation, cafes & restaurants924934872
Transport & storage2,8163,5204,614
Communication servicesCCC
Finance & insurance124,812139,323151,133
Property & business services3,2603,6026,854
Government administration & defence15,99815,63714,716
EducationCC
Health & community servicesCC657
Cultural & recreational services3,5114,4783,943
Personal & other servicesCCC
Unallocated to industry10,12510,83810,226
Total226,495246,340262,884

The finance and insurance industry accounts for the largest proportion of New Zealand's international assets and liabilities. At 31 March 2007, this industry held 67.7 percent of the country's international assets. The main contributions were from banks and funds invested abroad by fund managers on behalf of individuals.

The finance and insurance industry was the recipient of 57.5 percent of total funds invested in New Zealand by overseas investors (New Zealand's international liabilities).

The government administration and defence industry and the manufacturing industry each made significant contributions to New Zealand's international assets and liabilities.

The international investments held by the government administration and defence industry (9.2 percent of New Zealand's total international assets) are predominantly reserve assets held by The Treasury and the Reserve Bank of New Zealand. The manufacturing industry held 11.5 percent of New Zealand's total international assets, and received 10.2 percent of total foreign investment in New Zealand.

Business statistics

Annual and quarterly surveys conducted by Statistics New Zealand provide comprehensive information about businesses in New Zealand.

The Annual Enterprise Survey, which covers most industries, collects information on the financial performance and position of New Zealand businesses.

Quarterly business surveys, such as the Economic Survey of Manufacturing, provide information on short-term activity, while the Employment Survey offers a broad picture of employment across the economy.

In addition to these financial surveys, Statistics New Zealand also produces business demographic statistics, based on a recently developed statistical resource – the Longitudinal Business Frame. Business demographic statistics provide an annual snapshot (at February) of the structure and characteristics of New Zealand businesses.

Table 17.21 (overleaf) shows the number of employees and separate businesses (geographic units) for the different industry groups in New Zealand.

Glenda Keegan of WAS Ltd, with bags made of PVC vinyl from recycled billboards that were originally destined for the dump. The Longitudinal Business Frame database allows an annual snapshot of the characteristics of New Zealand businesses to be produced.

Table 17.21. Geographic units(1) and employee count(2) by industry
In economically significant enterprises(3)
2007

IndustryNumber of geographic unitsEmployee count

(1) A geographic unit (business location) in New Zealand is a separate operating unit engaged in one, or predominantly one, kind of economic activity from a single physical location.

(2) The employee count is the number of salary and wage earners, sourced from taxation data.

(3) This generally includes all enterprises with GST turnover greater than $30,000 a year.

Note: Figures may not add up to totals due to rounding.

Source: Statistics New Zealand

Manufacturing24,81258,370
Property & business services153,834245,990
Retail trade46,853240,000
Health & community services18,727187,070
Education8,540155,620
Construction50,136121,840
Accommodation, cafes & restaurants14,443119,010
Wholesale trade22,021116,970
Agriculture, forestry & fishing81,537115,760
Transport & storage14,44276,080
Government administration & defence1,86572,880
Personal & other services18,02069,250
Finance & insurance25,77054,920
Cultural & recreational services13,96652,080
Communication services3,89124,660
Electricity, gas & water supply4377,680
Mining6485,020
Total499,9401,923,190

Contributors and related websites

New Zealand Superannuation Fund – www.nzsuperfund.co.nz

Reserve Bank of New Zealand – www.rbnz.govt.nz

Statistics New Zealand – www.stats.govt.nz

The Treasury – www.treasury.govt.nz

Chapter 18. Agriculture

Wheat farmer Simon Bathgate examines his plants after rain brought the wheat plants into head in December 2007. Farmers are particularly affected by climate change and extreme weather events, although a changing climate may provide opportunities for new crops and faster growth in some regions of New Zealand.

Farming, forestry, and horticulture continue to be significant export-earning industries for New Zealand. In the year ending 31 March 2007, the agricultural, horticultural and forestry sectors provided about two-thirds of New Zealand's export earnings. The primary industries and downstream manufacturing contributed nearly 13 percent to GDP (gross domestic product). In the past few years, dairy and wine have been New Zealand's fastest growing industries.

Dairying has been expanding since 1996 in response to commodity price signals. Many farms have converted to dairying, especially in Canterbury and Southland, and dairy farms across New Zealand have increased in size.

While the number of traditional sheep and cattle farms has decreased, through conversion and amalgamation, the productivity of remaining sheep and cattle farms has increased. Improvements have been achieved by farmers through improving management practices, introducing new livestock sires, and the use of better plant cultivars.

Cereal crops and horticultural products were traditionally grown mainly for the home market, but the horticulture industry and various seed crops are now important export earners.

New Zealand has considered the strategic opportunities offered by genetic modification. Following a Royal Commission of Inquiry, the government accepted the commission's recommendation to proceed with caution, and preserve those opportunities. New Zealand researchers have developed genetically-modified potatoes that are resistant to pests, and genetically-modified cattle (to produce therapeutic proteins in their milk).

Current situation and trends

Rural produce from farming and horticulture makes up more than half of New Zealand's merchandise exports. Uniquely among developed countries, New Zealand farmers are almost totally exposed to world market forces. They receive no subsidies from the government, and have to compete with subsidised production from other countries.

The agreement on agriculture from the General Agreement on Tariffs and Trade (GATT) Uruguay Round imposes progressive reductions on subsidies that other countries can give to agricultural production and exports. One effect of this has been to increase access opportunities for New Zealand's exports into overseas markets. The current Doha Development Round, under the auspices of the World Trade Organization (WTO), will eventually deliver further trade benefits to New Zealand.

Table 18.01. Farm types
By number and area
At 30 June 2005

Farm typeNumberArea (hectares)(1)

(1) Figures may not add up to totals due to rounding.

Note: nec not elsewhere classified.

Source: Statistics New Zealand

Sheep13,9058,128,914
Dairy cattle12,7862,113,692
Forestry4,5812,043,921
Beef cattle13,2541,476,129
Sheep/beef1,614654,835
Deer1,617218,155
Mixed livestock855178,080
Grain/sheep and grain/beef32473,460
Vegetables1,52469,484
Services to agriculture nec1,06263,304
Grain48658,570
Grapes1,41635,918
Crop and plant nec52530,904
Kiwifruit2,17224,737
Apples and pears89420,935
Other fruit nec2,29820,592
Livestock nec63317,880
Pigs26412,831
Plant nursery1,0958,726
Stone fruit3517,149
Berry fruit2314,220
Cut flowers and flower seeds7564,098
Citrus2912,698
Other1,56336,246
Total64,49115,305,478

Customers buy cheese and free-range eggs at the Lyttelton Farmers Market in Canterbury. The market is open every Saturday to sell produce that also includes fruit, vegetables, meat, bread and plants. It is one of a growing number of farmers markets around New Zealand, which offer direct contact between producers and consumers.

New Zealand's total milk production (including domestic-market milk) for the season to 31 May 2007 was 1.314 billion kilograms of milk solids – from nearly 15 billion litres of milk. This was up 3.4 percent on the previous season, due to good climatic conditions. The number of dairy milking cows was estimated at 4.17 million at 30 June 2007, up 0.7 percent from the previous year.

The cooperatively-owned dairy company Fonterra collected 94.8 percent of available milk solids from New Zealand dairy farms. About 2.8 percent of milk collected was made available to other dairy manufacturers, to meet regulatory requirements under the Dairy Industry Restructuring Act 2002, to foster competition in New Zealand.

Payment for milk is by kilogram of milk solids (kgMs). The average dairy company payout for the year ending 31 May 2007 rose 9.7 percent from the previous year, to $4.47 per kgMS (net of ‘industry good’ levy), due to rising international prices and favourably-hedged exchange rates. (The industry good levy funds research and development in the dairy industry, and is administered by DairyNZ.)

Total sheep numbers were estimated at 38.5 million at 30 June 2007 (down from 40.1 million the previous year), and sheep meat production for the year ending 30 September 2007 was 573,000 tonnes, up 5.7 percent from the previous September year. The quantity of wool sold fell 4.0 percent, to 164,000 clean tonnes for the year ending 30 June 2007.

The New Zealand beef cattle herd was estimated at 4.44 million at June 2006 (up from 4.42 million the previous year). Beef and veal production fell by 3 percent, to 623,000 tonnes for the year ending 30 September 2007.

After two decades of strong growth to 30 June 2004, deer numbers fell to an estimated 1.59 million at 30 June 2006, because high domestic slaughtering weakened international prices.

Agricultural organisations

New Zealand remains a world leader in agricultural research, reflecting the importance of agriculture to the country. A broad range of administrative and special interest organisations are found in the sector.

Ministry of Agriculture and Forestry Te Manatū Ahuwhenua Ngāherehere (MAF) has a mission to ‘enhance New Zealand's natural advantage’. Its purpose is to lead the protection and sustainable development of biological resources for all New Zealanders. The organisation employs about 1,600 staff nationally.

MAF's key operational areas include:

  • MAF Policy – provides policy advice and delivers services to help create prosperous, sustainable and innovative agriculture, food and forestry sectors, which support a vibrant and healthy New Zealand society, environment and economy.

  • Biosecurity New Zealand – leads New Zealand's biosecurity system. It identifies and manages any potential biosecurity risks at the border, and provides domestic and offshore technical inspection and clearance services. It also has international trade and animal welfare responsibilities.

  • Crown Forestry – manages the Crown's interest in a number of commercial forests and forestry-related leases.

AsureQuality Ltd was formed in October 2007 by the merger of two state-owned enterprises, Asure New Zealand Ltd and AgriQuality New Zealand Ltd. AsureQuality is now one of the world's leading providers of food quality assurance and biosecurity services. More than 1,700 staff are employed at 140 sites around New Zealand and Australia.

New Zealand Food Safety Authority Te Pou Oranga Kai o Aotearoa (NZFSA) has operated as a stand-alone government department since its separation from MAF in July 2007. It has two key functions:

  • to protect and promote public health and safety

  • to facilitate market access for New Zealand's food and food-related products.

To achieve these, NZFSA must implement a food regulatory programme that meets New Zealand's needs for the foreseeable future – accounting for rapidly shifting consumer behaviour and expectations, changing food production and distribution systems, and dealing with new and emerging pathogens and risks.

NZFSA administers the Food Act 1981, the Agricultural Compounds and Veterinary Medicines Act 1997, the Animal Products Act 1999, and the Wine Act 2003. It is the controlling authority for imports and exports of food and food-related products. The authority employs about 500 people, and has an operating budget of $90 million (of which $55 million is recovered from industry).

Pastoral agriculture

Pastoral agriculture is practised throughout New Zealand. In the North Island, beef cattle farming dominates in Northland, dairying in the Waikato and Taranaki, and sheep farming (with cattle in the hills) in Gisborne and Hawke's Bay, and in the southern part of the North Island.

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 on wetter flat areas. An increasing amount of dairying is carried out on the flat land of Canterbury, Otago and Southland, particularly in areas where irrigation is available.

New Zealand livestock are predominantly grass-fed, but feeding of natural grass-based and maize supplements, such as hay (from pasture) and silage (from grass and maize), occurs in winter and during very dry periods. Grass growth is seasonal, is largely dependent on location and climatic fluctuations, peaks in the spring, and is at a minimum in winter.

Feed surpluses are harvested and stored for feeding-out during winter or in times of feed shortages. In recent years, intensive dairy farms have increased their use of protein-rich palm kernel imports, to supplement pasture during the milking season.

Livestock are grazed in paddocks, often with movable electric fencing, which allows rotation of grazing. Lambing and calving are carefully managed to take full advantage of spring grass growth.

Livestock numbers and types

Probably New Zealand's best known statistic is that it once had more than 20 times as many sheep as people. However, by 30 June 2007 the ratio was nine sheep for every person.

Climatic conditions, soil type, type of stock carried, and land contours determine stocking rates for New Zealand farms. Finishing sheep and beef land in both islands carry around 11–12 stock units per hectare, while South Island high country farms average around one stock unit per hectare. An average dairy farm carries 2.8 cows per hectare at peak milk production.

Trends in livestock numbers are largely determined by world market prices for farm products, including meat, wool, and dairy.

The sheep population has declined from 70.3 million at 30 June 1982 to 38.5 million at 30 June 2007. The beef cattle population fell 10 percent in the same period, to reach 4.39 million. The number of dairy cattle at 30 June 2007 was 5.26 million, up 2.26 million on the 30 June 1982 total. The total deer number was 1.37 million at 30 June 2007, compared with just 0.15 million in 1982.

Table 18.02. Sheep categories
At 30 June

YearBreeding ewes and hoggetsOther sheepTotal(1)

(1) Figures may not add up to totals since estimates for sheep categories are calculated independently from total estimates.

(2) Use caution when making comparisons using 1999 data. In this year, the survey population was drawn from a different sample.

Note: Sheep numbers were not counted in 1997, 1998, 2000, and 2001.

Source: Statistics New Zealand

199435,75413,61849,466
199534,99913,81848,816
199634,39213,00247,394
1999(2)32,23413,44645,680
200229,15910,41339,572
200329,35810,19439,552
200429,4059,86639,271
200529,54910,33039,880
200629,92810,15440,082
200728,5889,87238,460

Sheep Lamb and wool prices have fallen 35 percent in real terms since 2002, as a consequence of reduced international prices and adverse exchange rates. Since 2002, New Zealand farmers have increased meat production per ewe, have higher lambing percentages, and also have higher lamb slaughter weights. Many farmers use newly introduced breeds to achieve hybrid vigour and better meat production characteristics. Coarse wool has become a by-product of meat production.

The tariff-free quota New Zealand has with the European Union (EU) underpins the sector, while the People's Republic of China has emerged as a high-volume, low-value market for the cheapest lamb cuts.

In the year ending 30 September 2007, lamb exports amounted to 331,000 tonnes of product, valued at $2.08 billion. The export value of mutton was $283 million for the same period. Chilled lamb contributed 31 percent of the export value.

New Zealand lamb is exported to 99 overseas markets, with the highest-returning markets being the United Kingdom, Germany, France, and the United States.

Dairy cattle Livestock Improvement Corporation data shows that the main dairy cow breed in New Zealand is the Holstein-Friesian, followed by the Holstein-Friesian/Jersey cross, and the Jersey. The North Island carries 80 percent of dairy herds, with 48 percent of these located in the Waikato and Taranaki regions. The South Island has 20 percent of dairy herds, and 28 percent of all dairy cows.

Dairy exports include whole milk powder, skim milk powder, cheese, casein, butter, and other manufactured products. In the year ending 30 June 2007, the export value of dairy products to 154 countries was $8.38 billion. Exports to the United States, Japan, the EU, China, and the Philippines accounted for 38 percent of this export value. Whole milk powder was the largest contributor, making up 26 percent of dairy export value.

Beef cattle The major traditional beef cattle breeds in New Zealand are the Angus and the Hereford. However, around 26 percent of adult cattle slaughtered come from bull beef finishing farms, where cattle primarily originate from dairy calves of Holstein-Friesian and cross-breeds. Approximately 73 percent of beef cattle are located in the North Island, with about 25 percent of the beef herd being run on small-scale farms. In the year ending 30 September 2007, the export volume of beef and veal was 352,000 tonnes, valued at $1.64 billion. A special quota arrangement ensures the United States takes 50 percent by volume, and 45 percent by value, of all beef and veal exports. The main export category is manufacturing beef (that not sold as prime table cuts – it is used for further processed products). Other significant destinations are the Republic of Korea, Japan, Taiwan and Canada, which together account for 37 percent of the value of beef and veal exports.

Table 18.03. Cattle categories
At 30 June

Category20032004200520062007
Source: Statistics New Zealand
Dairy cows/heifers in milk or in calf3,928,1404,103,3184,120,1764,137,6964,167,121
Dairy cows/heifers not in milk and not in calf but intended for milk production149,190174,124212,042234,880305,727
Dairy heifer yearlings and calves (including bobby)980,566830,389716,423751,790734,671
Dairy bulls to be used for dairy breeding43,70744,66138,53645,19053,331
Subtotal – dairy cattle5,101,6035,152,4925,087,1765,169,5575,260,850
Beef cows and heifers2,391,7792,326,6242,332,0372,324,9002,267,636
Bulls – all ages1,046,411911,055869,757915,590871,685
Other beef cattle1,188,4271,209,7201,221,8311,198,6451,254,296
Subtotal – beef cattle4,626,6174,447,4004,423,6264,439,1364,393,617
Total cattle9,728,2209,599,8929,510,8029,608,6939,654,467

Dairy cows wait for milking time on a South Otago dairy farm. The South Island has 20 percent of New Zealand's dairy herds, and 28 percent of the dairy cows.

Deer Since the early 1970s, New Zealand deer farming has developed to become an important livestock industry. New Zealand is the world's largest exporter of farmed venison. In the year ending 30 June 2007, the product weight of exported chilled and frozen venison was 24,200 tonnes, valued at $252 million. New Zealand has more than 30 export markets, with the highest returning ones being Germany, Belgium, France, and the United States. Deer farming is generally permitted in most regions, but some species may be farmed in specified areas only. Red, wapiti, and fallow deer are the main farmed species.

Goats In New Zealand goats are farmed commercially for their milk, mohair, and meat, as well as for weed control. Goat numbers have declined in recent years, but niche markets have been developed for milk products and fibres.

Table 18.04. Distribution of livestock
By region
At 30 June 2007

RegionDairy cattleBeef cattleSheepDeerPigs

Note: Figures may not add up to stated totals due to rounding.

Symbol: C confidential

Source: Statistics New Zealand

Northland367,183495,833534,4527,5663,959
Auckland113,344156,787287,58912,304C
Waikato1,669,472676,5842,660,145116,55446,666
Bay of Plenty299,013119,743385,37354,2966,949
Gisborne7,891287,2961,825,49626,6941,857
Hawke's Bay80,200438,3663,624,01888,4087,889
Taranaki589,573136,715656,1444,45618,031
Manawatu-Wanganui393,453680,9606,746,989103,90823,358
Wellington92,787155,9101,822,05715,985C
Subtotal – North Island3,612,9163,148,19418,542,263430,171135,793
Tasman63,84951,428348,48520,632322
Nelson1,8621,2987,639CC
Marlborough23,89965,768578,805CC
West Coast152,48130,27554,09441,755210
Canterbury754,937584,8067,166,822394,833202,008
Otago218,264292,3556,031,166188,10318,709
Southland432,642207,5885,662,387307,5244,303
Chatham Islands011,90568,8160C
Subtotal-South Island1,647,9341,245,42319,918,214965,852230,878
Total New Zealand5,260,8504,393,61738,460,4771,396,023366,671

Meat

Meat products are New Zealand's second-largest export income earner after dairy products, accounting for 14 percent of total New Zealand exports in the year ending 30 September 2007.

New Zealand's main meat exports are lamb, mutton and beef. In the year ending 30 September 2006, New Zealand exported 91 percent of its lamb, 89 percent of its mutton, and 79 percent of its beef production. The domestic market takes all the pigmeat and poultry produced.

New Zealanders ate an average of 105 kilograms of meat per person in the year ending 30 September 2006, 4.8 percent more than in 1996. Between 1996–2006, lamb maintained its share of total consumption, while mutton and beef consumption declined. Red meat consumption, at 47 kilograms per person, dropped 17.5 percent during the decade. Consumption of poultry increased 47.0 percent, to 39 kilograms, while pigmeat consumption increased 18.8 percent, to 19 kilograms.

New Zealand Meat Board

The New Zealand Meat Board is empowered by the Meat Board Act 2004 to establish and operate meat export quota management systems. Its responsibilities involve administration of the beef and veal tariff rate quotas granted to New Zealand as a result of the General Agreement on Tariffs and Trade (GATT) Uruguay Round. This includes sheepmeat, goatmeat, and high quality beef in the European Union (EU), and beef and veal in the United States.

Figure 18.01.

Schedule prices

Some meat processors publish their schedules for 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 Meat and Wool New Zealand and are shown in table 18.05. Schedule prices quoted are inclusive of pelt, slipe wool (wool retrieved from sheepskins at an abattoir or freezing works), and hide payments. The New Zealand production season runs from 1 October to 30 September.

Table 18.05. Average net schedule prices for meat

Classification1997/981998/991999/002000/012001/022002/032003/042004/052005/062006/07

(1) Includes skin and one kilogram wool pull.

Source: Meat & Wool New Zealand

Lamb($)/animal(1)
YL (9.1–13.2kg)27.8525.9833.5041.9443.8842.7339.8143.6335.5234.50
YM (13.3–17.0kg)39.9141.0047.4861.9966.7659.9359.1562.6853.2752.14
YX (17.1–21.3kg)49.5754.0057.9370.1779.2671.7372.7675.1961.0058.70
Mutton($)/animal(1)
MX1 (< 23kg)28.2923.5425.5639.6047.6543.2141.9842.9236.7434.00
MX2 (> 23kg)33.5727.9129.9247.6157.9054.1652.7654.5747.6742.81
Beefcents/kilogram
P2 Steer (270.5–295kg)214.3248.8311.6367.3384.6306.3313.1328.1319.3332.9
M Cow (170.5–195kg)185.6206.2267.4331.5312.5211.7212.2236.5242.6211.4
M Bull (270.5–295kg)229.0262.6325.0372.7382.5277.1288.2309.4304.3308.0

Meat production

New Zealand accounts for 1 percent of global beef and veal production, and 6 percent of global lamb and mutton production. Table 18.06 shows New Zealand's meat production volumes over the decade to 2007.

Table 18.06. Meat production(1)
Year ending 30 September

Carcass type1996199820002001200220032004200520062007
Tonnes (000)

(1) Inspected meat production at meat export works and abattoirs.

Sources: Ministry of Agriculture and Forestry; Deer Industry New Zealand

Beef606609552570554633686629620601
Veal27252020222724232323
Mutton134129106129107113107105104120
Lamb375416433434414433411438438453
Pigmeat50484644454752505151
Deer18202527252835403936
Poultry9199110119135143154163R155153
Total1,3011,3461,2921,3431,3021,4241,4691,4481,4301,437

Meat & Wool New Zealand

Meat & Wool New Zealand is a levy-funded organisation that furthers the interests of New Zealand red meat and wool producers. It works to ensure that New Zealand farmers obtain the best possible long-term return on their investment.

The organisation is involved in market access, market services, and international promotion, providing market support through offices in Wellington, Brussels, London, Tokyo, Washington and Seoul. It also commissions or funds research and development activities, with a major focus on on-farm activities designed to help livestock farmers increase the profitability of their farms.

Meat & Wool New Zealand provides funding for a number of organisations, including the beef, sheep, and goat councils, and provides partial funding for the New Zealand Beef and Lamb Marketing Bureau. The funding for Meat & Wool New Zealand comes from all New Zealand beef, sheep, goat, and wool producers, who pay a levy on all stock slaughtered and on every kilogram of wool harvested.

Auctioneer Peter Grieve takes bids during a Balclutha store lamb sale in December 2007. New Zealand exported 331,030 tonnes of lamb in the 2006/07 season.

Sheepmeat

Lamb exports totalled 331,030 tonnes (shipped weight) in the 2006/07 season, an increase of 19,389 tonnes on the previous season.

Sheepmeat exports to the EU were 192,768 tonnes (shipped weight) in the 2006/07 season, making it New Zealand's largest market, followed by North Asia (50,985 tonnes), North America (50,883 tonnes), the Middle East (32,840 tonnes), and the Pacific (26,592 tonnes).

Under a World Trade Organization (WTO) agreement, New Zealand's sheepmeat exports to the EU in 2008 were subject to a tariff rate quota of 227,854 tonnes carcass weight equivalent.

Mutton exports in the 2006/07 season totalled 69,518 tonnes and were up 22.0 percent on the previous year. The largest markets for mutton were the United Kingdom (15.6 percent), Taiwan (13.7 percent), and Germany (11.3 percent).

Classification of sheepmeat Sheepmeat is classified in the following way:

  • lamb – a sheep under 12 months, or one that does not have permanent incisor teeth

  • hogget – a young male sheep or maiden ewe that has no more than two permanent incisors

  • mutton – a female (ewe) or castrated male (wether) with more than two permanent incisors; a wether must not show any ram characteristics

  • ram – an adult uncastrated male sheep that has more than two permanent incisors.

Beef and veal

New Zealand's largest market for beef and veal is North America, which took 203,616 tonnes in the 2006/07 season, down 8.1 percent on the previous year. Beef and veal exports to the United States were down 14,808 tonnes on the previous year, to 178,033 tonnes.

In 2006/07, beef and veal exports to North Asia, the second-largest market region, fell 4.8 percent on the previous season, to 99,999 tonnes.

Under WTO agreements, 213,402 tonnes (product weight) of New Zealand beef and veal may be exported to the United States annually at a tariff rate of US4.4c/kg on most beef products. Also under the agreements, 1,300 tonnes (product weight) of New Zealand high-quality beef may be exported to the EU annually, at a 20 percent ad valorem duty.

Classification of beef Beef is classified as follows:

  • steers, heifers, cows and bulls – a steer is a male bovine castrated when young. A heifer is a female bovine, with no more than six permanent incisors. Cows have more than six permanent incisors. A bull is an entire (uncastrated) bovine with masculine characteristics

  • bobby calves – bobby veal carcasses are derived from milk-fed bovine calves, generally less than two weeks old

  • veal – maiden female, castrated male, or entire male (not showing masculine characteristics) up to 14 months old.

Table 18.07. Lamb exports to EU
Year ending 30 September

Year($) per shipped tonne
Source: Meat & Wool New Zealand
19985,701
19995,869
20006,461
20017,581
20028,330
20038,211
20048,280
20058,859
20068,283
20078,057

Table 18.08. United States beef prices
At mid March

YearManufacturing bullManufacturing cow
US cents/kilogram
Source: Meat & Wool New Zealand
1998198.3182.8
1999198.3184.0
2000215.9202.7
2001229.1207.1
2002245.6239.0
2003211.5193.9
2004257.8235.7
2005295.2282.0
2006273.2260.0
2007297.4275.4

Meat prices

Lamb exports to Europe accounted for 50 percent of total lamb exports in the 2006/07 season. Table 18.07 shows the dollar value per shipped tonne of lamb exports to the EU. In 2006/07, the value per shipped tonne was $8,057.

Table 18.08 gives a measure of New Zealand export beef prices derived from Meat and Wool New Zealand's weekly price series for imported manufacturing beef in the United States.

Meat exports

New Zealand beef and lamb is exported to more than 100 countries. The country is a major exporter of sheepmeat, accounting for 55 percent of the world export trade. New Zealand's major sheepmeat markets are the EU, North America, and the Middle East.

Compared with sheepmeat, New Zealand is a smaller – but significant – player in the global market for beef, accounting for 8 percent of all world export beef trade. North America and North Asia are New Zealand's major markets for beef.

Table 18.09. Livestock slaughter
At meat export works and abattoirs
Year ending 30 September

Animal200220032004200520062007
Number of animals (000)

(1) Includes condemned carcasses.

(2) Excludes condemned carcasses.

Sources: Ministry of Agriculture and Forestry; Deer Industry New Zealand

Lambs(1)24,70325,69323,83325,05325,79526,948
Sheep(1)4,6534,8804,4464,3124,2795,070
Adult cattle(1)2,1772,4862,6682,4222,3382,292
Calves and vealers(1)1,3561,6071,4601,3801,3891,369
Pigs(1)709748786765756741
Deer(2)465550678762711607

Table 18.1. Export meat production
Year ending 30 September

Meat200220032004200520062007
Shipping weight (tonnes)

(1) From 2004, variety meats and inedible meats and offal were combined into one category.

Symbol:... not applicable

Sources: New Zealand Meat Board; Meat & Wool New Zealand

Lamb286,556297,527294,642301,759311,641331,030
Mutton52,63556,98157,03459,15657,00469,518
Beef331,623361,607407,584374,264361,089340,825
Bobby veal11,99712,63217,24915,94311,89111,521
Goat1,2241,1841,2661,1521,079985
Variety meats(1)54,12161,46071,91367,87264,61265,650
Inedible meats and offal2,4494,266............
Total738,491831,470849,688820,146807,316819,529

Wool

New Zealand sheep are largely dual-purpose, wool/meat animals, and their wool is predominantly strong wool.

New Zealand is the world's largest producer of crossbred (strong) wool, used mainly for interior textiles such as carpets, upholstery, furnishings, bedding and rugs. It is also used for hand-knitting yarn, knitwear and blankets. It is estimated that 42 percent of New Zealand wool is used in machine-made carpets, and 10 percent in hand-knotted and hand-tufted carpets. The rest is used primarily for upholstery and bedding. Uses vary markedly among importing countries.

Net domestic consumption of wool in New Zealand is among the highest in the world on a per person basis.

Wool production

Although New Zealand's sheep flock ranks fifth-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.

Jordan Fitzgibbon picks up a fleece during the sheep shearing contest at the Cheviot Agricultural and Pastoral (A&P) Show, in March 2008. Most of New Zealand's wool is crossbred (strong), which is used mainly for interior textiles such as carpets.

Wool marketing

In the year ending 30 June 2007, the proportion of shorn wool production sold at auction was 47 percent, while 53 percent was sold by private treaty.

On a clean basis, shorn wool sales totalled 138,999 tonnes (excluding slipe, the wool retrieved from sheepskins) in the year ending 30 June 2007. Sales consisted of 89 percent crossbred wool, 5 percent merino, 4 percent mid-micron wool, and 2 percent dag wool (wool clotted with dung, shorn from the hindquarters).

The shorn wool price for 2006/07 was up 1.4 percent on the previous year. This increase was driven by a sharp 28 percent price rise for fine wool and a 9 percent rise for mid-micron wool, while strong wool prices fell 3 percent. In 2006/07, Australia's drought reduced sheep numbers to 94 million, the lowest level since 1925, which reduced the wool supply and subsequently affected fine and mid-micron wool prices. Mid-micron prices followed the finer end of these clips because this wool is used as a substitute for fine wools when they are in short supply.

About 79 percent of the New Zealand wool clip leaves the country in greasy or scoured form. Of the 21 percent of the clip processed in New Zealand, roughly half is exported in product form, mainly as carpet yarn, carpets, or knitted jerseys.

Wool export earnings

Raw wool and wool product export receipts decreased from $997 million in the year ending 30 September 2006 to $938 million in the 2007 year.

Raw wool exports decreased from $685 million to $655 million, the result of a 5 percent fall in the volume of exports.

Table 18.11. Export destinations for New Zealand wool
Year ending 30 September

Region20032004200520062007
Clean tonnes
Source: Meat & Wool New Zealand
European Union56,36957,27057,70559,21957,666
Northern Asia36,53237,76835,65143,50838,550
Southern Asia18,48118,27119,80520,31821,627
Pacific11,4869,5578,4896,5906,296
Mediterranean4,1133,9643,2724,7425,511
Middle East5,5435,1534,9505,2094,579
North America6,0726,1775,4704,7233,984
Eastern Europe1341875581,6631,308
Africa612421967900690
South America55948712994209
Western Europe365294161351166
Total140,266139,549137,157147,317140,586

Table 18.12. Wool production
Year ending 30 June

YearFlock sizeSlipe(1) greasyShorn greasyTotal greasyShorn greasy yield
MillionTonnes (000)Kg/sheep

(1) Slipe is the wool retrieved from sheepskins.

Source: Meat & Wool New Zealand

200339,57232.2197.4229.64.99
200439,55225.9191.8217.74.85
200539,27128.4187.1215.54.76
200639,88025.7198.9224.64.99
200740,09830.0186.3216.34.65

For the year ended 30 September 2007, the European Union took 41 percent of New Zealand's wool exports, a decrease of 2.6 percent. Northern Asia was the second-largest destination region, taking 27 percent, with the majority (22 percent) destined for China. In 2007, exports to China were down 13 percent on the previous year. India accounted for 11 percent of all wool exports in 2007, which was up 11 percent on the previous year.

Table 18.13. Wool export earnings
Year ending 30 September

Product20032004200520062007
$(million) fob(1)

(1) Free on board at point of loading.

Note: Figures may not add up to stated totals due to rounding.

Source: Meat & Wool New Zealand

Raw wool817.4726.1662.9685.4655.1
Tops, yams and sliver131.5131.1137.2141.2131.0
Carpets and rugs155.3138.0132.6129.9108.8
Other final woollen products42.446.443.740.843.3
Total1,146.51,041.6976.4997.3938.2

Dairy produce

Dairy products, at $8.6 billion, made up 23.6 percent of the value of New Zealand's total merchandise exports in the year ending 31 December 2007. With the exception of the milk and other dairy products used for domestic local consumption, the dairy industry is primarily geared towards overseas markets, which account for more than 90 percent of all milk produced.

There are four major product groups manufactured from liquid whole milk by New Zealand dairy factories:

  • milk powders, such as whole milk powder, skim milk powder, and buttermilk powder

  • cream products, such as butter, anhydrous milkfat and ghee

  • cheese

  • milk protein products, such as casein and caseinates.

Liquid whole milk can be broken down into three chief components: milkfat, solids-non-fat (principally protein), and water. Whole milk powder is manufactured directly from the liquid whole milk, without separation of the cream. Skim milk powder is made from skim milk after the cream (milkfat) has been separated from the liquid whole milk. Buttermilk powder is made from buttermilk, a by-product of the butter manufacturing process.

Most 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 type, although the manufacture of speciality cheese types has shown considerable growth in recent years.

Milk proteins are derived from the by-products of skim milk, and also from the by-products of other dairy product manufactures such as cheese.

Dairy organisations

At the end of the 2006/07 dairy season (31 May 2007), collection and processing of most of New Zealand's milk was being carried out by three cooperative dairy manufacturing companies, operating from 24 sites. However, one independent dairy processor had established itself on a small scale.

Cooperative dairy companies are governed by boards of directors elected by supplying farmers, with provision for the appointment of a small number of non-farmers noted for their commercial expertise. The cooperatives use funds supplied as share capital by their farmers.

The cooperative dairy companies produce nearly all dairy products manufactured in New Zealand. The companies convert approximately 15 billion litres of milk into nearly 2 million tonnes of dairy products annually. More than 90 percent of this is exported. The balance is consumed in the domestic market.

In addition to the three cooperatives, about 20 smaller private dairy companies produce up to 20,000 tonnes of cheese a year. There are also several ice cream manufacturers.

Dairy Companies Association of New Zealand was formed in 2003 by New Zealand's leading dairy companies. Its membership includes Fonterra Co-operative Group, Tatua Co-operative Dairy Company, Westland Milk Products, Goodman Fielder, Open Country Cheese, New Zealand Dairies, and Gisborne Milk. It represents the joint interests of New Zealand dairy companies on domestic and international policy issues, a role previously undertaken by the New Zealand Dairy Board, before deregulation of the industry and the formation of Fonterra in 2001. The general activities of the association are funded by membership subscription, with special activities funded according to a proportional formula.

Fonterra Co-operative Group is New Zealand's largest company, earning revenues of $13.9 billion in the year ending 31 May 2007 from national and international sales of dairy commodities, specialty ingredients, food service products, and branded consumer products.

It is the fifth-largest dairy company in the world by turnover. The cooperative has assets of $12.6 billion, and is owned by nearly 11,000 New Zealand dairy farmers, who supplied nearly 15 billion litres of milk in the 2006/07 season. Payment for milk is made on a per kilogram of milk solids (kgMS) basis. For the 2006/07 year, Fonterra paid out $5.6 billion ($4.47 per kgMS) to farmers, made up of $4.8 billion in the milk price, and $728 million in value returns. A further $52 million was paid in premium payments for the supply of autumn milk, organics, stolle (milk obtained from cows that are immunised to induce the formation of antibodies in their milk), colostrum (milk taken from the first four milkings after calf birth), and winter milk.

In the 2006/07 year, Fonterra earned $9.8 billion from dairy commodities and ingredients, and $4.0 billion from consumer sales. The cooperative manufactured 2 million tonnes of dairy commodities in New Zealand for international sale, and sold 2.8 million tonnes – including product sourced in other regions (Australia, South America, North America and Europe).

Fonterra has four sales channels:

  • Fonterra Global Trade – is the world's largest supplier of bulk dairy commodities to the globally traded markets, with sales primarily to Asia, the Middle East, Africa, Latin America, and Oceania

  • Fonterra Ingredients – sells dairy ingredients in the United States, Western Europe, Japan, and the Republic of Korea. Sales include dairy products as well as more specialised ingredients. It also sells solutions for largely dairy-based food applications, drawing on the work of Fonterra's research and development programmes, and its technical teams

  • Fonterra Brands – produces, markets, and sells dairy products to consumers in 40 countries, with around half of its business concentrated in Australia and New Zealand. Its $1.1 billion brand portfolio includes Anchor™, Anlene™, Anmum™, Mainland™, Tip Top™, Peters & Brownes™ and Soprole

  • Fonterra Foodservices – meets the needs of food service customers around the world for branded consumer goods, as well as core ingredients and ready-to-use products. The business has a geographic focus in Asia-Pacific and has many leading fast-food chains as customers.

In addition to its sales channels, the cooperative includes:

  • Fonterra Group Manufacturing – is responsible for all of Fonterra's New Zealand and global manufacturing sites

  • Fonterra Milk Supply – is the interface with shareholders and suppliers, including milk collection and payment

  • Fonterra Shared Services – handles human resource, strategy, finance, legal, and communications functions.

Fonterra has a number of global joint ventures and investments. These include joint ventures with Arla in Europe, Nestle in South America, Dairy Farmers of America in the United States, and Campina in DMV Fonterra Excipients, a global manufacturer of pharmaceutical lactose. Fonterra's investments include a 43 percent shareholding in one of China's leading dairy companies, San Lu, and a majority shareholding in Chile's leading consumer dairy business, Soprole.

Fonterra has around 16,000 global employees and represents 20 percent of New Zealand's total exports.

Westland Milk Products is an independent cooperative dairy company owned by 327 farmer shareholders. It is located in Hokitika, on the west coast of the South Island. The company processes more than 450 million litres of milk annually into a diverse range of dairy ingredients for nutritional, food, and beverage applications. The products include milk powders, milkfat products (butter and anhydrous milkfat), and milk protein products (casein, milk protein concentrate, and whey protein concentrate), as well as colostrum powder. The products are marketed both nationally and internationally.

Tatua Co-operative Dairy Co Ltd is an autonomous, independent dairy company in the Waikato and is owned entirely by 112 farmer shareholders. The company was established in 1914 and is the only dairy cooperative remaining in New Zealand that has never been part of an amalgamation. Tatua's factory is located at Tatuanui, 35 kilometres east of Hamilton. The company has four divisions:

  • Tatua Foods – makes ultra-heat-treated (UHT) sterilised liquid food products. These include aerosol-canned cream, bag-in-box whipping cream, cheese sauce, liquid pre-mixes (for milkshakes and sundaes) and UHT chocolate milk

  • Tatua Nutritional Ingredients – makes products that include a variety of proteins, protein hydrolysates, and bioactive peptides, which are suitable for applications in specialist nutrition and healthcare products

  • Tatua Bionutrient Ingredients – specialises in the manufacture of purified proteins and peptones, customised for biopharmaceutical applications

  • Tatua Flavour Ingredients – focuses on the production of specialist dairy flavour ingredients for the global food and beverage industry.

Open Country Cheese Ltd is an independent public company with more than 300 shareholders that was set up following deregulation of the New Zealand dairy industry in 2001. It produces quality semi-hard to hard dry-salted cheeses for domestic and world markets at its state-of-the-art plant at Waharoa. High quality milk is sourced from 140 farms, located in the intensive dairy farming area of the eastern Waikato.

Open Country Cheese produces around 20,000 tonnes of cheese, including cheddar, colby, gouda, edam, havarti, kahui and goya. The company also produces WPC34 (whey protein concentrate), anhydrous milkfat, and skim milk powder. A whole milk powder plant is under construction, and it will produce 30,000 tonnes of whole milk powder a year.

The company's export markets include Australia, Asia, Latin America, the United Kingdom, North Africa and the Middle East.

Overseas marketing

New Zealand's dairy industry is primarily geared towards overseas markets, which account for more than 90 percent of all milk solids produced. However, the international market for dairy products is characterised by its small size, relative to total world milk production. Less than 10 percent of total world production is traded internationally.

Because of this, the market is especially vulnerable to shifts in climatic, commercial, and political forces. Marginal production changes by major producers can trigger major 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 about 90 percent of dairy products traded on the international market.

In the year ending 31 December 2007, the United States, Japan, Australia, the EU, and South-East Asia were New Zealand's most valuable destination markets for dairy produce.

Pigs, poultry, eggs and bees

Pigs

In the year ending 30 September 2007, domestic pork production, in terms of the number of pigs slaughtered, was 741,046 pigs. There was an increase in kill weight, with the average carcass weighing 67.7 kilograms, compared with 67.0 kilograms in the 2006 year. The per-person consumption of pork reached 21.4 kilograms in the 2007 year, an increase of 0.8 kilograms on the previous year.

The demand for 90,617 tonnes of pork in the domestic market in 2007 (up 6 percent on the previous year) was fulfilled by the supply of 50,183 tonnes of domestic pork, and 40,434 tonnes of imported pork.

New Zealand Pork Industry Board is a statutory body operating under the Pork Industry Board Act 1997. The board's mission is to help producers make ‘More Profit from Pork’. In delivering on this mission, the board focuses its investments in five key areas: increasing demand for New Zealand pork, increasing supply while reducing the cost of production, improving value chain effectiveness, securing industry sustainability, and developing industry capability and profile.

Board funds come from a levy on pigs slaughtered at licensed premises. The board has five directors – four elected by producers and one appointed by the government.

Poultry

New Zealanders now consume more chicken than any other type of meat. In 2006, consumption of poultry was 36.5 kilograms per person. Production has increased to meet this demand – in 2006, the New Zealand poultry industry produced just over 145,000 tonnes of chicken meat from 84.1 million chickens. Over three-quarters (78.3 percent) of all chicken sold is fresh chicken, with the remainder being frozen. It is expected that current poultry production and consumption levels will continue.

The four largest poultry meat producers in New Zealand, producing over 99 percent of poultry meat, are: Tegel Foods Ltd, Inghams Enterprises (NZ) Pty Ltd, PH van den Brink Ltd, and Turks Poultry Ltd.

Free-range chickens enjoy the sunshine and the freedom to scratch in the soil. There is an increasing demand for free-range poultry products.

The New Zealand poultry industry is unique in that it is largely dominated by chicken. Other countries have a heavier emphasis on other poultry species, such as turkey or duck, but chicken's market share in New Zealand has not slipped below 98 percent in the decade to 2006.

The Poultry Industry Association of New Zealand (PIANZ) represents the interests of the poultry processing and breeding companies in New Zealand. Membership is voluntary, but over 99 percent of the country's production is represented by PIANZ.

PIANZ promotes and protects the interests of its members by liaising with government and government departments, and securing representation before boards, committees, and commissions constituted under acts or regulations of the government. Other roles of PIANZ include: coordinating research and development relating to the industry, generic promotion of poultry meat, livestock breeding and development, technical training related to the industry, collection and circulation of technical information and statistics, and general public relations.

Eggs

New Zealand currently has around 130 commercial egg producers, with the largest 20 producers accounting for over 75 percent of total production. With an estimated flock of 3.1 million laying hens, 75 million dozen eggs were produced in 2006 – 900 million eggs in total.

Total egg production in New Zealand has slowly risen over the past decade, due to an increase in demand. In 2006, New Zealanders consumed an average of 218 eggs per person – higher than Australia, Canada, Brazil, and the United Kingdom.

The Egg Producers Federation of New Zealand represents the interests of all commercial egg producers in New Zealand. Membership is mandatory under the Commodity Levies (Eggs) Order 2004 – any person or organisation purchasing 100 or more day-old layer chicks automatically becomes a member. The federation is funded by a levy incorporated into the price of the chicks, and is payable on chicks up to five days old when sold for the first time.

The majority of the federation's levy (75 percent) goes towards funding Eggs Inc – an organisation responsible for the promotion of eggs.

Bees and beekeeping

Honey bees have been kept in New Zealand for nearly 170 years, and in that time beekeeping has moved from being a home craft to a progressive industry. New Zealand is now recognised as one of the most advanced beekeeping countries in the world.

Mary Bumby, the sister of an English missionary, was the first person to successfully ship honey bees to New Zealand when she brought two basket hives (skeps) of bees into Northland in 1839. More than 100 years later, in 1950, beekeeper numbers peaked at 7,000, although they collectively owned only about 150,000 hives, or less than half of today's number.

Table 18.14. Pig numbers
At 30 June

YearBreeding sows and mated giltsOther pigs of all ages (including boars)Total pigs

(1) Use caution when making comparisons using 1999 data. In this year, the survey population was drawn from a different sample.

Note: Pig numbers were not counted in 1997, 1998, 2000 and 2001.

Sources: Statistics New Zealand; NZ Pork Industry Board

199458,65364,701422,766
199559,250371,755431,005
199657,065367,009424,074
1999(1)60,626308,261368,887
200246,706295,309342,015
200349,381327,868377,249
200448,453340,187388,640
200542,598298,867341,465
200643,306312,195355,501
200746,911319,760366,671

Table 18.15. Chicken production
Year ending 31 December

YearBirds (number)Dressed weight (tonnes)FreshFrozen
Percent
Source: Poultry Industry Association of New Zealand
19976,74988,90466.233.8
199864,66797,12064.630.2
199963,945100,08570.729.3
200067,067108,92971.229.0
200169,361115,78673.726.3
200277,357130,51973.426.6
200380,728138,69775.424.6
200487,570151,49777.122.9
200588,766154,98280.020.0
200683,214144,63478.321.7

Beekeeper John Graham checks his hives at Bennies Honey, in Ranfurly. In January 2008, queens and brood bees were stolen from his hives in Central Otago by modern-day rustlers.

Table 18.16. Honey production
Year ending 31 December

YearBeekeepersApiariesHivesHoney production
NumberTonnes
Source: AsureQuality Limited
19985,35623,27298,9218,081
19994,91421,793302,9889,069
20004,95622,443320,1139,609
20014,53921,304314,0949,144
20023,97320,258305,1524,682
20033,59620,153300,84112,252
20043,21119,592292,5308,888
20052,74319,115297,6059,689
20062,69418,954300,72810,423
20072,60219,228313,3999,666

During the late 1970s and early 1980s, there were large changes in the beekeeping industry. The centralised Honey Marketing Authority ceased operation, and private individuals and companies began exporting honey products. The number of hives increased by more than 50 percent to 335,000, spurred on by the demand for paid pollination services, especially from the kiwifruit industry. However, since then the number of beekeepers and hives has decreased to the point where, in 2007, there were 2,602 registered beekeepers owning 313,399 hives (see table 18.16). The trend for fewer beekeepers to own more hives continues.

Increases in the price of honey and other bee products, live bees, and pollination services have helped many beekeepers cope with increased costs and the loss of hives due to the varroa pest (see below). AsureQuality Ltd assessed the total saleable honey crop for 2007 at 9,666 tonnes (30.8 kilograms per hive), compared with the six-year average of 9,267 tonnes (30.6 kilograms per hive). Both the best and the worst honey seasons in recent history have occurred since varroa arrived in New Zealand.

Other products such as deer velvet, bee venom, dried fruit, pollen, and royal jelly can be blended with honey to add value.

All operators who handle, process, or store bee products, and who wish to export with an official assurance (export certificate), or supply product to an exporter, must operate under a risk management programme. Such programmes help assure customers that the products are fit for the purpose, and meet importing country requirements.

The industry also markets beeswax, propolis (an antibiotic gum or resin from plants), pollen, and live bees, which include package bees and queen bees. Package bees are ventilated containers with around 1 kilogram of bees, a queen bee, and a food supply. The spread of bee pests and diseases, as well as the aggressive Africanised honey bee, throughout other bee-keeping countries, has increased the demand for bees from New Zealand. Annual exports of live bees are around 20,000–25,000 queen bees, and 20,000kg of package bees, mainly to Canada.

New Zealand beekeepers provide a commercial pollination service to growers of tree and berry fruit, kiwifruit, cucurbits (squash and melons), and small seeds. About 100,000 hives are moved for pollination each season, and this business is becoming more important each year as feral (wild) hives are reduced or eliminated by the varroa mite (see below). The real value of beekeeping is now in pollinating plants rather than producing apiculture products.

Manuka honey In 1992, Waikato University researchers confirmed that manuka honey was unusually effective as an antiseptic dressing for wounds and burns. As a result, both the demand and the price for manuka honey have risen dramatically. Some beekeepers are ‘renting’ large tracts of land with manuka on it, while others have entered into profit sharing arrangements with landowners. In addition some large exporting companies are buying beekeeping operations and even planting manuka to secure their supply lines.

Varroa In April 2000, the serious bee mite Varroa destructor was found in Auckland and has since spread throughout the North Island. Attempts were made to keep it out of the South Island, but in June 2006 the mite was found in Nelson. The mite, if left untreated, kills honey bee colonies. While it can be controlled using miticides and some organic acids, these can be expensive to buy or apply. Many hobby beekeepers have decided not to continue.

After varroa became established in Nelson, the Varroa Agency Incorporated revoked the varroa pest management strategy. Movement controls remain in place for risky goods from the North Island to the South Island, and also out of the Nelson-Blenheim region. These controls are now administered by MAF Biosecurity New Zealand.

The National Beekeepers' Association This voluntary organisation is supported by fee-paying members. It represents the interests of beekeepers to government, and coordinates a national response on issues affecting their industry. The association also levies all beekeepers under the Biosecurity Act 1993, to pay for its American foulbrood pest management strategy. Another organisation, the Bee Industry Group, is a member of New Zealand Federated Farmers, and also represents beekeeping interests.

Horticulture

Although pastoral farming dominates land use in New Zealand, there have been significant increases in areas planted in horticulture and crops. Major crops for the export market include kiwifruit, pipfruit, stone fruit, onions, squash, flowers and berry fruit. Increasing volumes of grapes are grown for the rapidly-expanding export wine market.

Grain, vegetable and seed crops

Stock feed Animals can be grazed in open pasture in New Zealand for the full 12 months of the year. 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 feed is necessary in the drier summer months.

Hay and silage crops are grown almost exclusively on the farms where they are consumed, and some districts specialise in growing other supplementary feed crops, such as maize in the Waikato and Manawatu-Wanganui regions. The bulk of supplementary food, other than grass and clover, hay and silage, and maize, is grown in the South Island, since the colder climate necessitates more extensive supplementary feeding there than is needed in the North Island.

Table 18.17. Horticultural exports
By value and as a proportion of total
Year ending 3 June

Type2003200420052006200720032004200520062007
$(million)Proportion of total (percent)

(1) Value excludes confidential data for latest period.

Note: Figures may not add up to stated totals due to rounding.

Source: Statistics New Zealand

Fresh fruit1,0191,2331,1891,1401,20058.763.563.661.360.6
Processed fruit80891021001054.64.65.45.45.3
Fresh vegetables24621719920426014.211.210.711.013.1
Processed vegetables27528525728529715.814.713.715.315.0
Seeds and bulbs54566071633.12.93.23.83.2
Cut flowers and foliage40393839432.32.02.12.12.2
Plants and sphagnum moss(1)23232419121.31.21.31.00.6
Total horticultural exports1,7371,9431,8711,8581,981100.0100.0100.0100.0100.0

Wheat New Zealand wheat is primarily grown for domestic human consumption. The best quality wheat is milled into flour for breadmaking. Other wheat grain is milled for biscuit manufacturing and similar uses. The by-products of flour milling, bran and pollard, are used for stock feed. Most wheat is grown in the Canterbury region.

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.

Maize Primarily grown in the Waikato and eastern North Island, maize grain is used as poultry feed and, increasingly, as a supplementary feed for pigs and other livestock, such as dairy cattle. Maize silage and green feed are also used as supplementary feed for cattle.

Oats Grown mainly for threshing and green feed, oats are also used to produce milled rolled-oats, oatmeal, and other oaten foods. The main growing areas for oats are Canterbury and Southland.

Vegetables More than 50 different types of vegetables are grown in New Zealand for fresh consumption or for processing. In recent years there has been an increase in the range and volume of Asian vegetable varieties for local consumption.

Vegetable growers in New Zealand farm over 50,000 hectares and employ 25,000 people. The fresh vegetable sector has about 1,450 growers whose crops had an estimated farmgate value of over $400 million in 2007. There are also around 750 growers who grow vegetables for processing in New Zealand. They produced crops worth more than $100 million in 2007.

In 2007, fresh vegetables with a value of $260 million, and processed vegetables worth $297 million, were exported to 76 countries. Onions and squash dominated fresh vegetable exports, with sales values of $121 million and $66 million, respectively. Potatoes, sweetcorn and peas were the main exports of processed and frozen vegetables.

Seed certification AsureQuality Ltd operates a seed certification scheme covering all main herbage and arable species, and participates in the Organisation for Economic Co-operation and Development's seed scheme. New Zealand-certified seed is exported to European Union countries, countries of the Pacific Basin, and North and South America.

Fruit

Stone fruit Fruit in this category includes apricots, cherries, peaches, nectarines, and plums. The New Zealand summer fruit (stone fruit) industry consists of around 400 growers on 3,000 hectares. The main production areas are Hawke's Bay and Central Otago. While Hawke's Bay produces the bulk of the summer fruit consumed on the New Zealand market, the export crop is almost exclusively produced in Central Otago.

The New Zealand market consumes 75 percent of the summer fruit product. With the continued shrinking of production in Marlborough, Hawke's Bay is now emerging as the main producer of pre-Christmas cherries for consumption in New Zealand.

Key export markets are Taiwan, Australia, and the United States, with the Republic of Korea and Thailand emerging as promising markets for cherries. On average, apricots account for 50–60 percent of exports, and cherries for around 45 percent. Very few peaches, nectarines and plums are exported. Processing of peaches and apricots accounts for approximately 5 percent of the market.

Summerfruit New Zealand This organisation is funded predominantly by a commodity levy. The levy funds used in research and development are targeted towards eliminating waste from production and developing sustainable systems for producing quality fruit.

Pipfruit In January 2003, New Zealand's largest exporter, ENZA, merged with Turners and Growers to create a produce marketer of global significance. While the company retains the Turners and Growers name, exports remain under their own distinctive brands. Turners and Growers exports to more than 50 countries, with most of its product going to Europe, the United Kingdom, and the United States. About 30 varieties of apples and pears are sold under the ENZA brand.

Table 18.18. Pipfruit exports
Year ending 30 September

Fruit20032004200520062007
Tray carton equivalents (18kg)
Sources: New Zealand Customs Service; Pipfruit New Zealand
Apples17,766,78917,899,15018,482,24514,767,11316,371,630
Pears300,000292,816298,503264,335308,691
Total pipfruit18,066,78918,191,96618,780,74815,031,44916,680,321

Kiwifruit This fruit is New Zealand's most important horticultural export earner. New Zealand is a major world supplier of kiwifruit and has led the development of the global industry.

ZESPRI International Ltd is a consumer-driven, grower-owned company, dedicated to the global marketing of kiwifruit. It is one of New Zealand's leading exporters, earning in excess of $1 billion in 2006. With global headquarters in New Zealand and a network of offices in Europe, North America, Asia, and the Pacific, ZESPRI is the biggest marketer of kiwifruit in the world and is acknowledged as the world leader in innovation, quality and marketing. ZESPRI sold more than 80 million trays of New Zealand kiwifruit in around 60 countries in 2006. Sales were focused in five major markets: Europe (56 percent), Japan (20 percent), East and South-East Asia (13 percent), North America (5 percent), and developing markets – which include the domestic market, as well as Australia, the Middle East, the Indian Ocean region, and Far East Russia.

While New Zealand growers supply about one-quarter of world production, kiwifruit generally accounts for less than 1 percent of world fresh fruit production. Kiwifruit is produced in many regions of New Zealand's North Island, as well as in the north of the South Island. The Bay of Plenty, with more than 82 percent of production, is the major growing area. There are about 2,700 kiwifruit growers in New Zealand, and a further 1,273 around the world. Annual kiwifruit plantings and sales since 1997 are shown in table 18.20.

Nine-year-old William Craig, a pupil at Ponsonby Primary School, takes a closer look at the new fruit sensation, the Flatto. The flat peach was grown in Central Otago by the Yummy Fruit Company in the summer of 2007/08.

Grape growing and wine production The area planted in production grapevines increased from 11,648 hectares in 2001, to 25,355 hectares in 2007. The major grape-producing areas are Marlborough (11,488 hectares), Hawke's Bay (4,346 hectares), and Gisborne (1,913 hectares). The 2007 season produced 205,000 tonnes of grapes, the most popular varieties being sauvignon blanc (102,426 tonnes), chardonnay (38,792 tonnes), and pinot noir (20,699 tonnes). The number of wineries in New Zealand increased from 262 in 1997, to 543 in 2007.

Table 18.19. Area planted in fruit(1)
At 30 June

Fruit1994199519962000(2)2002200320052007Main regions
Hectares

(1) Area planted in fruit was not counted in the 1997, 1998, 1999, 2001, 2004 and 2006 agricultural surveys.

(2) Use caution when making comparisons using 2000 data, as a different survey population was used.

(3) Areas of grapes planted for activities classified to winemaking are not included.

Symbol: S suppressed due to poor statistical quality.

Source: Statistics New Zealand

Citrus
Grapefruit/goldfruit11611711511782714841Auckland, Bay of Plenty
Lemons263S330339364362334332Northland
Mandarins619654637946911832675691Northland, Gisborne
Oranges789757607597573S541681Gisborne, Northland
Tangelos29531623016716312910389Gisborne
Pipfruit
Apples15,25715,91615,81914,11411,71712,15010,9829,247Hawke's Bay, Tasman
Pears1,2791,2661,151958952906719694Hawke's Bay, Tasman
Nashi (Asian pears)418413313185119128S97Waikato, Tasman
Stone fruit
Apricots844831735759636597480457Otago
Nectarines667705559618528503433377Otago, Hawke's Bay
Peaches714738756725808730547527Hawke's Bay
Plums342336303408394S333413Hawke's Bay
Cherries274353339535550569524520Otago, Marlborough
Berry fruit
Blackcurrants7207146148341,308S1,3111,275Tasman
Blueberries357377280348450449567522Waikato
Boysenberries231222227263239238196334Tasman
Raspberries199SS254302204190150Tasman, Canterbury
Strawberries331SS384311S219216Auckland
Subtropicals
Avocados1,3751,5881,5732,6463,1063,2353,4004,004Bay of Plenty, Northland
Feijoas161S138217198S181251Auckland
Kiwifruit12,17411,87311,64012,18411,84112,27112,07113,250Bay of Plenty
Tamarillos299249188297270S206194Northland, Bay of Plenty
Passionfruit5454416670S6647Bay of Plenty
Grapes (outdoor)(3)7,1607,3827,62712,66517,30019,64624,79329,616Marlborough, Hawke's Bay, Gisborne
Persimmons412428361384282S195180Auckland

Table 18.2. Kiwifruit production
Year ending 31 March

YearArea (hectares)Trays submitted(1)Trays sold
Million

(1) This is the number of trays received from registered suppliers; ‘trays sold’ is the final sales number. The difference is the fruit loss in transit.

Source: ZESPRI International

199710,24360.656.2
199810,01560.359.7
199910,23452.351.8
200010,15963.761.5
200110,10066.365.1
200210,37662.261.3
200310,58065.164.6
200410,93481.579.7
200511,46484.782.3
200611,96781.180.1

Exports of wine increased from 22.3 million litres (worth $246 million) in 2002, to 76.0 million litres (worth $698 million) in 2007. The United Kingdom, which imported 27.6 million litres of wine (worth $227 million) in the year ending 30 June 2007, was New Zealand's major export market. The United States and Australia are vying for second place. The United States imported 18.7 million litres (worth $176 million) and Australia imported 18.6 million litres (worth $180 million) in the June 2007 year.

Table 18.21. Wine industry statistics
Year ending 30 June

 1998199920002001200220032004200520062007

(1) Total domestic sales of New Zealand-made wine divided by the total population of New Zealand.

Source: New Zealand Winegrowers

Number of wineries293334358382398421463516530543
Producing area (hectares)7,5809,00010,19711,64813,78715,80017,80920,00222,61625,355
Average yield (tonnes per hectare)10.38.97.86.18.64.89.16.98.28.3
Crushed (tonnes)78,30079,70080,10071,000118,70076,400165,500142,000185,000205,000
Total production (million litres)60.660.260.253.389.055.0119.2102.0133.2147.6
Domestic sales (million litres)38.238.441.336.232.635.335.545.050.051.0
Consumption per person (litres NZ wine)(1)10.110.110.69.38.38.88.811.212.112.2
Export volume (million litres)15.216.619.219.223.027.131.151.457.876.0
Export value ($million)97.6125.3168.6198.1246.4281.9302.6434.9512.4698.3

Contributors and related websites

AsureQuality Ltd – www.asurequality.com

Dairy Companies Association of New Zealand – www.dcanz.com

Egg Producers Federation of New Zealand (Inc) – www.eggfarmers.org.nz

Fonterra – www.fonterra.com

Meat & Wool New Zealand – www.meatandwoolnz.com

Ministry of Agriculture and Forestry – www.maf.govt.nz

National Beekeepers' Association of New Zealand – www.nba.org.nz

New Zealand Food Safety Authority – www.nzfsa.govt.nz

New Zealand Meat Board – www.nzmeatboard.org

New Zealand Pork Industry Board – www.pork.co.nz

New Zealand Winegrowers – www.nzwine.com

Open Country Cheese Company Ltd – www.opencountry.co.nz

Poultry Industry Association of New Zealand – www.pianz.org.nz

Statistics New Zealand – www.stats.govt.nz

Summerfruit New Zealand – www.summerfruitnz.co.nz

Tatua Co-operative Dairy Company Ltd – www.tatua.com

Turners and Growers – www.turnersandgrowers.com

Varroa Agency Inc – www.varroa.org.nz

Westland Milk Products – www.westland.co.nz

ZESPRI International – www.zespri.com

Chapter 19. Forestry and fishing

The Marlborough Mussel Company's Intrepid harvests mussels from a farm in Kenepuru Sound. Shellfish are grown using either suspended long-line ropes, inter-tidal trays, or baskets. The high quality of New Zealand's coastal waters and an abundance of plankton, along with sheltered harbours and inlets, create ideal conditions for shellfish aquaculture.

Forestry

Forests cover around 30 percent, or 8 million hectares, of New Zealand's land area. Of this, about 6.2 million hectares are indigenous forests and 1.8 million hectares are planted production forests. In addition to tall forests, there are 2.7 million hectares of shrublands, some of which are reverting to indigenous forest.

Of the total planted production forest estate, 89 percent is radiata pine (Pinus radiata) and 6.3 percent is Douglas fir (Pseudotsuga menziesii).

Hardwoods make up 2.7 percent of planted production forests, with eucalyptus species being the most important.

Although radiata pine is the principal plantation species, its properties make it is unsuitable for some uses, especially where decorative features, dimensional stability and surface hardness are important. Coupled with the declining supply of timber from indigenous forests, this has resulted in special-purpose species such as blackwood (Acacia melanoxylon), macrocarpa (Cupressus macrocarpa) and black walnut (Juglans nigra) being established to meet specialist markets.

The average annual new planting rate in the 30 years to 2006 was 42,000 hectares. Between 1992 and 1998, new planting rates were high, averaging 69,000 hectares a year. However, since 1998 new planting has declined, with the 5,000 hectares planted in 2006 being the lowest amount since 1959.

Resources

Indigenous forests New Zealand's 6.2 million hectares of indigenous forests are mainly in mountain lands, particularly on the West Coast of the South Island. The forests contain more than 2,450 species of trees, shrubs and smaller plants. Tree species in these complex forests are beech, rimu, kauri, taraire and tawa.

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. The forests are notable for their recreational, scientific, historical and scenic value, as well as for being a key part of New Zealand's ecological environment. The main threats to the forests are introduced animals and plants, and an increasing demand for access and recreational opportunities.

Students at Auckland's Sunderland Primary School, Kylan Phillips (left), Jonathan Boulter, and Samuel Dobrec, have propagated kahikatea seedlings which they will donate back to New Zealand forests. Less than 1 percent of New Zealand's total forest production is from indigenous forests.

The Crown owns about 83 percent of indigenous forests, with the rest in private hands.

The Forest Act 1949, amended in 1993, promotes sustainable management of privately-owned indigenous forests. This means the forests are managed in a way that provides products and amenities in perpetuity. The Act does this by requiring private owners to have sustainable management plans and permits, by controlling indigenous timber input to sawmills, and by prohibiting indigenous woodchip and log exports.

Less than 1 percent of New Zealand's total forest production is from indigenous forests. Harvesting timber from State-owned indigenous forests, which was confined to the West Coast of the South Island, stopped in 2002, in line with government policy.

The 130,000 hectares of State-owned indigenous production forests on the West Coast are now conservation forests, administered by the Department of Conservation. A further 12,000 hectares in Southland, set aside for production and managed by State-owned enterprise Crown Forest Management Ltd, were transferred to the Waitutu Incorporation in 1996. These forests are managed under an approved sustainable forest management plan.

Harvesting and milling of ‘salvage’ timber from areas of farmland and non-natural forest, along with windblown and naturally dead trees from indigenous forests not being managed under an approved sustainable forest management regime, is permitted.

Approval is needed for a landowner to harvest and mill for personal use.

Figure 19.01.

All sawmills milling timber from indigenous forests must be registered, and they are restricted to processing timber from approved sources.

Exports of indigenous forest products 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.

Planted production forests Trees planted in the second boom of afforestation (1970 through to the mid 1980s) are now a valuable resource for large-scale use, providing opportunities to maximise the economic return from tree growing. Special-purpose plantation species are being planted by small-scale forest growers on suitable sites. Uses for specialist timbers include furniture, cabinet work, turnery, joinery, veneers and boat-building.

Forest ownership

Many early plantation forests were developed by the State, but ownership has since moved increasingly to the private sector. Today, approximately 92 percent of New Zealand's plantation resource is owned by private or publicly-listed companies.

Central government owns 2 percent of the forest area, managed primarily by the Ministry of Agriculture.

Local authorities own a further 3 percent of the area, while the remainder is owned by a large number of private owners, including Māori trusts. Small private investors and landowners continue to develop an expanding area of planted production forests.

An agreement among the Crown, the Māori Council, and the Federation of Māori Authorities provides security of tenure for buyers of State plantations, and protects the interests of Māori with claims before the Waitangi Tribunal.

Purchasers have the right to use the land for the time it takes for 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 a termination notice is given, the buyer has time to harvest tree crops planted before the notice was given.

In the event of a successful Māori claim to the Waitangi Tribunal, the government will give a termination notice to the purchaser, and compensate the claimant for the rights the purchaser retains until the end of the termination period.

Table 19.01. Forest planting and production
Year ending 31 March

YearNew area plantedProduction
StatePrivateRough-sawn timberWood pulp(1)Paper and paperboard
Hectares (000)Cubic metres (000)Tonnes

(1) Chemical and mechanical wood pulp.

Symbols: P provisional .. figure not available

Source: Ministry of Agriculture and Forestry

19302215668....
193557575....
19402..79322113,079
1945..080315,68120,949
1950211,13121,78122,136
1955321,45353,01640,917
1960421,638221,408164,255
1965851,739370,499316,104
197015111,803521,654445,976
197522232,086843,244546,834
198017212,0001,122,456673,853
198518302,3061,144,911770,098
19900162,1211,233,809757,371
19950742,9551,360,389876,187
20000343,8061,527,565829,812
20010303,8481,572,277871,607
20020223,8641,523,730846,727
20030204,4361,512,602851,663
20040114,2091,462,656845,422
2005..64,4071,586,790921,339
2006..5P4,2151,561,173940,460
2007....4,3691,528,991871,946

New Zealand has 8 million hectares of forest, 1.8 million of which are planted production forest. Of this, 89 percent is radiata pine. Purpose-grown softwood forests could provide the feedstock to produce ethanol and make New Zealand more self-sufficient in transport biofuel.

Forest products and timber

Forest products

Pulp and paper The pulp and paper industry is concentrated mainly near large production forests on the North Island's volcanic plateau. All eight pulp and paper plants are located in the North Island and four of them are integrated with sawmills to make full use of the wood.

There are four main pulp and paper companies:

  • Norske Skog Tasman Ltd operates the Tasman pulp and paper mill at Kawerau, in the Bay of Plenty. The plant produces mechanical pulp, newsprint and directory paper.

  • Carter Holt Harvey operates pulp and paper plants in New Zealand. The Penrose plant in south Auckland produces corrugated medium paper from recycled waste paper. At the large Kinleith site, near Tokoroa, bleached and unbleached market kraft pulp, linerboards and corrugated paper mediums are produced. A plant at Whakatane produces paperboard from mechanical pulp, outsourced kraft pulp, and waste paper-based pulps. A tissue plant at Kawerau has a chemical thermo-mechanical pulp mill that manufactures a wide range of tissue, towelling and speciality grades.

  • Pan Pac Forest Products 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, near Waiouru. The plant uses wood from surrounding forests, as well as sawmill residues.

Recent annual production volumes of pulp and paper products are shown in table 19.02, while table 19.04 shows production volumes of wood panel products.

Table 19.02. Pulp and paper production
Year ending 31 March

YearWood pulpPaper and paperboard
Chemical(1)Mechanical(2)NewsprintOther printing and writing paperOther paper and paperboardTotal
Tonnes

(1) Includes semi-chemical pulp.

(2) Includes groundwood pulp, thermo-mechanical and chemithermo-mechanical pulp.

Source: Ministry of Agriculture and Forestry

1998675,453736,712393,54513,556472,475879,576
1999645,032755,707383,37211,586419,356814,314
2000753,885773,680360,62310,285458,904829,812
2001744,991827,286380,6144,155486,838871,607
2002723,054800,676334,0580512,669846,727
2003684,187828,415355,5690496,094851,663
2004654,291808,365368,4210477,001845,422
2005727,309859,481379,6280541,711921,339
2006742,800818,373367,0640573,396940,460
2007784,995743,996292,0150579,931871,946

Overseas trade in forest products

Exports of forest products were valued at $3,436 million in the year ending 30 June 2007, up from $2,957 million in 2006. The last trade year to show a higher value was 2003. Australia was the main destination for New Zealand's forest product exports (22.2 percent of the total), followed by the People's Republic of China (14.9 percent) and Japan (14.8 percent).

Table 19.03 shows the annual volumes of timber exports since 1998, while figure 19.02 indicates the proportions of exports going to different countries in 2007.

Table 19.03. Timber exports
By volume
Year ending 30 June

YearSawn timberLogs and poles
From natural forestRadiata pineDouglas firOtherTotal
Cubic metres (000)

Symbol: P provisional

Source: Ministry of Agriculture and Forestry

199811,10516301,1524,657
199911,21661211,2995,194
200011,40026551,4826,179
200111,353351031,4926,177
200211,59532961,7247,604
200311,661181291,8098,423
200411,55632991,6896,298
200511,70143911,8365,077
200611,70762651,8355,198
2007 P11,81470491,9346,267

Imports of forest products were valued at $1,442 million in the year ending 30 June 2007, compared with $1,393 million in 2006. New Zealand's imports are split between softwoods (55 percent) and hardwoods (45 percent).

Sawn timber imports are mainly 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, cross-arms, and wharf, bridge and construction timbers. Oregon pine, redwood and western red cedar are imported from North America for structural uses, exterior joinery and weatherboards.

Paper, paperboard, and manufactured articles of paper and paperboard accounted for nearly 70 percent of the total forestry product imports (by value) in the year ended June 2007. Of the many paper or paperboard products, one of the largest groups was nappies, sanitary towels and similar products, with $73 million worth of imports.

Table 19.05 shows annual volumes of timber imported into New Zealand since 1998.

Logs are stacked at Wellington's CentrePort, ready to be loaded for export. Exports of forest products were valued at nearly $3.5 billion in the year to June 2007.

Table 19.04. Panel production
Year ending 31 December

YearVeneerPlywood(1)Particle-boardFibre-board
Cubic metres

(1) Includes laminated veneer lumber.

Source: Ministry of Agriculture and Forestry

1998292,171189,447196,395613,345
1999285,825192,445169,569600,673
2000378,282239,947188,054744,879
2001401,590243,702204,524801,493
2002460,619263,332198,347821,994
2003601,600321,655209,977883,117
2004628,747345,102230,378873,112
2005694,301408,635229,971845,663
2006655,206403,808238,205906,938
2007688,312421,794256,239836,755

Figure 19.02.

Table 19.05. Timber imports
By volume
Year ending 30 June

YearHardwoodsSoftwoodsTotalLogs and poles total
Cubic metres (000)

Symbol: P provisional

Source: Ministry of Agriculture and Forestry

19981119303
19991215274
20001320334
20011415296
20021713306
20031717345
20042021413
20052230523
20062326496
2007 P2328515

Table 19.06. Overseas trade in pulp and paper
By volume
Year ending 30 June

YearWood pulpNewsprintOther paper and paperboard(1)
Tonnes

(1) Products manufactured from paper and paperboard are excluded. Symbol: P provisional

Source: Ministry of Agriculture and Forestry

Imports
199811,209128247,463
199921,662105302,973
20006,895467339,924
20018,654105311,400
200212,543321379,506
20036,5014,296421,618
20044,0308,686441,894
20053,39710,470480,576
20066,1045,410481,290
2007 P7,33216,361466,464
Exports
1998626,579262,060171,422
1999622,636246,386201,648
2000687,624228,022252,070
2001728,501216,494244,744
2002783,891205,227293,039
2003708,298213,374254,433
2004787,644219,720323,366
2005857,20347350,688
2006794,82219378,070
2007 P842,97929379,916

Table 19.07. Overseas trade in forest products
Year ending 30 June

YearWood and wood productsWood pulpPaper and paper productsTotal
$(000)

(1) Imports valued cif (costs including insurance and freight).

(2) Exports valued fob (free on board) at New Zealand ports, re-exports included. Symbol: P provisional

Source: Ministry of Agriculture and Forestry

Imports(1)
1998202,9808,880666,511878,371
1999217,64818,710738,154974,512
2000263,9957,596832,2631,103,854
2001272,00310,491909,6631,192,157
2002276,67612,327933,8061,222,809
2003308,8896,654924,0971,239,640
2004343,6943,701934,1831,281,578
2005671,1463,707657,7691,332,622
2006707,0236,799679,6411,393,463
2007 P742,1667,820691,4921,441,478
Exports(2)
19981,501,981351,850489,9712,343,802
19991,571,928370,892535,8162,478,636
20002,104,442609,798631,5793,345,819
20012,289,699620,349695,9573,606,005
20022,491,276518,188685,2783,694,742
20032,475,122433,449597,4463,506,017
20042,155,889476,515591,6073,224,011
20052,184,239477,610280,0562,941,905
20062,182,719472,867300,9502,956,536
2007 P2,468,456621,785345,5623,435,803

Timber

Logs (roundwood) In the year ending 31 March 2007, logs from planted production forests supplied 20.0 million cubic metres (99.9 percent) of total roundwood removals.

Approximately 264 sawmills, and 11 veneer, seven plywood, and six fibreboard mills were supported during the year. Roundwood production does not include firewood.

Sawn timber Radiata pine accounts for about 95 percent of the total cut of exotic timber, Douglas fir for 3.5 percent, and other conifers for most of the remainder. Less than 1 percent of New Zealand's sawn timber production comes from indigenous forests, and this proportion has reached the point where only a small, sustained yield in native timber is possible for special purposes.

Dunedin wood fuel and garden landscaping supplier Rodney Hogg in one of his wood drying hot houses. Dry wood burns more efficiently than damp. Wood heats many New Zealand homes, although some urban areas are now regulating against wood burners to limit air pollution.

Table 19.08. Roundwood removals from New Zealand forests
Year ending 31 March

YearNatural forest removalsPlanted production forest removalsTotal removals
Saw logsPulp logsExport logsOther(1)Total

(1) Includes peeler logs, small logs and export chips.

Source: Ministry of Agriculture and Forestry

1998755,8103,1525,5942,07416,63016,705
19991255,8652,9714,8032,05015,68915,814
2000766,9853,0495,8062,28018,12018,196
2001557,2213,5665,9172,52819,23219,287
2002577,3263,5047,3822,67120,88320,940
2003388,3493,2888,0872,68922,41322,451
2004317,7183,0577,3132,76720,85520,886
2005268,0413,2875,1232,78319,23419,260
2006247,6073,2345,0672,85918,76718,792
2007187,8913,2845,9732,87220,02020,038

Table 19.09. Sawn timber production
By species
Year ending 31 March

Species1998199920002001200220032004200520062007
Cubic metres (000)

Note: Figures may not add up to stated totals due to rounding.

Source: Ministry of Agriculture and Forestry

Natural forest
Rimu and miro283022171355503
Kauri2111111100
Tōtara1000110000
Kahikatea0010010000
Tawa1111000000
Beech546813108706
Other1201121000
Total383830282819161309
Planted production forest
Radiata pine2,9952,9963,5833,6253,6784,2143,9804,1934,0184,171
Douglas fir105143134136124164178167156155
Eucalypts2343334353
Other56475456313632302530
Total3,1573,1883,7763,8203,8364,4174,1944,3944,2034,360
Total all species3,1953,2263,8063,8483,8644,4364,2094,4074,2154,369

Biosecurity

MAF Biosecurity New Zealand is the part of the Ministry of Agriculture and Forestry which leads the country's biosecurity system. It facilitates international trade, protects the health of New Zealanders, and ensures the welfare of the environment, flora and fauna, marine life, and Māori resources.

There are around 1,000 full-time and part-time staff based across New Zealand and overseas. MAF Biosecurity gathers and exchanges information about emerging risks around the world, manages risk before and at the border (including export trade inspection), and manages animal welfare and the risks and impacts of pests and diseases that are already established in New Zealand.

Fisheries

Fishery resources

New Zealand's exclusive economic zone (EEZ) is one of the largest in the world. At 1.3 million square nautical miles, it covers an area nearly 15 times New Zealand's landmass. In spite of the size of the zone, the waters are relatively deep and are not particularly rich in nutrients. Because of this, the average productivity of fishery resources tends to be low.

Less than one-third of New Zealand's EEZ is shallower than 1,000 metres, the area where most fish resources occur. Only 5 percent is coastal water shallower than 200 metres.

There are more than 8,000 described marine species in New Zealand waters, about 100 of which are commercially significant. Species include shallow water shellfish, open water migratory pelagic fish, and deepwater species living more than a kilometre below the surface.

Second mate Jacinda Fowler tastes one of the first oysters brought into Bluff at the start of the 2007 oyster season. Oysters are one of about 100 commercially significant marine species.

Fisheries range from numerous, but mostly small, resources of subtropical species in the north, through moderate resources of many 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.

Fisheries management

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 user groups.

Most New Zealanders use the fisheries as a source of food, a place of work, or for relaxation at some time. This places increasing demands on the fisheries. For example, in less than 30 years the commercial fishing industry has expanded from a small, domestic industry to a $1.5 billion-a-year export business.

New Zealand commercial fisheries are managed under a quota management system (QMS) where individual transferable quota for fish stocks are owned by commercial fishers. Under the QMS a total allowable commercial catch (TACC) is set annually for each fish stock and a commercial fisher's catch is balanced against their annual catch entitlement (ACE) holding. ACE is generated annually from the number of quota shares held by an individual. ACE can also be traded.

The main goals of the QMS are to set sustainable total allowable catches (TACs) and TACCs, and to improve economic efficiency in the fishing industry. The QMS also provides security for participants in the fishing industry, enabling them to invest in harvesting and processing capacity.

The QMS applies throughout New Zealand's EEZ for almost all commercial species. Catch limits (TACs), and TACCs are reviewed regularly to see if the TAC or TACC for a fish stock needs to change. The review process involves considering the latest fisheries research and stock assessments, and consulting with representatives from the commercial fishing industry, Māori, recreational fishing groups and environmental organisations.

Table 19.10 shows TACCs for all fish stocks for the 2007/08 fishing year.

Customary fishing regulations

The Fisheries Claims Settlement Act 1992 provided a legislated settlement of fishing claims with two main impacts. First, it addressed the right of Māori to a commercial stake in New Zealand's fishing industry and a role in its management. The second part of the settlement is less well known – it addressed claims to a non-commercial, customary fishing right and provided an input into fisheries management.

As a result of the second part of the settlement, customary fishing regulations were developed by the Crown and Māori. The regulations aim to provide effectively for customary non-commercial fishing, while ensuring sustainability of the resource.

Those given permission to take fish under the customary fishing regulations cannot trade the fish, exchange the fish for money, or accept any other form of payment.

The definition of customary food-gathering in the regulations refers to traditional rights confirmed by the Treaty of Waitangi and the 1992 Settlement Act. Regulations for the South Island were effective from April 1998, and in the North and Chatham Islands from February 1999.

The regulations cover non-commercial customary fishing only, and do not remove the right of tangata whenua (‘people of the land’) to catch recreational limits under amateur fishing regulations. They do not provide for commercial fishing. In the North and Chatham Islands, fish taken in fresh water are not covered by the regulations, but they are in the South Island, provided the species is managed under the Fisheries Act.

The establishment of mātaitai reserves is also covered by the regulations. These reserves provide a tool for tangata whenua to manage all non-commercial fishing in some of their traditional fishing-grounds. Generally, there is no commercial fishing within mātaitai reserves.

The regulations apply only where Māori have appointed tangata tiaki for South Island areas, and tangata kaitiaki for the North and Chatham Islands. These individuals, or office-holders, can authorise customary fishing within their area/rohe moana, in accordance with tikanga Māori. They are chosen by the area's tangata whenua and, following a submission process and if necessary a dispute resolution process, their appointments are confirmed by the Minister of Fisheries.

In the regulations, tangata whenua is defined as the whānau (family), hapū (sub-tribe) or iwi (tribe) that hold manawhenua manamoana (status and rights) over a particular area.

By 31 December 2007,107 tangata tiaki had been appointed in the South Island and 214 tangata kaitiaki in the North Island.

Table 19.1. Total allowable commercial catch
2007/08 fishing year

SpeciesSum of TACCs(1) (tonnes)Number of stocks

(1) Total allowable commercial catch.

Source: Ministry of Fisheries

Arrow squid127,3324
Hoki90,0102
Jack mackerel60,5474
Southern blue whiting36,9485
Barracouta32,6725
Ling21,9778
Oreo18,6105
Orange roughy13,6128
Hake13,2114
Spiny dogfish12,6607
Blue mackerel11,5505
Silver warehou10,3804
Red cod8,2785
Tarakihi6,4398
Snapper6,3576
Flatfish5,4195
Stargazer5,4118
Gurnard5,0476
Blue warehou4,5126
Frostfish4,01910
Trevally3,9335
Cardinalfish3,75110
White warehou3,7359
School shark3,4368
Bluenose3,2336
Other (71 species)59,630474
Total572,712627

Table 19.11. Registered commercial fishing vessels
At 3 September

YearForeign licensedForeign charteredDomestic
Source: Ministry of Fisheries
1993251672,707
199432632,569
199532542,575
199622552,458
199716592,170
199817521,965
199910461,861
20000371,752
20010361,688
20020371,674
20030371,565
20040351,474
20050321,381
20060301,335

Maori Fisheries Trust Te Ohu Kaimoana

The Māori Fisheries Act, passed in September 2004, provides a way fisheries assets handed to Māori to settle Treaty of Waitangi commercial fishing claims can be returned to iwi (tribes). The Act put in place the allocation model devised by the former Treaty of Waitangi Fisheries Commission (Te Ohu Kai Moana) through almost 12 years of discussion and consultation with iwi.

Te Ohu Kai Moana Trust (Te Ohu) was created to hold the assets until allocation and transfer to iwi. The Act also provided for the creation of Aotearoa Fisheries Limited (AFL) as the commercial entity for those assets retained and managed centrally. The commercial fishing activities previously owned by the commission were transferred to AFL when the Act took effect.

The model allocates inshore fish stocks, deepwater fish stocks, income shares in AFL, and cash previously held by the commission to iwi. Each iwi's share of the Māori fisheries settlement is calculated according to the length of coastline each iwi has within its rohe (tribal district), and the size of its population.

Under the Act, iwi must meet certain structural and constitutional requirements before becoming eligible to receive assets. Once these requirements are met, an iwi organisation is approved as a mandated iwi organisation and becomes entitled to receive assets.

Two other trusts also form part of the settlement model – Te Putea Whakatupu Trust, to promote educational advancement of Māori in the fishing industry and wider community, and Te Wai Māori Trust, to advance Māori interests in freshwater fisheries.

Te Ohu provides an advisory and policy-making role on behalf of iwi, on marine and freshwater environment matters. Te Ohu also administers the Māori Commercial Aquaculture Settlement Trust (Takutai Trust). The aquaculture settlement provided for iwi with a coastal rohe to receive up to 20 percent of new marine farming space approved, from September 1992. Takutai Trust holds and distributes to iwi the aquaculture assets transferred to it in accordance with the aquaculture settlement.

Since 2004, Te Ohu has facilitated the transfer of more than $400 million worth of fisheries settlement assets to 46 mandated iwi organisations.

New Zealand control

New Zealanders and New Zealand companies have held control of New Zealand's fisheries resources since introduction of the quota management system in 1986.

At 30 September 2006, there were 1,335 domestic-registered commercial fishing vessels. There were also 30 foreign-registered vessels working under charter to New Zealand companies. This charter fleet participates in high-volume seasonal fisheries such as southern blue whiting, jack mackerel and squid.

Most of the salmon farmed at Mount Cook Salmon in Central Otago are exported. The floating farm, in a canal that is part of the local hydro electricity scheme, holds around 200,000 salmon, which are harvested at about three years. Each day passing tourists buy 60–90 fish, which are sold on-site.

Seafood industry

Exports

The seafood industry generated more than $1.25 billion in export receipts in the year ending 31 December 2007.

The top export species were squid, mussels, hoki and rock lobster. Squid catch and its unit price have both gone up, and the New Zealand squid fishery is experiencing significant growth. It is currently the most valuable export species.

Mussels have had significant growth in export receipts since 2003, to become the second most-valuable export species as a result of stronger market prices. Hoki has shown a downward trend, following reductions in the total allowable commercial catch in 2003 and 2004.

The value of seafood exports has decreased since 2002, largely due to a resurgent New Zealand dollar. On 23 July 2007, the US dollar reached its highest rate in more than 20 years, at US80 cents to NZ$1. A stronger New Zealand dollar means that sales denominated in US dollars are worth less when the proceeds are repatriated in New Zealand dollars. The United States is New Zealand's fourth biggest market after Australia, the European Union and Hong Kong.

Table 19.12. Seafood exports(1)
By principal species
Year ending 31 December

Species200220032004200520062007(2)
Quantity Tonnes (000)Value $ (million)Quantity Tonnes (000)Value $ (million)Quantity Tonnes (000)Value $ (million)Quantity Tonnes (000)Value $ (million)Quantity Tonnes (000)Value $ (million)Quantity Tonnes (000)Value $ (million)

(1) Valued free on board at New Zealand ports.

(2) Figures are final figures to 2006. The 2007 figures are provisional.

Source: New Zealand Seafood Industry Council

Squid41.486.236.068.669.8171.870.9168.156.8118.069.9196.7
Mussels28.8185.428.0133.330.3141.434.0166.635.1181.736.1174.5
Hoki77.2314.764.3230.051.0174.142.8152.141.6155.540.1141.3
Rock lobster2.1128.02.2113.02.1101.62.4114.02.4127.12.3121.7
Abalone/pāua0.863.00.754.50.852.40.750.20.854.30.958.1
Orange roughy8.2127.25.978.56.089.95.070.07.383.96.956.6
Ling7.965.79.051.79.047.58.147.36.951.06.654.4
Hake6.435.86.132.48.444.85.831.76.341.76.238.1
Salmon6.043.74.839.34.535.93.327.64.642.53.336.1
Warehou5.523.37.122.48.721.38.222.78.729.810.034.8
Jack mackerel19.619.620.318.225.322.330.331.427.835.725.232.5
Snapper4.034.03.828.84.229.04.125.94.229.43.630.2
Tuna8.542.410.332.215.135.912.127.110.928.413.330.0
Barracouta9.910.911.110.810.710.815.316.316.419.017.823.1
Oreo dory5.127.84.320.64.621.84.519.44.820.45.819.5
Southern blue whiting4.77.26.412.87.211.913.621.19.418.89.414.2
Blue mackerel8.28.59.79.38.18.46.98.17.711.77.510.0
Scampi0.926.00.719.90.511.90.720.90.512.60.34.2
Gemfish0.22.50.32.60.53.10.63.10.42.20.42.3
Scallops0.35.90.35.90.12.60.12.60.11.10.11.5

Table 19.13. Seafood exports(1)
By top 5 destinations
Year ending 31 December

Destination200220032004200520062007(2)
Value $(million)Proportion of total (Percent)Value $(million)Proportion of total(Percent)Value $(million)Proportion of total (Percent)Value $(million)Proportion of total(Percent)Value $(million)Proportion of total (Percent)Value $(million)Proportion of total(Percent)

(1) Valued free on board at New Zealand ports.

(2) Figures are final figures to 2006. The 2007 figures are provisional.

Source: New Zealand Seafood Industry Council

Australia200.913.1197.516.4195.515.4189.015.0219.916.3233.418.6
European Union267.117.5220.218.2250.119.7260.920.7252.618.7211.316.9
Hong Kong175.211.5138.111.4135.410.6137.510.9165.712.3173.213.8
United States315.720.6211.917.5208.416.4196.715.6209.915.5158.912.7
Japan265.417.3186.515.4167.213.1136.610.8143.110.6121.49.7
Other markets305.720.0253.721.0315.324.8341.427.1359.926.6355.128.3
Total1,530.0100.01,207.9100.01,271.9100.01,262.1100.01,351.1100.01,253.3100.0

Table 19.14. Seafood exports
By volume and value(1)
Year ending 31 December

Species group200220032004200520062007(2)
Quantity Tonnes (000)Value $ (million)Quantity Tonnes (000)Value $ (million)Quantity Tonnes (000)Value $ (million)Quantity Tonnes (000)Value $ (million)Quantity Tonnes (000)Value $ (million)Quantity Tonnes (000)Value $ (million)

(1) Valued free on board at New Zealand ports.

(2) Figures are final figures to 2006. The 2007 figures are provisional.

Source: New Zealand Seafood Industry Council

Finfish (wetfish)242.21,005.9228.6785.4229.3751.8220.5698.8219.8811.7215.0775.0
Shellfish74.1362.267.9280.3105.0393.2110.4417.998.0390.097.4345.4
Rock lobster2.2128.02.2113.02.1101.62.4113.92.4127.02.3121.7
Other crustacea1.933.91.829.71.525.41.831.41.422.40.911.3
Total320.41,530.0300.61,208.4337.91,272.0335.11,262.1321.61,351.1315.61,253.5

Contributors and related websites

Ministry for the Environment – www.mfe.govt.nz

Ministry of Agriculture and Forestry – www.maf.govt.nz

Ministry of Fisheries – www.fish.govt.nz

New Zealand Seafood Industry Council – www.seafood.co.nz

Scion – www.scionresearch.com

Statistics New Zealand – www.stats.govt.nz

Te Ohu Kaimoana Māori Fisheries Trust – www.teohu.maori.nz

Chapter 20. Energy and minerals

Wind turbines at Hau Nui in southern Wairarapa. First commissioned in 1997, the site now has 15 turbines with a total capacity of 8.65 megawatts, and supplies enough power for around 4,200 local homes. The use of wind for electricity generation is growing – the 2006 figure of 2.2 petajoules is a 440 percent increase since 2001.

Building a sustainable energy future

New Zealand, like the rest of the world, faces two major energy challenges – to deliver secure energy at affordable prices to support economic development, while also being environmentally sustainable by reducing carbon emissions from energy production and use.

New Zealand's energy use is dominated by electricity and transport. Current reliance is on primary energy from oil, water, natural gas, coal and geothermal energy. Energy prices have historically been low by international standards, and there has been relatively little investment in energy efficiency for homes, shops, light industry and transport. In the transport sector, there is a high level of car ownership, a high proportion of imported used vehicles, low but increasing public transport use, and a limited rail network due to geography and a small population.

While total greenhouse gas emissions are only about 0.3 percent of global emissions, New Zealand has the 12th highest level of emissions per person in the world. New Zealand's Energy Outlook to 2030 projects that, without a change in direction, energy-related greenhouse gas emissions will rise 39 percent by 2030. This includes a 40 percent rise in transport emissions.

New Zealand's energy strategy

New Zealand's response to the long-term challenges of energy security and climate change is set out in the New Zealand Energy Strategy. Released in October 2007, it indicates the Government's vision for a sustainable, low emissions energy system, and an action plan to make that vision a reality.

Key actions include:

  • a target for 90 percent of generated electricity to be from renewable sources by 2025

  • limiting new base-load fossil fuel electricity generation for 10 years

  • policy guidance on renewable energy, and electricity transmission, for local authorities

  • relaxing restrictions on electricity generation and retailing by line companies to increase market competition

  • using a lower discount rate to assess the net benefits of energy efficiency initiatives

  • a target to halve domestic transport emissions per person by 2040, relative to 2007 levels

  • an in-principle decision to be one of the first countries to widely deploy electric vehicles

  • establishing an expert group to consider implications of higher levels of biofuel, and the introduction of plug-in electric vehicles

  • a minimum biofuels sales obligation to encourage the use of alternative fuels

  • establishing a Low Carbon Energy Technologies Fund, providing $12 million over three years from July 2008 to support sustainable energy technologies

  • a Marine Energy Fund to deploy marine energy technologies

  • initiatives to help low and modest income households through the transition to a sustainable low emissions energy system.

More information on the New Zealand Energy Strategy is at: www.med.govt.nz/nzes.

Energy efficiency and conservation strategy

The Government's Energy Efficiency and Conservation Strategy (NZEECS) was prepared alongside the New Zealand Energy Strategy. It sets the direction for better energy choices through detailed action plans for energy efficiency and conservation, and renewable energy programmes across all sectors of the economy. The NZEECS sits under the policy framework of the New Zealand Energy Strategy, as well as meeting the requirements of the Energy Efficiency and Conservation Act 2000.

Revised and released in October 2007, the NZEECS covers five programmes to support reaching high-level targets. These include residential, business, transport, and renewable electricity system programmes, and government leading the way.

Highlights include having:

  • up to 180,000 insulation, clean heat, or solar water heating upgrades

  • more work to improve the efficiency of appliances, to gain $2.7 billion in savings for consumers by 2025

  • over $8 million for energy efficiency programmes to improve the competitiveness of business, including the primary production and tourism sectors, and to boost the use of wood for heating

  • a target to improve the fuel economy of vehicles entering the fleet by around 25 percent, saving 441 million litres of fuel by 2015

  • increased emphasis on transport management, with priority given to public transport, walking and cycling

  • support for the target of having 90 percent of electricity generated from renewable sources by 2025.

The final NZEECS is a ‘call to action’ and seeks to demonstrate Government's commitment to greater energy efficiency and conservation, and renewable energy, as ways to address climate change concerns and progress broader sustainability objectives. Investment and involvement from all New Zealanders is needed to make the most of the potential savings.

Emissions trading scheme The New Zealand Energy Strategy and the NZEECS both complement the Government's in-principle decision to introduce an emissions trading scheme to reduce greenhouse gas emissions and develop the path to sustainability.

Energy intensity and efficiency

New Zealand's consumer energy demand was 499 petajoules in the year ending 31 December 2006, up 11.5 percent since 2001. The industrial and transport sectors recorded the greatest increases in energy use over this period (18 and 15 percent, respectively).

The domestic transport sector is the largest energy-consuming sector, accounting for 44 percent of total consumer energy use. Its growth was nearly 56 percent of total growth between 2001 and 2006.

Transport energy use continues to be driven by many factors – including rapidly increasing vehicle numbers, larger vehicles, vehicles with more features, and increased demand for mobility and freight haulage.

The residential sector consumed 63 petajoules in 2006 – 13 percent of national consumed energy and up 5 percent from 2001. In recent years, New Zealanders have increased their level of indoor comfort through additional space and water heating, electrical appliances and lighting.

The commercial sector consumed 46 petajoules – 9 percent of total national consumed energy. Between 2001 and 2006, commercial sector energy use was down by about 10 percent.

The industrial sector uses around 30 percent of consumer energy, with a few large users dominating this sector – in particular the basic metals, food, and paper products subsectors. Industrial sector energy use grew 18 percent between 2001 and 2006, to reach 150 petajoules.

The agriculture sector includes farming, other agriculture, hunting and fishing. In 2006, it consumed 21 petajoules – about 5 percent of the nation's energy. This sector has shown a 4 percent increase in energy consumption since 2001.

The following points relate to table 20.01 (overleaf), which shows the balance between energy supply and demand.

  • Supply data is compiled from monthly returns. Figures for geothermal energy are estimated. Approximately 80 percent of geothermal is used for electricity power generation, while 20 percent is used directly for heat. Liquefied petroleum gas production is included in indigenous oil production.

    Water crashes down the spillway from Lake Dunstan at the Clyde dam hydro-generation site on the Clutha River in Otago. Renewable hydro electricity supplied 55 percent of New Zealand's total electricity demand in 2006.

    Table 20.01. Energy supply and demand balance
    Year ending 31 December 2006

    Supply/demandCoalOilGasHydroGeothermalRenewablesOther electricityWaste heatTotal
    Petajoules

    Note: Figures may not add up to stated totals due to rounding.

    Symbol: ... not applicable

    Source: Ministry of Economic Development

    Supply
       Indigenous production153.046.8152.584.489.046.70.01.1573.8
       + imports28.4311.40.00.00.00.00.0...339.7
       - exports85.238.10.00.00.00.00.0...123.4
       - stock change3.7-2.20.00.00.00.00.0...1.4
       - international transport0.047.40.00.00.00.00.0...47.4
    Total supply92.4274.8152.584.489.046.70.01.1741.3
    Transformation
       Electricity generation-51.00.0-61.3-84.4-71.8-3.4144.9...-127.0
       Co-generation-0.70.0-21.40.0-1.5-8.49.7-1.1-23.3
       Liquid fuels production0.0-5.30.00.00.00.00.0...-5.3
       Other transformation-18.6...-2.1.........2.1...-18.6
       Losses and own use0.0-1.6-4.70.0-6.00.0-15.8...-28.2
    Total transformation-70.3-6.9-89.5-84.4-79.3-11.7140.9-1.1-202.4
    Non-energy use...-13.5-23.20.00.00.00.0...-36.7
    Consumer energy (calculated)22.1254.439.80.09.735.2140.90.0502.2
    Demand
       Agriculture2.012.11.90.00.00.05.4...21.4
       Industrial16.417.028.40.05.826.955.4...149.9
       Commercial3.84.65.00.03.90.328.0...45.6
       Residential0.72.66.90.00.18.144.4...62.8
       Domestic transport0.1216.80.20.00.00.02.4...219.5
    Consumer energy (observed)22.9253.242.40.09.735.2135.60.0499.2
    Discrepancies-0.81.2-2.6...0.00.05.30.03.1
  • Total primary energy supply is the energy available for use in New Zealand – for energy conversion and end use.

  • Transformation of energy from one form to another always results in conversion losses, which are shown as negative entries in the table. Efficiencies for electricity generation are assumed to be 35 percent for coal plants, 50 percent for gas, and 30 percent for co-generation. Hydro and wind are taken as being 100 percent efficient, and geothermal as 15 percent.

  • Consumer energy (calculated) – total primary energy supply – total transformation – non-energy used (primary energy used for other purposes, for example bitumen for roads, and natural gas as feedstock to produce methanol and ammonia/urea).

  • Energy demand consumption (observed) data is estimated from information about where and how energy is used. Domestic transport refers to domestic road, rail and air transport. Observed values are used as they provide more detail of energy use by each sector.

Energy

The efficiency with which New Zealand produces and uses energy directly affects its international competitiveness, economic growth, and the quality of its environment.

New Zealand is self-sufficient in all energy forms apart from oil. Some coal is imported for electricity generation, but coal exports are about 300 percent greater.

In 2006, New Zealand was 65 percent self-sufficient in its total primary energy needs, and 17 percent self-sufficient in oil. Total primary energy supply from different sources, from 1985 to 2006, is shown in table 20.02.

Environmental impact The Resource Management Act 1991 ensures that environmental costs are recognised in the energy production planning process, and that local impact is avoided, remedied or mitigated.

Amendments in 2004 required that particular regard be paid to the efficiency of the end use of energy, the effects of climate change, and the benefits to be derived from the use and development of renewable energy.

New Zealand is a signatory to the Kyoto Protocol under which emission levels of greenhouse gases during 2008–12 are required to be reduced to levels prevailing in 1990.

Table 20.02. Primary energy supply
Year ending 31 December

YearCoalImported oil and oil productsIndigenous oil (net)GasHydroGeothermalOther renewablesWaste heatTotal
Petajoules (gross)

Symbol: .. data not available

Source: Ministry of Economic Development

198545.6115.431.4140.670.278.929.3..511.3
199052.6141.146.9180.982.692.633.4..630.2
199548.8189.431.2179.298.193.334.5..674.5
200049.3222.326.4235.288.7114.337.8..773.9
200155.5232.919.4247.181.4111.438.21.2787.0
200251.3234.521.1234.990.881.540.71.0755.8
200381.6256.315.2179.385.378.841.23.7741.4
200482.4258.017.6160.597.979.943.82.2742.3
200597.5259.620.0148.684.089.247.31.1747.2
200692.4261.913.0152.584.489.047.01.1741.3

Greenhouse gas emissions Gross carbon dioxide equivalent emissions from energy sources and industrial processes were about 38 million tonnes in 2006, compared with about 27 million tonnes in 1990.

National transport contributed the largest proportion of energy emissions (42 percent in 2006). Growth in this sector was largely due to greater use of the two major liquid fuels, petrol and diesel, as well as increased aviation fuel use.

The second-largest source of emissions was thermal electricity generation (24 percent in 2006), which had the largest increase in percentage terms since 1990. However, within this general increasing trend in emissions there are strong annual variations, reflecting the availability of hydro generation for each year.

The manufacturing industries category (15 percent in 2006) has showed a decline in emissions, after a peak in 2002. A large part of this fall resulted from Methanex scaling back methanol production, historically a significant source of emissions, after 2002. A reduction in coal consumption in manufacturing also contributed to the emissions decline.

Other greenhouse gases emitted from energy sources include nitrous oxide and methane, although the agriculture sector is the main contributor to these emissions.

Energy research and development The Foundation for Research, Science and Technology is the main funding body for energy-related research and development, investing about $16.7 million a year. Current work includes research that supports the implementation of the New Zealand Energy Strategy and the New Zealand Energy Efficiency and Conservation Strategy.

Electricity

Depending on demand, rainfall, and lake storage conditions, about 70 percent of New Zealand's electricity need is met by traditional renewable resources, with hydro contributing 55 percent in 2006 and geothermal 8 percent.

More than two-thirds of hydroelectricity is generated in the South Island, with all geothermal generation being in the North Island.

Most of the balance of electricity demand in 2006 was met by generation from natural gas (22 percent), followed by coal (12 percent) and a small but increasing contribution from renewables such as wind, wood, and landfill gas (3 percent).

Table 20.03 (overleaf) shows electricity generation in gigawatt hours, by fuel type.

Generation For 2006, five electricity generators provided 91 percent of total New Zealand electricity generation. Meridian provided 29 percent, Contact Energy 27 percent, Genesis 19 percent, Mighty River Power 12 percent and TrustPower 4 percent. The remainder came from on-site co-generation, and other independent generators.

Transmission Transpower is New Zealand's national grid company. A state-owned enterprise, Transpower is the owner and system operator of New Zealand's high-voltage electricity transmission grid, linking generators to distribution companies and major industrial users.

Conveyance New Zealand is fully reticulated through a national high-voltage transmission network, and local low-voltage distribution networks largely operated by electric power companies. Power transmission between the North and South Islands is through a high-voltage direct current link from the Benmore power station in the South Island to Haywards substation just north of Wellington. Part of this link is a submarine cable under Cook Strait, which allows surplus power generated in the South Island to be transmitted to the North Island, where demand is greatest. It also allows transmission from north to south.

Table 20.03. Electricity generation
By fuel type
Year ending 31 December

YearFuel typeAll fuels
HydroGeothermal(1)Oil(2)Coal(1)(3)Gas(1)Biogas(1)Waste heat(1)(3)Wood(1)Wind
Gigawatt hours

(1) These fuels also include generation from co-generation plants.

(2) Negative generation by oil-fired plants implies a net import into the station to maintain station viability and system voltage stability.

(3) To better align with international reporting, generation from industrial waste heat where the primary energy source is a fossil fuel is now entered under the primary source (principally coal). Revisions have been made back to 1974.

Note: Figures may not add up to stated totals due to rounding.

Source: Ministry of Economic Development

199425,5792,140106395,1371620336134,005
199527,2592,049478404,5391720336135,244
199625,7132,020157956,4931460310835,500
199723,5942,130-141,6158,07413903121335,863
199824,1652,38601,5248,08613704092236,728
199923,2212,63601,7678,94111603923937,112
200024,3872,75601,5338,941103044711938,285
200122,3912,67801,83810,8821014736113838,436
200224,9702,70401,7449,5301204041215439,674
200323,4552,61203,4219,59713214537214639,879
200426,9322,597194,4336,7111148540335441,648
200523,0993,00745,4018,8591654248460941,670
200623,2203,210215,1199,1811574348661742,056

Distribution Most line companies are owned by local communities, either through trust arrangements or local bodies (while electricity generation and retailing is largely controlled by three government-owned and two privately-owned integrated energy companies). The Energy Companies Act 1992 required electric power boards and the municipal electricity departments of local authorities to become independent commercial companies. The result included municipal companies, consumer/community trusts, and private owners. Subsequently, the Electricity Industry Reform Act 1998 required all distribution companies to separate the ownership and control of line businesses from energy retailing and generation activities. Before this, line companies were rapidly emerging as major investors in new and renewable generation – accounting for two-thirds of load growth between 1996 and 1999.

Technicians fix powerlines brought down by gale-force winds, which cut power to Central Otago in 2007. Local communities are responsible for electricity distribution through their line companies.

Distribution companies, along with the government-owned transmission company Transpower, must meet price thresholds set by the Commerce Commission, which also regulates distribution quality standards. A separate regulator, the Electricity Commission, oversees aspects of distribution pricing, and also approves new transmission investments and other transmission functions. There have been several reforms since 2001 aimed at attracting distributors into investing in generation involving renewable resources. However, few line companies are involved in generation today.

Other recent distribution reforms have included standard requirements for connecting small distributed-generation ventures to networks, and modified requirements to offer a volume-linked pricing option to households, in place of fixed line charges. Distributors are required to offer rural customers line charges that are comparable with urban ones, and must also maintain supply to connected customers. A cut-off date for the obligation to supply uneconomic rural customers until 2013 is under review.

Consumption The industrial sector, which includes an aluminium smelter, iron and steel works, several pulp and paper mills and large dairy factories, is the largest electricity-using sector in New Zealand. The sector accounted for 45 percent of electricity consumption in the year ending 31 December 2006, followed by the household sector (33 percent) and commercial applications (22 percent).

Electricity Commission

The Electricity Commission is a Crown entity established under the Electricity Act 2003 to oversee New Zealand's electricity industry operations and markets. The commission is an independent regulatory body whose role is to oversee the governance, operations and development of New Zealand's wholesale and retail electricity markets, and review and approve, if appropriate, Transpower's proposed investments in the national grid. The commission was established after the industry was unable to reach agreement on self-governance arrangements in early 2003.

The commission's principal objective is to promote and facilitate the efficient use of electricity, and to ensure that electricity is produced and delivered to all classes of consumers in an efficient, fair, reliable and environmentally sustainable manner. It is also required to promote and facilitate the efficient use of electricity.

The commission administers the rules and regulations that govern the electricity industry, enforces them, and recommends changes where necessary.

The commission's key areas of responsibility are:

  • operating, overseeing and developing the wholesale and retail electricity markets and the rules that govern them

  • managing security of supply and reserve generation

  • reviewing and approving proposals by Transpower for investment in the transmission grid

  • ensuring disputes that arise in operating the system and the markets are managed effectively

  • promoting efficient use of electricity.

A number of organisations are contracted to the commission to provide services necessary to administer the electricity markets on a daily basis. It is responsible for the management of these contractors and services: clearing manager, information system, market administration, pricing manager, reconciliation manager, registry, and system operator.

Table 20.04. Electricity consumption
By sector
Year ending 31 March

YearResidentialCommercialIndustrialTotal consumption
ConsumptionNumber of consumersAverage price (excl GST)ConsumptionNumber of consumersAverage price (excl GST)ConsumptionNumber of consumersAverage price (excl GST)
GWh(000)cents/kWhGWh(000)cents/kWhGWh(000)cents/kWhGWh

(1) Inter-year movements of prices between 2000 and 2002 may not be reliable.

(2) The number of residential consumers for 2001 has been estimated.

Note: Figures may not add up to stated totals due to rounding.

Source: Ministry of Economic Development

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
199810,8241,41812.087,1731379.9813,9371257.0131,934
199911,2901,42311.617,3341409.7214,0101276.9832,634
2000(1)11,0571,44411.876,91913810.1114,7591125.9432,735
2001(1)(2)11,3061,47211.766,89913710.3115,1421106.3133,348
2002(1)11,6601,50112.866,96412910.1614,5251026.7133,150
200311,7231,54313.827,73413810.7915,4311077.2334,889
200412,2551,56714.847,38913812.0116,1511068.1035,795
200512,1611,58616.687,97513712.3516,1901047.5636,326
200612,2311,60317.298,38315513.5316,7801139.1337,394

The commission is governed by a non-executive chair and five other members appointed by the Minister of Energy. It is funded by an appropriation from Parliament, recovered by a levy on generators, retailers and some large industrial consumers, distributors, and Transpower.

Oil

Consumption of energy in New Zealand is dominated by oil liquids, which accounted for 253 petajoules (51 percent) of total consumer energy in the year ending 31 December 2006.

Oil liquids (which include condensate, crude oil, naptha and liquid petroleum gas) also accounted for 275 petajoules (37 percent) of primary energy supplied to New Zealand markets.

Table 20.05 shows reserves at 1 January 2007 and production figures for the year ending 31 December 2006.

Reserves Total remaining reserves of crude oil, condensate and liquid petroleum gas from New Zealand's producing fields at 1 January 2007 were 599 petajoules (97 million barrels) – 21 percent of this from the Maui field. Condensate is reservoir gas that at atmospheric pressure condenses into liquid form. It is typically refined into transport fuels and can be sold at a premium above conventional crude. Four offshore fields are at varying stages of development.

  • The condensate-rich Pohokura field, which began production in August 2006, contains recoverable liquid reserves of 43 million barrels.

  • The Tui field, discovered in 2003, has 28 million barrels of recoverable oil reserves. First production was in late July 2007.

  • The Maari field, discovered in 1983, contains recoverable reserves of 49 million barrels.

  • The Kupe field, discovered in 1986, has liquid reserves of 19 million barrels. First production is expected in mid 2009.

Production from these fields is expected to more than double New Zealand's production, and contribute to increased self-sufficiency in the short to medium term. The Maui, Kapuni, Rimu/Kauri and McKee fields dominate remaining current reserves.

Production New Zealand's production of crude oil, condensate and naphtha was 38.9 petajoules (6.8 million barrels) in the year ending 31 December 2006, all from onshore and offshore fields in the Taranaki region.

About 56 percent of total production (3.8 million barrels) came from the offshore Maui field. About 63 percent of total oil production is in the form of condensate, with 21 percent being crude oil and 16 percent naphtha. Average daily production of crude oil and condensate during 2006 was about 18,650 barrels, the lowest level since 1984. About 86 percent of local production was exported – the remainder being used as domestic refinery feedstock.

Liquid petroleum gas (LPG) production totalled 7.6 petajoules (1.8 million barrels) in 2006. Production was dominated by the Maui field (59 percent), with substantial production from the onshore fields at Kapuni (26 percent) and Tariki/Ahuroa (9 percent). Average daily production of LPG during 2006 was 4,900 barrels.

Table 20.05. Oil, condensate, naphtha and liquid petroleum gas
Reserves and production

FieldReserves(1) at 1 January 2007Production for year ending 31 Dec 2006
Barrels (million)PetajoulesBarrels (million)Petajoules

(1) Reserves are estimated as ‘proven and probable’ or P50 by field operators.

(2) Includes Goldie well.

(3) Includes Kauri well.

(4) Includes Mangahewa, Cheal, Turangi and Surrey fields.

Source: Ministry of Economic Development

Maui22.15123.854.8826.28
Kapuni4.7922.201.245.46
Pohokura43.10282.310.946.16
Kaimiro/Moturoa1.448.940.080.43
Ngatoro(2)4.5328.350.231.13
Tariki/Ahuroa1.7110.470.271.26
Waihapa/Ngaere0.482.940.080.46
Rimu(3)8.7353.410.351.90
McKee1.5610.170.372.13
Others(4)8.6556.260.191.22
Total97.15598.928.6246.44
Estimated recoverable reserves   
Kupe19.17   
Maari49.00   
Tui27.90   
Urenui/Ohanga0.30   
Radnor0.18   
Total96.55   

The New Zealand Refining Company site at Marsden Point, at the entrance to Whangarei harbour, is the country's only refinery. It supplies petroleum products to the Auckland region through a pipeline to Wiri in south Auckland, and to the rest of the country mainly by coastal tanker.

Total crude oil, condensate, naphtha and LPG production in the year ending 31 December 2006 was 46.5 petajoules (8.6 million barrels).

Imports In 2006, New Zealand imported crude oil from the Middle East, Australia, and South-East Asia. To meet demand, oil wholesalers also imported refined petroleum.

Exports New Zealand exported about 86 percent of its crude oil and condensate production in the year ending 31 December 2006. In addition, about 2 percent of refined product was exported, while 15 percent was used for international transport, and the remainder consumed within New Zealand's domestic market. Production and trade figures are shown in table 20.06.

Self-sufficiency New Zealand's primary self-sufficiency in oil depends on both local oil production and demand. Self-sufficiency increased dramatically during 1974–86, from below 5 percent to more than 50 percent. In the 1990s, as demand grew faster than production, the figure fell to 30–40 percent. With production declining in a number of fields, self-sufficiency was down to 17 percent in the year ending 31 December 2006. Self-sufficiency is expected to return to the 50 percent range – a result of expected production from four offshore fields at varying stages of development.

Refinery New Zealand's only oil refinery is at Marsden Point, near Whangarei. The main feedstock is imported crude oil (about 93 percent), with local crude oil and condensate making up the rest. The refinery produces petrol, diesel, premium kerosene, jet-A1, fuel oils and bitumen.

Distribution A refinery-owned pipeline transports about one-third of Marsden Point's refined production to Wiri (South Auckland) to supply the Auckland area. The rest of New Zealand is mostly delivered by coastal tankers supplying port depots, which, in turn, supply road tankers, which then distribute stocks to retailers. Imported refined production is shipped directly to coastal ports.

Retailing Four major oil suppliers, BP, Caltex (Chevron), Mobil and Shell, have been the dominant fuel retailers in New Zealand for many years. In 1998, Australian independent Gull began retailing operations. Another independent company, Challenge, was bought by Caltex in 2001.

End use New Zealand's consumer energy is dominated by oil, which was 253 petajoules of the total 499 petajoules of consumer energy used in the year ending 31 December 2006. National transport dominates consumer energy use of petroleum products, with 86 percent of oil consumption being used for transport. Annual end use of petroleum products is about 1,550 litres (10 barrels) per person.

Unleaded petrol Unleaded regular grade petrol, introduced into New Zealand in 1987, was about 79 percent of the total demand for unleaded petrol in the year ending 31 December 2006. Premium unleaded petrol made up the rest. The sale of leaded petrol was banned in October 1996.

Table 20.06. Crude oil and condensate
Production and trade
Year ending 31 December

YearNew Zealand productionImportsRefinery intakeExports
Gross petajoules
Source: Ministry of Economic Development
199481.51175.84202.0251.35
199568.33169.37196.2844.12
199690.74165.55189.6156.83
1997120.56168.30212.2977.70
199895.67202.51217.7270.97
199984.36198.77212.7263.45
200074.96203.30221.0355.07
200170.02191.46208.9358.12
200263.55205.29219.9250.50
200349.21217.66220.1041.85
200442.56200.89214.0233.45
200539.87204.03217.0728.11
200638.90208.34219.0033.51

Gas

New Zealand's known gas resources are undergoing major changes, with the offshore Maui field, for so long a dominating presence on the local energy scene, now approaching economic depletion. At 1 January 2007, remaining reserves from the Maui field were 439 petajoules (390 billion cubic feet), 21.2 percent of the national total, by volume.

In 2006, joint venture operators of the Maui field completed drilling further production wells from the Maui A platform, originally commissioned in 1979.

Excluding Maui, total remaining gas reserves from producing fields were 1,513 petajoules (1,452 billion cubic feet) at 1 January 2007.

The Pohokura gas-condensate field, discovered offshore near New Plymouth in 2000, is now the largest single reserve of gas, with an estimated 779 billion cubic feet of gas regarded as being economically recoverable. Pohokura went into production in August 2006.

The offshore Kupe field, containing a recoverable reserve of 188 petajoules (203 billion cubic feet), is also being developed. First production from the field, off the south coast of Taranaki, is expected during the second half of 2009.

Onshore Taranaki gas fields such as Kapuni, TAWN (the collective name for Tariki, Ahuroa, Waihapa and Ngaere), McKee, Mangahewa and Rimu/Kauri will also play important roles in gas supply.

Exploration and production Increased demand for natural gas, combined with declining supply, has stimulated an increase in exploration to help fill the gap left by the depletion of the Maui field. Strong oil prices have also led many permit operators to revise their exploration programmes.

In the year ending 31 December 2006, 30 wells (not including wells for coal bed methane exploration) were drilled to a total depth of 112,369 metres. This was a substantial increase on 2001 drilling activity, when 17 wells were drilled to a total depth of 48,541 metres.

During 2005, 34 wells were drilled to a combined depth of 87,533 metres. Increased drilling activity has included a large increase in seismic data acquisition, which is a precursor to drilling.

In the year ending 31 December 2006, $133.0 million was spent on activities in exploration permits, compared with $185.5 million in the previous year.

With the development of multiple offshore fields, and numerous exploration campaigns being planned, rates of expenditure and activity are expected to rise in the short to medium term. Most planned exploration is on and offshore in Taranaki and the Great South Basin (the southern oceans off Southland).

There has been increased permit interest in the Canterbury Basin. Many permits have been granted for exploration of coal bed methane resources over Waikato and West Coast coal fields, and Otago and Southland lignite fields. Substantial areas of offshore Northland, the North Island's east coast, and western Taranaki have been offered as blocks for competitive bidding by exploration companies. Future offerings are scheduled for the Great South Basin and onshore Taranaki.

Table 20.07. Natural gas
Reserves and production

FieldReserves(1) at 1 January 2007(3)Production (net)(2) for year ending 31 Dec 2006
Cubic feet (billion)PetajoulesCubic feet (billion)Petajoules

(1) Reserves are estimated as ‘proven and probable’ or P50 by field operators.

(2) Excludes gas flared, gas reinjected, LPG extracted, and own use (fuel) and losses.

(3) Excludes LPG.

(4) Includes Goldie well.

(5) Includes Kauri well.

(6) Includes Mangahewa, Cheal, Turangi and Surrey fields.

Note: Figures may not add up to stated totals due to rounding.

Source: Ministry of Economic Development

Maui390.2438.774.6487.14
Kapuni348.5263.032.2524.35
Pohokura779.2884.811.9914.00
Kaimiro/Moturoa16.916.70.000.00
Ngatoro(4)13.313.90.010.01
Tariki/Ahuroa23.626.44.555.03
Waihapa/Ngaere0.20.30.170.19
Rimu(5)48.657.03.804.46
McKee51.560.96.006.92
Others(6)170.0190.35.836.46
Total1,842.051,951.88139.24148.50
Estimated recoverable reserves  
Kupe203.0188.1  
Urenui/Ohanga10.010.5  
Radnor6.05.0  
Windsor0.70.8  
Total219.7204.4  

Table 20.08. Gas production and demand
Year ending 31 December

YearTotal natural gas productionGas reinjectedLPG extractedFlaredLosses and own useNet natural gas productionDirect sales (est)Reticulated sales (est)(1)
Petajoules

(1) Reticulated sales (calculated) include on-site co-generation.

Source: Ministry of Economic Development

1994227.8428.668.141.854.77184.41142.0741.89
1995207.6719.417.611.244.72174.68132.0342.18
1996243.6227.678.942.485.43199.10154.0244.50
1997253.4320.489.783.975.76213.43161.2351.65
1998226.8521.129.543.095.57187.53131.1555.93
1999253.4717.7410.021.945.56218.21157.0060.57
2000254.176.8510.471.645.51229.70170.2458.88
2001265.253.5911.542.595.83241.70177.5363.11
2002248.800.5011.401.615.67229.62165.1563.51
2003189.740.019.101.165.68173.80106.8765.93
2004171.300.629.130.904.78155.8690.3764.66
2005159.411.228.760.824.25144.3774.9768.58
2006162.691.457.830.873.98148.5584.4863.31

In July 2007, five permits were awarded to explorers after a ‘blocks’ offer in the Great South Basin. Consortiums for Exxon Mobil, Todd Energy OMV, PTTEP, Mitsui E&P, and New Zealand explorers Greymouth Gas are all putting their efforts into discovering the potentially large resources in the basin. These companies are expected to spend around $1.2 billion on the exploration, where discoveries would strengthen New Zealand's energy supply.

Table 20.07 shows natural gas reserves at 1 January 2007 and production figures for the year ending 31 December 2006.

End use Around 56 percent of natural gas production was used for electricity generation, including co-generation, in the year ending 31 December 2006. The petrochemical industry used 15 percent of gas production, mainly for chemical methanol and ammonia/urea plants. The remaining 29 percent was reticulated to industry, commercial, and domestic gas users. In 2006, annual end use of gas was about 248 cubic metres per person, up about 4.5 percent on the December 2005 year.

Petrochemicals About 15 percent of New Zealand's natural gas production in the year ending 31 December 2006 was used to produce petrochemicals and chemical methanol at the Waitara methanol plant in Taranaki. The Motunui (Taranaki) methanol plant was closed in November 2004 as a consequence of natural gas supply restraints, and the Waitara methanol plant operates when economically priced gas is available.

Table 20.08 shows natural gas production and demand figures from 1994 to 2006.

Coal

Coal is New Zealand's most abundant fossil fuel. The main coalfields are in the Waikato and Taranaki (both sub-bituminous) regions of the North Island, and the West Coast (bituminous and sub-bituminous), Otago (sub-bituminous and lignite), and Southland (sub-bituminous and lignite) regions of the South Island.

The total in-ground coal resource for New Zealand is estimated at more than 15 billion tonnes, of which 80 percent is South Island lignite. The technically recoverable quantity in the 10 largest lignite deposits is over 6 billion tonnes, equivalent to 72,000 petajoules.

Sub-bituminous and bituminous in-ground resources are approximately 3.5 billion tonnes, but the recoverable quantity of these coals is uncertain. It is dependent on market conditions, ongoing exploration, and feasibility studies to convert resources to reserves.

Production National coal production increased by 47 percent between 2001 and 2006. A record 5.8 million tonnes was produced in 2006, over half a million tonnes more than in the previous year. This was mainly due to increased bituminous coal production (512,000 tonnes), and a smaller increase in sub-bituminous production (77,000 tonnes) – mainly from the Waikato region – offset by a slight fall in lignite production. Almost all production is of bituminous and sub-bituminous coals, in approximately equal quantities.

Coal production centres on the Waikato and the West Coast. Four underground and 22 open-cast mines were operating in 2006. Over 60 percent of national production was from two large open-cast operations, at Rotowaro (Waikato) and Stockton (West Coast). A further 16 percent came from New Zealand's two largest underground mines at Huntly East in the Waikato, and Spring Creek at Greymouth.

Contractors work on a large drilling rig inside the Pike River coal mine on the South Island's West Coast in the Paparoa Range. Production is scheduled to start from the underground mine in 2008, with much of the premium hard-coking coal being for export.

Export production for New Zealand coal reached 2.7 million tonnes in the year ending 31 December 2006. Most exports are of premium coking and thermal bituminous coal from the Buller and Greymouth fields on the West Coast. A large underground mine was to start production during 2008, mining bituminous coal for export from the Pike River coal field on the West Coast.

End use Proven indigenous coal resources and dwindling gas supplies mean coal is playing an increasingly important role in New Zealand's energy mix. Coal mines in the Waikato supply New Zealand Steel's Glenbrook mill, as well as the Huntly power station and several other major industrial users. Otago/Southland coals mainly supply local industrial and domestic markets, while most of the output from West Coast mines is exported. The main end use of coal for the year ending 31 December 2006 was for electricity generation (including co-generation), which took 55 percent of production. Other end users were the basic metals industry (20 percent), other industry (mainly cement, lime and plaster, meat, dairy products, and forestry and timber products), which took 18 percent, commercial (4 percent), and others – mainly agriculture and residential (3 percent).

Table 20.09. Coal production
By region, coal type and mining method
Year ending 31 December

RegionCoal typeMining method
BituminousSub-bituminousLigniteTotalOpen-castUndergroundTotal
TonnesTonnes

Note: Figures may not add up to stated totals due to rounding.

Source: Crown Minerals

2006
Waikato02,289,80902,289,8091,849,290440,5192,289,809
West Coast2,863,029136,35102,999,3802,338,268661,1122,999,380
Canterbury04,01704,0174,01704,017
Otago053,9043,33357,23757,237057,237
Southland0169,435248,033417,468417,4680417,468
Total2,863,0292,653,516251,3665,767,9114,666,2801,101,6315,767,911
2005
Waikato02,119,90902,119,9091,758,831361,0782,119,909
West Coast2,543,404112,19402,655,5982,267,126388,4722,655,598
Canterbury03,92903,9293,92903,929
Otago054,6021,58456,18656,186056,186
Southland0186,678244,862431,540426,6554,885431,540
Total2,543,4042,477,312246,4465,267,1624,512,727754,4355,267,162
2004
Waikato02,053,70702,053,7071,611,739441,9682,053,707
West Coast2,526,613100,17502,626,7882,359,212267,5762,626,788
Canterbury03,72203,7223,72203,722
Otago057,0511,85358,90458,904058,904
Southland0174,698237,576412,274394,98817,286412,274
Total2,526,6132,389,352239,4295,155,3944,428,564726,8305,155,394

Table 20.1. Coal production and exports(1)
Year ending 31 December

YearTotal productionExports(1)Total productionExports(1)
Gross petajoulesTonnes (000)

(1) Exports data is based on information from Statistics New Zealand. Coal exports are mainly bituminous rank.

Source: Ministry of Economic Development

199477.3932.743,033.201,043.62
199591.4742.713,445.041,333.75
199696.2150.903,610.551,589.53
199794.4938.903,664.031,243.57
199885.2534.183,303.881,092.79
199992.1442.273,505.731,332.70
200095.7948.483,585.641,528.51
2001103.7956.853,911.401,792.38
2002119.3261.024,458.941,931.69
2003135.4969.465,179.912,210.07
2004136.9860.135,155.391,908.42
2005139.4373.455,267.162,331.06
2006152.9985.245,767.912,719.80

Solid Energy New Zealand Ltd State-owned enterprise Solid Energy is a major energy producer, and a leading producer of high-quality coal for export and the domestic market. The company also invests in research and the commercialising of new sustainable forms of energy that use coal, and in renewable energy such as biomass, biodiesel and solar power.

The company is committed to achieving a net positive effect on the environment across its businesses, and to high levels of health and safety performance in the workplace. The target is zero injuries for the 728 employees and 555 staff employed by contractors across New Zealand.

Solid Energy produced 4.80 million tonnes of coal in the year ending 30 June 2007 – around 82 percent of New Zealand's total production. Nearly half (2.19 million tonnes, or 45.6 percent) of the coal produced by the company was exported.

Renewables

Renewables are a major part of New Zealand's total primary energy supply, contributing over 220 petajoules in the year ending 31 December 2006. Hydro (84 petajoules) and geothermal (89 petajoules) production dominated.

Derek Ackroyd at home in Rotorua. Energy from the geothermal bore in his driveway heats his water, the steam cooker and his home. The Government has a target for 90 percent of generated electricity to be from renewable sources by 2025.

Total biomass and waste (wood and wood products) provided 44 petajoules (42 petajoules from woody biomass and animal products, and about 2.3 petajoules from biogas and landfill gas).

The use of wind for electricity generation is growing, with the 2006 figure of 2.2 petajoules being an increase of 440 percent since 2001.

Table 20.11 shows renewable energy supply and consumption figures from 1999 to 2006.

Electricity generation The main use of renewable energy resources in New Zealand is for electricity generation. In the year ending 31 December 2006, about 66 percent of New Zealand's electricity was generated from renewable resources, predominantly hydro (55 percent) and geothermal (7.6 percent). The contribution from wind energy, while growing, is still at a low level (1.5 percent). A further 1.5 percent came from woody biomass, biogas and landfill gas.

Direct use As well as providing electricity, the direct use of renewables supplies 9 percent (45 petajoules) of consumer energy. This is mainly from wood (35 petajoules a year). Direct geothermal use for heating contributes 10 petajoules, with biogas and landfill gas providing 0.3 petajoules. Non-traditional renewable sources such as micro-hydro, wind, and solar schemes make a small contribution to overall consumer energy supply.

Landfill gas is used to produce energy at plants in Auckland, Rotorua, Palmerston North, Wellington, Nelson and Christchurch.

Wind energy

New Zealand has one of the best wind resources of any country in the world and is consequently well suited to wind energy development. It lies across an area long referred to by sailors as the ‘Roaring Forties’, with prevailing westerly winds.

The wind resource is enhanced by the country's oceanic location and a fairly steady succession of troughs and depressions passing to the east. Each weather system induces a pressure pattern over mountains which can lead to almost continual winds in some parts of the country.

While wind energy developments began in New Zealand with a few tentative projects, installation rates are growing rapidly. The first wind turbine (generating 225 kilowatts (kW)), now owned by Meridian Energy, has been operating successfully in Brooklyn, Wellington, since 1993.

Table 20.11. Renewable energy supply and consumption
Year ending 31 December

 19992000200120022003200420052006
Petajoules

(1) Efficiency of geothermal plants for electricity generation is assumed to be 10 percent prior to 2000. From 2000, it is assumed to be 15 percent.

(2) Before 2004, the residential firewood use figure was based on a 4.3GJ per household average. After 2004, results from the Household Energy End-use Project (HEEP), carried out by BRANZ, were used. HEEP monitored actual use, reporting annual average use of 13.7GJ.

(3) 2000 figures were based on: An Assessment of Geothermal Direct Heat Use in New Zealand, by Brian White of the New Zealand Geothermal Association.

Note: Figures may not add up to stated totals due to rounding.

Symbol: .. figure not available

Sources: Ministry of Economic Development, Statistics New Zealand

Primary energy supply
   Hydro83.7388.6781.4190.7985.2897.9283.9984.43
   Geothermal(1)84.31114.25111.4081.4978.7779.8589.1689.03
   Solar......0.160.190.200.230.24
   Wind0.140.430.500.560.531.312.192.22
   Biomass and landfill gas1.631.471.481.731.871.572.342.30
   Woody biomass and animal products(2)34.9435.8836.2138.2238.5840.7042.5842.21
Total204.74240.71231.00212.95205.23221.55220.50220.43
Energy transformation (including losses)
   Hydro83.7388.6781.4190.7985.2897.9283.9984.43
   Geothermal(1)70.00104.80101.8671.7869.1970.3179.4979.30
   Wind0.140.430.500.560.531.312.192.22
   Biogas and landfill gas1.491.321.301.541.691.462.122.02
Woody biomass and animal products(2)6.046.885.566.355.736.217.467.49
Final consumption
   Geothermal(3)14.319.459.549.729.589.549.679.73
   Solar......0.160.190.200.230.24
   Biomass and landfill gas0.140.150.180.190.180.110.220.28
   Woody biomass and animal products(2)28.9029.0030.6431.8732.8634.4935.1334.72
Total43.3538.6040.3641.9442.8144.3445.2544.97

Hau Nui, in the Wairarapa and owned by Genesis Energy, was first commissioned in 1997 and now has a total capacity of 8.65 megawatts (MW).

In 1999, TrustPower commissioned stage one of the Tararua wind farm near Palmerston North – 48 wind turbines rated at 660kW each. The second stage was completed in May 2004, and brought the total capacity to 68MW from 103 turbines.

A 500kW Windflow Technology turbine at Gebbies Pass near Christchurch was commissioned in July 2003. Meridian Energy's Te Apiti wind farm, near Palmerston North, began supplying electricity to Transpower's national grid in August 2004, with a total generating capacity of 91MW.

In March 2005, Energy 3 commissioned a 100kW pilot project in Southbridge, Canterbury.

The first stage of Te Rere Hau wind farm in the Tararua Ranges was commissioned in September 2006. Te Rere Hau is the first wind farm in New Zealand to be built using New Zealand designed and manufactured turbines. Stage I is five turbines with a total generating capacity of 2.5MW.

Two new large wind projects were commissioned in 2007. Meridian Energy opened the first South Island wind farm in July 2007, in Southland, with a total capacity of 58MW. In September 2007, stage three of TrustPower's Tararua wind farm opened, increasing capacity from 68MW to 161MW by adding 31 extra 3MW turbines.

At mid 2007, the total wind generating capacity in New Zealand was 322MW, almost double the capacity from the previous year.

Solar energy

Solar energy is available throughout the country, although amounts vary according to a region's sunshine hours. On average, New Zealand has about 2,000 hours of sunshine each year, making the solar energy resource plentiful.

The performance of a solar heating system is determined by the collector area, the hot water storage tank size, the amount of hot water used and whether boosting is controlled by electricity, gas or wetback. For 2006–07, an average of 4,000 solar water-heating systems were installed each year, mainly on private residences and commercial buildings. There are two main types of solar collectors for water heating – flat plate panels, and evacuated tubes. In New Zealand's temperate climate both types are equally efficient. During 2006, there were 4,060 water heating systems with 12,320 square metres of collector area installed.

Minerals

New Zealand has a wide variety of minerals, reflecting its diverse geology and dynamic tectonic history.

While it is best known for gold production (10,617 kilograms in the year ending 31 December 2006), there is also production of silver, ironsand, coal, aggregate, limestone, clay, dolomite, pumice, salt, serpentine, zeolite and bentonite. In addition, there are resources, or potential deposits, of titanium (ilmenite beachsands), platinum, sulphur, phosphate, silica and mercury.

Mineral legislation The Crown owns all of New Zealand's petroleum, gold and silver, along with approximately half of in-ground coal, metallic and non-metallic minerals, industrial rocks, and building stones. Permits to prospect, explore or mine Crown-owned minerals are issued under the Crown Minerals Act 1991. The relevant minerals programme and regulations are administered by Crown Minerals, a group within the Ministry of Economic Development. The government sees the development of petroleum and mineral resources as a significant contributor to national and regional economic development. A permit from Crown Minerals does not give land access, which is negotiated with each landowner and occupier. Environmental impact is regulated under the Resource Management Act 1991, with resource consents granted by district or regional councils.

Students from Hamilton's Hukanui School look over the open pit of Martha's gold mine at Waihi near Coromandel. The mine, which began operating in 1987, produced more than 4,800 kilograms of gold in 2006. Waihi also has an underground mine at Favona.

Metals

Gold is present in New Zealand in quartz veins. It is finely dispersed through host rocks, and as alluvial gold in river gravels. The majority of gold production during 2006 came from two hardrock mines, Macraes mine in east Otago, the largest mine in New Zealand, and the Martha mine at Waihi, in the Coromandel area. Macraes mine produced more than 5,000 kilograms in 2006, while the open-pit Martha mine, which began operating in 1987, produced more than 4,800 kilograms.

There has been an increased level of exploration for hard-rock gold in recent years, with permit interests and drilling activity around the country. Three new projects are under development. In the Reefton area, the Globe Progress mine will be an open-pit operation, and the Blackwater mine will be underground – targeting the deep Birthday Reef, originally mined in the first half of the 20th century. An underground resource at Favona, near Waihi and the Martha mine, started production in 2006.

Alluvial gold mining continues in the South Island, mainly on the West Coast and in Otago. Extraction methods range from sole-operator plants, to medium and large floating or skid-mounted plants fed by hydraulic excavators.

In 2006, production from outside the two major gold mining operations totalled almost 500 kilograms.

Silver was historically produced mainly in the Coromandel area and is almost always associated with gold in various proportions. Production in recent years has been mostly from the Martha mine at Waihi, although production from the Macraes mine has increased sharply. In the year ending 31 December 2006, national silver production totalled 27,220 kilograms.

Iron ore is a large resource found in the black sands of the North Island's west coast beaches, especially between Muriwai and Wanganui. Two deposits of titanomagnetite (ironsand) are mined by Bluescope Steel Ltd. At Waikato North Head, mining has been carried out since 1969 using two bucket-wheel excavators which convey the ore to concentration plants. The titanomagnetite concentrate slurry is then pumped through an 18-kilometre pipeline to the Glenbrook steel mill. Here it is reduced in a solid state process, and smelted with scrap in an electrical arc furnace to produce a range of steel products. The operation at Taharoa, which started in 1972, pumps titanomagnetite concentrate slurry to ships moored offshore for export to Japan, the Republic of Korea and China.

In the year ending 31 December 2006, ironsand production totalled 2,146,496 tonnes. Production from the Waikato North Head operation remained high as a result of strong local demand for steel. Production from the Taharoa operation, exclusively for export, was 921,191 tonnes in 2006.

Ilmenite is found in sands along 320 kilometres of the South Island's west coast. The largest known ilmenite resource is at Barrytown, where exploration has defined a 50-million-tonne resource. South of Westport, another quantity of 17–30 million tonnes contains ilmenite. Ilmenite is a source of titanium dioxide, used as a pigment in paint, paper, plastics, cloth and rubber, and to make them opaque. Garnet is a major component of the sand and zircon a minor component.

Platinum group metals are being sought in a number of areas in the South Island. The Longwood Range, in western Southland, which consists of a layered gabbro (dark, granular, plutonic, crystalline rock) complex, is the only site in New Zealand where platinum has been produced – in association with alluvial gold.

Other metallic minerals are found in small deposits in many localities. Some areas of Northland, Coromandel, Nelson, and Westland have potential for base metals (copper, lead and zinc), but there is little prospecting. Iron ore, stibnite (antimony), orpiment (arsenic), chromite, monazite (rare earths), nickel, and rutile have all been mined in the past. Cassiterite (tin) is known in Stewart Island. Bauxite is present in Northland, where 20 million tonnes of reserves have been identified. Cinnabar, the principal ore of mercury, was historically produced in limited quantities from sinter deposits in Northland.

Non-metallic minerals

In the year ending 31 December 2006, 46.12 million tonnes of non-metals (industrial minerals) were quarried in New Zealand.

This was made up of: the production of limestone for marl and cement (1.76 million tonnes), rock, sand and gravel for roading (24.1 million tonnes), rock, sand and gravel for building (8.6 million tonnes), rock, sand, gravel and clay for fill (4.4 million tonnes), silica sand (58,824 tonnes), pumice (305,659 tonnes), decorative pebbles including scoria (131,074 tonnes), perlite (3,552 tonnes), bentonite (3,028 tonnes), building and dimension stone (22,880 tonnes), dolomite for industry (1,626 tonnes), limestone for industry and roading (948,366 tonnes), limestone for agriculture (2.3 million tonnes), sand for industry (2.4 million tonnes), and serpentine (41,000 tonnes).

Aggregates are produced from a variety of rocks, gravels and sands and are used in road construction and concrete manufacture. Suitable rocks for aggregate production are found throughout New Zealand.

Clays found throughout New Zealand include bentonite, halloysite and kaolinite. They are used in the manufacture of sanitary ware, ceramics, bricks, tiles, pipes and pottery; as fillers in the manufacture of paper, paint, pharmaceutical and animal health products; and as pelletising agents. White halloysite from Northland's Matauri Bay is exported for the manufacture of fine ceramics and porcelain. Bentonite, found in substantial quantities in Hawke's Bay and Canterbury, is used as a bonding agent and for specialist drilling products. Although bentonite is still imported for drilling operations, because long-established overseas sources are commonly preferred, New Zealand bentonite is increasingly being used.

Dolomite rock, used in agriculture, glassmaking and for harbour protection blocks, is produced near Collingwood in Golden Bay.

Greenstone is also called nephrite and bowenite, and popularly known as pounamu. It is found in Westland and northern Fiordland. A deposit of nephrite boulders in a tributary of the Arahura River has been the main source of greenstone. Best known occurrences of bowenite, the serpentine variety of greenstone, are in the Griffin range in Westland and in Fiordland. Boulders of greenstone are reduced in size using a portable diamond saw, and airlifted by helicopter. Ownership of pounamu was returned to Ngāi Tahu, the South Island's largest Māori iwi (tribe) as part of its Treaty of Waitangi settlement.

Limestone is found throughout New Zealand and is used in cement manufacture, roading, industry and agriculture. High quality limestone from Te Kuiti in the North Island, and Nelson in the South Island, is processed for export. Limestone is also used in New Zealand as a filler in the paint, glass, rubber, plastic and paper industries. A crystallised form of limestone, marble, is mined in Nelson and used as a filler and in building construction.

Salt is produced by the solar evaporation of sea water at Lake Grassmere, in Marlborough. 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 are produced each year for the domestic market.

Serpentine is a magnesium-rich rock which is used as a fertiliser additive, and in the manufacture of decorative tiles. Deposits are mined at Piopio, near Hamilton, and at Greenhills in Southland.

Silica sand deposits are found in Northland and Canterbury, and mined for use in glass manufacture, foundry moulds, and in the building industry.

Sulphur is used mainly in the production of agricultural fertiliser, and is mined at Tikitere, near Rotorua.

Zeolite is mined at Ngakuru, in the central North Island near Rotorua. It is used in horticulture, and as animal litter.

Other non-metallic minerals, some of which have been mined in the past, are also present in New Zealand. They include: diatomite (used for industrial filtration), barite (industrial uses include glassmaking and fillers), asbestos (building material), feldspar (glassmaking, ceramics and enamels), magnesite (agriculture), mica (electronics), phosphate (fertiliser), talc (cosmetics) and wollastonite (paper, asbestos substitute, ceramics, adhesives and plastics).

Merv Dickey, supervisor of the gold room at the Macraes mine in Otago, holds a 25-kilogram bar containing the two-millionth ounce of gold produced at the mine (in late 2005). In 2006, Macraes produced more than 5,000 kilograms from its large open-pit mine.

Contributors and related websites

Crown Minerals, Ministry of Economic Development – www.crownminerals.govt.nz

Electricity Commission – www.electricitycommission.govt.nz

Energy Efficiency and Conservation Authority – www.eeca.govt.nz

Foundation for Research, Science and Technology – www.frst.govt.nz

Genesis Energy – www.genesisenergy.co.nz

GRD Ltd – www.grd.com.au

Meridian Energy – www.meridianenergy.co.nz

Ministry of Economic Development – www.med.govt.nz

New Zealand Minerals Industry Association – www.minerals.co.nz

Newmont Waihi Gold – www.marthamine.co.nz

Scion – www.scionresearch.com

Solid Energy New Zealand Ltd – www.coalnz.com

Transpower New Zealand Ltd – www.transpower.co.nz

TrustPower – www.trustpower.co.nz

Chapter 21. Manufacturing

The Buy Kiwi Made campaign stall at the Auckland Food Show in August 2007 featured New Zealand manufacturers and their products.

The future of New Zealand manufacturing depends on the sector's ability to innovate and service global markets. To excel in the rapidly evolving global environment, manufacturers have to create and capitalise on their own initiatives, and distinguish themselves from their competitors. Firms have to be innovative, enterprising and able to respond swiftly to the market.

To achieve this, successful manufacturers encourage high levels of quality in both their operations and their management. The need to remain ahead of the competition has also resulted in increased emphasis on productivity and technology innovation.

Most countries in the Organisation for Economic Co-operation and Development (OECD) have strong policies of increasing innovation to remain competitive. The aim is to create new products and services, maximise the resulting economic returns, and move into new products, before they become ‘standardised’ or ‘commoditised’. To achieve this, the manufacturing sector needs to be aware of, and closely aligned with, market trends.

New Zealand's business environment provides a strong framework for manufacturers to create and capitalise on opportunities. However, the sector needs to continue to respond to the constantly changing global environment.

The government, through New Zealand Trade and Enterprise (NZTE), provides a range of export development services and programmes to manufacturing firms. NZTE targets firms that produce low-volume, high-value niche export-market goods. It works with these firms to develop manufacturing clusters, long-term growth strategies, and access to export markets.

Targeted niche manufacturing areas have included engineering, marine manufacturing, plastics and electronics, and the food and beverage sector.

Table 21.01 (overleaf) shows contributions to gross domestic product (GDP) made by the manufacturing sector.

Tariffs

Approximately 95 percent of imports (by value) enter New Zealand free of duty, and most other imports face low tariffs of 5–7 percent.

Following a tariff review in 2003 by the Ministry of Economic Development, the government decided on the gradual reduction of ad valorem tariffs – tariffs that are calculated as a percentage of the goods' total value (rather than per item) – finishing in 2009.

Table 21.01. Manufacturing sector contribution to GDP
Year ending 31 March

YearContribution to GDP(1) (million)Change from previous year (percent)Total GDP(1) ($million)

(1) Chain-volume series expressed in 1995/96 prices.

Source: Statistics New Zealand

200016,3694.9104,041
200116,7942.6106,551
200216,9410.9110,554
200318,3988.6116,143
200418,8922.7120,220
200519,3242.3125,069
200619,012-1.6128,428
200718,667-1.8130,442

The highest ad valorem tariff rate of 15 percent (applying to carpet, clothing, headgear, footwear, ambulances and motor homes) was reduced to 12.5 percent on 1 July 2008 and will be further reduced to 10 percent on 1 July 2009. Tariff rates on all other goods were reduced to 5 percent by July 2008.

Free trade agreements

Bilateral and regional free trade agreements (FTAs) play an increasingly important role in international trade.

In FTA negotiations, New Zealand seeks reciprocal removal of tariffs on all goods.

New Zealand's Closer Economic Partnership Agreement with Thailand came into force in 2005. By November 2006, the Trans-Pacific Strategic Economic Partnership, an FTA with Chile, Brunei and Singapore, had come into force for all partners. An FTA with China was signed in April 2008.

Negotiations for further agreements with Malaysia, and the Association of Southeast Asian Nations (ASEAN) are continuing. Negotiations with the Gulf Cooperation Council (involving Saudi Arabia, Bahrain, United Arab Emirates, Oman, Qatar and Kuwait) commenced in July 2007.

Ministry of Economic Development

The Ministry of Economic Development Manatū Ōhanga works cooperatively with businesses, regions, local government, iwi (tribes) and other state sector agencies, on activities that stimulate economic development.

The government's economic transformation agenda aims to move New Zealand's economy towards greater productivity and higher value activity. The ministry is working to ensure that New Zealand's business environment actively promotes and enables a higher rate of sustainable economic development. The ministry leads and coordinates policy advice related to economic, regional and industry development. It also works with New Zealand Trade and Enterprise to design and implement programmes to deliver the government's economic development policies.

The ministry is also the government's primary advisor on the operation and regulation of specific markets and industries, including energy and telecommunications.

The ministry is focused on providing a legal framework that protects intellectual property, ensures appropriate rights for consumers and investors, allows markets to function effectively, and helps New Zealand businesses to compete effectively in the international arena.

New Zealand Trade and Enterprise

New Zealand Trade and Enterprise (NZTE) works to stimulate economic growth by helping to boost export earnings, strengthen regional economies, and deliver economic development assistance to industries and individual businesses. NZTE uses its knowledge and contacts in overseas markets to connect New Zealand businesses with trade and investment opportunities.

Brad Lathorpe, a technician at Nautech Electronics, fits out a new police car. The company has a contract to outfit cars for the Queensland police in Australia.

Companies just starting-up, through to established groups of exporters, can use NZTE services and programmes. These include advice, training, mentoring, funding, and business and market development assistance. Some services are provided directly by NZTE and others are provided through external organisations funded by NZTE.

Business incubators are designed to help businesses become established and sustainable during their start-up phase. Incubators typically do this by providing shared premises, business advice and services, networking, mentoring, and a full-time manager. The incubation period for an individual business is normally one to three years. NZTE's Incubator Awards provide financial support to approved New Zealand incubators. At June 2007, $14.8 million had been awarded since the programme was established in 2001.

Enterprise Training Programme is aimed at upskilling the owners and operators of small and medium enterprises to help them develop and grow their businesses. The programme is delivered by specialist training providers throughout New Zealand. It offers training for managing a business, complemented by follow-up coaching that is designed to help business owners implement what they have learned.

Business Information Zone is a specialist business information and referral service for small to medium businesses. The service helps New Zealanders to identify organisations, people, training programmes and resources that can help them to develop their business. It also provides contacts and information on government and non-government services. Online information about running a business is available at www.business.govt.nz. This is a free and independent business resource, and a convenient way to find tools and information to help start, manage, and grow a business.

Escalator Service provides specialist skills and assistance to raise equity funding or consolidate a strategic relationship that may help a business expand, diversify, or market a product or service.

Enterprise Development Grants Programme aims to help New Zealand businesses and entrepreneurs gain the additional skills and abilities that they need to pursue their business development goal. The programme builds capability and supports development initiatives.

Industry Capability Network encourages major purchasers in the New Zealand and Australian markets to use competitive local products instead of imported products. The major focus of this activity is on large projects that provide clear opportunities for import substitution, and benefit local industry. The Australasian Industry Capability Network ensures opportunities for import substitution are coordinated within the wider New Zealand and Australian market.

E-business Guide provides information and practical advice to help businesses grow by using information technology and the Internet. The self-service guide allows businesses to work through e-business development at their own pace, while an adviser is also available to talk them through the process.

Business mentors are funded by NZTE, through Business Mentors New Zealand. Their programmes are provided by people with proven business skills and experience. Businesses can also use the enterprise development grants to employ mentors, get specialist advice, and engage a small-business advisory board.

International services help New Zealand businesses with their international market development plans. The services include generic market information and more specific customised research for New Zealand businesses that are considered capable of succeeding overseas. Some services are provided directly by NZTE and others are from external organisations.

Exporter Education Programme is designed to provide existing and new exporters with the skills and advice to help them increase exports. Services offered include an export assessment, export workshops, follow-up coaching, and one-to-one business support training.

Beachheads Programme gives companies with high-growth potential faster access to better international networks. The programme is designed around a unique partnership between NZTE and successful executives who are willing to share their experience, skills and business networks. These executives help New Zealand businesses accelerate their market entry and growth in key export markets.

Market intelligence and news comes from NZTE's network of offices in New Zealand and around the world. The offices provide practical information on New Zealand's top international markets. NZTE's online trade enquiry system also enables businesses with proven export capability to profile their products and services to an international business audience, and receive trade enquiries, through www.marketnewzealand.com.

Manufacturing groups

Some of the major secondary industries in New Zealand are briefly described below.

Food The New Zealand food manufacturing industry produces high-quality products for both the domestic and export market. This industry enjoys the advantages of a natural environment that is highly conducive to pastoral agriculture, a disease-free status, the potential for year-round production, and an international reputation for excellence.

The industry had sales of over $28 billion in the year ending 2007, including more than $20 billion for meat and dairy. Meat and dairy exports of $13.5 billion brought total food manufacturing exports to $17.5 billion.

During the 2005/06 financial year the food manufacturing industry invested $94 million in research and development. At February 2007, more than 75,000 people were employed in the industry.

Plastics The New Zealand plastics industry, excluding composites, had an annual turnover of more than $2.5 billion for the year ending December 2007, and at February 2007 employed 10,670 people in 575 enterprises.

A major use of plastics is in the packaging industry, which supports New Zealand's agriculture, horticulture and aquaculture sectors. Other significant end users of plastics include home appliance manufacturers, the information technology industry, and the building and construction sector.

Growth in this competitive and highly technical industry is being driven globally by the increasing substitution of plastics for other less versatile, more expensive materials. The New Zealand industry keeps up with world growth through innovation in process, design, and customer service.

Canvasland managing director Brendan Duffy in the general production area of his Levin factory. The company makes a range of innovative canvas and PVC products including bouncy castles, trampolines and goal post protectors and is a member of DesignTex, an industry group given $2 million by the Government to develop the textile industry in the lower North Island.

Figure 21.01.

Marine New Zealand's marine industry has built its profile on the back of sporting success in international yachting regattas such as the Olympics and the America's Cup. This has led to a worldwide reputation for excellence in the design and construction of top level racing yachts and super yachts.

Figure 21.01 shows the total employee count for the different industry groups, while table 21.02 (overleaf) shows employment numbers by industry and region.

Ingrid Jagersma, general manager of JJ Wafer Biscuits, inspects sheets of wafer biscuits as they come off the production line. More than 75,000 people were employed in food manufacturing in 2007.

New Zealand has set benchmark standards for high performance and advanced technology in the areas of racing technique, boat building and design, refits, sails, spars, electronics, technology, software and systems.

Annual turnover for boat and ship manufacturing in the year ending 31 December 2007 was $770 million. Exports totalled $287 million, including re-exports of $66 million. In February 2007, 750 companies were engaged in ship and boat building, employing around 4,420 people.

Textiles The New Zealand textiles industry consists of four interrelated sectors – textiles, carpet, footwear, and apparel – and has a reputation for innovative technology and quality products. New Zealand produces some of the finest quality wool and fibre in the world. Local producers' and exporters' knowledge of sheep and wool fibre is backed by an international reputation for innovation in manufacturing processes and products.

Table 21.02. Regional employee count in manufacturing(1)
By industry
2007

RegionFood, beverage & tobaccoTextile, clothing, footwear & leatherWood & paper productsPrinting, publishing & recorded mediaPetrol, coal, chemical & associated productsNon-metallic mineral productsMetal productsMachinery & equipmentOther manufacturingTotal employedTotal employed 2006

(1) Employee count is a head count of all salary and wage earners, including working proprietors who also pay themselves a taxable salary or wage.

Note: Figures may not add up to totals due to rounding.

Source: Statistics New Zealand

Northland1,5601101,4103505503905701,1403106,3706,580
Auckland15,3806,1305,09011,27010,7503,43012,59017,2006,05087,90089,910
Waikato7,7005003,7201,4701,5506503,1804,08064023,49024,000
Bay of Plenty3,2803303,9307709803201,4002,36071014,07014,360
Gisborne1,1401404501601285110190302,3202,230
Hawke's Bay6,1101,0701,12041038025068089050011,38012,060
Taranaki4,440906905604301001,3601,2201809,0708,820
Manawatu/Wanganui4,3701,5101,2301,1806002901,1501,62064012,59012,780
Wellington3,1501,1201,5503,6701,9404002,0302,5701,20017,65018,650
Tasman840259002570100180160752,3702,430
Nelson1,74016033046014030230430953,5903,580
Marlborough2,10055290300110602405101403,8104,170
West Coast640182901001517035180901,5501,610
Canterbury11,4503,6402,5703,7003,5601,1603,2408,4902,06039,87040,330
Otago5,3908901,0401,5602403309601,73031012,45012,520
Southland5,650270760620801401,560670909,8209,460

The industry is a significant contributor to the New Zealand economy, with an annual turnover of nearly $2.5 billion in the year ending December 2007. Exports totalled around $1.7 billion, including re-exports of $0.2 billion. New Zealand apparel, from high-performance sportswear to children's clothing and designer fashion, is exported around the world.

In February 2007, the industry employed about 16,000 people in more than 1,750 businesses. The textiles industry invested $25.9 million in research and development in the 2005/06 financial year.

Manufacturing statistics

Statistics New Zealand's Quarterly Economic Survey of Manufacturing gives a representative estimate of economic activity for 17 groups within the manufacturing sector.

The survey asks for information about operating income, purchases and operating expenditure, salaries and wages, closing stocks of materials and finished goods, and additions to and disposals of fixed assets.

Table 21.03 presents economic activity results for recent years, and table 21.04 shows manufacturing sector contributions, by industry group.

Table 21.03. Manufacturing economic activity
Year ending 31 March

YearOperating incomePurchases & operating expenditureSalaries & wagesStock of raw materials for use in productionFinished goods, work in progress & trading stocksAdditions to fixed assetsDisposal of fixed assets
$(million)
Source: Statistics New Zealand
200054,14639,1038,5829,28915,3092,3140
200160,53743,6988,79610,03717,1011,9490
200263,36447,0778,96110,28918,5782,806336
200365,06947,6129,53910,53823,7432,392327
200466,23248,16310,30010,52325,7632,698380
200569,55551,32510,84311,53726,6312,685450
200670,26151,65711,04811,73628,5902,678502
200774,41253,71011,49811,62528,8602,598480

Table 21.04. Manufacturing sector contributions
By industry group
Year ending 31 March 2007

Industry groupOperating incomePurchases & operating expenditureSalaries & wagesStock of raw materials for use in productionFinished goods, work in progress & trading stocks
$(million)
Source: Statistics New Zealand
Dairy and meat products19,80915,8891,8931,00010,138
Other food7,5315,6921,0311,0832,562
Beverages, malt and tobacco3,5402,3133858512,436
Textile and apparel2,5001,6515737201,229
Wood products4,6363,3897666371,809
Paper and paper products2,8052,196365454916
Printing, publishing and recorded media3,8332,112931394414
Petroleum and industrial chemicals2,6291,848253757825
Rubber, plastic and other chemical products5,1763,6889361,1722,508
Non-metallic mineral products2,7051,826403239666
Basic metal products2,5791,865368502715
Structural, sheet and fabricated metal products5,1383,4491,0389281,054
Transport equipment2,3391,487642777700
Machinery and equipment7,0584,8521,4681,5902,398
Furniture and other manufacturing2,1281,446440513483

Contributors and related websites

Buy Kiwi Made – www.buykiwimade.govt.nz

Design Mobel – www.designmobel.co.nz

Ministry of Economic Development – www.med.govt.nz

New Zealand Trade and Enterprise – www.nzte.govt.nz

Statistics New Zealand – www.stats.govt.nz

Sustainable Business Network – www.sustainable.org.nz

Chapter 22. Housing and construction

Lloyd McGinty, from the ‘Energy Doctor’ service, checks the insulation in the roof space of a Titahi Bay house near Wellington. Energy doctors visit homes to advise homeowners on how to improve their energy efficiency.

Housing

A house provides shelter and security for both the family and the individual. A home can fulfil social requirements as well as physical needs, allowing individuals the opportunity to express aspirations and tastes.

Housing is a central part of the domestic economy, since it is a major source of investment for many New Zealanders and provides employment and livelihood for a variety of trades.

Home ownership is seen as a form of investment savings, an expression of independence and a way to achieve security and self-determination. While home ownership is still the main form of tenure, the proportion of households that do not own the house they live in has been increasing in New Zealand. In the 2006 Census, 33.1 percent of privately occupied dwellings were not owned by the household, compared with 29.3 percent in the 1996 Census.

The 2006 Census also revealed that the average number of usual residents per household has decreased marginally in the last 10 years – from 2.8 in 1996 to 2.7 in 2006.

House prices The average sale price for houses in the year ending 31 December 2006 was $362,501, as shown in table 22.01. This was 11.3 percent higher than the average price for the previous year ($325,678) and 99.9 percent higher than that recorded nine years previously in 1997 ($181,372).

Table 22.01. Average sale price of property
By property type
Year ending 31 December

Property type20022003200420052006
$
Source: Quotable Value
Section (bare land)99,309114,971144,172170,827193,944
House226,941249,039285,158325,678362,501
Owner-occupier flat190,137214,479238,100251,062296,642

Quotable Value's residential house price index measures changes in the average level of prices paid for residential properties during each quarter. Table 22.02 shows changes in recent years.

Table 22.02. House price index(1)(2)
December quarter

Location20022003200420052006

(1) Base: December 2003 quarter = 1000.

(2) Variations in the average age of properties, 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.

(3) Includes North Shore city, Waitakere city, Manukau city, Papakura district, and Auckland city.

(4) Includes Porirua city. Upper Hutt city, Wellington city, and Hutt city.

Source: Quotable Value

Whangarei district8521000119415771715
Auckland(3)7981000105711841273
Hamilton city8591000116414771663
Tauranga district8011000120413421365
Rotorua district8951000114215101709
Gisborne district8871000133818172047
Napier city7591000117413421352
Hastings district7541000121513851439
New Plymouth district7671000130315501662
Wanganui district8881000137918142043
Palmerston North city8441000115113851567
Masterton district8601000113813401542
Wellington(4)8611000111412731443
Nelson city703100095810171086
Christchurch city7781000117613751512
Timaru district7711000129115991725
Dunedin city6711000121413491435
Invercargill district7331000111812701499
All New Zealand8011000112212941420

House sales In the year ending 31 December 2006, Quotable Value was notified of 90,457 freehold open market house sales, a 2.5 percent decrease from the 92,747 sales recorded in the previous year. Freehold open market sales cover about 80 percent of all house sales, but exclude forced sales, sales between family members with a gift element, and sales of leasehold and mixed-tenure properties.

Housing loans

There were an estimated 1.45 million privately-owned non-farm residential dwellings in New Zealand at 31 December 2006. An estimated 800,000 of these dwellings had a loan or loans secured by mortgage (including residential rental properties and second homes). The average outstanding debt secured on residential dwellings at 31 December 2006 was estimated to be in the $140,000 – $150,000 range.

The value of private non-farm residential dwellings doubled to more than $500 billion in the four years to 31 December 2005. Total debt secured on these dwellings increased by 70 percent, or $50 billion. During this period of rising prices, annual sales turnover averaged around 10 percent of the total private sector housing stock.

Figure 22.01 shows mortgages registered and discharged between 1920 and 2007.

Figure 22.01.

Auctioneer Warwick Grimmer sells a house built by Otago Polytechnic students.

Mortgage interest rates Since inflation fell to a low rate in the early 1990s the average annual rate of interest on new floating-rate mortgages has been considerably lower than it was for the previous two decades, as figure 22.02 shows. In the mid 1990s, and again recently, rising interest rates for floating-rate mortgages have reflected tightening monetary policy in response to inflationary pressures.

Fixed-rate mortgages have been widely available in New Zealand since the mid 1990s and most home borrowers have not relied on floating-rate mortgages, tending to borrow for relatively short terms (three years or less) at fixed rates. By the end of 2007, more than 85 percent of all mortgage loans by value were at fixed rates, up from 60 percent in the late 1990s. This occurred because, for most of the period since then, fixed interest rates have been lower than floating rates. While the average floating interest rate during 2007 was over 9.75 percent, weighted fixed interest rates averaged close to 8.00 percent.

Table 22.03 shows household borrowing for housing and other purposes, from a monthly Reserve Bank of New Zealand survey. Registered banks are the source of more than 90 percent of the total household borrowing surveyed.

Figure 22.02.

Housing New Zealand Corporation

Housing New Zealand Corporation is a Crown entity, established under the Housing Corporation Act 1974 and the Housing Corporation Amendment Act 2001, that provides housing and services related to housing. The corporation also ensures that the Minister of Housing receives appropriate policy advice and information on housing issues.

The corporation owns or manages more than 68,000 rental properties nationwide for people on low incomes or who are in need of housing assistance, and also offers a range of home ownership options.

Table 22.03. Household borrowing
By reason for borrowing
Quarterly

QuarterHousingOther purposesTotal
$(million)

Note: Figures may not add up to stated totals due to rounding.

Source: Reserve Bank of New Zealand

2001Mar66,7707,09673,866
 Jun68,0237,23575,258
 Sep68,9647,44476,407
 Dec70,3497,82178,170
2002Mar72,0217,83679,858
 Jun73,6227,96181,583
 Sep74,9838,28683,269
 Dec77,1668,72185,887
2003Mar79,7468,77488,519
 Jun82,5768,97791,552
 Sep85,7639,29495,057
 Dec89,5899,64599,234
2004Mar93,1859,670102,854
 Jun96,7679,777106,544
 Sep100,0259,970109,994
 Dec103,86110,241114,102
2005Mar107,92710,483118,410
 Jun112,02810,529122,557
 Sep116,14210,665126,807
 Dec120,53711,312131,848
2006Mar124,43611,343135,779
 Jun128,56511,306139,870
 Sep132,37511,314143,688
 Dec137,00211,917148,919
2007Mar142,19711,949154,147
 Jun147,12911,945159,073
 Sep150,65412,075162,729

Housing New Zealand Corporation's apartment block in Talbot Park, Auckland, took top honours at the regional New Zealand Institute of Architects Resene Awards.

A social allocation system is used to ensure that those with the greatest need are given priority for housing. In 2006/07, the corporation assisted 10,313 people into state housing, bringing the number of people living in state houses to almost 198,000. At 30 June 2007, 9,837 applicants were on waiting lists for state houses.

Housing New Zealand Corporation provides ongoing support for households with complex housing and other needs. It provides income-related rents (where eligible tenants pay no more than 25 percent of their income), tenancy debt management, modified housing for people with disabilities, localised tenant newsletters, and support work with migrant communities.

The corporation has about 1,500 properties available for use by community groups, and organisations that offer residential support services. The groups renting these properties offer services for people with special health or welfare needs.

The corporation increased the number of properties in its housing portfolio by almost 1,000 during 2006/07, bringing the total of state-owned or leased rental units to 68,128. At 30 June 2007, property assets were valued at more than $15 billion, and the corporation returned a surplus of $13 million for the 2006/07 year.

Table 22.04 details Housing New Zealand Corporation's activity in recent years.

Healthy Housing is a joint initiative with district health boards that targets overcrowded state houses in Northland, and south and central Auckland, to reduce the risks of disease. During 2006/07, 1,067 households had their living standards improved through the Healthy Housing project, at a cost of more than $8 million.

Community Renewal Programme operates in areas with both high concentrations of state housing and high levels of disadvantage. The main aims are to address social exclusion, foster strong and sustainable communities, and improve the neighbourhood's physical assets and appearance.

The Community Renewal Programme began in July 2001 and is currently underway in seven areas: Otangarei in Whangarei, Northcote central in North Shore City, Talbot Park in central Auckland, Clendon in south Auckland, Fordlands in Rotorua, eastern Porirua near Wellington, and Aranui in Christchurch.

Major achievements in 2006/07 included completion of the Talbot Park Community Renewal project in Tamaki, Auckland. The six-year project involved refurbishing 108 units and building 111 new state houses using good quality urban design; improving the amenity and safety of the local residential environment through better landscaping and lighting; redesigned roads and safer parks; and incorporating new sustainability initiatives, such as solar hot water systems and on-site stormwater treatment devices.

Table 22.04. Housing New Zealand Corporation statistics
Year ending 30 June

 20032004200520062007

(1) Includes relocatable and non-relocatable units, garages and carparks.

(2) Figures denote percentage of new tenancies receiving an income-related rent.

(3) Figures are for all property disposals, including sales to non-tenants and lease terminations.

(4) Includes transfer of properties to Community Housing Ltd.

Source: Housing New Zealand Corporation

Total rental units(1)64,54365,44866,49867,11768,128
Number of allocations (new tenancies)9,8859,45310,09310,32610,313
Number of new tenancies for priority customers8,0317,9778,4288,5048,775
Allocation to low-income households (%)(2)97.098.398.098.898.4
Property disposals(3)420563510573596
Properties acquired or contracted (gross)(4)2,9411,4661,5601,6161,452

Rural Housing Programme aims to address substandard housing in rural parts of New Zealand, particularly Northland, the eastern Bay of Plenty and the East Coast.

Welcome Home Loan aims to bring home ownership within the reach of modest income earners. Housing New Zealand Corporation provides mortgage insurance support to lenders to facilitate lending to low-income households.

In 2006/07, Housing New Zealand Corporation responded to the changing housing market and housing needs by expanding the Welcome Home Loan scheme. Four new lenders came on board, helping a further 1,070 people – including 13 state housing tenants – buy their own home. Loan criteria were amended in September 2006, with the maximum no-deposit loan increasing from $150,000 to $200,000 – better reflecting house price growth since the scheme was launched in 2003. These changes resulted in a 35 percent increase in the number of loans underwritten in 2006/07 compared with the previous year.

Low Deposit Rural Lending is targeted at low to modest income earners who want to buy or build in rural areas. Applicants must complete a home ownership course and meet the Housing New Zealand Corporation's lending criteria before becoming eligible for loan assistance.

Table 22.05 details Housing New Zealand Corporation's loan approvals in recent years.

Housing assistance

The Accommodation Supplement is available for low to middle income households, irrespective of whether they are renters, mortgagees or boarders, but is not available to people living in Housing New Zealand Corporation accommodation.

The Accommodation Supplement is administered by Work and Income New Zealand and takes account of high housing costs in main urban centres. The low-income threshold depends on circumstances, and is subject to an asset test. Table 22.06 (overleaf) shows trends in recent years in the number of clients receiving accommodation assistance.

Reintroduction of income-related rents for Housing New Zealand Corporation tenants in 2000 resulted in a large number of people losing eligibility for the Accommodation Supplement because of lower rent levels. Increases between 2004 and 2006 in the number of people receiving the supplement coincided with the broadening of eligibility to include more working families, part of the Government's Working for Families package.

At the end of June 2007, there were 243,433 people receiving an Accommodation Supplement, 5,945 fewer than at the end of June 2006. This decrease reflects a decrease in the number of people on main benefits. During the year ending June 2007, there were 214,219 applications for the supplement granted, 10,053 fewer than during the year ending June 2006.

Table 22.06 shows the number of people receiving assistance and the total value of payments.

Department of Building and Housing

The Department of Building and Housing provides information and guidance on building law and compliance. It also provides services, including advice for tenants and landlords, and guidance on how to keep homes weathertight.

The department is responsible for:

  • making sure the laws and standards that govern the building and housing sector are effective

  • providing good information, advice and dispute resolution services (for tenancy and weathertightness issues)

  • working with the building and housing sector to develop better professional standards, skills and behaviours

Table 22.05. Housing New Zealand Corporation loan approvals
Year ending 30 June

Programme20032004200520062007
NumberValue $(m)NumberValue $(m)NumberValue $(m)NumberValue $(m)NumberValue $(m)

(1) Mortgage finance to build on multiple-owned Māori land.

(2) Loans to cover the cost of urgent and essential repairs and the cost of installing infrastructure services to new homes.

(3) Borrower has to meet Housing New Zealand Corporation's lending conditions and have a deposit of at least 20 percent of the purchase price.

(4) Before 1 July 2005 was called Mortgage Insurance Scheme.

Symbol:.. figure not available

Source: Housing New Zealand Corporation

Papakāinga(1)20.0910.1820.1441.6040.93
Low Deposit Rural Lending26419.8022417.45906.83706.00252.89
Suspensory(2)2804.263885.134296.753967.394057.55
General(3)110.3760.4550.3310.6010.03
Welcome Home Loan(4)....36740.2059773.60791110.901,070180.70

Table 22.06. Accommodation assistance(1)

YearBenefits at 30 JuneAnnual payment, year ending June
Number$(million)

(1) Supplement from Work and Income.

Source: Ministry of Social Development

2000315,988867.0
2001265,882795.1
2002258,034719.6
2003251,941706.0
2004236,695702.1
2005242,612749.7
2006249,378843.2
2007243,433877.0
  • providing policy advice to the government on the building sector and residential tenancy market, including emerging trends and issues

  • providing purchase and monitoring advice to the government on the Housing New Zealand Corporation, and administering the State Housing Appeal Authority.

The department works with Housing New Zealand Corporation on government outcomes for the building and housing sector by defining outcomes; analysing the housing environment, including monitoring the supply, quality and affordability of housing; influencing and working with the wider government and other agencies to ensure it meets the government's goals for housing; and undertaking specific initiatives under the New Zealand Housing Strategy Programme of Action.

Building and housing sector and regulatory policy The Department of Building and Housing provides policy advice to government on regulating and monitoring the building and housing sectors, and provides a regulatory framework for the building industry.

In the year ending 30 June 2007, the department drafted 114 responses to parliamentary questions, 494 responses to Ministerial correspondence, and responded to 122 Official Information Act requests.

State Housing Appeals Service The Department of Building and Housing is responsible for the State Housing Appeals Service. In the year ending 30 June 2007, the department received four applications to this authority.

Residential Tenancies Act 1986 This Act sets out the rights and obligations of landlords and tenants, and covers issues such as payment of rent, bonds, property repairs and giving notice.

A comprehensive review of the Act that began in 2004 addresses the impact of societal changes in the residential rental market, including changes in rental demographics since 1986, and increased private investment in rental properties.

Proposed changes seek to balance the rights of landlords and tenants and the needs of a changing society. They include plans to:

  • extend the Act's coverage to boarding houses and to some rented accommodation where services such as meals or cleaning are provided

  • increase the jurisdiction of the Tenancy Tribunal and penalties for breaching the Act

  • limit tenant liability for damage to their rental premises under specific circumstances

  • clarify responsibility for expenses such as such as rates, insurance and water use

  • allow tenant breaches such as subletting to be subject to exemplary damages, as an alternative to eviction

  • clarify the status of body corporate rules.

In the year ending 30 June 2007 the department received 237,744 telephone requests for tenancy advice and 213,150 telephone requests for tenancy bond advice. The department received 217,329 bond lodgements, made 211,049 bond refunds and scheduled 24,297 Tenancy Tribunal hearings.

Retirement Villages Act 2003 This Act aims to strengthen consumer protection offered to residents and potential residents of retirement villages. It includes a system for registering retirement villages. Regulations and a code of practice came into force in 2006 and 2007.

Retirement village operators are required to disclose specific information about the village, the fee structure, and termination agreements to residents and intending residents. The regulations provide for a disputes resolution process.

The Department of Building and Housing provides education and information on retirement village issues and works with the retirement commissioner, who is responsible for monitoring the effect of the Act and regulations, and appointing the panel members for the dispute resolution process. The Ministry of Economic Development is responsible for registration-related matters, which include acting as the registrar for retirement villages.

Unit Titles Act 1972 This Act governs building developments where multiple owners hold a type of property ownership known as a unit title. Such building developments may be apartment blocks, townhouses, office blocks, or industrial or retail complexes. Unit owners own a defined part of the building, such as an apartment, and have shared ownership in common areas such as lifts, lobbies or driveways.

Collectively, the unit owners make up a body corporate, which is responsible for matters relating to the common property and to the building as a whole.

Since the Act came into force there have been major changes in the number, scale, and nature of property developments in New Zealand. After extensive public consultation, the department has been working to update the Act.

Proposals include:

  • clarifying the rights and responsibilities of unit owners, the body corporate, developers and tenants

  • amendments to voting provisions to make joint decision-making by the body corporate easier

  • introducing disclosure requirements for vendors and developers

  • establishing dispute resolution mechanisms

  • broadening the role of the body corporate in maintaining and managing the building

  • providing for bodies corporate to have legal ownership of common property

  • streamlining survey and title processes

  • allowing for large, staged or complex unit-title developments to be set up and managed more easily.

Weathertight Services The Weathertight Homes Resolution Service was established by the Weathertight Homes Resolution Services Act 2002 in response to the emerging ‘leaky buildings’ problem. A major review undertaken in 2005 resulted in the new Weathertight Homes Resolution Services Act 2006, which came into force on 1 April 2007.

The new Act gives leaky-home owners access to speedy, flexible and cost-effective procedures for assessing and resolving their claims. A new Weathertight Services group, together with the Weathertight Homes Tribunal, replaced the resolution service.

Claimants can bring a claim under the Act by applying to Weathertight Services for an assessor's report. If the claim is found to be eligible the claimant can proceed to the resolution process. The claims process offers access to negotiation or mediation for claims where estimated or actual repair costs total $20,000 or less. All other standard claims can apply to the Weathertight Homes Tribunal for adjudication, which includes an opportunity for mediation.

Progress to 30 June 2007:

  • 752 new claims received

  • 933 assessments completed

  • 345 addenda or revisions completed

  • 168 claims commencing dispute resolution received

  • 134 claims ready for mediation or adjudication hearings

  • 155 claims resolved.

Building and construction

Building and construction is an important part of the New Zealand economy.

For the year ending 31 March 2007, gross fixed capital investment on building and other construction totalled $21.1 billion, compared with $20.5 billion in the previous year and $18.8 billion in 2005.

The number of people engaged in the building and construction industry at February 2007 was 121,840, or 6.3 percent of those in all industries. Thousands more were employed supporting the industry in manufacturing, material supplies and transport.

The share of New Zealand's gross domestic product contributed by the industry (in constant prices) was 4.7 percent in the year ending 31 March 2007, compared with 4.9 percent in the March 2006 year.

Building apprentice Sheree Young works on hard-lining the interior walls of the Cromwell Swim Centre.

Builders work on a two-storey structure in the Chinese Garden, behind the Otago Settlers Museum.

The most common construction systems used in New Zealand are light timber framing for housing, reinforced concrete (pre-cast and cast on-site) for multi-storey buildings, and light steel framing for industrial buildings. With shortages of timber on the domestic market, light steel framing is becoming more common.

With the introduction of a performance-based building code, traditional systems are slowly being replaced with new methods and products.

New Zealand has particular expertise in the design of earthquake-resistant structures, and in other specialist areas such as hydro and geothermal power station design and construction.

Construction law

The Department of Building and Housing is responsible for administering the New Zealand Building Code as part of its management of building controls. The code specifies essential requirements for building performance that provide for: the health and safety of building users, the protection of other people's property, the well-being and physical independence of people using buildings, and sustainable development.

The department writes technical documents (known as the New Zealand Building Code Handbook and compliance documents) that provide methods for satisfying code requirements. Solutions and methods published in these documents are not mandatory, and the building industry is encouraged to develop new materials and systems as alternatives to conventional methods.

Day-to-day administration of building controls is the responsibility of city and district councils, which must confirm that building projects satisfy code provisions.

Building consents are required for all new buildings and for alterations to existing buildings. Any such work must also comply with city and district council district plans 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 compliance schedule of the Building Act 2004 and in the provisions of the annual building warrant of fitness.

In November 2007, the department reported to the Government on a comprehensive review of all aspects of the code, as required by the Building Act.

The department's building controls activities are funded by a building consent levy of $1.97 for every $1,000 of building work for projects exceeding $20,000.

Building Act 2004 The department's administration of the Building Act 2004 includes responsibility for implementing various building sector reforms that require buildings to be designed and built right the first time. These reforms include:

  • the licensing of building practitioners, which began in November 2007 with licensing available for carpentry, and for three classes of site management and three classes of design (licence classes for other building professionals such as brick and blocklayers and those undertaking concrete and steel construction are being introduced)

  • the accrediting and registering of local authorities as building consent authorities, to strengthen the decision-making processes at the critical building consent and inspection stages. All local authorities were required to be accredited and registered by 30 June 2008, or to transfer their building control obligations to an accredited and registered local authority

  • a full review of the New Zealand Building Code, to ensure it meets current needs and those of the foreseeable future

  • introducing a product certification scheme for manufacturers and distributors to get independent confirmation that their products comply with the code.

Building statistics

New Zealand's main official building statistics are Statistics New Zealand's monthly compilation of building authorisations, and its quarterly survey of the value of building work put in place.

Building authorisations indicate future building work to be put in place. These statistics are sourced from building consents issued by territorial authorities.

Published figures on the number and value of building authorisations are of particular interest to economists and the government. The Reserve Bank of New Zealand uses the figures to predict the inflationary pressures within the building and construction industry, and its contribution to overall inflation.

Table 22.07 shows the number and value of building authorisations by region for the years ending 31 March 2006 and 2007.

Table 22.07. Building authorisations(1)
By region
Year ending 31 March

RegionNew dwellingsResidential valueNon-residential valueAll buildings value
20062007200620072006200720062007
Number$(million)

(1) Values include new buildings plus alterations and additions.

Note: Figures may not add up to stated totals due to rounding.

Source: Statistics New Zealand

Northland1,3541,34133336182119415480
Auckland7,1996,7691,9492,0801,3481,4573,2973,536
Waikato3,2303,5837989495333791,3311,328
Bay of Plenty2,0281,899544559241287785846
Gisborne139166375026276277
Hawke's Bay1,017830262258126113388372
Taranaki5666031591848380242264
Manawatu-Wanganui1,0071,068265301161180426481
Wellington1,9641,8445515805633641,114944
Tasman26430471963723107119
Nelson2263186282314493126
Marlborough4634341141205061164181
West Coast1992844865364985114
Canterbury3,9014,4359801,1544405191,4201,673
Otago1,4721,497430465233197663662
Southland3733631001116971169182
Area outside regions42000011
Total New Zealand25,40625,7406,7037,4154,0593,97210,76211,387

Table 22.08. Building authorisations
Value by building type(1)
Year ending 31 March

Building type20032004200520062007
$(million)

(1) Values are for new buildings plus alterations and additions.

Note: Figures may not add up to stated totals due to rounding.

Source: Statistics New Zealand

Domestic dwellings5,2406,4846,8336,4517,153
Domestic outbuildings185224237252262
Total residential buildings5,4256,7077,0706,7037,415
Hostels and boarding houses13063279345119
Hotels and other short-term accommodation144238182186311
Hospitals and nursing homes221208230315230
Education buildings415425445489378
Social, cultural and religious buildings206235291298288
Shops, restaurants and taverns393500588671637
Offices and administration buildings304443737647842
Storage buildings265297413403463
Factories and industrial buildings352391537428456
Farm buildings162165175190209
Miscellaneous buildings2532338641
Total non-residential buildings2,6172,9983,9104,0593,972
All buildings8,0429,70510,98110,76211,387

Authorisation values usually represent the contract price or the estimated cost of the building before starting construction. The finished cost may be higher or lower due to changes in wage rates, material prices and design. Table 22.08 (on the previous page) shows the value of building authorisations by building type. Authorisations cover alterations and additions, as well as new buildings.

Residential and non-residential building authorisations are listed in table 22.09, while figure 22.03 shows the number of new dwelling units authorised from 1977 to 2007. Authorisations for new dwellings totalled 25,740 units and $6.1 billion in the year ending 31 March 2007. Compared with the previous March year, the number of new dwellings authorised rose by 1.3 percent while the value rose by 12 percent.

Table 22.09. Residential and non-residential building authorisations
Annual values
Year ending 31 March

YearNew dwellingsResidential buildings(1)Non-residential buildings(2)All buildings
Number of unitsValue $(million)Floor area sq m (000)$(million)

(1) Includes alterations and additions, and domestic outbuildings.

(2) Includes alterations and additions.

Note: Figures may not add up to stated totals due to rounding.

Source: Statistics New Zealand

200025,8583,5334,2614,2632,2066,468
200119,3702,8333,3823,5442,4786,022
200221,2623,3533,8764,1112,6666,777
200328,3204,5494,9835,4252,6178,042
200431,8235,6575,8146,7072,9989,705
200530,2555,8965,4657,0703,91010,981
200625,4065,4614,8946,7034,05910,762
200725,7406,1044,9837,4153,97211,387

Figure 22.03.

Figure 22.04 shows how the average floor area of new dwellings has changed since 1992. These figures include garages that are built into dwellings.

Work put in place Surveys of building work put in place show the gross value of actual building work done, excluding GST. There can be varying time lags between issue of a building authorisation and commencement of building, depending largely on the amount of work that builders have. Table 22.10 shows the value of building work put in place, while figure 22.05 compares the value of residential and non-residential work put in place.

Building and construction price indexes Price indexes for buildings and construction are contained within Statistics New Zealand's capital goods price index. During the year ending March 2007 the building and construction indexes recorded increases of 5.1 percent for residential buildings, 5.0 percent for non-residential buildings, 4.1 percent for other construction, and 5.5 percent for land improvement.

There has been strong growth in recent years in the price of constructing residential buildings. The 5.1 percent increase for residential buildings for 2007 contributed to an overall increase of 36.2 percent for the five-year period ending 31 March 2007.

The price of renting houses has not increased as quickly as the price of building houses. The ‘dwelling rentals’ component of the consumers price index increased by 3.0 percent from the March 2006 quarter to the March 2007 quarter, and by a total of 14.7 percent for the five-year period ending 31 March 2007.

Figure 22.04.

Table 22.1. Value of work put in place(1)
By building type
Years ending 31 March

Building type20032004200520062007
$(million)

(1) Values exclude GST. Consents below $5,000 are excluded.

(2) Includes shops, restaurants, taverns, offices, and administration buildings.

(3) Includes social, cultural, religious, recreational, storage, and farm buildings.

Note: Figures may not add up to stated totals due to rounding.

Source: Statistics New Zealand

New government dwellings733565278
Other new dwellings4,3225,4676,2656,2566,271
Alterations, additions and outbuildings8591,0221,0751,1931,341
Total residential buildings5,1886,5227,3967,5017,690
Accommodation and outbuildings242298522907691
Hospitals and nursing homes333330313318418
Factories and industrial buildings388451467564423
Commercial buildings(2)8539291,2851,5741,491
Education buildings469540514615556
Miscellaneous buildings(3)9218311,1261,2281,464
Total non-residential buildings3,2063,3804,2275,2065,042
Total all buildings8,3949,90211,62412,70712,732

Figure 22.05.

Contributors and related websites

Beacon Pathways Ltd – www.beaconpathway.co.nz

BRANZ Ltd – www.branz.co.nz

Department of Building and Housing – www.dbh.govt.nz

Greenbuild – www.greenbuild.co.nz

Housing New Zealand Corporation – www.hnzc.co.nz

Land Information New Zealand – www.linz.govt.nz

Ministry for the Environment – www.mfe.govt.nz

Ministry of Social Development – www.msd.govt.nz

New Zealand Green Building Council – www.nzgbc.org.nz

New Zealand Institute of Architects – www.nzia.co.nz

Quotable Value New Zealand – www.qv.co.nz

Reserve Bank of New Zealand – www.rbnz.govt.nz

Statistics New Zealand – www.stats.govt.nz

Chapter 23. Transport

These Churton Park School students in Wellington are part of a walking school bus movement, joining thousands of primary school children who walk to school along designated routes, supervised by volunteer ‘school bus drivers’.

New Zealand's geographic isolation means that there is a heavy reliance on sea transport for the bulk of the country's imports and exports, and international travel is dominated by air services. Road, rail, air and shipping services are the main ways people and goods move within New Zealand, a long, thin island country.

The New Zealand transport sector has been subject to ongoing change since the late 1970s. Major regulatory changes have encouraged competition within the industry and allowed introduction of a wide range of new technologies. Organisational changes have brought about greater use of commercial structures for publicly-owned transport systems, with some of these being transferred to the private sector.

Since the late 1990s, transport policy has evolved beyond economic and safety issues, and now includes environmental, social and public health aspects of transport. This approach was reflected in the Government's New Zealand Transport Strategy, published in 2002. An update of this strategy will be published in 2008.

This update will:

  • provide direction for the transport sector until 2040 in the context of the Government's sustainability agenda and other Government strategies in the areas of energy and energy efficiency

  • translate that direction into high-level targets for the transport sector and intermediate targets for sub-sectors (air, sea, road, vehicle fleet, rail, freight, public transport, walking and cycling) to help achieve the high-level targets.

Shipping

Over 99 percent of both New Zealand's exports (23 million tonnes) and imports (around 19 million tonnes) are carried by sea. By value, this represents about 85 percent of exports and 75 percent of imports. It is therefore important that New Zealand has access to efficient and cost-competitive international shipping services, especially considering the country's distance from overseas markets. Within New Zealand, coastal shipping provides intra- and inter-island links, and plays a key role in the distribution of petroleum products and cement.

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 ownership and operation of commercial port facilities, and waterfront labour was reformed in 1989. This reform saw the end of the government-managed labour pool system and introduced direct employment and enterprise bargaining to the waterfront.

The Port of Auckland is New Zealand's largest international container port and a major gateway for trade for the North Island's east coast, west coast (Port of Onehunga), and two inland Auckland ports.

Since the 1990s, shipping policy has shifted to reflect New Zealand's status as a ship-using, rather than a ship-operating nation. For New Zealand exporters and shippers, this policy seeks to ensure unrestricted access to the carrier of their choice, and to the benefits of fair competition among carriers.

The Maritime Transport Act 1994 regulates ship safety, maritime liability and marine environmental protection. The Act also made Maritime New Zealand, a Crown entity, responsible for maritime safety and marine pollution prevention, and for response functions.

There were 820 employees were engaged in international sea transport, 1,270 in coastal water transport, and 940 in inland water transport in February 2007. Equivalent employee figures for February 2006 were 900, 1,210 and 1,040, respectively.

Overseas lines

Major trading routes for New Zealand include the United Kingdom and Europe; Africa, India and the Middle East; North Asia, East Asia and South-East Asia; North America, Central America and South America; trans-Tasman and the Pacific.

New Zealand is well provided with international shipping services, with more than 30 global and New Zealand-based international shipping lines represented. Among them are Maersk Line, Mediterranean Shipping Company, Contship Containerlines, CMA CGM Group, Hamburg Slid, Hapag-Lloyd, Wallenius Wilhelmsen, Malaysia International Shipping Corporation Berhad, China Ocean Shipping Company, Orient Overseas Container Line, Nippon Yusen Kaisha, Mitsui OSK Lines, Pacific International Lines, Australia New Zealand Direct Line, Chief Container Service, Tasman Orient Line, Pacific Forum Line, Sofrana Unilines and Pacific Direct Line.

Conference lines and vessel sharing agreements (VSAs) are involved in much of New Zealand's overseas shipping. Conferences are associations among shipping companies to provide joint services on several trade routes. VSAs are more limited arrangements than conferences, involving separate services jointly scheduling the same vessels to make better use of vessel capacity.

Increased competition in the shipping industry in recent years, however, has seen greater participation in New Zealand trade by independent carriers.

Inter-island shipping services

Interisland Line provides rail and road ferry services across Cook Strait, transporting passengers, vehicles and freight between Wellington and Picton.

Lyttelton-based Pacifica Shipping operates two cargo vessels, which link Auckland, Tauranga, Wellington, Nelson, Lyttelton and Timaru.

Strait Shipping operates livestock and roll-on roll-off freight services between Wellington, Picton, Nelson and Napier; and the Bluebridge passenger and vehicle service between Wellington and Picton.

Auckland-based Sea-Tow operates tugs and barges on tramp (non-liner) services around the New Zealand coast.

Black Robin Shipping operates a general cargo and livestock service between the North Island, the South Island and the Chatham Islands.

Since 1995, coastal shipping services have also been provided by foreign ships transiting the New Zealand coast in the course of their international voyages.

Bulk shipping

Overseas trade New Zealand's bulk shipping needs are mainly served by a mix of vessels, few of which operate fixed services. Imported bulk cargoes include crude oil, phosphate rock, bauxite and petroleum coke. Bulk exports include ironsand, coal, forest products and methanol. Sea-Tow provides tug and barge services to Australia and the South Pacific.

Coastal Bulk cement distribution is handled by three small cement vessels, two operated by Holcim New Zealand and one by the Golden Bay Cement Company. Two tankers operated by Silver Fern Shipping Ltd distribute petroleum products from the Marsden Point oil refinery.

Domestic sea freight strategy In November 2007 the Minister of Transport, Hon Annette King, launched ‘Sea Change’ for public consultation. Sea Change is a draft strategy setting out proposed actions to help industry and government to transform the domestic sea freight sector, so that it can play its part in the overall New Zealand transportation system. Sea Change is about contributing to an integrated transport network that meets both present and future needs, and it is aligned to the overall New Zealand Transport Strategy.

The draft strategy proposes that New Zealand will move 30 percent of its inter-regional domestic freight by sea by 2040 (compared with about 15 percent at present). This is a realistic target, but it assumes that there will be some changes within the overall transport sector to allow this to happen. The development of Sea Change follows the New Zealand Shipping Federation's report Roadways to Waterways in September 2006, and the Shipping Industry Review in December 2000.

Services to shipping

Ports Port companies established under the Port Companies Act 1988 operate New Zealand's 13 commercial ports. These companies are predominantly owned by local authorities, although four are partly privatised and listed on the New Zealand Stock Exchange. Two of the port companies, Northland Port Corporation and Port of Tauranga Ltd, have established a deep-water port (Northport Ltd) at Marsden Point, in Northland. In addition to the 13 commercial ports, there are smaller ports at Greymouth, Westport, Wanganui and Taharoa.

Ship registration At 31 December 2006, there were 2,532 ships on the New Zealand Register of Ships, with total gross tonnage of 267,454 and net tonnage of 125,462. This compares with 2,465 ships, with a gross tonnage of 258,952 and net tonnage of 121,640, at 31 December 2005. Under the provisions of the Ship Registration Act 1992, ships not exceeding 24 metres registered length are not required to have tonnages registered.

New registrations during 2006 included the passenger vessel Monte Stello. Vessels removed from the New Zealand register during 2006 included the fishing vessel Independent 1, the cargo vessel Southern Tiare and the passenger vessel Purbeck.

Table 23.01 shows the number and capacity of registered vessels involved in overseas and domestic trade.

Seafarer qualifications Maritime New Zealand is the administrative and licensing body for all New Zealand Merchant Navy, super yacht, fishing, and all other commercial maritime qualifications. After obtaining suitable qualifying sea service, further approved training and examinations at teaching institutions are undertaken. Successful seafarers are issued with certificates of competency as master, mate or engineer, as well as deck and engine room ratings.

There are different classes of certificates of competency for foreign-going, offshore, fishing or restricted-limit ships. Foreign-going certificates and endorsements for service on special types of ships meet the requirements of relevant United Nations conventions and may be accepted for use in other countries. All certificate of competency holders are required to meet minimum medical standards, including eyesight.

The Royal New Zealand Coastguard Federation is the organisation that caters for pleasure-boat mariners on a voluntary basis. The federation holds courses and conducts examinations for day skipper, boat master, coastal skipper and ocean yacht-master certificates. The Royal New Zealand Coastguard Federation is also accredited to conduct Royal Yachting Association (UK) certificates.

Maritime safety The New Zealand Government is a signatory to many International Maritime Organisation and International Labour Organization conventions that specify safety standards for international ships, and health and safety standards for crews. Maritime New Zealand is responsible for administering these conventions, and for inspecting foreign and New Zealand ships to ensure they meet required standards.

Table 23.01. Registered vessels involved in overseas and domestic trade
At 31 December

YearVesselsNet tonnageCrew(1)

(1) Crew figures are not necessarily up-to-date.

Symbol:.. figure not available

Source: Maritime New Zealand

Overseas
1996859,006153
1997754,711115
1998743,763111
1999432,54342
2000329,48423
2001329,48440
2002......
2003323,68648
2004323,27240
2005323,27240
2006323,27240
Domestic
19961226,048302
19971226,048302
1998816,875200
1999816,875200
2000814,580145
2001914,406158
2002......
20031121,673205
2004918,203171
20051324,182171
20061225,684178

Marine safety services There are 142 navigational aids, owned and maintained by Maritime New Zealand, on headlands, capes, reefs and shoals around 5,400 nautical miles (9,000 kilometres) of New Zealand coastline. The aids consist of 97 automatic lights, 40 day beacons and five navigational buoys. There are no staffed lighthouses in New Zealand. Maritime New Zealand also provides a distress and safety radio communication system for mariners. Radio frequencies dedicated to distress messages are monitored 24-hours a day in the very high, high, and medium frequency bands.

Figure 23.01.

The system also broadcasts weather reports and warnings of maritime hazards, and assists during search and rescue operations and medical emergencies at sea. The cost of providing navigation aids and the distress and safety radio system is met from a marine safety charge levied on all commercial ships (New Zealand and foreign). The government also contributes on behalf of the recreational boating sector.

Wrecks Where ships are wrecked on the New Zealand coast or in lakes and rivers, the director of Maritime New Zealand has powers for preserving life and protecting property. A wreck or an article belonging to it remains the property of the owner, and it is illegal for others to take any items of wreckage. People finding or taking possession of wrecks, or articles from wrecks, must notify the police, who may take custody until ownership is resolved.

Maritime accidents Maritime New Zealand investigates maritime accidents and incidents to identify their cause, analyses trends, and makes recommendations for preventing similar occurrences. Investigators also assess whether there has been any breach of law.

Marine pollution Maritime New Zealand is required to promote a clean marine environment and is responsible for developing and implementing New Zealand's marine oil spill response strategy.

The strategy sets out principles to ensure 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 local, regional, national and international levels. While New Zealand's equipment, trained personnel and services are designed to respond to a one in 100-year spill, arrangements are in place to use international assistance if needed.

The National Oil Spill Service Centre, at Te Atatu, Auckland, houses equipment that can be mobilised immediately in the event of an oil spill. This national stockpile complements equipment Maritime New Zealand stores in key locations throughout New Zealand.

Figure 23.01 shows marine accidents by: June year; month; ship category; and type of accident.

Civil aviation

Due to its island status and its distance from other countries, New Zealand is one of the most aviation-oriented nations in the world. In a population of 4.2 million, there were 9,361 pilot licences on issue at 30 June 2007 and 4,105 registered aircraft – one pilot licence per 450 people and one aircraft per 1,000 people. The 4,105 aircraft in the New Zealand civil fleet is an increase of 114 from the previous June year. The number of licensed aircraft engineers also increased, from 2,114 at 30 June 2006 to 2,181 a year later.

The rate of increase in the total number of hours flown by New Zealand registered aircraft (excluding sport aircraft) in the five years to 30 June 2007 averaged 2.5 percent a year.

There were 8,930 employees working in civil aviation at February 2007. Of these, 4,120 were employed in scheduled international air transport and 4,810 in scheduled domestic air transport. There were also another 2,190 employees working in other air transport services.

Civil Aviation Authority

The Civil Aviation Authority (CAA) is New Zealand's aviation safety regulator, with the prime function of promoting civil aviation safety and security, and contributing to an integrated, responsive and sustainable transport system.

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 regular review of the civil aviation system to promote 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; and maintaining the New Zealand Register of Aircraft, the Civil Aviation Registry, and other records and documents relating to activities within the civil aviation system.

The CAA also acts on behalf of the Crown in respect of the International Civil Aviation Organisation (ICAO). As part of ICAO responsibilities, the CAA is designated the Aviation Security Authority, the Air Traffic Services Authority, the Personnel Licensing Authority, the Meteorological Authority and the Dangerous Goods Authority, as well as meeting New Zealand's ICAO obligations for aeronautical information. It also undertakes ICAO technical and safety regulation responsibilities that are associated with the ICAO Air Navigation Bureau and Technical Assistance Bureau.

The CAA is funded from a number of sources – a domestic passenger levy ($1.77 plus GST per passenger, per sector); an international departing passenger levy ($0.89 plus GST per passenger); a participation levy based on aircraft weights; an aeronautical information services levy; and fees for services, such as certification, licensing, rules development and policy advice to the government.

In the year ending 30 June 2007, the CAA received $27.465 million in income and spent $28.475 million, resulting in a deficit of $1.010 million (against a budgeted deficit of $1.579 million). Levies totalled just under 75 percent of income.

Figure 23.02 shows the number of notifiable aircraft accidents in New Zealand from 1997 to 2007.

Airways New Zealand

Airways New Zealand (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.

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. 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 efficient flow of air traffic within the 37 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. Its technicians install and maintain technical facilities, including runway lighting and navigation aids, for airport companies in New Zealand and overseas.

Airways assists in discharging operational and technical commitments arising from New Zealand's membership of ICAO. All military air traffic control and radar surveillance is supplied on contract to the Royal New Zealand Air Force. Specialised divisions of Airways provide a range of related aviation services. Aviation Publishing is responsible for producing aeronautical charts and manuals on behalf of the CAA.

Figure 23.02.

The Airways Training Centre, in Christchurch, conducts courses in air traffic services and telecommunications for New Zealand and international students. Airways International has applied expertise gained in New Zealand in the provision of air navigation services solutions internationally, and has provided technical and training solutions to more than 65 countries.

Airports

New Zealand has 24 airports certificated by the Civil Aviation Authority (CAA) to receive regular air services by aircraft of 30 or more passenger capacity. There are several other airports with regular scheduled services by smaller aircraft, as well as numerous aerodromes and airstrips.

Airport ownership is mixed, with Crown, local (or territorial) authority and private interests, or a combination of these. The major international and regional airports are operated by airport companies. The chief international airports are Auckland (which is listed on the New Zealand Stock Exchange), Wellington (co-owned by a listed company and the local authority) and Christchurch (jointly owned by the local authority and the Crown). Hamilton, Dunedin and Queenstown airports also receive trans-Tasman services.

Airport safety standards, certification and inspection are addressed by the CAA. The Aviation Security Service provides airport security and passenger and baggage screening at major airports (typically those handling jet passenger aircraft). Air traffic control services are supplied to most airports by Airways New Zealand.

Domestic air services

Domestic air services were economically deregulated between 1984 and 1990, with deregulation including a policy allowing 100 percent foreign ownership of domestic airlines. Air New Zealand is the major domestic operator and has regional connections through the three branded Air New Zealand Link commuter airlines (Air Nelson, Mount Cook Airline and Eagle Airways). Qantas and Pacific Blue provide jet services on the main trunk routes.

Qantas, Air New Zealand and Korean Airlines planes at Christchurch Airport.

International air services

International air services are operated under formal agreements between governments. New Zealand has 40 such agreements (with another two still to be signed) and a non-government agreement with Taiwan. Agreements outline routes by which airlines can operate to and from New Zealand and, in some cases, capacity that can be used on those routes. One agreement, the Multilateral Agreement on the Liberalisation of International Air Transportation, covers New Zealand's air services arrangements with Brunei Darussalam, Chile, the Cook Islands, Samoa, Singapore, Tonga and the United States. New Zealand's international air transport policy is to maximise economic benefit to New Zealand, including trade and tourism, consistent with foreign policy and strategic considerations.

Air New Zealand operates services to six gateways in Australia (Sydney, Melbourne, Adelaide, Brisbane, Perth and Cairns). In the Pacific, Air New Zealand operates services to the Cook Islands, Samoa, Fiji, Vanuatu, Tonga, Tahiti, Niue, Norfolk Island and New Caledonia. Services to Europe are offered on both an own-aircraft basis (London) and a code-share basis.

Air New Zealand code-shares with Austria, Belgium, Germany, Ireland, the Netherlands and the United Kingdom. Air New Zealand operates to China, Japan (Tokyo and Osaka) and Hong Kong, and offers code-share services to Ho Chi Minh City, Beijing, Shanghai, Bangkok and Kuala Lumpur.

Own-aircraft services are also operated to Honolulu, Los Angeles, San Francisco and Vancouver. Code-share services are offered to a variety of other points in the United States and Canada. Code-share services are also offered to Guadalajara and Mexico City.

Pacific Blue Airlines (NZ) Ltd, a subsidiary of Australian-based Virgin Blue Airlines, offers budget services across the Tasman.

A number of foreign airlines offer services to New Zealand on a code-share basis only – Air Canada, Air China, American Airlines, Austrian Airlines, British Airways, Japan Airlines, KLM Royal Dutch Airlines, Lufthansa, Mexicana, Shanghai Airlines and United Airlines.

Railways

The New Zealand railway network spans 3,898 kilometres, from Otiria in the north to Bluff in the south, with 2,559 kilometres of track in the North Island and 1,515 kilometres of track in the South Island. The network includes 150 tunnels, which collectively measure over 87 kilometres, and 2,174 bridges (including culverts), measuring nearly 85 kilometres in total length. More than 500 kilometres of the North Island network is electrified. The track is narrow gauge – 1,067 millimetres.

Since 1962, the network has included inter-island rail ferries connecting the North Island and South Island rail networks.

The Railways Department was reorganised in 1982 to become a government-owned corporation with a commercial mandate.

The same year, the government began deregulation of the transport industry, removing the statutory protections rail had against competition by road.

In 1990, the operating assets of the Railways Corporation were transferred to a limited liability company under government ownership, New Zealand Rail Ltd. In 1993, the company was sold to a private consortium made up of Wisconsin Central Transportation Corporation and two investment groups. Three years later, the new owners made a public offering of shares in Tranz Rail Holdings, listing the company on the New Zealand Stock Exchange and the NASDAQ market in the United States.

The process of deregulation, commercialisation and privatisation saw a reduction in the number of employees, from 21,000 with the Railways Department in 1982 to 3,757 with Tranz Rail in 2002.

After the sale in 1993, the Railways Corporation 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 and the lease of other Crown land held for operational rail purposes.

During the 1990s, Tranz Rail expanded into new markets, including movement of bulk milk to dairy processing plants and establishment of New Zealand's first inland port at Wiri south of Auckland. The port, a joint development with the Port of Tauranga, is connected by train with Tauranga, creating a significant line of containerised freight business. A second inland port at East Tamaki has been operating since 2002.

In 2003, Toll Holdings Ltd, an Australian-based transportation and logistics operator, acquired approximately 85 percent of Tranz Rail's shares. As a result of Toll's offer for shares in Tranz Rail becoming unconditional, an agreement between Toll and the Crown was triggered, a key feature of which was the buy-back of track and associated infrastructure by the Crown.

The Crown undertook to invest $200 million in improving rail infrastructure, while Toll undertook to invest $100 million in new rolling stock.

In September 2004, ownership and management of the network and its assets was vested in the existing Railway Corporation, which adopted the trading name ONTRACK.

Under the agreement, Toll retained exclusive rights to the network for freight purposes, subject to meeting minimum tonnage levels annually. ONTRACK is responsible for managing and developing the network, controlling track access to rail operators, and providing advice to the government on railway matters.

In February 2006, ONTRACK took back control of maintaining the infrastructure, which had been contracted out. As a result, its staff increased from 150 to approximately 700. In 2007, ONTRACK employed approximately 850 staff. ONTRACK is currently a State-owned enterprise, but will become a Crown entity once enabling legislation is passed by Parliament.

The Government purchased Toll NZ's rail and ferry operations in May 2008 for $665 million.

Passenger services Toll NZ operates four long distance passenger trains, as well as commuter services linking central Wellington with Johnsonville, Paraparaumu, the Hutt Valley, Palmerston North and Masterton.

The four long distance passenger trains are: the Overlander between Auckland and Wellington; the Capital Connection between Palmerston North and Wellington; the Tranz Coastal between Picton and Christchurch; and the Tranz Alpine between Christchurch and Greymouth. It was the 20th anniversary of the Tranz Alpine in 2007, a year in which record passenger numbers were carried (in excess of 200,000 people).

Table 23.02. New Zealand railways
Locomotives, passengers and freight
At 30 June

 1998199920002001200220032004200520062007

(1) Excludes the Auckland region.

(2) Includes the Capital Connection between Palmerston North and Wellington.

(3) Figures for Auckland commuter trains are for 2004/05, 2005/06 and 2006/07.

Symbol:.. figure not available

Source: Toll NZ

Locomotives
Diesel/diesel-electric218188187184131131144168168168
Electric27272727231417171717
Rolling stock
Freight6,3826,0045,9485,6064,3214,0484,1764,1804,1664,166
Passenger (including motorised)328321321314177(1)177(1)177(1)198196196
Passengers carried
Long distance(2)458,000466,400465,800513,500....560,000520,000520,000520,000
Wellington commuter trains11,293,00011,422,00012,118,00012,577,00012,300,00012,300,00011,000,00011,100,00011,200,00011,200,000
Auckland commuter trains(3)..............3,600,0005,000,0005,600,000
Freight carried
Tonnes11,706,00012,900,00014,699,00014,461,00014,330,00014,822,00014,800,00014,500,00014,800,00014,800,000

Wellington is the commuting capital, with the highest proportion of people using public transport to travel to work. On census day (7 March) in 2006, 7.3 percent of people in the Wellington region took the train to work and 9.5 percent travelled by bus.

Since August 2004, commuter services in Auckland have been provided by Connex Auckland, which was re-branded as Veolia Transport Auckland in March 2006. Veolia Transport operates on three lines – the southern, eastern and western lines – and in 2007 carried just over 6 million passengers.

Freight transport Toll NZ's freight business is carried out under the brand name Toll TranzLink. In 2006/07 overall trading revenue for Toll NZ was $725 million. The bulk of freight revenue was from agriculture and food products, followed by revenue from manufactured products, forest products and coal.

Table 23.02 provides locomotive, passenger and freight details about New Zealand railways.

Road transport

Central government invests more than $2 billion in land transport each year, mostly through the National Land Transport Fund. Regional and territorial authorities invest a further $400 million, mainly funded from rates.

There are about 93,500 kilometres of formed roads and streets and, as at 30 June 2007, about 3.8 million registered motor vehicles.

In February 2007, there were 9,750 employees engaged in road passenger transport and 24,440 employees engaged in road freight transport.

Commercial road users are regulated through a system of quality controls that focus primarily on safety regulation, although there is an increasing emphasis on environmental performance.

Land Transport New Zealand

On 1 December 2004, the Land Transport Management Amendment Act 2004 disestablished Transfund New Zealand and the Land Transport Safety Authority, and created Land Transport New Zealand (Land Transport NZ) to take responsibility for land transport funding and to promote land transport safety and sustainability.

Land Transport NZ is charged with helping deliver the government's vision, as set out in the New Zealand Transport Strategy, for “an integrated, safe, responsive and sustainable transport system”.

Alongside the promotion of land transport safety and sustainability, Land Transport NZ's functions include managing access through licensing and regulation, monitoring and communicating information, and funding development and operation.

Land Transport NZ works in partnership with the transport sector and other organisations – including industry and other interest groups – to develop an integrated approach to land transport.

Cycle lanes offer improved safety to cyclists and encourage people to travel by bike. This cyclist is using part of the extensive network of cycling lanes in Christchurch.

Land Transport NZ receives funding from the government's National Land Transport Fund for the National Land Transport Programme (NLTP). The NLTP is the mechanism through which Land Transport NZ allocates funds to: renewal, improvement and maintenance of state highways and local roads; passenger transport; rail freight and barging; travel behaviour change; transport demand management; walking and cycling; projects that support regional development; administration activities; research, education and training; and New Zealand Police land transport activities.

Changes in the government land transport sector

In May 2007, a review of the government land transport sector found transport agencies needed to work more collaboratively and with a common purpose. The review recommended a package of changes designed to support a cohesive and efficient sector, including the merger of Transit New Zealand and Land Transport NZ, and the establishment of a short- to medium-term funding and investment priority.

In July 2008, a new Crown entity was formally established and named the New Zealand Transport Agency. A new planning and funding structure was also established, with the release of the first three-yearly government policy statement, detailing short- to medium-term funding and planning priorities.

Land transport network

New Zealand's land transport network is managed by the New Zealand Transport Agency (formed in July 2008 when Transit New Zealand and Land Transport New Zealand merged), 12 regional councils, and 74 provincial road-controlling authorities (territorial authorities).

As table 23.05 shows, there were 17,251 kilometres of urban roads, 65,432 kilometres of rural roads and 10,893 kilometres of state highways, with a total of 93,576 kilometres of developed roading at 30 June 2007.

Table 23.03. Expenditure on state highways
Year ending 30 June

Class of expenditure1998199920002001(1)20022003(2)2004200520062007
$(000)

(1) From the year ending 30 June 2001, public roading expenditure includes the funding of public transport and alternative-to-road projects.

(2) From the year ending 30 June 2003, public roading expenditure includes the funding of walking and cycling projects.

(3) Includes the cost of flood damage repairs.

Source: Land Transport NZ

Construction and improvement199,237246,355302,864265,151280,259268,886351,164438,696618,217719,844
Bridges13,8986,5876,99910,9523,8797,9607,2418,15715,15225,671
Maintenance, repairs, etc(3)256,643262,742283,270272,447278,503299,267329,310362,474374,865422,446
Total469,778515,684593,133548,550562,641576,113687,715809,3271,008,2331,167,961

Table 23.04. Expenditure on public roads
Year ending 30 June

Class of expenditure1998199920002001(1)20022003(2)2004200520062007
$(000)

(1) From the year ending 30 June 2001, public roading expenditure includes the funding of public transport and alternative-to-road projects.

(2) From the year ending 30 June 2003, public roading expenditure includes the funding of walking and cycling projects.

(3) Expenditure is the Land Transport NZ contribution and does not include the local authority contribution. The rate of assistance to local authorities for construction work ranges from 43 to 83 percent.

Source: Land Transport NZ

State highway469,778515,684593,133548,550562,641576,113687,715809,3271,008,2331,167,961
Local authority roading(3)287,570297,889290,926297,788319,163371,839423,992497,309513,487713,736
Total757,348813,573884,059846,338881,804947,9521,111,7071,306,6361,521,7201,881,697

Table 23.05. Maintained roads and streets
By type of seal
At 30 June

Year/nature of surfaceLocal authority roadingState highways and motorwaysTotal
Urban roadsRural roads
Kilometres
Source: Land Transport NZ
1998
Paved or sealed15,23830,76410,50056,502
Metal or gravel44235,1277135,640
Total15,68065,89110,57192,142
1999
Paved or sealed15,52030,96810,54057,028
Metal or gravel44234,5406535,047
Total15,96265,50810,60592,075
2000
Paved or sealed15,59031,47410,70757,771
Metal or gravel41933,8095434,282
Total16,00965,28310,76192,053
2001
Paved or sealed15,70831,76210,71658,186
Metal or gravel41433,5495834,021
Total16,12265,31110,77492,207
2002
Paved or sealed15,80932,01710,73658,562
Metal or gravel41833,3544733,819
Total16,22765,37110,78392,381
2003
Paved or sealed15,92932,25810,75058,937
Metal or gravel40933,1074133,557
Total16,33865,36510,79192,494
2004
Paved or sealed16,16632,53910,79859,503
Metal or gravel40232,8163933,257
Total16,56865,35510,83792,760
2005
Paved or sealed16,42332,81910,83860,080
Metal or gravel39732,6155633,068
Total16,82065,43410,89493,148
2006
Paved or sealed16,64433,16710,83860,649
Metal or gravel40332,3515732,811
Total17,04665,51910,89593,460
2007
Paved or sealed16,86933,43910,83761,146
Metal or gravel38231,9935632,431
Total17,25165,43210,89393,576

Transport licensing

The Transport Services Licensing Act 1989 contains provisions for transport licensing, which assesses licensees on a qualitative basis – for goods, passenger, rental and vehicle recovery services. The Act uses the concept of ‘a fit and proper person’ as the principal criterion for road transport operators. Anyone who enters the industry needs to meet certain minimum fitness standards.

Railway operator licensing requirements are now contained in the Railways Act 2005, which recognises changes in the operation and ownership of rail in New Zealand.

All railway operators, as well as rail access providers, are required to develop a safety case to cover standards, practices and procedures. These safety cases are approved by rail regulator Land Transport NZ.

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, administration and label fee, goods and services tax and, in some cases, a transport licence fee.

The country's vehicles are relicensed progressively throughout the year.

Annual relicensing charges for petrol-powered vehicles for the year ending 30 June 2007 were:

  • motorcars, $183.22

  • motorcycles (private use – 60cc or less), $213.03

  • motorcycles (more than 60cc), $224.28

  • rental cars and taxis, $208.71

  • trucks, vans and utilities (private passenger), $183.22 to $184.71

  • trucks, vans and utilities (subject to transport licence fee), $207.21 to $208.71

  • tractors (non-exempt), $73.22.

Motor vehicles exempted from the annual licence fee include a variety of machines, such as vehicles used in a declared road construction zone, and vehicles used on a road that is not a public highway. These vehicles are still required to be registered.

Table 23.06 shows registrations of new commercial vehicles from 1996 to 2006. New tractors are not included in this table.

Table 23.07 shows registrations of new cars, station wagons and motorcycles from 1996 to 2006.

Table 23.08 shows the number of licensed motor vehicles by vehicle type for the years 1998 to 2006.

Motor vehicle registers

The Ministry of Economic Development operates two registers specifically concerned with motor vehicles – the Personal Property Securities Register (PPSR) under the Personal Property Securities Act 1999, and the Motor Vehicle Traders Register (MVTR) under the Motor Vehicle Sales Act 2003.

In May 2002, the PPSR was implemented in New Zealand. This register amalgamated the four previous registers of securities over personal property into one wholly-electronic noticeboard. The registers replaced included the Motor Vehicle Securities Register and the Chattels Register. Buyers of motor vehicles can search the PPSR to see whether a security interest has been registered (indicating whether money is owed) in respect of a vehicle. There are two ways to search the PPSR for security interests over motor vehicles – by searching online at www.ppsr.govt.nz or by texting the registration, VIN and/or chassis number to the PPSR.

Table 23.06. Registration of new commercial vehicles
By gross weight
Year ending 31 December

YearVehicle categoryTotal
2,500kg or less2,501 to 4,500kg4,501 to 9,000kg9,001 to 14,500kg14,501kg and overBus services
Source: Land Transport NZ
199610,85912,7022,6548821,7471,00029,844
19979,0059,7182,5498661,56681624,520
19986,3019,4562,0387811,18478020,540
19995,73711,2902,0368651,56683422,328
20004,85913,3751,7386741,88176423,291
20014,43914,1331,5047711,77783923,463
20024,72918,2561,9291,0402,2451,12029,319
20034,81320,8512,3551,1602,7471,09333,019
20044,66923,9973,1401,5663,1681,32937,869
20054,14025,3632,9451,4923,1401,32538,405
20063,09723,2392,6831,2772,5871,31834,201

In 2006, 393,648 people in the Auckland region drove a private or company car to work on census day (7 March). Government initiatives and programmes such as TravelWise aim to get more people out of their cars and into using public transport, or biking, walking or jogging to work.

By December 2006, over 8 million searches had been conducted on the PPSR, with around 67 percent of them relating to motor vehicles.

The PPSR includes private and commercial motor vehicles, motorcycles, trucks, trailers, caravans, farm vehicles and aircraft. Security interests in boats, except those exceeding 24 metres, can also be registered on the PPSR.

The MVTR contains essential information about whether someone is a registered motor vehicle trader. Buying a motor vehicle from a registered motor vehicle trader provides improved protection for consumers.

Table 23.07. Registrations of new(1) cars, station wagons and motorcycles
Year ending 31 December

YearCars and station wagonsNew motorcycles
850CC and under851 to 1,300CC1,301 to 1,600CC1,601 to 2,000CC2,001 to 5,000CC5,001CC and overTotalVehicles previously registered overseas(2)

(1) Includes cars and station wagons previously registered overseas.

(2) Included in ‘Total’.

Source: Land Transport NZ

19965863,79956,06667,40247,829496177,678111,7643,812
19976942,68045,27558,37948,256315157,28197,0414,078
19986082,68541,66959,86848,932332155,76099,9374,067
19991183,94948,41876,89959,208721190,591131,1183,849
20001204,12041,11469,83457,1461,408174,334116,1243,598
2001734,07041,62276,74462,4981,848187,008128,6933,575
2002334,45941,11076,26876,2142,420200,086136,4184,118
20031065,79043,22882,86991,7523,680225,748156,9724,967
20042135,78641,13879,87998,0963,685227,116154,0426,341
20051296,86942,56184,80192,8743,079229,239152,4887,654
20061687,02040,81773,24775,8633,079199,121123,3909,596

Table 23.08. Licensed motor vehicles
At 30 June

Type of vehicle199819992000200120022003200420052006
Source: Land Transport NZ
Cars1,762,8131,868,2971,886,9821,916,6851,970,4032,036,8042,118,2402,189,1872,232,915
Rental cars13,15415,11718,02217,17818,11919,77522,12822,60421,754
Taxis6,5727,2807,5887,1087,5077,7958,0898,1728,011
Trucks359,411371,365368,624363,166366,918374,361386,295399,843408,757
Buses and coaches10,95011,74812,39712,70913,37914,10714,93215,67116,486
Trailers308,751339,325354,487362,225373,940386,005397,113408,982420,289
Motorcycles38,15140,66437,79435,93936,04533,60134,87337,71743,513
Mopeds8,0347,4957,2537,3647,3957,8818,61710,28214,171
Tractors19,49219,66920,36921,22922,75624,01625,27926,52127,124
Exempt vehicles6,3486,6287,3697,7068,1958,8259,70810,32811,130
Miscellaneous14,11915,09015,09615,22516,64417,55719,20620,94622,464
All vehicles2,547,7952,702,6782,735,9812,766,5342,841,3012,930,7273,044,4803,150,2533,226,614

Table 23.09. Licensed vehicles by population(1)
At 30 June

YearPeople per licensed car(2)People per licensed motor vehicle(3)

(1) Based on estimated resident population (2006 base).

(2) Includes cars and rental cars.

(3) Excludes trailers, caravans and exempt vehicles.

Sources: Land Transport NZ, Statistics New Zealand

19982.151.71
19992.041.63
20002.031.62
20012.011.62
20021.991.61
20031.961.59
20041.911.55
20051.871.51
20061.861.50

The MVTR holds information about who is registered and details of each trader's business, such as its physical address. The MVTR includes a list of banned motor vehicle traders. The MVTR was established by the Motor Vehicle Sales Act 2003 (which replaced the Motor Vehicle Dealers Act 1975) on 15 December 2003.

A wider definition of ‘motor vehicle trader’ means more traders must register under the new law. People who import more than three vehicles, or who sell more than six vehicles in a 12-month period, must be registered.

Table 23.09 shows the number of people in New Zealand per licensed car and per licensed motor vehicle. Figure 23.03 plots new tractor registrations since 1950, while figure 23.04 shows cars previously registered in another country.

Road safety

Land Transport NZ is charged with helping deliver the Government's vision, as set out in the New Zealand Transport Strategy, for “an affordable, integrated, safe, responsive and sustainable transport system”.

Land Transport NZ advises the government on land transport safety and sustainability, and suggests policy, develops standards and reviews land transport safety systems in consultation with industry groups.

Road laws are enforced by the New Zealand Police, who investigate serious and fatal accidents, enforce laws regarding heavy traffic and allowable weights of vehicles and loads, and assist with licensing of road transport services, such as taxis, buses and tow trucks.

Figure 23.03.

Figure 23.04.

In 2007, New Zealand's road toll was 423, an increase of 30 from 2006 when road deaths reached the lowest level since 1963. To minimise the road toll, police are continuing to target speed, alcohol, driver fatigue, restraint use and failure to give way.

Driver licensing A New Zealand driver licence is valid for up to 10 years. A graduated system for obtaining a driver 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. Incentives to attend driver education courses are available to all first applicants for licences. The system has three stages: learner, restricted and full licence. A test must be passed in order to graduate to a full licence. At ages 75 and 80, and every two years thereafter, the licence holder is required to undergo a medical check. The mandatory older driver test was discontinued at the end of 2006.

Inspection of motor vehicles All vehicles using New Zealand roads must be inspected regularly to ensure mechanical and structural fitness. They are inspected every six months, except for vehicles that are less than six years old – these are inspected every 12 months. Most lightweight vehicles require a warrant of fitness, which can be issued at approved garages.

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. Taxis and rental vehicles also require a certificate of fitness, which can be issued by approved testing agencies only.

Table 23.10 shows the age of major motor vehicle types in New Zealand at 31 December 2006.

Safety belts Wearing safety belts is compulsory in New Zealand for drivers and front-seat passengers in most classes of light vehicles registered after January 1955. It is compulsory for rear-seat passengers to wear safety belts in all cars. All children under five years of age must be properly restrained by an approved child restraint when travelling in cars and vans.

Drivers must make sure that children between the ages of five and seven years are safely restrained if there is a child restraint or safety belt 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 the ages of eight and 14 use safety belts when available.

Helmets All motorcyclists and pillion riders must wear safety helmets at all speeds. Bicycle helmets are also compulsory for cyclists.

Table 23.1. Age profile of major vehicle types
At 31 December 2006

Age in whole yearsCarsTrucksBusesMotor caravansMotor-cyclesMopedsTrailers
Source: Land Transport NZ
Under 1 year76,48321,0637615385,7894,14825,932
179,78323,4566246256,2024,64525,693
276,82823,2036688964,8141,99324,541
376,65020,6015247353,8281,15121,366
473,39618,8485564223,37472719,314
575,82216,9046257923,00762618,092
684,83417,7735684942,84946918,042
7104,07415,9857076062,85145216,323
8130,58015,6536553292,89043215,830
9195,29120,3858563292,57830114,940
10253,93122,7851,0996272,02028915,035
11196,35220,7059717081,63532314,959
12189,96822,9859139671,54626312,742
13153,88019,7437387871,39018411,128
14167,89420,4388198741,61141310,847
15142,72321,4059819512,14033710,224
16136,45827,0049811,2012,47752716,896
17115,49523,2059139752,88046212,950
1877,65119,0197518933,49553712,052
1955,69216,2756947913,55557610,994
2043,36714,1037058553,34663811,439
2135,24713,3735061,2192,18241814,712
2226,55811,4164306271,80227411,112
2315,3807,3283095451,6682168,905
2412,1506,7362393711,7463509,434
259,7015,1462242941,6872688,837
268,0164,3091902761,55333915,622
276,9173,4382232341,28221710,720
286,3852,7852172217689812,794
294,7042,4731552506199412,923
304,6512,2031482757187815,049
31 to 4053,89410,8864342,0495,06970371,957
41 to 5019,8323,4491219391,41931318,483
51 and over15,8163,631484172,9331003,796
Total vehicles2,726,403498,71119,35323,11287,72322,961553,683
Mean age (years)12.1012.7113.3417.7214.988.9017.03

A police officer uses a hand-held speed camera to target speeding vehicles in heavy traffic.

Alcohol impairment Police have several tests available to test whether drivers are affected by alcohol. Any driver may be required to give a passive test at any time. A breath-screening test may be administered after a police officer has detected alcohol on a 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.

A driver commits an offence and is liable for prosecution if either:

  • breath-alcohol concentration as recorded on an evidential breath-testing device exceeds 400 micrograms of alcohol per litre of breath, or 150 micrograms of alcohol per litre of breath in the case of a person under the age of 20

  • blood-alcohol concentration exceeds 80 milligrams of alcohol per 100 millilitres of blood, or 30 milligrams of alcohol per 100 millilitres of blood in the case of a person under the age of 20.

Speed limits New Zealand's roading network is primarily a two-way system with one lane each way. Management of speed is, therefore, a critical aspect of traffic safety.

Maximum speed limits for highways and motorways are: 100 kilometres per hour (km/h) for cars, motorcycles, vans and light vehicles; and 90km/h for vehicles towing trailers and all heavy vehicles, including buses. A general speed limit of 50km/h is fixed in all urban traffic areas.

In recent years, road controlling authorities have been given more flexibility in setting speed limits and may set limits from 10 to 100km/h provided they are safe and appropriate for particular roads.

Speed cameras, radars and lasers Under the ‘anywhere/anytime’ policy adopted in December 2003, mobile and fixed speed cameras can be located in any place and at any time, with all signage removed (this excludes the use of hidden or camouflaged cameras).

Police also use mobile mode radar and laser speed measuring equipment to supplement speed cameras. The laser equipment is particularly useful in heavy traffic and multi-lane situations, where its ability to isolate and measure individual vehicles permits the targeting of speeding vehicles in traffic.

Traffic offences Penalties are imposed by courts for driving and other offences under the Transport Act 1962, the Land Transport Act 1998, and accompanying regulations. Breaches of certain laws are dealt with under an infringement system, where a driver may pay an infringement fee within a specified time to avoid court proceedings.

There is also a system whereby demerit points are automatically registered, according to a fixed scale, against people convicted of driving offences, or people who pay certain infringement fees.

The director of Land Transport NZ may suspend a driver's licence for three months when 100 or more demerit points are received within two years. Demerit points for speeding are awarded on a graduated scale, based on the speed a driver is detected travelling at.

Table 23.11 shows the number of traffic offences and infringements in New Zealand for the years 2002–07. Figure 23.05 shows the rate of traffic convictions per 10,000 people.

Figure 23.05.

Table 23.11. Traffic offences and infringements(1)
Year ending 30 June

Category200220032004200520062007Change from 2006 (percent)

(1) Data as published in police annual reports.

(2) Speeding – general is a new category. It was previously split into two categories (under 100 km/h and over 100 km/h).

Source: New Zealand Police

Drink/drive offence25,34824,74425,49626,69727,40830,79611.0
Dangerous/reckless driving offence4,5865,1596,1626,6027,5708,1667.3
Unsafe use of vehicle20,67523,80526,52225,20624,58325,7724.6
Careless/inconsiderate driving or overtaking offence12,24911,99311,41111,39711,52712,0984.7
Speeding – general(2)249,133349,469394,940363,949299,427291,194-2.8
Speeding – trailer, towing, heavy motor vehicle11,65014,71013,17714,16710,07310,4884.0
Speeding – speed camera458,622488,714479,164416,492394,585439,49710.2
Failure to stop/give way31,39636,05449,16544,84039,70442,1055.7
Failure to obey officer/fulfill duty18,32218,74619,54917,95618,55820,3308.7
Vehicle licence infringement19,09219,06918,37518,74217,04415,908-7.1
Driving while disqualified8,2138,2178,6539,0619,78810,7368.8
Certificate of fitness infringement94,260100,761107,898107,265113,878127,61310.8
Driver licence and vehicle registration infringement222,907255,933283,555281,381269,481277,6342.9
Driver hours/log book infringement3,6263,7834,5943,3753,1172,647-17.8
Seat belt40,22466,97789,67177,89764,25764,4410.3
Safety helmet4145326316769469732.8
Passenger/recovery/rental service vehicle2,0551,8131,7262,2061,8631,329-40.2
Vehicle condition16,28121,17326,41026,88821,23819,624-8.2
Vehicle noise/loading5,4886,2806,4685,6064,9764,912-1.3
Bicycle infringement2,1482,7743,1423,0122,6172,118-23.6
Cycle helmet5,3998,67310,0389,5518,3057,118-16.7
Pedestrian and other3915977588501,0021,32224.2
Stock and vehicle bylaws offence23423782564416272.8
Local body bylaw infringement8041,1051,36895824243043.7
Other transport offence8,74410,3918,1306,1516,0945,831-4.5
Total1,253,5171,471,3181,588,9551,474,8301,352,2331,417,4134.6

Contributors and related websites

Airways New Zealand – www.airways.co.nz

Civil Aviation Authority of New Zealand – www.caa.govt.nz

Land Transport New Zealand – www.landtransport.govt.nz

Maritime New Zealand – www.msa.govt.nz

Ministry for the Environment – www.mfe.govt.nz

Ministry of Economic Development – www.med.govt.nz

Ministry of Justice – www.justice.govt.nz

Ministry of Transport – www.transport.govt.nz

Motor Vehicle Traders Register – www.motortraders.med.govt.nz

New Zealand Automobile Association – www.aa.co.nz

New Zealand Police – www.police.govt.nz

New Zealand Railways Corporation – www.ontrack.govt.nz

Personal Property Securities Register – www.ppsr.govt.nz

Statistics New Zealand – www.stats.govt.nz

Toll NZ – www.tollnz.co.nz

Transit New Zealand – www.transit.govt.nz

Transport Accident Investigation Commission – www.taic.org.nz

TravelWise – www.travelwise.org.nz

Chapter 24. Commerce and services

Reusable shopping bags are becoming a popular environmentally-friendly option for consumers, instead of single-use plastic shopping bags.

In recent years, New Zealand's industries have had to compete in the international marketplace. There has also been emphasis on competitiveness within the New Zealand economy, with the government encouraging structural change through deregulation.

The past two decades have seen across-the-board tariff reductions, the disappearance of import licensing, removal of restrictions on the operation of financial markets, and reorganisation of State trading enterprises to be more competitive. Specific sectors that were deregulated to allow greater competition include the telecommunications, transport and petroleum industries.

The withdrawal of subsidies and import controls exposed large areas of the domestic economy to new levels of competition. The result has been reorganisation and, in some cases, attrition, especially in manufacturing.

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 laws aimed at protecting the competitive process.

The Commerce Act 1986, the Fair Trading Act 1986 and the Electricity Industry Reform Act 1998 are New Zealand's main competition laws. In general terms, they are based on the premise that open and competitive markets will ensure the efficient allocation of economic resources. The Commerce Act was reviewed in 1992 to ensure its provisions were consistent with other Government policies promoting economic growth. Several amendments have been made to the Act since then, including the prohibition of business acquisitions that substantially lessen competition in any market.

As the economy has become more market-oriented, traditional controls in the retail sector have also been reviewed. Laws controlling shop trading hours and the sale of liquor have been reviewed, and relaxed in some areas, to encourage competition, and to provide structures for businesses to compete with imported products, and to meet consumer demand.

Commercial framework

Companies and partnerships

Individuals wishing to start a business can do so by forming a company under the Companies Act 1993, by trading in their own name, or by trading in partnership under the Partnership Act 1908, which covers ordinary partnerships and the lesser-used special partnerships.

Table 24.01. Company registrations
Year ending 30 June

YearNew companies registeredCompanies dissolved or struck offCompanies on register
Source: Ministry of Economic Development
199723,1727,936192,224
200033,23420,255230,359
200135,25420,045249,047
200241,99615,509275,813
200341,45717,223307,461
200453,90019,185345,702
200559,74423,037388,846
200665,59028,719428,697
200774,24735,292474,212

Companies are by far the most usual form of business operation in New Zealand. Incorporating a limited liability company under the Companies Act 1993 limits an individual's liability for any losses the business may suffer. Companies are founded on three concepts:

  • shareholders have limited liability, meaning that their liability is limited to the amount they have agreed to pay for their shares, so that if the company should fail owing money, their other assets are protected from seizure to pay the outstanding debts

  • shares in the company are transferable

  • the company is a separate legal entity from the shareholders.

Companies in which shareholders have limited liability have names ending in ‘Limited’ or ‘Tapui’ (Limited).

Table 24.01 shows the number of new companies registered, companies dissolved or struck off, and the number of registered companies.

Partnerships are defined in the Partnership Act 1908 as the relationship between people carrying on a business in common, with a view to profit. Partnerships are started by mutual agreement, which can be informal, however, terms are normally contained in a written agreement.

Characteristics of a partnership are that 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, and 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 binding arrangements.

Commerce Commission

The Commerce Commission enforces a number of general and specific regulatory regimes set out in the Commerce Act 1986, the Fair Trading Act 1986, the Electricity Industry Reform Act 1998, the Dairy Industry Restructuring Act 2001, the Telecommunications Act 2001, and the Credit Contracts and Consumer Finance Act 2003.

The commission, a Crown entity established under the Commerce Act 1986, consists of up to five members appointed by the governor-general on the recommendation of the Minister of Economic Development. Associate members may also be appointed. A Telecommunications Commissioner was established in 2001.

The commission's revenue is derived mainly from the Crown, supplemented by fees from parties seeking adjudication decisions. In addition, the commission receives some revenue from court costs awarded, and from interest. New responsibilities in the electricity, telecommunications and dairy industries are, for the most part, funded by government-imposed industry levies.

The commission's budget increased to $31 million for 2006/07, up from $23 million in 2005/06. The commission had 149 staff at December 2007, compared with 130 staff at December 2005. It operates from a head office in Wellington, and has offices in Auckland and Christchurch that deal with Fair Trading Act responsibilities.

Commerce Act 1986 The aim of this Act is to promote efficient operation of markets by promoting competition for the long-term benefit of consumers. The Act is designed to prevent or deter abuses of market power, collusion, and anti-competitive mergers. The Act applies to all individuals and commercial organisations, including local government, State-owned enterprises, and government departments.

The Act prohibits restrictive trade practices, such as substantially lessening competition, excluding competitors, price fixing, taking advantage of market power, and arranging prices between manufacturers and resellers. Parties planning to enter arrangements that may include restrictive trade practices can apply to the commission for authorisation. The commission will authorise the arrangement if it is satisfied that the public will ultimately benefit from the business practice, even though there is a lessening of competition.

The Act prohibits the acquisition of assets or shares in a business if the acquisition results in a substantial lessening of competition 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 substantially lessen competition. Even if the acquisition results in the acquiring or strengthening of a dominant position in a market, the commission will grant an authorisation if there is sufficient public benefit to outweigh the detriment to competition. 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 Economic Development the power to set regulatory control for goods or services. Regulatory 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 consumers or suppliers.

Penalties for breaching the Act are fines up to $500,000 for individuals, and up to the greater of either $10 million or three times the value of any commercial gain resulting from the breach (or 10 percent of the turnover of the business if the commercial gain is unknown) for companies.

Electricity Industry Reform Act 1998 The purpose of this Act is to separate electricity distribution from electricity generation and retailing, to ensure that costs and prices in the electricity industry are subject to sustained downward pressure. Businesses generating or selling more than a specified amount of electricity cannot also own power lines. Businesses can apply to the Commerce Commission for exemptions from the Act.

Dairy Industry Restructuring Act 2001 This Act provides for regulatory and structural reform of the New Zealand dairy industry. The Act authorised the amalgamation of New Zealand's two largest dairy cooperatives, the New Zealand Cooperative Dairy Company Ltd and Kiwi Cooperative Dairies Ltd, into Fonterra Co-operative Group Ltd, and the resulting ownership by Fonterra of all the shares in the New Zealand Dairy Board.

The resulting cooperative has significant power in New Zealand's dairy markets. The Act provides for measures to mitigate the risks of that market power. The commission continues to monitor developments in competition in the dairy market, and to consider the implications in terms of the Act.

Telecommunications Act 2001 This Act aims to reform the telecommunications industry to deliver a better deal for consumers, by providing greater certainty, investment, competition, opportunity and consumer benefit. Under the Act, the Commerce Commission:

  • resolves access disputes between carriers

  • oversees telecommunications service obligations

  • divides the annual net cost between Telecom and liable carriers

  • monitors the regulatory regime

  • recommends changes to the list of regulated services to the Minister of Communications.

The Telecommunications Act was amended in December 2006. The amendment gives the commission scope to set access terms and conditions without having to wait for an access dispute to be referred to the commission. The access terms set by the commission apply to all players in the market, not merely the parties involved in the access dispute.

Takeovers Panel

The Takeovers Panel is a body corporate established by the Takeovers Act 1993. The panel has between five and 11 members, who are appointed by the Minister of Commerce. At least one member must be a barrister or solicitor of the High Court of New Zealand with at least seven years experience.

The law relating to takeovers of specified companies is kept under review by the panel, which recommends any changes it considers necessary to the government. Practices relating to takeovers of specified companies are also kept under review.

In exercising its powers, the panel investigates any act or omission, or practice. Determinations, orders and applications to the court are made under the enforcement provisions of the Takeovers Act 1993.

The panel cooperates with overseas regulators by providing information that may be useful to that regulator. The panel also promotes public understanding of the law and practice relating to takeovers.

In exercising its functions and powers, the panel is required to comply with the principles of natural justice.

Stock exchange

New Zealand Exchange Ltd is a public company trading as NZX. NZX is now a company listed on one of its own markets, the NZSX (stock) market. NZX operates and regulates markets in New Zealand for entities to raise capital (for example by issuing shares or debt securities), and for the trading of listed securities. The trading markets are the NZSX, which had 223 quoted securities at 31 December 2007; the NZDX (debt market), where companies and the government list bonds and other fixed-interest securities; and the NZAX (alternative market), for small-to-medium-sized and non-standard entities. There were 152 New Zealand entities and 26 overseas entities listed on NZX's markets at 31 December 2007.

Table 24.02 (overleaf) shows the number of companies listed on the New Zealand stock exchange, and the share price index.

Investors can trade derivatives based on New Zealand securities at the Sydney Futures Exchange (SFE). Called NZFOX, they are futures and options products listed on the SFE. Futures and options allow investors to hedge against risk, or speculate (take on extra risk in the hope of making a profit).

NZX firms are accredited to provide investment advice and to buy and sell securities on NZX's markets on behalf of clients. NZX firms also advise entities on listing, and assist entities to raise capital by issuing securities. NZX is responsible for regulating the conduct of those who participate in its market, including NZX firms, other market participants, and listed issuers.

Table 24.02. Stock exchange statistics
Year ending 31 December

YearNumber of companies listed on New Zealand stock exchange marketsShare price index(1)
OverseasNew Zealand

(1) Until 1966, Department of Statistics Index; from 1967 to 1986, Reserve Bank of New Zealand Share Price Index; from 1987, New Zealand Stock Exchange Gross Index; from 2003, NZX all index. Base: July quarter 1986 (= 1000).

Symbol: .. figure not available

Source: New Zealand Exchange Ltd

1930....309
1935....341
1940....306
1945....413
1950....506
1955....554
1960....854
1965....1060
1970833001361
1975793051159
1980752751599
1985813164964
199074171514
1995601451287
1996651361527
1997791461572
1998831461520
1999841341778
2000771441616
2001711491886
2002691511966
2003601692487
2004571953184
2005441943469
2006311514118
2007261524107

Contractors watch trends on a NZX stock exchange display board in the foyer of Quay Towers in central Auckland.

Under listing rules, listed issuers are required to disclose any information that is relevant for investors. NZX publishes these disclosures of information as market announcements, which ensures the market is kept informed. There are also listing rules relating to the appointment of directors, disclosure of financial results, and general conduct.

NZX generates revenue from listing fees paid by listed issuers, accreditation fees paid by NZX advisors and NZX firms, fees for trading activity, and from the sale of market data, such as trading statistics and prices. Revenue is also earned from the sale of exchange-traded funds, a type of investment product.

At 31 December 2007, NZX managed five exchange-traded funds: the NZX 10 Fund (smartTENZ); the NZX MidCap Index Fund (smartMIDZ); the NZX 50 Portfolio Index Fund (smartFONZ); NZX Australian MidCap Index Fund (smartMOZY); and NZX Australian 20 Leaders Fund (smartOZZY).

Securities trading is facilitated through the new Trayport Globalvision Exchange Trading System, implemented in July 2007. Orders to buy and sell securities are placed into the system by NZX brokers, and are matched according to price and time priority. After orders are matched, securities and payment are delivered, and securities are registered in the name of the new owner. The new technology platform includes a trade reporting system for the electronic communications network being established in Australia by NZX and five major banks.

NZX calculates a number of share price indexes, including the NZX50. This index tracks the collective movement in market value of the 50 largest listed issuers on the NZSX market. In 2006, NZX launched the Sci-Tech Index to highlight the performance of companies listed with NZX that have significant business interests in developing and commercialising new technologies. The index acts to promote and raise the profile of listed tech companies.

Figure 24.01 shows movement of the NZX all index from 1986 to 2006.

Securities Commission

The purpose of the Securities Commission is to strengthen investor confidence in New Zealand by promoting the efficiency, integrity, and cost-effective regulation of the securities markets.

The commission, New Zealand's main regulator of investments, is an independent Crown entity formed under the Securities Act 1978.

The law relating to bodies corporate, securities, and unincorporated issuers of securities is kept under review by the commission, which recommends changes to the Minister of Commerce. Practices relating to securities and the activities of securities markets are also kept under review.

The commission promotes understanding of the law and practice of securities, and cooperates with overseas securities commissions.

To help perform these functions, the commission has the power to:

  • suspend or cancel a registered prospectus

  • prohibit advertising of any securities

  • enforce insider-trading and substantial security holder law

  • administer the law relating to futures contracts

  • recommend approval of electronic systems for the transfer of securities.

Figure 24.01.

Insolvency

Bankruptcy Insolvency of individuals is referred to as bankruptcy. The main laws that relate to bankruptcy are the Insolvency Act 2006, the Insolvency Regulations 2007, and the High Court Amendment Rules (No. 2) 1999. Bankruptcy matters come under the jurisdiction of the High Court of New Zealand.

Bankruptcy can be initiated in two ways:

  • a debtor can file a completed ‘statement of affairs’ and application for bankruptcy with the official assignee. Upon acceptance of the statement of affairs being a true and correct representation of the debtor's affairs and application, the debtor is made bankrupt

  • a creditor can file a petition seeking a debtor's bankruptcy in the High Court.

At least $1,000 must be owed by a debtor seeking to make themselves bankrupt, or where a creditor is seeking to make a debtor bankrupt.

The official assignee administers the insolvency. The official assignee investigates the bankrupt's financial affairs, and follows up on matters likely to result in the recovery of funds for the creditors. They have the power 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 assets have been converted to cash, the official assignee deducts expenses incurred, pays any debts that have statutory priority, and then divides the proceeds among creditors. Secured creditors are paid from the proceeds of their security and other creditors are paid proportionally.

Bankruptcies are generally automatically discharged after three years. Where the debtor has initiated the bankruptcy, the three years start from the adjudication. Where the creditor has initiated the bankruptcy, the three years start from when the debtor has filed a satisfactory statement of affairs with the official assignee.

Alternatives to bankruptcy A debtor may apply for an alternative to bankruptcy such as a ‘summary instalment order’ or seek admission to the ‘no asset procedure’ if their debts total $40,000 or less.

A summary instalment order involves paying creditors in part or in full over a period of up to three years. While the summary instalment order is in force, creditors included in the order cannot seek to enforce their debt. The period for repayment of debt can be extended to five years under special circumstances.

The no asset procedure is designed for consumer debtors with no assets, no means of repaying any of their debts, debts of $40,000 or less, and who have not been previously bankrupt or entered a no asset procedure. Unlike bankruptcy, the no asset procedure lasts for only 12 months. It can be terminated by the official assignee if it is found that the debtor has misled the official assignee about their affairs when applying for the procedure. Creditors cannot pursue the debtor for debts included in the no asset procedure.

Table 24.03. Bankruptcies
Year ending 30 June

YearNumber
Source: Ministry of Economic Development
19972,458
20002,675
20012,859
20022,811
20032,800
20042,791
20052,995
20063,087
20073,593

Creditors may accept a composition (an agreement among all creditors of a debtor to accept a percentage of the amount due as full payment) in satisfaction of the debts due to them.

Table 24.03 shows the number of bankruptcies in New Zealand and figure 24.02 shows the bankruptcy rate per 100,000 people.

Figure 24.02.

Company liquidation Liquidation, sometimes called winding up, is the legal process by which a company's life is ended. The company's assets are converted to cash, creditors are paid as far as possible, any surplus is distributed to shareholders, and the company is then removed from the register, after which it ceases to exist. Companies are liquidated according to provisions in the Companies Act 1993.

Company receivership Companies with heavy debt loads and cash-flow problems can have a receiver appointed over their assets, either by the court, or, more commonly, under a clause in a security. Securities often contain a detailed statement of events that will enable the holder to recover the loan if the borrower gets into financial difficulties. One of these provisions is the power of the security holder to appoint a receiver.

The function of a receiver is to sell what is necessary to recover the amount owed to the holder (plus costs), or to manage the company's business for this purpose, and then retire as receiver. No property of the company is actually vested in the receiver. Although the directors remain in office, the receiver's power supersedes theirs. The receiver is an agent for, not an officer of, the company. Receivership is quite distinct from liquidation, as a receiver acts only for the benefit only of the debenture-holder who appointed him or her, whereas a liquidator acts for unsecured creditors.

Voluntary administration A procedure called voluntary administration provides an alternative to liquidation for companies in financial distress. It is intended to be a relatively short-term measure that freezes the company's financial position while the administrator and the creditors determine the company's future.

Controls on trading

The two overarching pieces of legislation setting out consumer rights and protections are the Fair Trading Act 1986 and the Consumer Guarantees Act 1993.

Fair Trading Act

The aim of the Fair Trading Act 1986 is to promote product safety and ensure customers receive accurate information about goods and services. The Act protects consumers from unfair business practices and protects businesses that comply with the legislation from unfair competition. The Act covers all advertising and selling of goods and services, but does not cover private sales.

The Act prohibits misleading and deceptive conduct, false representation and unfair practices by people in trade. 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 endorsed by an organisation or sponsor

  • are supplied with particular warranties or guarantees

  • have particular uses or benefits.

The Act makes it a criminal offence to engage in certain unfair or misleading practices. These include:

  • offering free gifts or prizes when supplying goods or services if those involved do not intend to award the gift or prize

  • ‘bait’ advertising, such as advertising ‘specials’ or ‘loss leaders’ to attract customers into a shop if the advertiser does not intend making the goods or services available for a reasonable time and in reasonable quantities

  • demanding or accepting payment without intending to supply the 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 ban and recall unsafe products and to make consumer information and product safety standards mandatory.

Consumer information standards cover:

  • used motor vehicles

  • country-of-origin labelling of clothing and footwear

  • care labelling for textile goods (such as dry-cleaning, washing and ironing instructions)

  • fibre content labelling of textile goods.

Product safety standards cover:

  • baby walkers

  • toys for children aged up to three years

  • children's nightwear

  • cigarette lighters

  • bicycles.

The Commerce Commission is responsible for enforcing the Act, but anyone – consumers and businesses alike – can take legal action under the Act. Criminal court action may result in fines of up to $60,000 for individuals and $200,000 for companies. Both a company and individuals involved in a breach can be prosecuted by the commission.

Consumer Guarantees Act

The Consumer Guarantees Act 1993 covers consumer protection in the period after a purchase is made. Statutory guarantees are automatically conferred whenever a consumer purchases goods or services from a trader. As with the Fair Trading Act 1986, the Consumer Guarantees Act 1993 protects consumers from unfair business practices, and protects businesses that comply with the legislation from unfair competition. The Act also covers items given away by a trader or manufacturer when goods are purchased.

Under the Act, a trader must have the right to sell the goods, and have spare parts and repair facilities available. All goods must:

  • be of acceptable quality

  • be fit for their particular purpose

  • match their description

  • match a sample or demonstration model

  • be a reasonable price.

The Act also ensures consumer rights when services paid for are not carried out properly. Services must be:

  • provided with reasonable care and skill

  • fit for their particular purpose

  • completed within a reasonable time

  • provided at a reasonable price.

If a guarantee is not met, consumers may have rights against the trader (or in some cases the manufacturer) for a remedy to put the problem right. If a problem is major, a consumer can reject the goods and choose a replacement, or keep the goods and seek compensation for the reduction in the value of the goods. Since July 2003, the Consumer Guarantees Act 1993 also applies to electricity, gas, water, and computer software.

Online trading

The same rules that apply when shopping at stores also apply to Internet sales.

Online traders must comply with the Fair Trading Act 1986, which prohibits misleading claims or false representations about goods and services for sale. Private sales are not covered by the Fair Trading Act 1986 or Consumer Guarantees Act 1993, but may be covered by the Contractual Remedies Act 1979 or the Sale of Goods Act 1908.

Auctions and competitive tenders are not covered by the Consumer Guarantees Act 1993. Likewise, winning bids for items on Internet sites are not protected. Items bought at a ‘buy now’ price, however, are covered – these purchases are similar to buying in a shop, as there is no negotiation or competition on price.

Other legislation covering consumer law

Auctioneers Act 1928 requires all auctioneers to be licensed. Entry to the occupation depends on applicants being able to satisfy a district court judge that they are ‘fit and proper’ and financially secure. This is in accordance with the Act's primary objective to protect consumers from reckless or incompetent auctioneers and financial loss.

Credit Contracts and Consumer Finance Act 2003 regulates consumer credit, including home loans, personal loans, credit sales/hire purchase, credit cards, long-term leases and housing buy-back schemes. The Act requires disclosure of key information to the debtor, prohibits unreasonable fees, allows for contracts to be varied in cases of hardship, and provides for reopening of oppressive contracts.

The Credit Contracts and Consumer Finance Act 2003 replaces the Credit Contracts Act 1981 and the Hire Purchase Act 1971. These acts still apply to credit contracts and hire purchase agreements entered into before 1 April 2005. The Credit Contracts and Consumer Finance Act is enforced by the Commerce Commission.

Credit (Repossession) Act 1997 standardises procedures relating to the repossession of goods under a security agreement. The Act covers the repossession process that a creditor (or agent) must follow for all secured loans, and hire purchase agreements over consumer goods.

Door to Door Sales Act 1967 regulates agreements for the sale of goods and the provision of services on credit, entered into at places other than appropriate trade premises.

Layby Sales Act 1971 sets out rules for layby sales – where the goods being bought are not available to the buyer until the purchase price is paid off by instalment. The Act does not apply to layby sales over $7,500, or to a motor vehicle being sold by a licensed dealer.

Motor Vehicle Sales Act 2003 requires that all motor vehicle traders are registered on the Motor Vehicle Traders Register (including car market operators and vehicle auctioneers). Traders are required to display a supplier information notice, in the form prescribed under the Fair Trading Act, with all used motor vehicles for sale. The register is administered by the Ministry of Economic Development, with enforcement carried out by the ministry's national enforcement unit. The supplier information notice is enforced by the Commerce Commission.

Unsolicited Goods and Services Act 1975 provides protection for people who receive unsolicited goods or invoices for unordered goods or services.

Weights and Measures Act 1987 protects New Zealand's system of metric weights and measures, and prescribes their use in the marketplace. It ensures that goods sold by weight, measure or number are traded fairly and in accordance with internationally recognised principles. The Act is enforced by the Ministry of Consumer Affairs.

Ministry of Consumer Affairs

The Ministry of Consumer Affairs Manatū Kaihokohoko is part of the Ministry of Economic Development. The Ministry of Consumer Affairs' primary role is to create an environment that promotes accurate information flows between suppliers and consumers, so that consumers can purchase with confidence.

The ministry's work includes:

  • developing consumer policy including consumer protection, product safety, and weights and measures

  • providing appropriate, accurate and accessible information, education and advice for consumers and businesses on consumer law and issues

  • investigating unsafe consumer products

  • providing advice on consumer representation, including a nomination service to government departments and agencies

  • administering a range of consumer legislation

  • enforcement the Weights and Measures Act 1987.

Consumer NZ

The principal aim of Consumer NZ is to collect and disseminate information of benefit to consumers, to advance the interests of its subscribing members and those of consumers generally. This is done through research, publishing Consumer magazine and www.consumer.org.nz, and public advocacy on behalf of all New Zealand consumers.

Consumer NZ's work includes:

  • comparative tests and surveys of consumer goods and services

  • research into and advice on financial, food, health, safety, welfare and environmental matters

  • representation at parliamentary committees and public inquiries

  • liaison with government, business, trade and safety organisations

  • consumer education

  • complaints advisory work for members.

Consumer magazine covers a wide range of consumer information and protection material, including results of tests on home appliances and other products. The website supplements the magazine, and runs exclusive online tests and features. It also hosts a register of product safety recalls.

Funded through membership subscriptions, the sale of publications, and contract research, Consumer NZ is independent and impartial. It has no financial ties with any commercial organisation. It does, however, have a good relationship with most traders and liaises with trade and professional associations, as well as government departments, safety organisations and special-interest groups.

Shop trading hours

Shops in New Zealand can open every day of the year, 24 hours a day, except on Christmas Day, Good Friday, Easter Sunday and before 1pm on Anzac Day. Exceptions allow dairy/mixed businesses, service stations, takeaway outlets, souvenir and duty-free shops, shops at public passenger transport terminals, and genuine exhibitions and shows to open on any day. Garden centres have a specific exemption allowing them to open on Easter Sunday.

Sale of liquor

Under the Sale of Liquor Act 1989, 18 years is the minimum legal age at which a person may purchase liquor, or be on licensed premises in certain circumstances. A person aged under 18 years may have access to any licensed premises (other than restricted areas), and be supplied with liquor, providing he or she is accompanied by a parent or legal guardian and liquor is supplied by the parent or guardian.

All on and off-licence premises are permitted to sell liquor any day of the week. However, hotels, taverns and off-licences are prohibited from selling, supplying or delivering liquor on Good Friday, Easter Sunday, Anzac Day (before 1pm) and Christmas Day. The law does not apply to people living in a hotel or tavern, or people dining on the premises. Wineries may sell or deliver wine on Easter Sunday if it is made on their premises or from grapes or fruit harvested from land on which the premises are situated.

Supermarkets and grocers may be licensed to sell beer, wine, and any food condiment containing liquor if the food condiment has been prepared for culinary purposes and rendered unsuitable for drinking.

The sale of liquor to any member of the public requires one of four types of licence:

  • On-licences authorise the sale and supply of liquor to any person on the premises or conveyance (such as a ship or aircraft) for consumption on the premises only. Examples include taverns, licensed restaurants and nightclubs.

  • Off-licences authorise the sale or delivery of liquor on or from the premises to any person for consumption off the premises. Examples are wine resellers, supermarkets and bottle stores.

  • Club licences authorise the sale and supply of liquor on the premises for consumption on the premises by a club member or guest of a member, or members of a club who have reciprocal visiting rights. (A ‘club’ 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.)

  • Special licences authorise the sale and supply of liquor on the premises or conveyance to any person attending any occasion or event.

Hours of sale The hours during which liquor is allowed to be sold, delivered or consumed are a condition of the licence and are not set out in legislation. Each application is dealt with on its merits.

Liquor licensing New Zealand's central liquor 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. The authority considers and determines opposed applications for on, off and club licences, and for manager's certificates referred to it by district licensing agencies. It also decides on appeals against decisions by district licensing agencies and considers the suspension and cancellation of licences.

There are 74 district licensing agencies, which are essentially the city or district authority. District licensing agencies receive applications for liquor licences, gather reports, and determine all unopposed applications. Opposed applications are forwarded to the Liquor Licensing Authority. District licensing agencies grant special licences and temporary authorities, whether opposed or not.

Retail trade and services

Retailing involves retail businesses, accommodation, restaurants, and businesses providing household and personal services. Retail trade statistics are important indicators of economic activity, as retail trade constitutes a large proportion of personal expenditure on consumer goods and services. Table 24.04 shows annual retail sales from 2003 to 2007.

Retail sales trends

Total actual retail sales increased 4.7 percent in the year ending 31 March 2007 to reach $62,305 million, compared with $59,511 million in the previous March year. Almost all industries recorded sales increases in 2007 compared with the previous year.

Supermarket and grocery stores had the largest dollar-value increase, up $840 million or 7.0 percent. Their volume of sales rose 4.8 percent in the year ended March 2007. The automotive fuel retailing industry had the second-largest sales increase in 2007, up $426 million or 7.8 percent, despite a 2.0 percent fall in the volume of sales.

The largest decrease in sales value was in motor vehicle retailing, down $171 million or 2.1 percent. Sales volumes fell for the second successive year, down 0.6 percent compared with the year ended March 2006.

The value of retail sales per head of population was $15,000 in the year ended 31 March 2007, 3.6 percent higher than in the previous March year.

Table 24.04. Retail sales(1)(2)
By industry
Year ending 31 March

Industry20032004200520062007
$(million)

(1) Figures are exclusive of goods and services tax.

(2) The Retail Trade Survey was redesigned in October 2003.

(3) nec: not elsewhere classified.

Note: Figures may not add up to stated totals due to rounding.

Source: Statistics New Zealand

Supermarkets and grocery stores10,05210,79411,32511,96512,805
Fresh produce700787832899921
Liquor8999511,0101,0521,112
Other food631659750827881
Takeaway food6978019221,0471,162
Department stores2,9243,2633,3823,4823,623
Furniture and floor coverings1,2461,2641,3761,4931,539
Hardware9191,0291,1411,3091,395
Appliances1,8701,9542,1962,3342,499
Recreational goods1,9532,0252,1232,1352,258
Clothing and softgoods1,8781,9952,1652,4132,482
Footwear259295319354398
Chemist retailing1,2971,4071,5631,6261,747
Household equipment repair services299315301310321
Other retailing2,5592,4492,5202,6102,718
Accommodation1,9312,0562,2832,3872,490
Bars and clubs1,0631,0701,0841,1171,155
Cafes and restaurants2,7682,8653,0993,4493,638
Personal and household goods hiring168188213214245
Other personal services1,2431,3371,4781,5411,662
Subtotal35,35537,50540,07942,56445,053
Motor vehicle retailing7,5988,0068,3498,2118,040
Automotive fuel retailing3,7623,8664,6335,4305,855
Automotive electrical services, smash repairing and tyre retailing1,1661,2591,3461,4321,494
Automotive repair and services nec(3)1,4711,6341,6591,8751,862
Total49,35252,26956,066 ($)59,51162,305
Sales per head of population12,46512,98513,76414,47815,000

Chilled-food manager, Sam Chawla, stacks trim milk at a New World supermarket in Auckland. Some supermarkets are choosing to stock healthier foods at eye level to be more noticeable to consumers.

Regional sales

Retail sales in the year ending 31 March 2007 increased 4.7 percent in the North Island and 4.6 percent in the South Island, compared with the previous year. The Waikato region recorded the largest percentage increase in sales, up 8.9 percent or $465 million. Table 24.05 shows the value of sales by region.

Table 24.05. Retail sales(1)(2)
By region
Year ending 31 March

Region20032004200520062007
$(million)

(1) Figures are exclusive of goods and services tax.

(2) The Retail Trade Survey was redesigned in October 2003.

Note: Figures may not add up to stated totals due to rounding.

Source: Statistics New Zealand

Auckland16,28717,62719,15320,03720,952
Waikato4,7174,7444,9625,2435,707
Wellington5,5655,7335,9506,2856,642
Remainder of North Island10,69211,42712,52513,51813,911
Total North Island37,26139,53142,59045,08247,212
Canterbury6,6566,7626,8697,4317,767
Remainder of South Island5,4365,9756,6086,9987,326
Total South Island12,09112,73813,47614,42915,093
Total New Zealand49,35252,26956,06659,51162,305

Table 24.06. Credit card use
Year ending 31 December

YearAdvancesBillings(1)Average monthly retail sales (excluding motor vehicle retailing)(2)Card spending in New Zealand as proportion of retail sales
Total outstandingNew Zealand cardholder spending in New ZealandOverseas cardholder spending in New ZealandTotal
$(million)Percent

(1) Credit card spending includes services and other purchases not included in retail sales.

(2) Figures are monthly averages over the complete year.

Source: Reserve Bank of New Zealand

19982,0674981086062,72122
19992,4036561197752,87127
20002,9049001421,0423,04634
20013,3901,1501651,3153,21941
20023,7681,3121991,5113,42944
20033,9561,4382171,6553,61546
20044,2101,5852351,8203,91447
20054,5331,7382401,9784,20847
20064,8561,8992502,1494,44748
20075,2082,0672622,3294,71349

Credit cards

The value of purchases using credit cards continues to rise, although less strongly since 2002, while the growth in borrowing on credit cards has eased from 2003. The relative increase in the use of credit cards as a means of payment is partly due to the wider acceptance of the card in supermarkets and over the Internet, and also for services such as doctors and dentists, and power and phone bills. Loyalty schemes introduced in the late 1990s influenced this growth. Growth in credit card use is shown in table 24.06 (previous page).

Insurance and superannuation

The insurance industry

The insurance industry in New Zealand has a number of characteristics that make international comparison difficult. These include the fact that work-cover products are all supplied by the government Accident Compensation Corporation scheme; up to 80 percent of general insurance products are sold by Australian owned or controlled companies; and the majority of the products sold are short-tail – notified and settled quickly – by nature.

The life insurance industry has changed considerably in recent years through demutualisation, takeovers and restructuring. Statistics New Zealand's business demographic statistics recorded 41 life insurance enterprises at February 2007, down from 45 in February 2006.

The non-life insurance market was divided among 159 enterprises (150 in 2006): 63 health (57 in 2006) and 96 general (93 in 2006) insurance enterprises at February 2007. These statistics include life companies doing non-life business that have made deposits under the Insurance Companies' Deposits Act 1953. Many of these companies are not active in the New Zealand market.

Some New Zealand insurance business is placed directly offshore. The ability to spread risk through international reinsurance markets has allowed New Zealand insurers to absorb large increases in business.

The number of direct underwriters has been reducing, with amalgamations and withdrawals, and this has been accompanied by a decrease in the number of reinsurers establishing a place of business in New Zealand. While the overall number of enterprises in the insurance and superannuation industries has generally been on the decrease (768 in 2007, 947 in 2006 and 920 in 2005), the number of employees has been increasing (9,330 in 2007, 8,570 in 2006 and 8,030 in 2005).

Government involvement

Some classes of insurance that make a substantial contribution to overseas markets do not feature in New Zealand because of the different legal climate and background. The accident compensation scheme effectively removed many classes of liability insurance. Historically, the government had also been involved in both fire and general, and life insurance through government-backed life insurance and mutual funds, but in recent years it has withdrawn from these activities. Fire services in New Zealand are funded through a levy on all fire insurance policyholders.

Regulation The Insurance Companies' (Ratings and Inspections) Act requires fire and general insurance companies to obtain, register and disclose a claims-paying ability rating. The requirement also applies to any non-life business of life insurance companies, such as disability products. 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.

The Insurance Companies' Deposits Act 1953 requires any person or company providing insurance in New Zealand to lodge approved securities with a market value of not less than $500,000 with the Public Trustee. Insurance companies are also required to provide detailed annual reports and statements of financial condition to the Ministry of Economic Development.

Life and general insurance companies are required to comply with consumer protection legislation, such as the Fair Trading Act 1986 and the Consumer Guarantees Act 1993. Regulation of the New Zealand insurance industry has developed through a combination of loose government supervision and self-regulation. Competition has also been an important factor in regulating all parts of the insurance market.

Natural disaster insurance New Zealand is susceptible to damage caused by earthquakes and other geophysical events. The Earthquake and War Damage Commission was established in 1944 to provide a government-guaranteed fund for damage caused by war and earthquakes. The fund was created with premiums collected from fire insurance policyholders. The original Act was replaced by the Earthquake Commission Act 1993, which dropped war damage and non-residential property from the cover.

The Earthquake Commission (EQC) is a Crown entity responsible to the Minister of Finance. It provides cover for a single house (up to $112,500 including GST), its contents (up to $22,500 including GST), and land under and surrounding the house based on valuation, subject to limits. It covers damage caused by earthquake, natural landslip, volcanic eruption, hydrothermal activity, tsunami, residential land in the case of storm or flood, and fire caused by any of these. Cost of cover is five cents a year for every $100 value of property insured. The maximum premium for one year is $67.50 (including GST).

MP Moana Mackey, Mayor Meng Foon and MP Hon Rick Barker inspect property damage from the earthquake that hit Gisborne on 20 December 2007.

Table 24.07 shows the number and value of claims made to the EQC in 2006 and 2007.

EQC premium income for the June 2007 year was $83.8 million ($82.4 million in 2006) and investment income was $46.7 million ($691.0 million in 2006).

Table 24.07. Earthquake Commission claims
By event type

Event type20062007
Number of claimsValue $(million)Number of claimsValue $(million)
Source: Earthquake Commission
Landslip/storm/flood81011.081,84832.14
Earthquake6621.141,5222.67
Hydrothermal1000
Volcanic0000

Loss prevention

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 approval of passive fire protection and alarm systems.

Other organisations that work in loss prevention:

  • the Insurance Council of New Zealand, along with the Fire Service Commission, is active in fire prevention and fire safety education

  • BRANZ Ltd undertakes work in assessing building materials and methods of construction

  • the Earthquake Commission advises how to minimise the impact of potential earthquakes

  • the New Zealand Automobile Association and similar organisations are active in the prevention of motor vehicle accidents

  • the Accident Compensation Corporation and the Department of Labour promote occupational safety and accident prevention, and this activity has had some indirect benefit to the insurance industry

  • most other activity in the field of loss prevention and accident prevention is undertaken by the government or by other organisations that are wholly or partly public funded.

Contributors and related websites

Commerce Commission – www.comcom.govt.nz

Consumer NZ – www.consumer.org.nz

Department of Labour – www.dol.govt.nz

Earthquake Commission – www.eqc.govt.nz

Insurance Council of New Zealand – www.icnz.org.nz

Kiwi PlasticBag Concern – www.plasticshoppingbagfree.org.nz

Landcare Research – www.landcareresearch.co.nz

Ministry for the Environment – www.mfe.govt.nz

Ministry of Consumer Affairs – www.consumeraffairs.govt.nz

Ministry of Economic Development – www.med.govt.nz

Ministry of Justice – www.justice.govt.nz

New Zealand Exchange Limited – www.nzx.com

Office of the Insurance and Savings Ombudsman – www.iombudsman.org.nz

Reserve Bank of New Zealand – www.rbnz.govt.nz

Securities Commission – www.seccom.govt.nz

Statistics New Zealand – www.stats.govt.nz

Sustainable Business Network – www.sustainable.org.nz

Takeovers Panel – www.takeovers.govt.nz

Transparency International – www.transparency.org

Untouched World – www.untouchedworld.com

Chapter 25. Overseas trade

The New Zealand Wine Company, producer of Grove Mill wines, gained carboNZero certification through measuring, managing and mitigating their greenhouse gas emissions. The first winery in the world to gain certified carbon-neutral status, their wines are now sought after in the United Kingdom.

Development and administration of trade

New Zealand Trade and Enterprise

New Zealand Trade and Enterprise (NZTE) is the government's national economic development agency. NZTE works to stimulate economic growth by helping to boost export earnings, strengthen regional economies, and deliver economic development assistance to industries and individual businesses.

As a global organisation, NZTE uses knowledge and contacts in overseas markets to connect New Zealand businesses with trade and investment opportunities.

NZTE's focus is on industries and sectors where New Zealand has a long-term competitive advantage in the world market, and on businesses with high-growth potential. Their strategic goals are:

  • increasing international connections for New Zealand business

  • helping businesses build their capability

  • improving the environment for enterprise and growth.

NZTE services and programmes can be used by start-up companies and established groups of exporters. Services include advice, training, mentoring, funding, and business and market development assistance. Some services are provided directly by NZTE, while others come from external organisations funded by NZTE.

Services in New Zealand NZTE has staff in nine offices around New Zealand. Staff work in sector-specific teams that reflect the focus on industries in which New Zealand has a long-term sustainable advantage. These include the biotechnology and agritech; creative; information and communication technology; food and beverages; wood, building and interiors; specialised manufacturing; education; and tourism industries.

Services available to start-up clients include training, investment facilitation, and business incubation – to help them become established. For new exporters, a free-phone business consultancy line is available, along with mentoring, ‘how to’ guides, networking events, and seminars. For high-growth businesses and exporters, client managers provide customised services, such as business appraisals and help with applications for financing, export market consultancy, and access to NZTE's international network of trade commissioners.

Services overseas NZTE has 36 offshore offices, with staff who understand local business cultures, speak the local language, and provide hands-on assistance to New Zealand exporters. They conduct market and product research, identify suitable business partners, and arrange visitor programmes, interpreters, and trade fair promotions. Staff also provide information to international buyers, importers, and distributors on New Zealand's business capability, enabling them to source quality New Zealand products and services.

Brand New Zealand This ‘visual identity’ for marketing the country is jointly owned by NZTE and Tourism New Zealand. Brand New Zealand's stories and values are shared by both organisations at events where there is a New Zealand focus.

‘New Zealand New Thinking’ is the concept for NZTE's offshore marketing campaign. Its key objective is to accelerate global awareness of New Zealand as being innovative, technologically-advanced, creative and successful. NZTE is involved with events and activities to deliver and develop the New Zealand New Thinking campaign.

World Customs Organization

The New Zealand Customs Service is a fully participating member of the World Customs Organization (WCO), established (as the Customs Co-operation Council) in 1952.

The WCO is an intergovernmental organisation of 173 member countries with headquarters in Brussels. Its mission is to ensure customs administrations are effective and efficient.

To do this the WCO:

  • develops and administers international instruments that uniformly apply effective customs procedures – these govern the movement of commodities, people and goods across customs frontiers

  • develops international standards to secure the movement of goods, such as the SAFE Framework of Standards

  • assists members in their efforts to modernise, by building their capacity

  • encourages cooperation between customs administrations, and between customs administrations and the trading community – to improve communication, notably around trade security and the fight against fraud

  • organises training for the private sector – to deal with technical and operational problems that result from strategies that are implemented in response to challenges in the international customs environment.

Border operations

The New Zealand Customs Service (NZCS) provides protection at the border by managing the import and export of goods, and the movement of international passengers, aircraft and vessels. It does this in accordance with customs, immigration, quarantine and other statutory requirements.

NZCS seeks to ensure a safe and secure border, with minimum intervention to legitimate trade and travel. It achieves this by employing risk management techniques to monitor and assess the level of risk of arriving and departing people, craft and goods.

Border operations involve checking and clearing passengers and craft at airports and seaports, surveillance and search for prohibited items, and investigation of customs offences and related issues.

Underpinning these activities is the collection and processing of intelligence on potential breaches of the legislation that NZCS enforces.

Overseas trade statistics

Overseas merchandise trade statistics measure the value (in New Zealand dollars) and volume of New Zealand's exports, imports and overseas cargo.

The monthly statistics are based on export and import entries lodged with the NZCS. The data is processed by NZCS and passed to Statistics New Zealand for further editing and compilation.

Where a commodity is traded by only a few businesses, there is the potential for disclosure of confidential information. On request by an affected business, commodity data can be suppressed by merging it with other confidential data. In the following overseas trade statistics, confidential data may have been removed from detailed commodity figures but is included in the totals (table 25.02 is an example).

Exports (including re-exports) are valued ‘fob’ (free on board), which is the value of goods at New Zealand ports before export. It includes the value added in bringing goods to the port, but excludes international freight and associated insurance. Re-exports are included, unless otherwise specified, while goods for repair are excluded.

Imports, which also exclude goods for repair, are valued ‘cif’ (cost, including insurance and freight) and ‘vfd’ (value for duty). The cif value is the market value of goods at the New Zealand port of unloading. It includes the value added for the cost of international freight and associated insurance. The 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 cif values.

A Ministry of Agriculture and Forestry quarantine officer inspects imported wood for unwanted wood-borer insects – if allowed through, they could put New Zealand's biosecurity status and international trade at risk. Along with the New Zealand Customs Service, MAF helps protect the country's borders.

Balance of merchandise trade

The balance of merchandise trade is an important analytical indicator of New Zealand's overseas trade. It is calculated by deducting the merchandise imports value from the merchandise exports value, for the same period.

An excess of export values over import values is a surplus, which is treated as a positive number. Conversely, an excess of import values over export values is a deficit, which is treated as a negative number.

In the year ending June 2007, New Zealand's balance of merchandise trade was a deficit of $6.2 billion, compared with a deficit of $6.6 billion in the June 2006 year.

Table 25.01 provides overseas merchandise trade figures from 1998 to 2007.

Exports

Export values include re-exports, which are goods imported into New Zealand and then exported later without being significantly altered. Typical re-exports are aircraft and heavy machinery.

Exports in the year ending June 2007 totalled $34.9 billion, a 7.7 percent increase on the June 2006 year. Milk powder, butter and cheese, and meat and edible offal were New Zealand's two major export commodity groups in the June 2007 year, contributing 18.5 percent and 13.2 percent of total exports, respectively.

Table 25.02 (overleaf) lists major commodities exported for 2003–07. The groupings in this table match those published monthly by Statistics New Zealand. Further detail on some commodity groups is provided in the sections that follow (some groups are aggregated).

Table 25.01. Overseas merchandise trade(1)
Year ending 30 June

YearExports (fob)Imports (cif)Trade balance (fob – cif)
$(million)

(1) Exports valued fob (free on board) at New Zealand ports. Imports valued cif (cost, including insurance and freight).

Note: Figures may not equate to stated balances due to rounding.

Source: Statistics New Zealand

199821,94122,589-648
199922,58224,248-1,667
200026,11129,193-3,082
200132,00031,92773
200232,33231,811521
200329,29132,161-2,869
200429,86433,378-3,514
200530,61835,793-5,175
200632,43039,040-6,609
200734,93941,165-6,226

Table 25.02. Major export commodities(1)
Year ending 30 June

Commodity group20032004200520062007
$(million)

(1) Exports valued free on board at New Zealand ports.

Note: Figures may not add up to stated totals due to rounding.

Source: Statistics New Zealand

Milk powder, butter and cheese4,6795,1154,9245,7626,455
Meat and edible offal4,1114,4794,5774,5004,609
Logs, wood and wood articles2,3862,0711,9841,9602,203
Mechanical machinery and equipment1,3561,4701,6281,7911,879
Aluminium and aluminium articles9801,0081,0531,2611,565
Fruit1,0321,2541,2121,1611,227
Fish, crustaceans and molluscs1,2151,1111,1341,1461,153
Electrical machinery and equipment9389631,0041,0451,105
Iron, steel and articles589625761747860
Beverages, spirits and vinegar417463569652858
Casein and caseinates959782651660818
Miscellaneous edible preparations421469564634700
Textile and textile articles629652645657675
Wood pulp and waste paper461507512509663
Wool801740666689655
Petroleum and products524355439596557
Preparations of cereals, flour and starch159155388529555
Paper and paperboard and articles610601402443506
Optical, medical and measuring equipment393398384394498
Raw hides, skins and leather638551471431479
Other commodities5,9936,0966,1996,2076,147
Confidential data00453656774
Total29,29129,86430,61832,43034,939

Dairy product exports

The export value of all dairy products in the year ending June 2007 was $7.3 billion, up 13.3 percent on the previous June year and 30.5 percent higher than the year ending June 2005. Dairy produce made up 20.8 percent of New Zealand's total merchandise trade export value in the year ended June 2007.

Main dairy products exported were milk powder ($3.3 billion), cheese ($1.2 billion), butter ($1.1 billion), and casein and caseinates ($818 million).

The United States remained the largest dairy product export market ($842 million) in the June 2007 year, followed by the Philippines ($428 million), and Japan ($423 million).

Table 25.03 lists the main dairy products exported for 2003–07, while table 25.04 shows New Zealand's main dairy export markets for the same period.

Table 25.03. Dairy product exports(1)
Year ending 30 June

Product20032004200520062007
$(million)

(1) Exports valued free on board at New Zealand ports.

Note: Figures may not add up to stated totals due to rounding.

Source: Statistics New Zealand

Milk powder2,5712,7852,4822,9443,318
Cheese and curd1,0011,0351,0521,1471,232
Butter and dairy spread9221,0768581,0321,063
Casein and caseinates959782651660818
Whey and other products2744349437598
Buttermilk, curdled milk, yoghurt, etc8196101123158
Milk and cream7778827986
Total5,6385,8975,5756,4217,273
Percentage of all exports19.219.718.219.820.8

Table 25.04. Dairy product exports(1)
By destination
Year ending 30 June

Destination20032004200520062007
$(million)

(1) Exports valued free on board at New Zealand ports.

Note: Figures may not add up to stated totals due to rounding.

Source: Statistics New Zealand

United States679630691715842
Philippines320345369310428
Japan314320363379423
People's Republic of China316373296396351
Mexico310340254289339
Australia253231259299307
Saudi Arabia171205300304305
Indonesia201154199223291
Malaysia262283212211275
Thailand182204155171246
Venezuela89137104151244
Sri Lanka117142162189193
Algeria77106100153191
Taiwan191180184174187
Singapore96104129143178
Belgium356331166189176
Egypt10010174114166
Viet Nam1029573127135
Canada176112116127128
Germany168116100103114
Other countries1,1581,3901,2691,6531,755
Total5,6385,8975,5756,4217,273

Meat and edible offal exports

The export value of all meat and edible offal in the year ending June 2007 was $4.6 billion, up 2.4 percent on the previous June year and 0.7 percent higher than in 2005. Meat and edible offal made up 13.2 percent of the total merchandise trade export value in the year ended June 2007.

The main meat and edible offal products exported were sheep ($2.4 billion), beef ($1.7 billion), venison ($258 million), and offal ($168 million).

The United States ($1.0 billion) and the United Kingdom ($645 million) remained the two largest export markets in the June 2007 year.

Table 25.05 lists the main meat and edible offal commodities exported over the five years to 2007, while table 25.06 (overleaf) shows New Zealand's main export markets for the same products.

Table 25.05. Meat and edible offal exports(1)
Year ending 30 June

Product20032004200520062007
$(million)

(1) Exports valued free on board at New Zealand ports.

Note: Figures may not add up to stated totals due to rounding.

Source: Statistics New Zealand

Sheep2,2572,2592,3052,2792,439
Beef1,5541,8271,8011,7861,710
Venison165182206225258
Offal108172240183168
Poultry34998
Goat65576
Other1930111120
Total4,1114,4794,5774,5004,609
Percentage of all exports14.015.014.913.913.2

Table 25.06. Meat and edible offal exports(1)
By destination
Year ending 30 June

Destination20032004200520062007
$(million)

(1) Exports valued free on board at New Zealand ports.

Note: SAR Special Administrative Region. Figures may not add up to stated totals due to rounding.

Source: Statistics New Zealand

United States1,1491,2501,0481,0691,026
United Kingdom539580557594645
Germany369352421386423
Japan163298409370294
Republic of Korea111203233225251
France261234249209239
Belgium182193189210197
Taiwan134203193206181
Canada242184211183175
Netherlands5147697194
Indonesia2845577487
Saudi Arabia6252554877
Mexico7271766663
People's Republic of China6061455459
Switzerland6361565159
Italy5750515855
Hong Kong (SAR)4648425447
French Polynesia5051504543
Sweden2720242635
Greece4031403835
Other countries403446504462526
Total4,1114,4794,5774,5004,609

Forest product exports

The export value of all forest products in the year ending June 2007 was $3.4 billion, up 15.8 percent on the previous June year and 16.4 percent higher than for 2005. Forest products made up 9.7 percent of New Zealand's total merchandise trade export value in the year ended June 2007.

The main forest product exports were sawn wood, at $784 million, rough wood at $681 million, and wood pulp at $663 million.

Australia (at $732 million) remained the main forest products export market in the 2007 June year, with the People's Republic of China ($512 million) becoming an increasingly large market over the five years to 2007.

Table 25.07 lists the main forest products exported for 2003–07, while table 25.08 shows New Zealand's main export markets for forest products.

Table 25.07. Forest product exports(1)
Year ending 30 June

Product20032004200520062007
$(million)

(1) Exports valued free on board at New Zealand ports.

Note: Figures may not add up to stated totals due to rounding.

Source: Statistics New Zealand

Wood (sawn)855725781746784
Wood (rough)722565396476681
Wood pulp461507512509663
Paper and paperboard610601402443506
Board (fibre, veneer, plywood)545527570483446
Other265253236254292
Total3,4573,1782,8982,9133,373
Percentage of all exports11.810.69.59.09.7

Table 25.08. Forest product exports(1)
By destination
Year ending 30 June

Destination20032004200520062007
$(million)

(1) Exports valued free on board at New Zealand ports.

Note: SAR Special Administrative Region. Figures may not add up to stated totals due to rounding.

Source: Statistics New Zealand

Australia907866651641732
People's Republic of China347358314345512
Japan674632610511510
Republic of Korea431394300345463
United States521378440395345
Indonesia747575113111
Philippines125841098988
Taiwan7369646787
Viet Nam2026364673
India3528305565
Malaysia4344293752
Thailand3229313849
United Arab Emirates88171840
Saudi Arabia91081930
Fiji2021262727
French Polynesia814161319
Hong Kong (SAR)4151333118
Singapore2014101115
Kuwait103914
Western Samoa99111214
Other countries59708891109
Total3,4573,1782,8982,9133,373

Mechanical and electrical machinery exports

The export value of all mechanical and electrical machinery in the year ending June 2007 was $3.0 billion, up 5.2 percent on the June 2006 year and 13.4 percent higher than the year ending June 2005. Mechanical and electrical machinery exports made up 8.5 percent of New Zealand's total merchandise trade export value in the year ending June 2007.

In the year ending June 2007, the largest group of products exported was refrigerators, freezers and other refrigeration equipment, but, as seen in table 25.09, these are only about 5 percent of the total, and there are many other products exported in this commodity group.

Table 25.10 (overleaf) shows New Zealand's main mechanical and electrical machinery export markets for 2003–07; in the June 2007 year the largest export market for these products was Australia ($1.2 billion).

Table 25.09. Mechanical and electrical machinery exports(1)
Year ending 30 June

Product20032004200520062007
$(million)

(1) Exports valued free on board at New Zealand ports.

Note: Figures may not add up to stated totals due to rounding.

Source: Statistics New Zealand

Refrigerators, freezers and other refrigeration equipment156145142143157
Equipment for washing, filling, sealing, labelling, etc.108141143146149
Automatic data processing machines576086127138
Insulated wire, cable and other electric conductors62537289133
Diodes, transistors and similar semiconductor devices51496677102
Household or laundry-type washing machines59879110192
Telephones7546434086
Electric transformers, converters and inductors4362846982
Parts and accessories for automatic data processing machines10894778178
Equipment for electricity control and distribution139111899076
Other1,4361,5851,7401,8741,891
Total2,2942,4332,6312,8362,984
Percentage of all exports7.88.18.68.78.5

Table 25.1. Mechanical and electrical machinery exports(1)
By destination
Year ending 30 June

Destination20032004200520062007
$(million)

(1) Exports valued free on board at New Zealand ports.

Note: SAR Special Administrative Region. Figures may not add up to stated totals due to rounding.

Source: Statistics New Zealand

Australia9611,0431,0631,1351,234
United States454452515568528
United Kingdom126161149136134
Fiji4348607478
Singapore6857756578
People's Republic of China4052506077
Japan3339505161
Canada5746678252
Germany4538313744
Taiwan4428294244
Hong Kong (SAR)4530353643
Republic of Korea1112293339
South Africa2027343833
Malaysia2122263032
France1313263032
India1215142130
Netherlands1723203029
Denmark1213172126
Thailand1723202123
Western Samoa2325282421
Other countries231265293303348
Total2,2942,4332,6312,8362,984

Fruit, nut and vegetable exports

The value of all fruit, nut and vegetable exports in the year ending June 2007 was $1.7 billion, up 7.4 percent on the previous June year and 5.7 percent higher than for 2005. Fruit, nut and vegetable exports made up 4.7 percent of the total merchandise trade export value in the year ended June 2007.

Kiwifruit ($767 million) and apples ($343 million) remained the two largest export products from this group in the June 2007 year.

The main fruit, nut and vegetable export markets were Japan ($357 million), and ‘destination unknown – European Union (EU)’, ($247 million). The reason the second figure is large is that much of the fruit exported to the EU is known to be sold on from the original destination point. Therefore, at the time of export, the final country of destination within the EU is unknown. In the June 2007 year, all exports to this destination were fruit (with kiwifruit being nearly 80 percent of the total).

Table 25.11 lists the main fruit, nut and vegetable products exported for 2003–07, while table 25.12 shows the main export markets.

Table 25.11. Fruit, nut and vegetable exports(1)
Year ending 30 June

Product20032004200520062007
$(million)

(1) Exports valued free on board at New Zealand ports.

Note: Figures may not add up to stated totals due to rounding.

Source: Statistics New Zealand

Kiwifruit539661722702767
Apples394486387330343
Onions, leeks etc103936379122
Legumes7268627576
Squash and gourds6854725666
Berries and cherries3444444346
Corn5249444739
Capsicum2424262934
Avocados2627295429
Potatoes, carrots, root vegetables2924191921
Other vegetables7270657368
Other fruit3938303242
Total1,4511,6381,5631,5401,653
Percentage of all exports5.05.55.14.74.7

Customers in a German supermarket sample and buy New Zealand kiwifruit. The European Union is a strong market for New Zealand's fruit exports, particularly kiwifruit.

Table 25.12. Fruit, nut and vegetable exports(1)
By destination
Year ending 30 June

Destination20032004200520062007
$(million)

(1) Exports valued free on board at New Zealand ports.

(2) Final destination point in EU is unknown at time of export.

Note: EU European Union, SAR Special Administrative Region. Figures may not add up to stated totals due to rounding.

Source: Statistics New Zealand

Japan366355418343357
Destination unknown – EU(2)235328240245247
Australia121143144193174
United Kingdom133149120111124
United States1191428299123
Republic of Korea3449697694
Taiwan7569728279
Netherlands5481956675
Spain4763815873
Hong Kong (SAR)3026253139
Italy2030322429
Malaysia2724181824
Germany4428342923
Fiji1718171822
People's Republic of China99101920
Singapore2518141616
Belgium9107814
Canada9107910
Thailand1054810
France6810810
Other countries6171647890
Total1,4511,6381,5631,5401,653

Fish, crustacean and mollusc exports

The value of all fish, crustacean and mollusc exports in the year ending June 2007 was $1.3 billion, up 2.5 percent on the previous June year and 3.7 percent higher than for the June 2005 year. Fish, crustaceans and molluscs made up 3.6 percent of New Zealand's total merchandise trade export value in the year ended June 2007.

The main fish, crustacean and mollusc exports were frozen fish ($345 million), molluscs and aquatic invertebrates ($290 million), and fish fillets and other fish meats ($263 million).

The largest export market in the 2007 June year was Australia ($235 million).

Table 25.13 (overleaf) lists the main fish, crustacean and mollusc exports for 2003–07, while table 25.14 shows New Zealand's main markets for the same products.

Table 25.13. Fish, crustacean and mollusc exports(1)
Year ending 30 June

Product20032004200520062007
$(million)

(1) Exports valued free on board at New Zealand ports.

Note: Figures may not add up to stated totals due to rounding.

Source: Statistics New Zealand

Frozen fish266259283315345
Molluscs and aquatic invertebrates251316340327290
Fish fillets and other fish meat452317301274263
Crustaceans146127126141153
Fresh or chilled fish8980758193
Fish, dried, salted or smoked; edible fish meal1010767
Live fish22222
Subtotal1,2151,1111,1341,1461,153
Extracts and preparations
   Prepared or preserved molluscs and crustaceans6064606470
   Prepared or preserved fish, including fish eggs3736323148
   Fish or crustacean extracts and juices15433
Subtotal981049597121
Total1,3141,2161,2301,2431,275
Percentage of all exports4.54.14.03.83.6

Table 25.14. Fish, crustacean and mollusc exports(1)(2)
By destination
Year ending 30 June

Destination20032004200520062007
$(million)

(1) Exports valued free on board at New Zealand ports.

(2) Includes extracts and preparations of fish, crustaceans and molluscs.

Note: SAR Special Administrative Region. Figures may not add up to stated totals due to rounding.

Source: Statistics New Zealand

Australia206202184193235
United States248203208206184
Hong Kong (SAR)153138138150172
Japan234168158131133
People's Republic of China56691099693
Spain58105887785
Republic of Korea3642376649
Germany6735414235
Singapore2928272427
France3123253126
South Africa5571018
United Kingdom2313201617
Canada1412131312
Belgium1212111212
Russia2591612
Italy1415171811
Greece1513211411
Thailand1212111011
Georgia013710
Taiwan1728191610
Other countries82898495110
Total1,3141,2161,2301,2431,275

Imports

Imports are valued in New Zealand dollars. Foreign currency values are converted to New Zealand dollars when import documents are processed by the New Zealand Customs Service, which sets exchange rates each fortnight.

Imports for the year ending June 2007 were valued at $41.2 billion, an increase of 5.4 percent on the previous June year. As table 25.15 shows, the largest import values were for petroleum and products, with $5.8 billion worth of imports, mechanical machinery and equipment ($5.2 billion), and vehicles and accessories ($4.9 billion).

The groupings in this table match those published monthly by Statistics New Zealand. Further detail on some commodity groups is provided in the following sections (some groups have been aggregated).

Table 25.15. Major import commodities(1)
Year ending 30 June

Commodity group20032004200520062007
$(million)

(1) Imports valued cif (cost, including insurance and freight).

Note: Figures may not add up to stated totals due to rounding.

Source: Statistics New Zealand

Petroleum and products3,0713,0264,0195,2405,785
Mechanical machinery and equipment4,3334,5294,9065,1505,230
Vehicles, parts and accessories4,9855,3475,4635,0064,854
Electrical machinery and equipment2,7013,1163,2233,3403,693
Textiles and textile articles1,6411,5991,6521,7681,877
Plastic and plastic articles1,2791,2301,3821,4321,567
Iron, steel and articles9811,0621,3351,2731,490
Aircraft and parts8041,1317051,8891,186
Optical, medical and measuring equipment9671,0341,0941,1591,177
Pharmaceutical products747788875965989
Paper and paperboard and articles924935942972988
Furniture, furnishings and light fittings399447505565600
Inorganic chemicals429435438494575
Ships, boats and floating structures185159140259565
Rubber and rubber articles393408432439471
Other chemical products380361382436463
Miscellaneous edible preparations350359383420459
Books, newspapers and printed matter386375383393437
Fertilisers315330450341423
Beverages, spirits and vinegar354367373397422
Other commodities6,4936,2846,6356,9927,696
Confidential data405777109218
Total32,16133,37835,79339,04041,165

Mechanical and electrical machinery imports

The imports value of all mechanical and electrical machinery in the year ending June 2007 was $8.9 billion, up 5.1 percent on the previous June year and 9.8 percent higher than for 2005. Mechanical and electrical machinery imports made up 21.7 percent of New Zealand's total merchandise trade imports value in the year ended June 2007.

The main mechanical and electrical machinery imports were automatic data processing machines (computers and similar) at $1.1 billion, telephones at $514 million, and transmission apparatus at $439 million.

The main source of mechanical and electrical machinery imports in the June 2007 year was the People's Republic of China ($1.8 billion). Since 2003, the People's Republic of China has more than doubled its market share for this commodity group.

Table 25.16. Mechanical and electrical machinery imports(1)
Year ending 30 June

Product20032004200520062007
$(million)

(1) Imports valued cif (cost, including insurance and freight).

Note: Figures may not add up to stated totals due to rounding.

Source: Statistics New Zealand

Automatic data processing machines9291,0231,0691,1821,081
Telephones315292343332514
Transmission apparatus310469531542439
Parts and accessories for automatic data processing machines449465416436382
Monitors and projectors193221247296343
Bulldozers, graders, levellers, etc269253326320294
Printing machinery9010212299222
Electric heaters and driers129139143149179
Taps, cocks, valves, etc.132136148156174
Parts and accessories for earthworking and manual handling machinery9681112110163
Other4,1224,4634,6714,8675,134
Total7,0347,6458,1298,4918,923
Percentage of all imports21.922.922.721.721.7

Table 25.17. Mechanical and electrical machinery imports(1)
By country of origin
Year ending 30 June

Origin20032004200520062007
$(million)

(1) Imports valued cif (cost, including insurance and freight).

Note: SAR Special Administrative Region. Figures may not add up to stated totals due to rounding.

Source: Statistics New Zealand

People's Republic of China7089001,1641,5181,845
United States1,3161,3521,1331,1351,103
Australia822953956938921
Japan8188459581,049858
Germany496463536519583
Malaysia303337345359415
Republic of Korea261313345309318
Singapore235237281302316
Italy294314317307304
Taiwan267260272284262
United Kingdom223238248262241
Thailand121125159195222
Denmark531329359196
France131141153172184
Sweden116120122119132
Canada8188103118110
Hong Kong (SAR)50677691100
Indonesia5651547078
Netherlands6859765666
Switzerland6056834961
Other countries555596657580609
Total7,0347,6458,1298,4918,923

Mineral fuel imports

The import value of all mineral fuels in the year ending June 2007 was $5.9 billion, up 9.9 percent on the June 2006 year and 41.4 percent higher than for the year ending June 2005. Mineral fuels accounted for 14.2 percent of the total merchandise trade import value in the year ended June 2007.

The two main types of mineral fuel imported were crude oil ($3.0 billion), which was almost half the total, and diesel ($802 million).

Australia and Singapore were New Zealand's two main sources of mineral fuel imports in the June 2007 year ($1.4 billion and $1.1 billion, respectively).

Table 25.18. Mineral fuel imports(1)
Year ending 30 June

Product20032004200520062007
$(million)

(1) Imports valued cif (cost, including insurance and freight).

Note: Figures may not add up to stated totals due to rounding.

Source: Statistics New Zealand

Crude oil1,9391,6172,0802,8762,980
Diesel147292484571802
Regular petrol (fully refined)381359425473723
Partly refined petroleum213239347339355
Premium petrol (fully refined)113127156296253
Jet fuel and aviation spirit84139207267234
Coal, coke, tar, etc128142164142122
Lubricating preparations74717691109
Premium petrol (partly refined)135797118106
Other petroleum oils31517411880
Other28353943102
Total3,1523,1294,1495,3355,865
Percentage of all imports9.89.411.613.714.2

Table 25.19. Mineral fuel imports(1)
By country of origin
Year ending 30 June

Origin20032004200520062007
$(million)

(1) Imports valued cif (cost, including insurance and freight).

Note: Figures may not add up to stated totals due to rounding.

Source: Statistics New Zealand

Australia9447771,2678331,408
Singapore1723946091,0611,098
Qatar12446101228526
United Arab Emirates333384363454508
Saudi Arabia15193177390423
Indonesia8257177219324
Republic of Korea79128114135316
Japan1332258252
Brunei Darussalam216275160330250
Papua New Guinea5986984130
Other countries9918561,1711,344629
Total3,1523,1294,1495,3355,865

Passenger vehicle imports

The value of all passenger vehicles imported in the year ending June 2007 was $3.1 billion, down 1.5 percent on the 2006 June year and 10.2 percent lower than the year ending June 2005. Passenger vehicle imports made up 7.5 percent of New Zealand's total merchandise trade imports value in the year ended June 2007. Japan was by far New Zealand's main source of imported passenger vehicles, supplying 45.1 percent by value, and 64.2 percent by number, during the June 2007 year. Australia and Germany remain the second and third-largest countries of origin, while the Republic of Korea is an increasingly popular source.

Table 25.2. Passenger vehicle imports(1)
By country of origin
Year ending 30 June

OriginValue $(million)Quantity
2003200420052006200720032004200520062007

(1) Imports valued cif (cost, including insurance and freight).

Note: Figures may not add up to stated totals due to rounding.

Source: Statistics New Zealand

Japan1,7111,7611,6561,4891,384177,230184,422177,818153,712132,591
Australia56657562849846619,06118,72920,23316,70814,195
Germany39447243440546212,65416,49716,96817,41520,763
Republic of Korea5149931642033,7724,0537,1729,11210,621
United States1361101291211417,0616,4999,4039,2639,525
United Kingdom1311411511311144,7335,8715,6164,4212,987
France63445851522,7432,1082,5502,4902,495
Belgium83585847513,6552,7312,7362,1662,271
Austria1715203041363394540732904
South Africa37265974386775491,6692,4851,063
Other countries1001071291061174,8085,3509,8237,5899,125
Total3,2893,3603,4163,1153,068236,757247,203254,528226,093206,540

Imported cars are parked alongside logs waiting for export at Wellington's CentrePort.

Trading partners

New Zealand has the same top four trading partners for both exports and imports, with Australia being the largest for both. The following sections provide a breakdown of trade with these main four countries – Australia, the United States, Japan, and the People's Republic of China.

Table 25.21. Merchandise exports(1)
Main destination countries
Year ending 30 June

Destination20032004200520062007
$(million)

(1) Exports valued free on board at New Zealand ports.

Note: SAR Special Administrative Region. Figures may not add up to stated totals due to rounding.

Source: Statistics New Zealand

Australia6,0506,3326,5076,7977,203
United States4,3664,2974,2954,3544,522
Japan3,3543,2833,4463,3033,496
People's Republic of China1,4571,6171,5871,7401,877
United Kingdom1,3611,4491,4361,5541,682
Republic of Korea1,1781,1121,0801,1601,405
Germany855710793831797
Taiwan667661688800795
Indonesia400373455534652
Malaysia564533488465584
Philippines490478543465584
Hong Kong (SAR)582556532544578
Canada605477526546518
Singapore347331418493514
Belgium651638475585502
Italy452453438458484
Thailand325346348384474
Mexico421434427429463
Saudi Arabia267282386395437
Netherlands253300324344432
Other countries4,6465,2035,4286,2496,941
Total29,29129,86430,61832,43034,939

Table 25.22. Merchandise imports(1)
Main countries of origin
Year ending 30 June

Origin20032004200520062007
$(million)

(1) Imports valued cif (cost, including insurance and freight).

Note: Figures may not add up to stated totals due to rounding.

Source: Statistics New Zealand

Australia7,2787,3647,9337,6008,664
People's Republic of China2,6873,0663,6734,4435,274
United States4,0673,9303,6414,7554,295
Japan3,8763,8493,9243,9943,688
Singapore6108281,1201,6021,928
Germany1,7131,7361,8481,7651,898
Republic of Korea8328971,0181,0681,310
United Kingdom1,1201,0901,1901,1641,106
Thailand5595908191,0071,050
Malaysia8647647401,276948
Italy826810877824881
Taiwan700734876721835
Indonesia420395529576737
France70011319271013680
Canada382732447581675
Saudi Arabia233195313491601
United Arab Emirates357417402512568
Qatar12661154241556
Netherlands308279300385471
Sweden319344374349344
Other countries4,1814,1684,6874,6734,657
Total32,16133,37835,79339,04041,165

Australia

Australia is New Zealand's main trading partner, receiving 20.6 percent (by value) of New Zealand's merchandise exports, and supplying 21.0 percent of merchandise imports in the year ending June 2007. The value of exports to Australia increased 6.0 percent in the year ending June 2007, while imports rose 14.0 percent from the previous year.

In the June 2007 year, New Zealand's balance of merchandise trade with Australia was a deficit of $1.5 billion, compared with a deficit of $803 million in the June 2006 year.

In the year ending June 2007, Australia received $7.2 billion of New Zealand's merchandise exports. The main commodities exported were mechanical machinery and equipment ($823 million), textiles and textile articles ($469 million), and petroleum and products ($445 million).

Table 25.23. Trade with Australia(1)
By main commodities exported
Year ending 30 June

Commodity group20032004200520062007
$(million)

(1) Exports valued free on board at New Zealand ports.

(2) Excluding wool.

Note: Figures may not add up to stated totals due to rounding.

Source: Statistics New Zealand

Mechanical machinery and equipment669740731761823
Textiles and textile articles(2)472498467470469
Petroleum and products359256332455445
Electrical machinery and equipment292303332374411
Logs, wood and wood articles412399376334343
Precious metals, jewellery and coins279312337357335
Iron, steel and articles261283323274307
Milk powder, butter and cheese239217248289292
Beverages, spirits and vinegar135158172216290
Plastic and plastic articles254270288285286
Paper, paperboard and articles386376180217283
Miscellaneous edible preparations138166165201188
Fish, crustaceans and molluscs175170153159185
Preparations of cereals, flour and starch85100120136157
Vehicles, parts and accessories112159137153137
Optical, medical and measuring equipment108116119109115
Preparations of vegetables, fruit and nuts8410010399114
Aluminium and aluminium articles11310610490111
Ships, boats and floating structures461483247110
Wood pulp and waste paper109919590106
Other commodities1,3231,3621,4801,4501,491
Confidential data00213231206
Total6,0506,3326,5076,7977,203

New Zealand imported goods worth $8.7 billion from Australia in the year ending 30 June 2007. The two main commodities imported were petroleum products ($1.4 billion), and vehicles, parts and accessories ($643 million). While the value of vehicles, parts and accessories imports fell from the June 2006 year, imports of petroleum products rose 70.1 percent in value.

Table 25.24. Trade with Australia(1)
By main commodities imported
Year ending 30 June

Commodity group20032004200520062007
$(million)

(1) Imports valued cif (cost, including insurance and freight).

Note: Figures may not add up to stated totals due to rounding.

Source: Statistics New Zealand

Petroleum and products8837401,2338221,398
Vehicles, parts and accessories761796853718643
Mechanical machinery and equipment509586553530499
Iron, steel and articles340389454426464
Electrical machinery and equipment312367403408422
Inorganic chemicals286303285337392
Paper, paperboard and articles425435390385379
Plastic and plastic articles266282305317333
Pharmaceutical products210236211251319
Beverages, spirits and vinegar183189184196202
Textiles and textile articles232234214208201
Preparations of cereals, flour and starch152161161177198
Miscellaneous edible preparations163169162170192
Books, newspapers and printed matter186185191184192
Copper and copper articles848088140186
Aluminium and aluminium articles149145144152172
Optical, medical and measuring equipment110136140149155
Sugars and sugar confectionery133104127142148
Cereals136114124118142
Tanning extracts, dyes, paints and putty106104105102119
Other commodities1,6481,5921,5791,6401,850
Confidential data417262858
Total7,2787,3647,9337,6008,664

Table 25.25. Trade with Australia(1)
Year ending 30 June

YearExports (fob)Imports (cif)Trade balance (fob – cif)
$(million)

(1) Exports valued fob (free on board) at New Zealand ports. Imports valued cif (cost including insurance and freight).

Note: Figures may not equate to stated balances due to rounding.

Source: Statistics New Zealand

19984,5895,579-990
19994,8575,367-510
20005,5286,843-1,316
20016,0837,010-927
20026,3267,188-862
20036,0507,278-1,228
20046,3327,364-1,032
20056,5077,933-1,426
20066,7977,600-803
20077,2038,664-1,460

Table 25.26. Trade with United States(1)
Year ending 30 June

YearExports (fob)Imports (cif)Trade balance (fob – cif)
$(million)

(1) Exports valued fob (free on board) at New Zealand ports. Imports valued cif (cost including insurance and freight).

Note: Figures may not equate to stated balances due to rounding.

Source: Statistics New Zealand

19982,5893,974-1385
19992,9954,283-1,288
20003,7335,127-1,394
20014,6515,298-647
20024,9224,777145
20034,3664,067299
20044,2973,930368
20054,2953,641655
20064,3544,755-401
20074,5224,295228

United States

The United States is New Zealand's second main trading partner, receiving 12.9 percent (by value) of New Zealand's merchandise exports, and supplying 10.4 percent of merchandise imports in the year ending June 2007. The value of exports to the United States rose 3.9 percent in the year ending June 2007 while imports fell 9.7 percent over the same period.

The balance of merchandise trade with the United States returned to a surplus in the June 2007 year after being in deficit in the June 2006 year.

In the year ending June 2007, the United States received $4.5 billion of New Zealand's merchandise exports. The main commodities exported were meat and edible offal ($1.0 billion); milk, powder, butter and cheese ($479 million); and casein and caseinates ($363 million).

New Zealand imported goods worth $4.3 billion from the United States in the year ending 30 June 2007. The main commodities were aircraft and parts ($892 million), including three large aircraft which accounted for more than three-quarters of this total, and mechanical machinery and equipment ($790 million).

Table 25.27. Trade with United States(1)
By main commodities exported
Year ending 30 June

Commodity group20032004200520062007
$(million)

(1) Exports valued free on board at New Zealand ports.

(2) Excluding wool.

Note: Figures may not add up to stated totals due to rounding.

Source: Statistics New Zealand

Meat and edible offal1,1491,2501,0481,0691,026
Milk powder, butter and cheese221265402417479
Casein and caseinates458365289299363
Mechanical machinery and equipment258266326394334
Logs, wood and wood articles496359420377331
Miscellaneous edible preparations89121147168213
Electrical machinery and equipment196186189174194
Beverages, spirits and vinegar8195127155193
Fish, crustaceans and molluscs245199202201179
Aluminium and aluminium articles6793123119168
Optical, medical and measuring equipment12411895112160
Iron and steel and articles7370106120111
Fruit102129728698
Aircraft and parts4512603187
Textiles and textile articles(2)4843455168
Albumins, gelatin, glues and enzymes5742343345
Ships, boats and floating structures43130544340
Other animal originated products4044383734
Metal tools, implements and cutlery3330334031
Plastics and plastic articles3425303631
Other commodities504456453386335
Confidential data00173
Total4,3664,2974,2954,3544,522

Rodger Whitson, president of the New Zealand Paeony Society, cuts paeony buds for export. Japan is the most significant market for New Zealand-grown cut flowers, which include calla lilies, orchids and hydrangeas as well as paeonies.

Table 25.28. Trade with United States(1)
By main commodities imported
Year ending 30 June

Commodity group20032004200520062007
$(million)

(1) Imports valued cif (cost, including insurance and freight).

Note: Figures may not add up to stated totals due to rounding.

Source: Statistics New Zealand

Aircraft and parts5864573611,371892
Mechanical machinery and equipment908904810817790
Optical, medical and measuring equipment268277304340361
Vehicles, parts and accessories297289306315326
Electrical machinery and equipment408448324318313
Plastic and plastic articles205191192181184
Other chemical products117109104122130
Pharmaceutical products8281707878
Essential oils, perfumes and toiletries6764646876
Textiles and textile articles6254586662
Books, newspapers and printed matter6859596160
Fruit3949505460
Petroleum and products5675426059
Organic chemicals8588826355
Iron, steel and articles3939464852
Food residues, wastes and fodder5770486551
Paper, paperboard and articles5647465049
Miscellaneous edible preparations3436404348
Toys, games and sports requisites5547476042
Rubber and rubber articles4239424240
Other commodities535507544531549
Confidential data112315
Total4,0673,9303,6414,7554,295

Japan

Japan is New Zealand's third main trading partner for merchandise exports and the fourth-largest supplier of merchandise imports. The value of exports to Japan in the year ending June 2007 was up 5.8 percent from the previous June year, while imports fell 7.7 percent. In the June 2007 year New Zealand's balance of merchandise trade with Japan was a deficit of $192 million, compared with a deficit of $690 million in the June 2006 year.

In the year ending June 2007, Japan received $3.5 billion of New Zealand's merchandise exports. The main commodities exported were aluminium and aluminium articles ($895 million); logs, wood and wood articles ($427 million); and milk powder, butter and cheese ($309 million).

Table 25.29. Trade with Japan(1)
By main commodities exported
Year ending 30 June

Commodity group20032004200520062007
$(million)

(1) Exports valued free on board at New Zealand ports.

Note: Figures may not add up to stated totals due to rounding.

Source: Statistics New Zealand

Aluminium and aluminium articles553582565703895
Logs, wood and wood articles578546513432427
Milk powder, butter and cheese232237263276309
Meat and edible offal163298409370294
Fruit184216267217235
Miscellaneous edible preparations138108138133134
Fish, crustaceans and molluscs229164155127131
Vegetables182139151126122
Casein and caseinates8283100102114
Wood pulp and waste paper9485977982
Petroleum and products13886675582
Albumins, gelatin, glues and enzymes3838333640
Iron, steel and articles2240354635
Electrical machinery and equipment1622293532
Cocoa and cocoa preparations3136293030
Meat and fish preparations1914182530
Trees, plants, bulbs and cut flowers4437323430
Mechanical machinery and equipment1717211628
Preparations of vegetables, fruit and nuts2322232427
Other animal-originated products3337403423
Other commodities539477384271205
Confidential data0077132190
Total3,3543,2833,4463,3033,496

Table 25.3. Trade with Japan(1)
Year ending 30 June

YearExports (fob)Imports (cif)Trade balance (fob – cif)
$(million)

(1) Exports valued fob (free on board) at New Zealand ports. Imports valued cif (cost including insurance and freight).

Note: Figures may not equate to stated balances due to rounding.

Source: Statistics New Zealand

19983,0382,539499
19992,8943,056-162
20003,3823,474-93
20014,3143,427887
20023,7323,618115
20033,3543,876-522
20043,2833,849-566
20053,4463,924-479
20063,3033,994-690
20073,4963,688-192

New Zealand imported goods worth $3.7 billion from Japan in the year ending 30 June 2007. More than half the total imports were vehicles, parts and accessories ($1.8 billion) – Japan is the most common source for imports of passenger vehicles (see table 25.20). Mechanical machinery and equipment ($564 million), and electrical machinery and equipment ($294 million) were the next-largest commodity groups imported from Japan.

Table 25.31. Trade with Japan(1)
By main commodities imported
Year ending 30 June

Commodity group20032004200520062007
$(million)

(1) Imports valued cif (cost, including insurance and freight).

Note: Figures may not add up to stated totals due to rounding.

Source: Statistics New Zealand

Vehicles, parts and accessories2,2932,3212,2641,9631,863
Mechanical machinery and equipment561505590639564
Electrical machinery and equipment257341368411294
Petroleum and products1332258252
Iron, steel and articles118106134142140
Optical, medical and measuring equipment15014213312589
Rubber and rubber articles8083878888
Plastic and plastic articles7963828183
Photographic films, papers and chemicals5644465568
Paper, paperboard and articles2831333746
Inorganic chemicals2114192023
Organic chemicals1915202321
Tanning extracts, dyes, paints and putty2216141518
Other chemical products1511111210
Precious metals, jewellery and coins11129
Textiles and textile articles221311129
Metal tools, implements and cutlery88877
Toys, games and sports requisites397487
Aircraft and parts55346
Pharmaceutical products76676
Other commodities9583868078
Confidential data00168
Total3,8763,8493,9243,9943,688

People's Republic of China

The People's Republic of China became New Zealand's fourth-largest trading partner in the year ending June 2001, displacing the United Kingdom. In the year ending June 2007, the value of exports to the People's Republic of China increased 7.9 percent, while imports rose 18.7 percent compared with the previous June year.

In the year ending June 2007, New Zealand's balance of merchandise trade with the People's Republic of China was a deficit of $3.4 billion. With the exception of the June 2002 year, this deficit has increased every year since 1998.

New Zealand's Minister of Trade Phil Goff, and his Chinese counterpart Commerce Minister Chen Deming, sign the New Zealand and China free trade agreement in Beijing in April 2008.

Table 25.32. Trade with People's Republic of China(1)
By main commodities exported
Year ending 30 June

Commodity group20032004200520062007
$(million)

(1) Exports valued free on board at New Zealand ports.

Note: Figures may not add up to stated totals due to rounding.

Source: Statistics New Zealand

Milk powder, butter and cheese302358280372328
Logs, wood and wood articles220187137186270
Wood pulp and waste paper78140145128207
Wool150165132183168
Raw hides, skins and leather11788886496
Fish, crustaceans and molluscs55671099693
Preparations of cereals, flour and starch128387784
Other animal-originated products7684888678
Animal or vegetable fats and oils4861536073
Meat and edible offal6061455459
Electrical machinery and equipment2733283553
Copper and copper articles613153942
Paper, paperboard and articles5030333235
Ores, slag and ash521545031
Aluminium and aluminium articles2429182827
Food residues, wastes and fodder3732322727
Mechanical machinery and equipment1219222424
Casein and caseinates1415162323
Albumins, gelatin, glues and enzymes0361823
Fruit6571519
Other commodities15820121612372
Confidential data00272045
Total1,4571,6171,5871,7401,877

In the June 2007 year, the People's Republic of China received $1.9 billion of New Zealand's merchandise exports, up 7.9 percent from the June 2006 year. The main commodities exported were milk powder, butter and cheese ($328 million); logs, wood and wood articles ($270 million); and wood pulp and waste paper ($207 million).

In the year ending June 2007, New Zealand imported goods worth $5.3 billion from the People's Republic of China, up 18.7 percent on the June 2006 year. The main commodities imported were textiles and textile articles ($1.1 billion), mechanical machinery and equipment ($943 million), and electrical machinery and equipment ($902 million).

Table 25.33. Trade with People's Republic of China(1)
By main commodities imported
Year ending 30 June

Commodity group20032004200520062007
$(million)

(1) Imports valued cif (cost, including insurance and freight).

Note: Figures may not add up to stated totals due to rounding.

Source: Statistics New Zealand

Textiles and textile articles7317698349531,067
Mechanical machinery and equipment309410579793943
Electrical machinery and equipment399490585725902
Furniture, furnishings and light fittings107140194240278
Toys, games and sports requisites146176177198228
Iron and steel and articles80101143157220
Footwear132141155180194
Plastic and plastic articles7883106134163
Paper, paperboard and articles3332386994
Optical, medical and measuring equipment76757910089
Articles of leather and animal gut5964708088
Vehicles, parts and accessories4147617383
Glass and glassware3136385971
Inorganic chemicals4341484662
Ceramic products3834364350
Organic chemicals2527384248
Rubber and rubber articles2025293847
Metal tools, implements and cutlery3335394146
Miscellaneous metal products2023263239
Preparations of vegetables, fruit and nuts916212635
Other commodities278302375408513
Confidential data013514
Total2,6873,0663,6734,4435,274

Table 25.34. Trade with People's Republic of China(1)
Year ending 30 June

YearExports (fob)Imports (cif)Trade balance (fob – cif)
$(million)

(1) Exports valued fob (free on board) at New Zealand ports. Imports valued cif (cost, including insurance and freight).

Note: Figures may not equate to stated balances due to rounding.

Source: Statistics New Zealand

19986141,107-493
19996261,234-608
20007661,630-864
20011,1262,149-1,024
20021,4342,371-937
20031,4572,687-1,231
20041,6173,066-1,449
20051,5873,673-2,087
20061,7404,443-2,703
20071,8775,274-3,398

Country groupings

Table 25.35 shows New Zealand's trade with selected geographical and economic country groups. Both exports and imports increased for all groups in the year ending June 2007. For Asia, Europe, ASEAN, the European Union, and the OECD the increase in exports exceeded the increase in imports. This resulted in reduced trade deficits for these groups. APEC was the only group to show a larger trade deficit than in the year ending June 2006.

Table 25.35. Merchandise trade(1)
By country grouping
Year ending 30 June

 Grouping20032004200520062007
$(million)

(1) Exports valued free on board at New Zealand ports. Imports valued cif (cost, including insurance and freight).

Note: APEC Asia-Pacific Economic Cooperation. ASEAN Association of Southeast Asian Nations. EU European Union. OECD Organisation for Economic Co-operation and Development.

Source: Statistics New Zealand

ExportsAsia9,9309,87010,22910,89312,028
 Europe4,9415,2305,1385,3365,629
 APEC21,21921,33421,76322,68424,273
 ASEAN2,2912,2212,4012,6593,082
 EU4,7444,9994,8505,0575,303
 OECD20,79221,03721,26321,74723,050
ImportsAsia11,40112,05313,59815,85216,907
 Europe6,6127,0287,2967,2007,300
 APEC23,20924,22725,66728,80830,645
 ASEAN2,8593,0573,5925,0295,233
 EU6,2616,6906,9506,8766,975
 OECD23,31023,97124,55425,50726,251
Trade balanceAsia-1,471-2,183-3,369-4,959-4,878
 Europe-1,671-1,798-2,158-1,864-1,671
 APEC-1,990-2,893-3,904-6,124-6,372
 ASEAN-568-836-1,191-2,370-2,151
 EU-1,517-1,691-2,099-1,820-1,671
 OECD-2,517-2,934-3,291-3,760-3,201

Overseas cargo

Overseas cargo statistics record all goods (by value and gross weight) loaded or unloaded at New Zealand's seaports and airports. Overseas cargo statistics, like overseas merchandise trade statistics, are sourced from New Zealand Customs Service 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 trade statistics. These include goods on short-term loan or lease, service transactions (such as computer data tapes and drawings), goods consigned for modification or repair, and returnable containers and samples.

Overseas cargo statistics exclude large self-propelled items, such as aircraft and ships that arrive in or depart from New Zealand using their own power.

Overseas cargo loaded

Overseas cargo loaded at New Zealand ports in the year ending 30 June 2007 weighed 22.9 million tonnes, up 5.2 percent on the previous June year. The value of cargo loaded was $30.3 billion, up 9.1 percent.

By both weight and value, the main seaport was Tauranga. It handled 26.3 percent by weight, and 24.9 percent by value, of all overseas cargo loaded at New Zealand seaports.

By weight, air cargo was only 0.5 percent of cargo loaded, but by value it was 15.1 percent, reflecting the comparatively high value of much air cargo.

Table 25.36 gives a breakdown of other New Zealand seaports (and airports) by weight and value of cargo loaded.

Overseas cargo unloaded

Overseas cargo unloaded at New Zealand ports in the year ending 30 June 2007 weighed 18.4 million tonnes, up 2.1 percent on the June 2006 year. The value of cargo unloaded was $31.5 billion, up 7.4 percent.

Table 25.36. Overseas cargo loaded at New Zealand ports(1)
Year ending 30 June

 Value $(million)Gross weight (tonnes)
200520062007200520062007

(1) Includes merchandise freight, goods for repair, loaned and leased goods, military and diplomatic goods, and returnable containers and samples.

Note: Figures may not add up to stated totals due to rounding.

Source: Statistics New Zealand

Seaport
  Tauranga7,0607,2597,5386,256,4216,051,9076,011,423
  Auckland5,7006,5267,3481,987,7142,228,1292,509,929
  Port Chalmers3,0323,2544,1301,107,7641,203,2371,530,062
  Lyttelton2,2632,6082,6243,086,6593,583,2933,273,370
  Napier2,2562,2682,2531,794,9051,743,7202,078,729
  New Plymouth1,9651,7781,8481,889,5051,304,2261,374,886
  Bluff8171,0091,230518,557606,689648,011
  Timaru1,0141,1851,116398,816543,331517,266
  Wellington922807917761,049705,671818,456
  Nelson6997038491,187,5751,135,4771,243,839
  Whangarei284250273941,038900,5501,156,500
  Gisborne9880119423,450388,809589,041
  Picton333240387,295367,149377,947
  Taharoa171914991,385943,544682,200
  Other54858,00027,60049,990
Seaport subtotal26,16527,78330,30621,790,13321,733,33322,861,648
Airport
  Auckland4,0804,1424,40386,80489,57286,837
  Christchurch99198596416,24516,21016,698
  Wellington272834990729575
  Other1104177
Airport subtotal5,1005,1585,401104,043106,528104,116
Parcel post1288162440
Total cargo31,27732,94835,71521,894,19121,839,88522,965,804

By cargo weight, the main seaport was Whangarei (which handled 28.5 percent of the total unloaded), followed by Tauranga (21.1 percent), and Auckland (21.1 percent). By value, the main seaport was Auckland, handling 49.7 percent of the total unloaded at seaports.

By weight, air cargo was only 0.6 percent of cargo unloaded, but by value it represented 21.0 percent of the total. By value, Auckland airport handled nearly 20 percent of all cargo unloaded at New Zealand ports.

Table 25.37. Overseas cargo unloaded at New Zealand ports(1)
Year ending 30 June

 Value $(million)Gross weight (tonnes)
200520062007200520062007

(1) Includes merchandise freight, goods for repair, loaned and leased goods, military and diplomatic goods, and returnable containers and samples.

Note: Figures may not add up to stated totals due to rounding.

Source: Statistics New Zealand

Seaport
  Auckland14,77615,33915,6633,783,6543,718,9523,875,889
  Tauranga3,5213,8504,6603,535,9923,830,7443,878,849
  Whangarei2,8173,6893,6925,651,1635,707,6335,242,347
  Lyttelton2,3042,2662,6131,500,9071,139,5961,344,764
  Wellington2,1271,9702,2081,388,2281,002,7351,217,135
  Napier655649585745,873547,480484,236
  Bluff3564135531,147,3121,109,8111,125,054
  New Plymouth275219452462,693347,028488,717
  Timaru362369382336,612246,790314,696
  Port Chalmers332344350336,477263,990264,727
  Nelson222223327139,46179,942124,273
  Other431129,13418,58133,873
Seaport subtotal27,75229,33431,49819,057,50518,013,28218,394,560
Airport
  Auckland7,0067,4467,82794,22695,54194,419
  Christchurch48346950310,2128,9858,967
  Wellington97117721,6501,5771,059
  Other010021
Airport subtotal7,5878,0328,403106,089106,104104,446
Parcel post2725219167108
Total all cargo35,36637,39239,92219,163,68418,119,45318,499,114

Contributors and related websites

Landcare Research Ltd – www.landcareresearch.co.nz

New Zealand Customs Service – www.customs.govt.nz

New Zealand Trade and Enterprise – www.nzte.govt.nz

Statistics New Zealand – www.stats.govt.nz

Chapter 26. Money and banking

Silver coin project manager Alan Brandon among $575,000 of old coins being prepared for export at the Reserve Bank in Wellington. The coins were exported to South Korea, where, because of their metal content, they were melted down, and will most likely be made into new coins.

Financial institutions

Unlike most other countries, New Zealand has no specific restrictions on the provision of financial services, such as deposit taking. Only financial institutions wishing to use the word ‘bank’ (or one of its derivatives) in their name or title are required to obtain authorisation to operate as registered banks.

Nevertheless, in terms of volume, registered banks dominate financial intermediation in New Zealand, although there are a substantial number of small, non-bank financial institutions, such as finance companies, credit unions and building societies.

The majority of New Zealand's registered banks are subsidiaries or branches of overseas banks. Only two of the 17 banks registered at 31 December 2007 were wholly New Zealand owned.

Reserve Bank of New Zealand

The Reserve Bank of New Zealand is New Zealand's central bank. It has three main functions: operating monetary policy to maintain price stability; promoting the maintenance of a sound and efficient financial system; and meeting the currency needs of the public.

The bank is required to manage monetary policy independently to maintain overall price stability. Price stability is defined (in an agreement between the bank's governor and the Minister of Finance) as keeping inflation between 1 and 3 percent, on average, over the medium term. This is achieved through influencing short-term interest rates, which, in turn, influence longer-term interest rates and therefore the spending, saving and borrowing by the public and businesses.

The bank is also responsible for the registration and prudential supervision of registered banks, and for overseeing payment systems, to help ensure a sound and efficient financial system. In future, all finance companies, building societies and credit unions, or non-bank deposit-takers (NBDTs) will be required to be licensed by the Reserve Bank.

The bank issues New Zealand's currency, manages foreign exchange reserves, and provides cash and debt management services to the government.

The Reserve Bank of New Zealand Act 1989 defines the bank's duties and governance arrangements, but makes the bank operationally independent. The bank's chief executive officer, or governor, is accountable for the bank's actions. The bank's performance is monitored by a board of directors on behalf of the Minister of Finance.

Bank registration and supervision

The Act requires the bank to maintain a sound and efficient financial system, and to avoid significant damage to the financial system that could result from the failure of a registered bank. Accordingly, the bank's supervision and registration framework does not aim to protect depositors or individual banks from loss. Instead, the main focus is on the efficient and effective operation of the banking system as a whole.

A major disruption in the provision of financial services, or lack of efficiency in the delivery of services, 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 that allow it to take steps to minimise any flow-on effects to the rest of the financial sector.

There is no upper limit on the number of banks that can be registered in New Zealand. The policy behind this is based on the belief that competitive forces encourage efficiency and innovation, and that overseas banks coming to New Zealand can bring valuable expertise to the local market.

Nevertheless, all applicants for registration must satisfy the Reserve Bank that they can meet minimum prudential requirements. Applicants must satisfy the 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 and nature of the proposed business

  • standing of the applicant in financial markets

  • suitability of directors and senior managers for their positions

  • standing of the owner in financial markets

  • ability to carry on business in a prudent manner.

If the applicant is an overseas bank, the following are also examined:

  • the amount and frequency of disclosure in their home jurisdiction

  • the law and regulatory requirements in the home jurisdiction relating to: bank registration or authorisation; the priority of claims of creditors in an insolvency; the duties and powers of the applicant's directors; accounting and auditing standards; and disclosure of financial and other information.

As at 31 December 2007, there were 17 registered banks. Only two were not wholly overseas owned – TSB Bank Ltd and Kiwibank Ltd (a subsidiary of state-owned enterprise New Zealand Post Ltd).

One of several amendments to the Reserve Bank of New Zealand Act in 2003 was the introduction of a requirement that the Reserve Bank's consent be obtained before any significant change in bank ownership takes place. This was in recognition of the influence that a bank's owners can have on the operations and health of a bank. The power of the Act was exercised in October 2003, when the Australia and New Zealand Banking Group applied to purchase the National Bank of New Zealand – at the time the largest commercial transaction in New Zealand's history.

The Reserve Bank's supervision framework focuses primarily on public disclosure and director attestation requirements. Each bank must publish a quarterly disclosure statement containing a comprehensive range of financial information on the bank, the banking group it heads and, where applicable, the parent company. The bank's directors are required to sign each disclosure statement and a number of attestations about key prudential matters, including one relating to the adequacy of the bank's systems and controls.

The disclosure and attestation requirements strengthen market disciplines on banks and sharpen incentives for directors to take appropriate responsibility for the prudent operation of their bank. The disclosure regime also provides depositors and other creditors with the information they need to make informed decisions on where to place their money.

Banks are also required to meet regulatory requirements covering several areas, including:

  • the internationally-agreed minimum capital adequacy ratio of 8 percent

  • exposure to connected persons

  • the scope of non-banking business the bank can undertake

  • provisions in the bank's constitution.

The Reserve Bank has a wide range of powers to respond to a bank in distress or failure, including the power to give directions to the bank and the ability to recommend to the Minister of Finance that a bank be placed under statutory management.

Tables 26.01 and 26.02 list assets and liabilities of the Reserve Bank.

Registered banks

At 31 December 2007, there were 17 registered banks in New Zealand. The number of banks per capita is still relatively high by international standards. In part, this reflects the open nature of the registration regime.

Registered banks operating in New Zealand at 31 December 2007 were: ABN AMRO Bank NV; ANZ National Bank Ltd; ASB Bank Ltd; Bank of New Zealand; Bank of Tokyo-Mitsubishi Ltd; Citibank NA; Commonwealth Bank of Australia; Deutsche Bank AG; JP Morgan Chase NA; Kiwibank Ltd; Kookmin Bank; Rabobank Nederland; Rabobank New Zealand Ltd; The Hong Kong and Shanghai Banking Corporation Ltd; TSB Bank Ltd; Westpac Banking Corporation; and Westpac New Zealand Ltd.

Table 26.01. Assets of the Reserve Bank of New Zealand
At 30 June

YearDenominated in foreign currencyDenominated in New Zealand dollars
Current account advances(1)Marketable securities(2)(3)IMF holdings of SDRs(4)Foreign assets(5)AdvancesInvestment in New ZealandFixed assets and other inventories(11)Other assets(12)Total assets(13)
Settlement institutions(6)Crown settlement account(7)Advances to Treasury(8)Government securities(9)Other(10)
$(million)

(1) Foreign-currency-denominated current accounts, reverse repurchase and secured/unsecured short-term advances to foreign banks and financial institutions.

(2) Foreign-currency-denominated sovereign and non-sovereign securities.

(3) Prior to August 2004, short sales of bonds were netted off against the bonds in marketable securities. From August 2004, short sales are reported as liabilities denominated in foreign currency.

(4) International Monetary Fund (IMF) holdings of SDR-denominated foreign currency assets.

(5) Sundry foreign assets.

(6) Repurchase advances, secured loans, overnight advances and accrued interest owing from settlement institutions.

(7) Net overdrawn balances in the Crown settlement account.

(8) Fixed term deposits with the Treasury.

(9) Government stock investment portfolio.

(10) New Zealand denominated marketable securities held for trading purposes.

(11) Land, buildings, plant, machinery, motor vehicles and inventories.

(12) Accounts receivable and sundry assets.

(13) The sum of the above-defined foreign currency and New Zealand dollar assets.

Note: SDR refers to special drawing rights.

Source: Reserve Bank of New Zealand

19971,1333,3400075001,2362,04105888,566
19981,8604,490211,05901,2042,149058610,829
19992,2833,602003,064002,256156611,268
20002,0204,109001,600002,492048510,274
20011,8104,056002,517002,708044411,139
20022,7632,825042,819003,002035611,454
20032,9383,1370-42,120003,3001036211,539
20042,0572,824001,454003,32303649,698
20053,8554,108093265004,601040212,964
20067,6114,0110117123004,9120631816,855
20074,02512,52609716004,342085421,095

Table 26.02. Liabilities of the Reserve Bank of New Zealand
At 30 June

YearDenominated in foreign currencyDenominated in New Zealand dollarsTotal liabilities(12)
Current(1)(2)Long-term(3)IMF allocations of SDRs(4)Reserve Bank bills(5)DepositsCurrency in circulation(9)Other liabilities(10)Capital reserves(11)
Government(6)Settlement institutions(7)Other(8)
$(million)

(1) Foreign-currency-denominated repurchase, secured loan, and credit line financing provided by foreign counterparties.

(2) Prior to August 2004, short sales of bonds were netted off against the bonds in marketable securities. From August 2004, short sales are reported as liabilities denominated in foreign currency.

(3) Foreign-currency-denominated financing provided by the Treasury (and the Earthquake Commission up to 3 June 1998).

(4) SDR-denominated financing provided by the International Monetary Fund (IMF). In December 1998, SDR assets and liabilities were transferred to the Treasury. SDRs are now directly accounted for on the Crown balance sheet.

(5) Short-term discount securities issued by the Reserve Bank. The bank ceased issuing Reserve Bank bills on 5 February 1999. All Reserve Bank bills and related advances to the Treasury were repaid by 9 April 1999.

(6) Net in-funds balance in the Crown settlement and other government accounts held at the Reserve Bank.

(7) Balances in the exchange settlement accounts held at the Reserve Bank.

(8) IMF No. 1 account, other central bank accounts, staff deposits and other sundry deposits.

(9) The face value of notes and coins issued into circulation.

(10) Creditors and accounts payable.

(11) Retained earnings, revaluation reserves and current period accumulated income.

(12) The sum of the above-defined foreign currency and New Zealand dollar liabilities.

Note: SDR refers to special drawing rights.

Source: Reserve Bank of New Zealand

19975953,5862921,2366081461,6651433948,566
19981,2664,7143701,2039572251,73315840110,829
19991,4744,405002,8811551,8851355411,268
20001,5414,589001,32849362,1601455710,274
20019634,756002,25066702,46316640511,139
20021,0474,192002,9474152,6591058011,454
20038924,069003,1432242,806759611,539
20049453,828001,24371702,92086139,698
20053,2204,0570066857643,1831611,55412,964
20061,7835,342002,2482,1771033,3484331,42116,855
20079013,962003,1527,810473,3602841,57921,095

The number of ways to pay for goods and services is on the rise. In some cities you can now pay for parking by cash, text message, or credit card. These solid aluminium machines are vandal-resistant and run on solar/battery power.

Table 26.03 lists the liabilities and assets of M3 financial institutions (a group of 13 financial institutions surveyed by the Reserve Bank when compiling monetary aggregates).

Access to branches and services The first automated teller machines (ATMs) were introduced to New Zealand in mid-1979, and by the end of 1982 all major trading banks offered ATM services.

Table 26.03. Liabilities and assets of M3 financial institutions
At 30 December

Item19971998199920002001200220032004200520062007
$(million)

(1) Includes trade creditors/debtors, accounts payable/receivable, and items in transit, timing and statistical adjustments.

(2) Any two entities, that is companies, organisations or individuals, with the same shareholders and/or any company that holds 20 percent or more of the paid-up capital of another company (the associated). A subsidiary is an associate.

(3) This series shows a large decline from 1999 until 2006. In early 1999, the Reserve Bank of New Zealand discontinued the issuance of Reserve Bank bills when it implemented the overnight cash rate regime for monetary policy implementation. In 2006, the Reserve Bank made changes to its domestic liquidity management regime, which resulted in a significant increase of overnight settlement cash balances.

Note: Figures may not add up to stated totals, due to rounding.

Source: Reserve Bank of New Zealand

Liabilities
New Zealand dollar funding
    New Zealand residents86,09689,37094,83195,638103,558112,161121,893127,834139,699154,747168,616
    Non-residents12,75913,59714,07918,53524,48128,46826,40431,22831,07242,97740,840
    Total98,856102,967108,909114,173128,039140,628148,297159,062170,771197,724209,456
Foreign currency funding
    New Zealand residents2,8064,1982,5213,2963,1942,6384,6675,6207,7698,0119,876
    Non-residents16,50721,56831,91537,06639,16232,64234,59440,37245,43752,86265,990
    Total19,31425,76634,43640,36242,35635,27939,26045,99253,20660,87375,866
Capital and reserves7,2628,2249,84810,68511,79014,02217,80318,39619,06320,35520,719
Other liabilities(1)8,2965,6364,71415,3976,50811,26814,84512,7359,27914,34921,742
Total liabilities133,726142,593157,907180,617188,693201,198220,205236,185252,320293,300327,782
Funding from associates(2)13,93523,38928,14829,73533,65931,00831,00129,19130,79543,93348,806
Assets
Government securities3,5724,3846,9217,1495,8188,1837,9205,6015,0342,2212,052
New Zealand notes and coin4094481,050818907941908930974896896
Claims on the Reserve Bank(3)1,1641,0575420141802458,9178,006
New Zealand dollar claims
    New Zealand residents (M3)9,04411,88311,72110,60112,73410,92010,96812,87014,08314,57312,811
    New Zealand residents (non-M3)101,500107,900118,140124,303132,173143,470156,728176,873203,143229,880260,978
    Non-residents2,8694,3596,5509,01112,92614,03413,95014,9458,7448,2667,553
    Total113,413124,141136,411143,915157,833168,424181,645204,687225,970252,719281,342
Foreign currency claims
    New Zealand residents3,2683,7163,4314,6715,1233,8523,7933,8724,2623,4884,290
    Non-residents3899743,1027,72610,54610,5638,5357,3903,2955,4497,117
    Total3,6574,6906,53312,39815,66914,41612,32811,2627,5578,93711,407
Foreign currency fixed assets and equity investment34364157877775798322894
Shares (in New Zealand companies)4215093123265224582,11145258214240
Other assets(1)11,0557,3296,09515,9547,8578,69515,21713,50212,19719,16923,746
Total assets133,726142,593157,907180,617188,694201,198220,205236,185252,320293,300327,782
Financial claims on associates(2)1,1643,0934,7459,61212,54313,26712,19810,5024,7514,3235,145

New Zealanders use EFTPOS to conduct many of their day-to-day transactions. There were 125,008 EFTPOS terminals in New Zealand in 2006, with 2.54 million credit cards and 5.07 million debit cards on issue.

Electronic funds transfer at point of sale (EFTPOS) was introduced to New Zealand in 1984 as a means of paying for retail goods and services. Banks agreed in 1990 to integrate their EFTPOS services, and growth of the network has been rapid since then.

Table 26.05 shows the number of EFTPOS terminals in New Zealand supermarkets, service stations, liquor markets and other retail outlets.

Electronic card transactions There were 973 million electronic transactions in the year ended January 2008, with a value of $53.7 billion. This compares with 889 million transactions with a value of $49.4 billion in the January 2007 year.

For the year ended January 2008, debit transactions made up 53 percent of all electronic transactions by value (credit made up 47 percent).

Table 26.04. Bank branches and automated teller machines (ATMs)
At 31 December

YearBank branchesBank-owned ATMs
Source: New Zealand Bankers' Association
20008491,692
20018321,830
20021,0981,889
20031,1031,889
20041,1242,019
20051,1482,289
20061,1552,321

Table 26.05. Number of EFTPOS terminals
Year ending 31 December

YearTerminals
Source: New Zealand Bankers' Association
200084,351
200192,840
200295,221
200398,474
2004118,174
2005119,651
2006125,008

Figure 26.01.

Credit cards are popular for the purchase of goods and services. At 31 December 2006 there were 2.54 million cards on issue nationally, up from the 2.36 million on issue two years earlier.

Industry self-regulation The New Zealand Bankers' Association is 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 that can be undertaken effectively on an industry basis.

The association introduced a Code of Banking Practice in 1992, which established minimum standards of practice to be observed by banks in their dealings with personal customers. The most recent edition of the code was published in 2007, following a comprehensive public consultation process.

The code is linked to an independent external complaints review process, the Banking Ombudsman Scheme, established in July 1992.

Other deposit-taking financial institutions

Although banks are the dominant financial institutions in New Zealand, there are more than 70 smaller deposit-taking financial institutions in New Zealand and 50 credit unions. These include a medium-sized, nationwide, cooperative savings institution, and a large, regionally-based building society that continues to specialise in housing finance. There are also nine smaller building societies, most of which have diversified their lending portfolios away from reliance on lending for housing since deregulation. Credit unions have total loans to members of less than $700 million, or less than 0.5 percent of all loans to households.

Total loans of finance companies nearly trebled in the five years ending 31 December 2006. In the latter part of the period, lending for property development contributed strongly to loan growth, but it was nonetheless spread across hire purchase for cars and consumer goods, for business leasing and plant and machinery purposes, and for commercial and residential property development.

More recent developments in the ‘other financial institution’ market include the growth of residential mortgage managers – lenders who fund their loans via securitisation in wholesale markets – and the emergence of several ‘non-conforming’ personal lenders. In addition, several retail groups have stepped up their involvement in personal finance, for example by issuing a credit card or offering direct personal loans in addition to providing hire purchase finance.

Since the late 1990s, banks' share of the personal lending market has declined slightly, as other institutions have developed a range of niche markets.

Money

Currency

One of the key statutory obligations of the Reserve Bank is to provide New Zealand's currency. The total face value of currency in circulation (bank notes and coins) was $3.5 billion at 31 October 2007. Of this, $3.0 billion is held by the public, with the balance being held by banks and other financial institutions.

New Zealand's decimal currency system was introduced in 1967 when dollars and cents replaced pounds, shillings and pence as monetary units. The Reserve Bank initially issued 1, 2, 5, 10, 20 and 50 cent coins, and $1, $2, $5, $10, $20 and $100 bank notes. In 1983 the Reserve Bank started issuing a $50 bank note. In 1989 it stopped issuing 1 and 2 cent coins, and in 1991 it started issuing $1 and $2 coins to replace the corresponding bank notes.

A substantial change to New Zealand's bank notes occurred in 1992 when a new series was issued. These notes included images of New Zealanders and contained new security features. Portraits on the new notes were: $5, Sir Edmund Hillary; $10, Kate Sheppard; $20, Queen Elizabeth II; $50, Sir Apirana Ngata; and $100, Ernest, Lord Rutherford of Nelson. Queen Elizabeth II features on the watermark of all notes. Rare New Zealand birds are featured on the backs of the notes.

Until 1999, New Zealand's bank notes were printed on paper made from cotton. On 3 May 1999, the Reserve Bank started circulating polymer (plastic) bank notes. The main reasons to change to polymer were:

  • the average polymer note lasts four times as long as a paper note, which keeps the cost of producing money down

  • polymer notes are stronger and non-porous, so they do not get as dirty as paper

  • the polymer notes incorporated new security features that are difficult to counterfeit, including a transparent ‘window’.

The design of these new notes changed slightly to incorporate the new security features, but the size and colours stayed the same as the paper notes.

In July 2006, the Reserve Bank introduced new, smaller 10, 20 and 50 cent coins. The 5 cent coin was withdrawn from circulation. The new 20 and 50 cent coins are made from nickel-plated steel. The new 10 cent coin is made from copper-plated steel. The one and two dollar coins were retained unchanged, as were the images on the lower value coins. All coins continue to feature the Queen on the back.

The main reason for the withdrawal of the 5 cent coin was that it had little purchasing power. It was worth less than what a half a cent would have been worth when decimal currency was introduced in 1967. The great increase in the use of electronic methods of payment also reduced the need for the 5 cent coin.

New Zealand's old 20 and 50 cent coins were extremely large by international standards. The 50 cent coin, with a diameter of 31.75mm, was one of the largest circulating coins in the world. Those old coins were inconvenient to carry in purses and pockets, and for employees to handle.

The old ‘silver’ coins were demonetised (declared no longer legal tender) three months after the new coins were issued. This meant that shops and other businesses were no longer obliged to accept them as payment for goods and services. However, the Reserve Bank will always pay face value for the coins – as it does for pre-decimal currency.

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 bank responsibility for keeping average inflation between 1 and 3 percent a year over the medium term. The specific details of the target are set out in a written agreement – between the Governor of the Reserve Bank and the Minister of Finance – called the policy targets agreement (PTA).

The bank changed the way it implements monetary policy in March 1999, when the settlement cash target system, used since the mid-1980s, was replaced by an implementation system based on an official cash rate (OCR).

Previously, the bank relied on adjustments to the quantity of settlement cash in the banking system to ensure monetary conditions were appropriate. These adjustments were relatively rare, however, as financial markets generally adjusted monetary conditions in response to the bank's quarterly inflation projections and to emerging economic data.

Under the OCR system, the Reserve Bank influences short-term interest rates by being prepared to lend an unlimited amount of cash overnight, or borrow an unlimited amount of cash overnight, at the OCR itself. This influences other interest rates, affecting demand within the economy and therefore inflationary pressures.

The Act stipulates that the bank must publish policy statements that specify how it intends to achieve the inflation target defined in the PTA, the reasons for choosing the policies, and the means it intends to use to achieve the target. The policy statements must also provide a medium-term policy outlook, and must review and assess the implementation of monetary policy since the previous policy statement.

To meet these requirements, the bank publishes monetary policy statements which provide the economic projections and rationale underpinning its monetary policy decisions, and also assess the implementation of monetary policy since the previous publication.

The OCR is reviewed eight times a year – at each of the bank's quarterly monetary policy statements, and approximately halfway between each quarterly statement.

Government securities market

The government sells three types of debt instruments to meet its financing requirements:

  • Government bonds are a medium-term instrument (usually with maturity of one to around 10 years), paying a fixed-coupon interest rate and aimed at the wholesale market (mainly institutional investors). Since September 1983, government bonds have been sold through regular, competitive tenders.

    Figure 26.02.

  • Treasury bills are short-term wholesale debt instruments (usually with maturity of up to around 12 months). Since January 1985, bills have been sold through regular weekly tenders to meet the government's ongoing funding requirements. They are also used to meet the government's seasonal financing needs. Bills do not pay interest, but rather are sold (and subsequently traded) at a discount to their par (maturity) value, producing an effective yield for the holder.

  • Kiwi Bonds, introduced in 1985, are aimed at retail investors. These bonds are fixed-interest instruments issued on demand in six-month, one-, two- and four-year maturities. On issue, Kiwi Bond interest rates are related to the current market yields on wholesale government bonds (of comparable maturities). They are transferable and may be sold by the holder to another party.

The Reserve Bank maintains registers of government securities (and those of local authorities and other public bodies and of several state-owned enterprises). At 31 December 2006, the value of total government securities registered was $29.3 billion, with treasury bills accounting for $2.4 billion of this. Kiwi Bonds to the value of $315 million were also on issue at this date. (These figures exclude securities issued by state-owned enterprises.)

Table 26.06. Foreign exchange rates(1)
Trade-weighted index (TWI) percentage change

MonthUSA mid-rate US$/NZ$(1)UK mid-rate Stg/NZ$(1)Australia mid-rate A$/NZ$(1)Japan mid-rate Yen/NZ$(1)Euro mid-rate E$/NZ$(1)TWI-base June 1979=100Percentage change
MonthlyAnnual

(1) All average exchange rates use representative 11.10am market mid-rates.

Source: Reserve Bank of New Zealand

September
19990.52240.32210.805356.050.497855.70-1.9-1.0
20000.41880.29220.754644.690.480548.30-4.5-13.0
20010.41980.28690.828049.860.460549.60-2.83.0
20020.46990.30220.858756.740.479353.801.39.0
20030.58380.36270.883167.210.520262.20-0.816.0
20040.65880.36740.938472.490.539267.10.98.0
20050.69950.38670.914477.680.570870.30.65.0
20060.65470.34690.865576.680.514065.74.0-7.0
2007
January0.69530.35500.888383.750.535369.11.5-2.0
February0.69390.35420.886583.650.530368.8-0.4-1.0
March0.69820.35850.881581.910.527168.6-0.35.0
April0.73470.36970.888087.350.544071.33.912.0
May0.73250.36920.888588.430.541971.30.014.0
June0.75590.38060.898092.660.563473.63.218.0
July0.78580.38640.906595.580.572975.42.522.0
August0.72850.36220.876685.160.534770.2-6.911.0
September0.71710.35540.849282.480.516268.3-2.64.0

Figure 26.03.

Foreign exchange

New Zealand has had a floating exchange rate since 1985. The value of the New Zealand dollar against other currencies is set solely by the market. However, the Reserve Bank retains the capacity to intervene in the foreign exchange market either to counter disorderly conditions in that market or for monetary policy purposes.

Intervention would involve buying or selling New Zealand dollars in exchange for other currencies, with the aim of restoring a smoothly-functioning private market. To maintain a capacity to do this, the Reserve Bank holds and manages the government's foreign exchange reserves, invested in a diversified portfolio of liquid foreign currency assets of about $7 billion.

Contributors and related websites

New Zealand Bankers' Association – www.nzba.org.nz

Office of the Banking Ombudsman – www.bankombudsman.org.nz

Reserve Bank of New Zealand – www.rbnz.govt.nz

Statistics New Zealand – www.stats.govt.nz

The Treasury – www.treasury.govt.nz

Chapter 27. Public sector finance

Wellington parents Josephine Kent and Danny Clark, and their children Michael (left), Samantha, Joshua, and baby Flynn. The Working for Families tax credit provides financial help for low- to middle-income families with children under 18 years who are living at home.

Central government finance

The New Zealand public sector management system is concerned with, and seeks to bring together, both the financial and non-financial aspects of public sector performance. Each element of the system is intended to reinforce other elements, in order 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 translate strategy into action, to promote informed decision making and accountability, and to encourage the state sector to be responsive and efficient.

The system achieves these aims through: planning, decision-making and scrutiny processes that culminate in passing of the government's budget; incentives for managing efficiently; and reporting and feedback processes. The system emphasises expected performance within the control of managers, delegating authority to achieve high-quality performance, providing incentives to perform to expected levels, and measuring achievements in a timely and consistent manner.

The system is continually examined and refined to meet emerging needs. A number of policy projects and pilots are underway that seek to improve areas such as Crown entity governance and accountability, departmental accountability and reporting, public service senior leadership and management talent, collaboration among departments, and relationships with non-government organisations.

Roles and responsibilities

The State Sector Act 1988 sets out the general duties and responsibilities of public service chief executives, and processes for their appointment and reappointment. Chief executives have contracts of up to five years, with tenure based on performance. They are recommended, appointed, employed, and reviewed by the independent State Services Commissioner, though Cabinet (operating through the governor-general in council) may veto the commissioner's appointment recommendation. As the legal employer of staff in their departments, public service chief executives have the power, within the bounds of general employment law, to hire and fire, set salaries, and negotiate conditions of employment.

Cabinet ministers are formally responsible for specifying performance expectations of departments. Departmental chief executives are, in turn, responsible to relevant ministers for delivering expected services (sometimes referred to as the government's ‘purchase’ interest), and maintaining the department's ability to keep delivering effectively, efficiently and economically (the ‘ownership’ interest). Services are placed firmly in the context of government policy goals. For these purposes, chief executives are given appropriate managerial decision-making authority. There are incentives to perform, and requirements for the presentation of performance information as a basis for monitoring and assessment. The chart below summarises this.

Lines of accountability

Source: The Treasury

Purchase and ownership interests The government's interest in the performance of a department is twofold:

  • as the owner, seeking efficient stewardship of its resources

  • as the purchaser of services, provided directly to the government or to third parties.

This distinction is made in the annual performance agreements for chief executives. The government looks for a balance between strong, healthy departments and value for money in their operations.

Setting objectives Setting objectives within the public service focuses mainly on outputs, rather than inputs or outcomes. With this focus, chief executives are responsible for the delivery of services – rather than any ultimate consequences (outcomes) of that service delivery. Outputs are placed firmly in the context of government policy goals.

The budget process

The fiscal responsibility provisions of the Public Finance Act 1989 require clear formulation and reporting by the government on its fiscal policy objectives. Using generally accepted accounting practice (GAAP), the following principles have been formulated to define responsible fiscal management:

  • 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

  • fiscal risks facing the government should be managed prudently

  • 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 long-term fiscal objectives and short-term fiscal intentions, and on the extent to which these are consistent with the above principles, and must provide justification for any inconsistencies.

These fiscal objectives must be presented to Parliament by 31 March – three months before the start of the financial year – in the Budget Policy Statement. In practice, the objectives are usually presented in the previous December, allowing debate on them to take place well before the budget is introduced.

The government maintains a baseline budget, projecting policies forward four years. Baseline updates occur regularly as the government makes adjustments in accordance with its strategic and fiscal objectives. Outside these budget update processes, amendments to the baseline are usually 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 legislation must be passed by the end of October.

Revised economic and fiscal forecasts are published half-yearly and immediately before a general election. These forecasts must be prepared on a GAAP basis and must include a statement of specific fiscal risks, including contingent liabilities, which describe, and quantify if possible, all specific and general fiscal risks associated with the forecasts.

The Minister of Finance. Dr Michael Cullen, giving his Budget 2007 speech in the media lock-up at Parliament.

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 the repayment of debt. This gives Parliament control over: outputs purchased from departments and others; what size balance sheets it thinks are needed to produce those outputs; and what resources (that do not involve production of outputs) it wants transferred among different groups in the community.

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 charges departments for the capital they use.

Cost allocations Focusing on outputs requires cost accounting systems that 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 reprioritise and choose the appropriate mix of outputs in order to achieve desired outcomes. The systems also identify opportunities to improve output performance and to facilitate cost recovery where there are recognisable recipients of the service or output.

Cash management Before the start of every year, each department negotiates with the Treasury a profile of cash payments to the department during the year (updated as needs change). The Treasury operates a central cash management system that sweeps all departmental bank accounts each night and invests spare funds in the overnight money market.

Table 27.01 (overleaf) shows actual government expenses for the year ending June 2006 and 2007 using old GAAP (generally accepted accounting practice), and forecasts for 2007–11 using new GAAP.

Parliamentary scrutiny

Parliament's scrutiny of the government's financial performance involves the budget, and several reporting events through the year. Budget documents incorporate:

  • the government's budget speech and fiscal strategy for the medium term (10 years)

  • an economic and fiscal outlook, including the government's forecast financial statements

  • estimates of the appropriations ministers seek from Parliament

  • statements of intent for each government department.

Progress against the budget is reported monthly from the end of the first quarter. These reports are prepared on a GAAP basis, consistent with the forecasts, and must be published within six weeks of the end of the month. Annual financial statements must be prepared and audited within three months. Parliament and its committees scrutinise financial management of the executive, comparing actual performance with planned performance, in three ways:

  • scrutiny of the government's intentions for the current year, as expressed in its budget proposals, and scrutiny 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, compared with plans laid a year earlier

  • examination of the performance of state-owned enterprises and other non-departmental government entities.

Figure 27.01.

Table 27.01. Government expenses
Year ending 30 June

ExpensesActual (Old GAAP)Forecast (New GAAP)
2006200720072008200920102011
$(million)

(1) Excluding actuarial gains/losses.

(2) Specialist military equipment.

Note: GAAP is generally accepted accounting practice.

Symbol:.. figure not available

Source: The Treasury

Crown
Depreciation & amortisation2,7083,1443,0233,2963,4173,5793,696
Future new spending........1,9083,8385,786
Insurance1,3211,0209549941,0271,1151,160
Interest2,2412,2652,7802,7482,7052,6432,766
New operating, up to Budget 2008....80314329398460
Operating26,73128,63428,13228,99729,47130,03030,408
Personnel15,39515,64715,08415,65715,78715,95016,006
Social & official development assistance16,68818,30718,30019,90820,97522,09523,190
Top-down adjustment....(500)........
Total Crown65,08469,01767,85371,91475,61979,64883,472
Subsidies & transfers
Social assistance grants
   ACC payments1,7081,9671,7812,0162,2352,3692,537
   Domestic purposes benefit1,4931,4681,4671,4561,4541,4671,491
   Family support12851,6991,7791,9641,9981,9951,989
   New Zealand Superannuation6,4146,8106,8077,2927,6057,9988,440
   Official development assistance330356348401432498567
   Other social assistance grants4,3925,0125,1185,8806,3736,8747,255
Other transfer payments
   Student allowances354382385402407410411
   Unemployment benefit712613615497471484500
Total subsidies & transfers16,68818,30718,30019,90820,97522,09523,190
Personnel
Defined benefit retirement plan(1)1,3921,222192214230248247
Defined contribution retirement plan206227654637596558534
Other personnel279..334311318335358
Wages & salaries13,51814,19813,90414,49514,64314,80914,867
Total personnel15,39515,64715,08415,65715,78715,95016,006
Depreciation & amortisation
Depreciation expense (by class of asset)
   Aircraft (ex-SME(2))102173203215202189170
   Buildings8809409299891,0171,0391,044
   Electricity distribution network1091108787909397
   Electricity generation assets198229248276324380388
   Other assets7546108115121123122
   Other plant & equipment905954685739772788795
   Rail network..155152177184189194
   Specialist military equipment (SME)187238239286310335445
   State highways252299242255270286302
Total depreciation2,7083,1442,8933,1393,2903,4223,557
Amortisation & impairment on intangible assets....130157127157139
Total depreciation, amortisation & impairment on intangible assets2,7083,1443,0233,2963,4173,5793,696
Other operating expenses
Grants1,5781,6881,9362,0852,2222,2592,269
Impairment on financial assets1,9252,8851,439133101103104
Inventory expensed during period....211231230229239
Lottery prize payments398414397412429446464
Other operating costs21,68222,27222,74924,79525,12325,59325,895
Rental & leasing costs820887812823841853869
Write-down on initial recognition of loans328488588518525547568
Total other operating expenses26,73128,63428,13228,99729,47130,03030,408

Line-by-line consolidation of Crown financial statements

Changes to accounting standards introduced from Budget 2002 meant changes to the way Crown financial statements are prepared. The changes were required for consistency with GAAP and did not affect fiscal policy. Crown financial statements now record the revenues, expenses, assets and liabilities of all Crown-controlled entities (eg departments, State-owned enterprises and Crown entities) except tertiary educational institutions. Previously, only the net surplus, net investment and net worth of state-owned enterprises and Crown entities were recorded. Goods and services tax (GST) on Crown expenses has also been removed. Net worth and the operating balance are largely unaffected.

The Crown publishes fully consolidated (‘total Crown’) accounts as described above, but splits out ‘core Crown’ information. Core Crown revenues and expenses are similar to the previous presentation of the accounts, except that they remove GST on Crown expenses. This change results in some of the historical data contained in this yearbook being restated from data in previous yearbooks. This is because, where possible, historical data has been recast to be consistent with current treatment.

New Zealand international accounting standards

From 1 July 2007, the financial statements of the government must be prepared in accordance with New Zealand International Financial Reporting Standards (NZ IFRS). The fiscal forecast presented in Budget 2007 was prepared on an NZ IFRS basis. This means some data in the tables are not comparable with historical data published in previous yearbooks.

External reporting

The Financial Statements of the Government of New Zealand include the following key statements: financial performance; financial position; movements in equity; cash flows; borrowings; commitments; contingent liabilities; and unappropriated expenditure, expenses or liabilities.

Departmental financial statements contain the same key statements, as well as a statement of objectives, and a statement of service performance. An important feature of the New Zealand financial management system is the publication of financial statements for the whole of government, with an audit opinion attached, within three months of the end of the financial year. Very few countries account for government operations under accrual accounting rules.

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 that is not available to a private sector company. This power can, however, be viewed as comparable with mutual or cooperative organisations that levy their members.

The levy is not treated as an asset, as members want to know the financial position of the organisation before exercise of the power to levy. Further, it is impossible to value this ‘asset’ with sufficient reliability, and any attempt to do so would drown 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.

Figure 27.02 shows operating balances and forecasts, table 27.02 (overleaf) shows the Government's statement of financial performance and forecasts, while table 27.03 shows the Government's statement of financial position and forecasts. Table 27.04 shows the Government's statement of cash flows and forecasts.

In June 2008, the Government finalised the purchase of Toll NZ's rail and ferry operations. This train was newly branded for the launch of KiwiRail on 1 July 2008.

Figure 27.02.

Table 27.02. Statement of financial performance
Year ending 30 June

Revenue/expensesActual (Old GAAP)Forecast (New GAAP)
200620072008200920102011
$(million)

Symbol:.. figure not available

Source: The Treasury

Crown revenue
Taxation51,97352,93854,17355,69158,26961,351
Other sovereign revenue3,4113,5683,6933,7573,8463,931
Total levied through the Crown's sovereign power55,38456,50657,86659,44862,11565,282
Sales of goods & services13,33713,08513,25313,87014,43114,790
Interest revenue & dividends5,8285,8193,3663,5853,6363,756
Other2,0322,1562,3872,6732,9962,991
Total earned through Crown operations21,19721,06019,00620,12821,06321,537
Total revenue76,58177,56676,87279,57683,17886,819
Crown expenses
Social security & welfare18,96920,23921,27122,02522,88823,768
Government superannuation fund1,671302629587549525
Health9,2629,93211,69911,98712,29012,287
Education10,4309,83610,32110,46010,56110,671
Core government services2,0464,0882,1322,1582,2362,501
Law & order2,4202,8253,0763,0553,0883,084
Defence1,3391,5571,5971,6411,7291,838
Transport & communications5,9867,4737,6717,7597,8417,782
Economic & industrial services6,3345,3245,8796,4687,0227,375
Primary services1,2191,2651,3191,3141,3141,316
Heritage, culture & recreation2,3612,0362,2182,1742,2072,240
Housing & community development758889961972977958
Other486679776673
Finance2,6523,0692,7482,7052,6442,808
Net foreign-exchange gains (losses)(411)116........
New operating spending for Budget 2008....314329398460
Future new spending......1,9083,8385,786
Top-down adjustment............
Total expenses65,08469,01771,91475,61979,64883,472
Operating balance before gains (losses)11,4978,5494,9583,9573,5303,347
Net gains (losses) on financial instruments....1,3771,5161,6841,922
Net gains (losses) on non-financial instruments............
Net surplus (deficit) from associates & joint ventures5412096969697
Gain (loss) from discounted operations............
Operating balance from continuing activities11,5518,6696,4315,5695,3105,366
Gain (loss) attributed to interest in Air New Zealand(78)(6)........
Operating balance11,4738,6636,4315,5695,3105,366

Table 27.03. Statement of financial position
At 30 June

 Actual (Old GAAP)Forecast (New GAAP)
200620072008200920102011
$(million)

(1) Tertiary education institutions.

Symbol:.. figure not available

Source: The Treasury

Assets
Cash & bank balances4,1684,6293,1963,4353,3193,272
Marketable securities, deposits & equity investments27,66833,27032,88532,20331,46834,008
Advances9,09910,26615,08716,79817,36217,920
Receivables14,05313,19312,54713,26213,39013,413
Inventories9079929821,0461,0711,080
Share investments15,83418,21917,27320,17923,33026,722
Prepayments & other assets1,4639511,2051,2091,2181,224
Property, plant & equipment78,97496,54395,95097,66799,675101,846
Equity accounted investments (including TEI(1))5,4756,3056,6476,8126,9147,003
Intangible assets (including goodwill)6306081,5551,5291,4561,392
Forecast new capital spending....1847511,5572,460
Top-down capital adjustment....-200-200-200-200
Total assets158,271184,976187,311194,691200,560210,140
Liabilities
Deferred revenue....845850855857
Defined benefit retirement plan15,23114,3118,4148,4028,3318,224
Insurance12,71513,73519,01120,04221,16222,328
Issued currency3,3623,3603,7303,9144,1104,316
Other borrowings37,46341,38538,84139,52738,99942,168
Payables12,46912,4519,0369,0028,7378,491
Provisions3,6643,8983,8503,7863,8193,812
Settlement deposits with the Reserve Bank1,964..7,5237,5237,5237,523
Total liabilities86,86889,14091,25093,04693,53697,719
Total assets less total liabilities71,40395,83696,061101,645107,024112,421
Net worth
Taxpayer funds33,47742,14048,23953,84459,23664,630
Revaluation reserve37,63353,32747,40247,40647,40947,412
Cash flow hedge reserve....97725656
Financial asset reserve available for sale....13131313
Foreign exchange translation reserve....17171717
Total net worth attributable to the Crown71,11095,46795,768101,352106,731112,128
Net worth attributable to minority interest in Air New Zealand293369293293293293
Total net worth71,40395,83696,061101,645107,024112,421

Table 27.04. Statement of cash flows
Year ending 30 June

Revenue/expensesActual (Old GAAP)Forecast (New GAAP)
200620072008200920102011
$(million)

Symbol:.. figure not available

Source: The Treasury

Cash flows from operations
Cash provided from
   Tax receipts49,70652,13854,26655,04858,09961,252
   Other sovereign receipts3,2463,4183,4723,6073,7283,825
   Interest1,6222,2412,2562,3952,3052,293
   Dividends117435504586676772
   Sales of goods & services13,45713,51513,39413,93514,50114,832
   Other operating receipts1,9192,1472,3022,6092,8802,908
Total cash from operations70,06773,89476,19478,18082,18985,882
Cash disbursed to
   Subsidies & transfer payments16,94418,50919,52920,13020,96021,870
   Personnel & operating payments38,96440,26144,02545,03046,10746,543
   Interest expenses2,0472,5042,5302,6102,6222,667
   Forecast for new spending....3142,3064,3916,508
   Top-down cash adjustment............
Total cash to operations57,95561,27466,39870,07674,08077,588
Net cash flows from operations12,11212,6209,7968,1048,1098,294
Net cash flows from investing activities
   Sale/(purchase) of share investments & other securities(5,859)(8,273)(4,491)(1,155)(983)(4,289)
   Sale/(purchase) of physical assets(4,044)(5,531)(6,661)(5,363)(5,675)(6,024)
   Sale/(purchase) of intangible assets....(144)(101)(84)(75)
   Repayment/(issue) of advances(1,637)(1,791)(1,628)(1,449)(59)(18)
   Disposal/(acquisition) of investment in associates....(95)(68)(7)(2)
   Forecast for new capital spending....(184)(567)(806)(903)
   Top-down capital adjustment............
Net cash flows from investing activities(11,540)(15,595)(13,203)(8,703)(7,614)(11,275)
Net cash flows from operating & investing activities572(2,975)(3,407)(599)495(2,981)
Net cash flows from financing activities
Cash was provided from
   Issue of circulating currency16581178186196206
   Issue/(repayment) of government stock151-3342,223(714)(956)2,159
   Issue/(repayment) of other New Zealand-dollar borrowing1,8564,0092,2251,865474215
   Repayment/(issue) of other New Zealand-dollar borrowing(2,300)(219)(1,130)(499)(325)354
Net cash flows from financing activities(128)3,5373,496838(611)2,934
Net increase/(decrease) in cash & cash equivalents44456289239(116)(47)
Opening cash equivalents3,7104,1683,1073,1963,4353,319
Foreign-exchange gain on opening cash14(101)........
Closing cash balance4,1684,6293,1963,4353,3193,272

Taxation

The New Zealand tax year is from 1 April to 31 March. Inland Revenue administers three principal acts: the Income Tax Act 2004, the Tax Administration Act 1994, and the Goods and Services Tax Act 1985. The Income Tax Act 2007 came into effect on 1 April 2008, with application to the 2008/09 and subsequent tax years.

Individuals

The New Zealand Government deducts taxes at income source, with a graduated-scale, pay-as-you-earn (PAYE) tax deducted from salaries and wages, and withholding tax deducted from various other specified categories of income.

The tax system has been simplified for most individual taxpayers – those who earn income solely from salary, wages, dividends and interest – by removing the requirement to file annual income tax returns. In certain circumstances, taxpayers receive a personal tax summary showing whether they have tax to pay or will receive a refund. Taxpayers are also able to request a personal tax summary.

The PAYE system requires employers to provide Inland Revenue with a monthly schedule detailing each employee's salary or wage income, PAYE deductions, and other information, such as student loan or child support payments.

Tax rates

Income tax is deducted under the Income Tax Act 2004 (Income Tax Act 2007 for income earned during the 2008/09 and subsequent tax years) and is charged on most income, including business profits, employment income, royalties, interest, dividends and pensions.

Rates of income tax for individual taxpayers in the 2006/07 tax year were:

  • income up to and including $38,000 – 19.5 cents for every dollar of taxable income

  • income over $38,000 and not exceeding $60,000 – 33 cents for every dollar of taxable income

  • income over $60,000 – 39 cents for every dollar of taxable income.

The tax rates used for assessment are based on annual income (normally from 1 April to 31 March).

Resident withholding tax

Resident withholding tax (RWT) is tax deducted from interest and dividend income. For example, when banks pay interest, they deduct RWT before paying the recipient.

A flat RWT rate of 33 percent applies for dividends. Individual taxpayers receiving interest can elect to have RWT deducted at a rate of 19.5 percent, 33 percent or 39 percent.

If the recipient does not provide the interest payer with a taxpayer identification number, a non-declaration rate of 39 percent applies. Certain recipients of interest or dividends (such as charitable or non-profit organisations, sports clubs and others) may apply for exemption from RWT.

Imputation credits

Dividends received from a New Zealand company may have imputation credits and/or withholding payment credits attached. An imputation credit is a tax credit received from a company for tax it has already paid on its profits. It therefore avoids the double payment of tax (by the company and its shareholders) on the same income.

Withholding payment credits arise when a New Zealand company has paid dividend withholding payments on foreign dividends received.

The imputation system integrates personal and business tax for company income distributed as dividends, and allows the benefit for tax paid by the company to be passed on to the shareholder.

Since April 2003, eligible Australian companies are able to elect to be a New Zealand imputation credit account company; since October 2003, New Zealand shareholders in these Australian companies are able to claim imputation credits allocated for their share of New Zealand tax paid by the company.

Rebates

Rebates are reductions from the amount of tax to be paid. Inland Revenue administers several types of rebates for personal taxpayers. These include:

  • a rebate for low-income New Zealand resident taxpayers

  • a transitional tax allowance for certain full-time employees

  • a child rebate for taxpayers aged 18 or under, provided they turned 18 after 1 January of the preceding tax year and that they attended school

  • a housekeeper/childcare rebate for working parents who pay for childcare, or for disabled people who pay for help with childcare or housekeeping – the maximum rebate is $310

  • a rebate for charitable donations, which is 33.3 percent of all qualifying donations (the minimum qualifying charitable donation is $5).

Company taxation

Company taxation is deducted under the Income Tax Act 2004. (Income Tax Act 2007 for income earned during the 2008/09 and subsequent tax years). The company rate of taxation differs from that of individuals, in that a company does not get any of the exemptions or rebates individuals are entitled to, and a flat tax rate applies.

From the 2008/09 income year, the company tax rate reduced from 33 percent to 30 percent.

Certain companies can get a rebate for gifts of money to charitable organisations, but there is a threshold to the amount they can claim.

Company taxation in the year ending 30 June 2007 produced $9,622 billion.

A company resident in New Zealand is assessable on all income, whether earned in New Zealand or elsewhere. A company is a New Zealand resident if one or more of the following applies:

  • it is incorporated in New Zealand

  • its head office is in New Zealand

  • its centre of management is in New Zealand

  • control of the company by its directors is exercised in New Zealand.

Companies that maintain imputation accounts receive a tax credit when they pay tax on their taxable income, under the Income Tax Act 2004, and these credits are attached to dividends paid to shareholders.

A company not resident in New Zealand is liable for tax only on income earned in New Zealand. Non-resident companies are taxed at 33 cents in the dollar for any activity they conduct in New Zealand. For most non-residents who simply earn interest or dividend income, non-resident withholding tax is the final New Zealand tax on that income.

Fringe benefit tax

Fringe benefit tax (FBT) is a tax on certain non-monetary benefits employees receive from their employer as part of their employment, for example, a company car. It is payable at the rate of 64 percent. However, employers have the option of using the multi-rate calculation process, which reflects the remuneration level of those employees receiving benefits. FBT is payable by the employer on an annual or quarterly basis.

Taxable fringe benefits include private use of a motor vehicle by an employee; low-interest loans; free, subsidised or discounted transport and other goods and services; and the employer's contribution to accident, sickness, or death benefit fund and insurance policies.

Total FBT collected in the year ending 30 June 2007 was $467.7 million.

Wine is one of the goods on which excise duty is levied. Excise duty is a tax imposed by the government on certain products such as alcoholic beverages, tobacco products, and fuels.

Figure 27.03.

Goods and services tax

Goods and services tax (GST) is a value-added tax charged at 12.5 percent on supplies of most goods and services provided in New Zealand. GST was introduced at a rate of 10 percent in 1986 and increased to 12.5 percent in 1989.

All companies and individual traders with an annual turnover of $40,000 or more must register for GST.

People registered for GST must charge GST on the goods and services they supply. GST-registered suppliers of goods and services pay GST on purchases made and expenses incurred in the course of their business, but may claim it back later. Registered people must pay the GST they have collected, less that on their purchases, to Inland Revenue.

Some activities, such as salaries and wages, hobby activities, and private sales of personal and domestic items, are not taxable supplies.

GST is not charged on exempt supplies. Exempt supplies include residential property rentals, the sale of donated goods, and services by non-profit organisations.

Total GST collected in the year ending 30 June 2007 was $9.71 billion.

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, and compressed natural gas (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 when they are imported into New Zealand.

The excise regime is dependent on the licensing of areas within which excisable goods may be manufactured or stored, and within which customs powers may be exercised. These customs-controlled areas – including manufacturing areas, off-site storage areas, export warehouses, and duty-free shops – may be licensed for the purpose of:

  • the manufacture of excisable goods (for example breweries, wineries, tobacco manufacturing plants, distilleries, petrol refineries)

  • the deposit, keeping or securing of imported goods, without payment of duty on the goods, pending export of those goods (for example ships' provedores)

  • storage by, or for, the manufacturer or the first owner of wine manufactured in New Zealand, where the wine cannot physically be accommodated within the area in which it was manufactured (that is, off-site storage of wine)

  • storage of imported goods, or goods manufactured in a manufacturing area, of a kind that are subject to duty and on which duty has not been paid, pending the sale of those goods to people departing to, or arriving from, a country outside New Zealand, or to people who are entitled to the supply of goods free of duty. These premises are usually duty-free shops.

Excise duty must be paid when the excisable product is removed 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. Liability for excise-equivalent duty is triggered by importation of the goods.

Excise-equivalent duty must be paid in accordance with the customs-deferred payment system, or before the goods are delivered from customs control.

Rates of excise duty and excise-equivalent duty are contained in the third schedule to the Act. The legislation provides discretionary authority for the government to apply increases to the rates of excise and excise-equivalent duties on alcoholic beverages and tobacco products, in accordance with movement in the consumers price index. Adjustments may be made to alcoholic beverage rates on 1 July of any year, and to rates of duty on tobacco products on 1 January in any year. Excise-equivalent duty rates are similarly adjusted.

Similar provision exists for the rates of excise and excise-equivalent duty on petroleum, with adjustments in accordance with movement in the consumers price index able to be applied on 1 April of any year.

Figure 27.03 shows customs and excise receipts for the year ending June 2001–07 as a proportion of consolidated account taxation.

Fuel excise and road user charges

Excise and excise-equivalent duty is paid on all purchases of petrol, liquid petroleum gas (LPG) and compressed natural gas (CNG). The excise and excise-equivalent duty is incorporated into the pump price of fuel on a per-litre basis.

In 2008, the excise duty on petrol was 42.5 cents per litre (excluding GST). The duty on LPG was 10.4 cents per litre and the duty on CNG was 10.5 cents per litre.

The Road User Charges Act 1977 requires all vehicles that are powered by diesel or that weigh over 3.5 tonnes to purchase a road user charge licence, depending on the gross weight of the vehicle and the distance to be travelled. Road user charges are based on the wear and tear that a vehicle causes to the land transport network. The cost for a road user charge licence varies, depending on the number of axles, the number of wheels and the weight of the vehicle.

At May 2008, 23.8 cents per litre of petrol excise duty, and the total excise duty for LPG and CNG, was paid into the National Land Transport Fund (NLTF). From 1 July 2008, all excise collected from petrol has gone to the NLTF. Already, all road user charges and motor vehicle registration fees are paid into the NLTF. Since 2004, appropriations have also been made to the NLTF from general Crown revenue, on a case-by-case basis, to enable the land transport network to meet user demand.

The Customs and Excise Act 1996 was amended to allow the annual option of increasing, by any rate up to the rate of inflation, the road user charges for 1- to 6-tonne vehicles, and that portion of petrol excise duty that is paid into the NLTF. The first increase took place on 1 April 2006. The NLTF portion of petrol excise and 1- to 6-tonne road user charge rates were indexed to the movement of inflation on 1 April 2007. At this time, for vehicles weighing over 6 tonnes, rates were increased by an average of 11 percent, the first increase in 17 years.

The NLTF fund contributes to the maintenance and construction of New Zealand's land transport network, alternatives to reading such as public transport, administration, traffic enforcement, and road safety education and publicity.

Gift duty

Gift duty is payable by a person giving a gift to another. It is charged at a progressive rate, according to the total value of gifts given by a donor within a 12-month period. Dutiable gifts with a total combined value of $27,000 in any 12-month period do not have gift duty charged on them. From there, the rate rises from 5 percent, to a top rate of 25 percent on gifts exceeding $72,000 in any 12-month period. Dutiable gifts include the transfer of property such as company shares or land, any form of payment, and forgiveness or reduction of debt.

A gift duty statement must be provided to Inland Revenue when the value of the gift exceeds $12,000, or when the value of gifts within the previous 12 months exceeds $12,000.

Stamp duty

Stamp duty was abolished from 21 May 1999, but remains payable on the sale and lease of commercial land by transfer, or by lease if the transaction was completed before that date.

Cheque duty

Cheque duty is payable, with exceptions, on all cheques and other bills of exchange made or drawn. Licensed banks are required to forward quarterly statements containing particulars of all bill-of-exchange forms to Inland Revenue. Licensed printers who print prepaid bills of exchange are required to forward statements to Inland Revenue monthly.

Cheque duty is set at the rate of 5 cents per bill of exchange, or 5 cents per form when the duty is prepaid.

The National Land Transport Fund contributes to traffic enforcement. Here, Police launch their first checkpoint and booze bus patrols of the 2007 Christmas season in Wellington.

Gaming machine operators pay a levy to inland Revenue to contribute to the costs of developing, managing, and delivering an integrated problem-gambling strategy.

Gaming duty

Gaming duty consists of totalisator duty, lottery duty, gaming machine duty, and casino duty.

Totalisator duty is payable at the rate of 4 percent of the betting profits for all racing betting (horses and greyhounds), sports betting, and fixed-odds racing betting. The New Zealand Racing Board must forward a statement to Inland Revenue by the 20th of each month.

Lottery duty is payable at the rate of 5.5 percent of the nominal value of all tickets in the drawing of a lottery, including instant games, lotteries, and prize competitions promoted by the New Zealand Lotteries Commission. Organisers of a lottery are required to supply Inland Revenue with a statement of lottery duty payable, and pay it within 14 days of drawing the lottery.

Gaming machine duty is payable at the rate of 20 percent of profits from dutiable games played on gaming machines. Gaming machine operators are required to send a statement to Inland Revenue each month, setting out the gaming machine duty, and must pay the duty by the due date.

Casino duty is payable at the rate of 4 percent on the casino wins of any casino. Casino operators are required to send a statement of the casino wins to Inland Revenue and pay casino duty on a monthly basis.

Total gaming duties assessed in the year ending 30 June 2007 were $271.2 million.

Problem gambling levy

The Government introduced a levy on player expenditure from 1 October 2004. The purpose of the levy is to recover the cost of developing, managing, and delivering an integrated problem-gambling strategy.

The levy is payable on gaming profits and is collected through monthly returns. The following levy rates (GST exclusive) applied from 1 July 2007, and will be reviewed every three years:

  • casino operators – 0.72 percent

  • non-casino gaming machine operators – 1.70 percent

  • New Zealand Racing Board – 0.55 percent

  • New Zealand Lotteries Commission – 0.20 percent.

The levy rate takes account of the level of attributable harm and total revenue for each sector. Revenue collected for the year ending 30 June 2007 was nearly $15.0 million, made up of levies from:

  • casino operators – $2,387,422

  • non-casino gaming machine operators – $10,624,655

  • New Zealand Racing Board – $ 1,531,760

  • New Zealand Lotteries Commission – $440,083.

International tax

Non-residents are taxed in New Zealand only if their income is from a New Zealand source. If the income is interest, dividends or royalties, a person is liable for non-resident withholding tax (NRWT). NRWT is deducted by a payer of non-resident withholding income.

Provided certain criteria are met, the resident payer of interest can seek registration as an approved issuer and pay an approved issuer levy of 2 percent. The non-resident may be able to claim NRWT as a credit in the country of residence – subject to the tax regime in that country. However, the approved issuer levy cannot be claimed as a credit as it is not a tax and has not been deducted from the interest.

For tax purposes, individuals are considered to be resident in New Zealand when they fulfil one or more of the following criteria:

  • they have an enduring relationship with New Zealand, that is, strong financial, personal or other ties with New Zealand – each case is considered on its facts

  • they have been in New Zealand for more than 183 days in any 12-month period

  • they are away from New Zealand in the service of the New Zealand Government.

Individuals cease to be New Zealand residents if they are absent from New Zealand for more than 325 days (about 11 months) in any 12-month period, and they do not have an enduring relationship with New Zealand during that time.

Pensions New Zealand residents who receive a pension from a foreign country, including those with which New Zealand has a double tax agreement, are generally subject to tax in New Zealand. If the person receiving the pension is taxed in the country of origin, credit is generally allowed against New Zealand income tax for the overseas tax paid, up to the amount of New Zealand tax on that income.

Eric King – Turner and his wife Doris arrived from England in February 2008 to start a new life in Wellington. At 102 years, Eric is New Zealand's oldest immigrant. New Zealand has double tax agreements with 34 countries, including the United Kingdom. This means that a person receiving a pension taxed in the country of origin is generally allowed a credit against New Zealand income tax for the overseas tax paid.

Double tax agreements New Zealand has agreements to avoid double taxation with the following countries: Australia, Austria, Belgium, Canada, Chile, the People's Republic of China, Denmark, Fiji, Finland, France, Germany, India, Indonesia, Ireland, Italy, Japan, the Republic of Korea, Malaysia, Mexico, the Netherlands, Norway, the Philippines, Poland, the Russian Federation, Singapore, South Africa, Spain, Sweden, Switzerland, Taiwan, Thailand, the United Arab Emirates, the United Kingdom, and the United States.

A visitor from one of these countries who has received income from New Zealand sources should refer to the relevant agreement at the following link: www.taxpolicy.ird.govt.nz/international/DTA.

Social assistance

Working for Families is a package designed to help make it easier to be in paid work and raise a family. Entitlement is based on combined family income and the number and age of children.

The Working for Families package has three components: Working for Families Tax Credits (administered jointly by Inland Revenue and the Ministry of Social Development), Childcare Assistance, and the Accommodation Supplement (administered solely by the Ministry of Social Development).

Other forms of social assistance include child support and student loans for tertiary students.

Working for Families tax credits are paid to families with children aged 18 years or under, to help with the cost of raising a family. There are four types of payments: family tax credit, parental tax credit, in-work tax credit, and minimum family tax credit. If the family receives an income-tested benefit, family tax credit can be paid by the Ministry of Social Development. If the family receives an income-tested benefit they are not entitled to the other three credits.

Family tax credit – is the main part of the Working for Families initiative and involves a payment to eligible families for each child living at home, up to the age of 18. How much is paid depends on how many children are living at home and how old they are, and on the combined family income.

In-work tax credit – from the 2006/07 tax year, child tax credits were gradually phased out and replaced by the in-work tax credit. However, in some circumstances, families that do not qualify for the in-work tax credit may continue to receive child tax credits, until they no longer meet the eligibility requirements. The in-work tax credit is $60 per week for up to three children and a further $15 for each additional child.

Parental tax credit – provides extra financial support, to a maximum of $150 per child per week, for the first eight weeks after a child is born.

Minimum family tax credit – tops up a family's total income to at least $22,119 a year before tax – $347 after tax each week (2007/08 year). If either partner has been injured and is receiving accident compensation payments, but would usually be working, they may still be eligible for the minimum family tax credit.

For the minimum family tax credit, and the in-work tax credit, at least one parent must be in paid work. For the minimum family tax credit this must be work for salary or wages. The combined weekly hours of work in a two-parent family must be at least 30 hours; in a single-parent family, it is at least 20 hours.

Child support – Inland Revenue administers the Child Support Act 1991. Child support is money paid by parents not living with their children to help financially support those children. To qualify for child support, the child must be under the age of 19, be a New Zealand citizen or ‘ordinarily resident’ in New Zealand, be not married or in a civil union or in a de facto relationship, and be financially dependent.

The person caring for the child (the custodian) generally applies for child support. Custodians are sometimes people other than parents, such as grandparents, a member of the whānau or extended family, or Child Youth and Family. In these cases, both parents may be required to pay child support. Custodians receiving a sole-parent benefit must apply for child support.

The Child Support Act 1991 sets a minimum annual rate of child support, and a maximum income amount taken into account in calculating an assessment. The paying parent must pay the rate calculated under the child support formula, within these minimum and maximum limits.

A three-step calculation (the child support formula) is used to work out how much child support a paying parent needs to pay. The formula uses the paying parent's taxable income, less a set living allowance (the amount of which depends on their living arrangements, eg whether they have a partner and/or children living with them), and multiplies the result by a percentage – based on the number of children the paying parent pays child support for.

Inland Revenue collects payments from the paying parent and passes them on to the custodian to assist with care of the child, or to the government to help offset the cost of the benefit, if the custodian is receiving a sole-parent benefit. The payment is passed on only when it has been received from the paying parent.

Students attend a first-year physics lecture at Otago University. Since 1 April 2006, student loans for borrowers living in New Zealand for 183 consecutive days or more have been interest-free, whether they are still studying or not.

In 2007, there were approximately 174,000 paying parents, 177,000 custodians and 285,000 children for whom child support was paid. The overall debt collection rate (excluding penalties) is approximately 88.5 percent. In the year ending 30 June 2007, Inland Revenue collected $346.6 million from paying parents, of which $173.0 million was paid to custodians and $173.6 million was paid to the Government.

Student loans The Ministry of Education manages policy aspects of the student loan scheme, and StudyLink processes loan applications and administers payments to borrowers. Loans are transferred to Inland Revenue on 28 February following the end of the calendar year in which a borrower was studying.

Inland Revenue assesses and collects loan repayments until the loan is repaid. Interest rates and repayment thresholds are reviewed annually, and are effective from 1 April to 31 March.

The student loan total annual interest rate for the 2007/08 financial year was 6.8 percent and the repayment threshold for the 2007/08 tax year was $17,784. Borrowers earning over the repayment threshold are legally required to repay 10 cents in the dollar of every dollar earned over the repayment threshold. Those on a salary or wages generally have their loan repayments deducted at source, along with PAYE deductions.

Since 1 April 2006, student loans for borrowers living in New Zealand for 183 consecutive days or more (with some exceptions to this requirement) have been interest free.

Government statistics

Table 27.06 (overleaf) is from the Government's accounts. As well as taxes and duties collected by Inland Revenue, the accounts also include taxes and duties collected by the New Zealand Customs Service. It shows tax revenue for the 2006 and 2007 June years, and forecasts for 2008–11.

Taxation review authorities

The Taxation Review Authorities Act 1994 established taxation review authorities. There are two authorities, each consisting of one person who is either a district court judge, or a barrister or solicitor of the High Court with no fewer than seven years practice. The authorities are appointed by the Governor-General on recommendation of the Minister of Justice.

The authorities sit as judicial authorities for hearing and determining objections and challenges to assessments of tax, or to decisions or determinations of the Commissioner of Inland Revenue.

Table 27.05. Public account taxation and national disposable income(1)(2)(3)
Year ending 30 June

YearPublic account taxation
National disposable incomeTotalNational disposable income
$(million)Percent

(1) Data from 1997 to 2005 has been revised.

(2) Accounts prepared on an accrual basis.

(3) The public account taxation series includes the removal of goods and services tax (GST) on Crown expenses.

Source: Statistics New Zealand

199777,91830,54639.2
199881,63031,51138.6
199984,06230,52536.3
200087,97532,24836.7
200192,36634,99537.9
2002100,54536,45936.3
2003106,16840,16837.8
2004113,87143,00837.8
2005119,85947,11839.3
2006124,23952,44442.2
2007130,57353,41140.9

Table 27.06. Breakdown of tax revenue
Year ending 30 June

Revenue/expensesActual (Old GAAP)Forecast (New GAAP)
200620072008200920102011
$(million)
Source: The Treasury
Direct income
Individuals
   Source deductions19,98521,08522,33423,69525,09426,619
   Other persons5,0754,4404,5534,7745,1695,529
   Refunds(953)(1,080)(1,102)(1,130)(1,205)(1,260)
   Fringe benefit tax451468474498519546
   Total individuals24,55824,91326,25927,83729,57731,434
Corporate tax
   Gross companies tax9,4398,6188,2227,4697,7658,190
   Refunds(270)(296)(255)(260)(260)(260)
   Non-resident withholding tax1,0961,1891,0051,0021,0201,009
   Foreign-source dividend withholding payments160149102868686
   Total corporate10,4259,6609,0748,2978,6119,025
Other income tax
   Resident withholding tax on interest income1,8802,2272,3402,4412,3622,376
   Resident withholding tax on dividend income748992114249296
   Estate & gift duties322222
   Total other1,9572,3182,4342,5572,6132,674
Total direct income tax revenue36,94036,89137,76738,69140,80143,133
Indirect income
Goods & services tax
   Gross goods & services tax18,36719,52719,72620,70421,72922,844
   Refunds(7,664)(8,325)(8,231)(8,711)(9,396)(9,948)
   Total indirect10,70311,20211,49511,99312,33312,896
Other indirect taxation
   Petroleum fuels excise852819903921938955
   Tobacco excise834238148150152154
   Customs duty1,0831,8361,8651,8491,8731,921
   Road user charges7317868779339881,043
   Alcohol excise516553586614641670
   Gaming duties275245215214212212
   Motor vehicle fees221222219228233239
   Energy resources levies735434343464
   Approved issuer levy & cheque duty839264646464
   Total other indirect4,6684,8454,9115,0075,1355,322
Total indirect taxation15,37116,04716,40617,00017,46818,218
Total tax revenue collected52,31152,93854,17355,69158,26961,351

Assets and liabilities

Public debt management

The New Zealand Debt Management Office (NZDMO) is responsible for managing the government's New Zealand-dollar and foreign-currency debt, some liquidity assets, and overall net cashflows within an appropriate risk management framework.

Principal risks managed are market, credit, liquidity, funding, concentration, and operational risk.

In 1988, NZDMO introduced reforms to public sector cash management, involving the centralisation of surplus cash funds for investment and cash management, and decentralisation of responsibility for payments and other banking operations to departments.

Separation of the government's financial management from monetary policy implementation, which is the responsibility of the Reserve Bank of New Zealand, enables NZDMO to focus on defining a low-risk net liability portfolio for the government and implementing it in a cost-effective manner.

Before March 1985, the government borrowed externally to finance the balance of payments deficit and maintain a fixed exchange rate. Since the adoption of a freely floating exchange rate, the government has borrowed externally only to finance foreign-exchange reserves. All other borrowing has been in the domestic market.

Net foreign-currency debt was eliminated in September 1996 through the proceeds from asset sales and, since 1994, fiscal surpluses.

Debt record

New Zealand has always paid, when due, the full amount of principal, interest and amortisation requirements on its external and internal debt, including guaranteed debt. The government's long-term fiscal objectives include running operating surpluses, on average, over the economic cycle, to allow a build-up of assets to meet future New Zealand Superannuation costs.

Total debt is to be managed at prudent levels, with gross sovereign-issued debt broadly stable at around 20 percent of GDP over the next 10 years. Quantifiable contingent liabilities of the Government, including the Reserve Bank of New Zealand, state-owned enterprises and Crown entities, amounted to approximately $5.2 billion at 30 June 2007. Figure 27.04 shows gross and net public debt as a proportion of GDP for June 1977–2007.

Table 27.07 is one of the key statements from the Government's financial statements, the statement of borrowings for the 2006–07 June years, and forecasts for 2008–11.

Table 27.08 shows central government debt from June 1991–2007.

Table 27.09 (overleaf) shows the maturity profile of New Zealand Government debt at 30 June 2007.

Table 27.07. Statement of borrowings
Year ending 30 June

 Actual (Old GAAP)Forecast (New GAAP)
200620072008200920102011
$(million)

(1) Includes restricted assets.

Symbol:.. figure not available

Source: The Treasury

Borrowings
   Government retail stock532471358358358358
   Settlement deposits with the Reserve Bank1,9647,5077,5237,5237,5237,523
   Derivatives in loss....300186174154
   Finance lease liabilities....958949941937
   Other borrowings8,65127,77216,70718,54819,11920,150
   Total borrowings11,14735,75025,84627,56428,11529,122
Foreign-currency debt
   United States dollars14,430(3,937)........
   Japanese yen404(603)........
   European & other currencies3,898(857)........
   Total foreign currency debt18,732(5,397)7,3214,7453,1324,187
Borrowings – sovereign guaranteed29,87930,35333,16732,30931,24733,309
Borrowings – non-sovereign guaranteed
Non-sovereign guaranteed debt
   New Zealand7,1988,900........
   United States dollars1,7941,564........
   Japanese yen279133........
   European & other currencies277435........
Total non-sovereign guaranteed debt9,54811,03213,19714,74115,27516,382
Total borrowings (gross debt)39,42741,38546,36447,05046,52249,691
Less
Financial assets(1)
Marketable securities, deposits & equity investments.
   New Zealand dollars8,00344,554........
   United States dollars11,080(10,860)........
   Japanese yen615(286)........
   European & other currencies7,970(191)........
   Reserve position at International Monetary Fund458183........
   New Zealand equity investments2,7213,598........
   Foreign equity investments12,67314,491........
Total marketable securities, deposits & equity investments43,52051,489........
Advances & cash ..........
   Student loans5,5696,011........
   Other advances3,1894,255........
   Cash4,1684,629........
   Total advances & cash12,92614,895........
Total financial assets56,44666,384........
Borrowings less financial assets(17,019)(24,999)........
Net New Zealand-dollar (assets)/debt(5,569)(18,829)........
Net foreign currency (assets)/debt(11,450)(6,170)........
Borrowings less financial assets(17,019)(24,999)........

Table 27.08. Gross sovereign-issued debt
At 30 June

 AmountPer head of population
Year$(million)$
Source: Statistics New Zealand
199735,9729,513
199837,8929,932
199936,7129,573
200036,0419,342
200136,7619,473
200236,2029,169
200336,0868,961
200435,5278,692
200535,0458,477
200635,4618,474
200736,1508,550

Figure 27.04.

Table 27.09. Refinancing/repricing risk(1)
Periods within which assets and liabilities will mature or reprice
At 30 June 2007

Asset/liabilityTotal0–12 months1–2 years2–5 years5–10 years10+years
$(million)

(1) Refinancing/repricing risk refers to the risk that maturing debt is refinanced, maturing assets are reinvested, or instruments repriced are at an acceptable yield.

Source: The Treasury

Domestic assets
   Cash & deposits3,61800000
   Marketable securities25,00520,2351,8791,073869949
   Others3,6422,89061810133
Domestic liabilities
   Government stock16,83402,5716,1355,6082,520
   Treasury bills2,0802,0800000
   Retail stock47143033800
   Others25,26630,257(1,195)(1,270)(1,328)(1,198)
Foreign assets
   Cash & deposits1,0981,0980000
   Marketable securities6,9524,6841844901,122472
   Others15,80315,7990004
Foreign liabilities
   Foreign currency debt(3,266)(5,774)354837940377

Contributors and related websites

Accident Compensation Corporation – www.acc.co.nz

Inland Revenue – www.ird.govt.nz

KiwiSaver – www.kiwisaver.govt.nz

Land Transport New Zealand – www.landtransport.govt.nz

Local Government New Zealand – www.localgovtnz.co.nz

Ministry of Social Development – www.msd.govt.nz

Ministry of Transport – www.transport.govt.nz

New Zealand Customs Service – www.customs.govt.nz

Reserve Bank of New Zealand – www.rbnz.govt.nz

State Services Commission – www.ssc.govt.nz

Statistics New Zealand – www.stats.govt.nz

The Treasury – www.treasury.govt.nz

Work and Income New Zealand – www.winz.govt.nz

Glossary

Abortion

Fetal loss excluding stillbirths, usually during the first 20 weeks of gestation. ‘Induced’ abortions are those initiated voluntarily with the intention of terminating a pregnancy. All other abortions are called ‘spontaneous’, even if an external cause such as injury or high fever is involved. All abortion statistics and derived abortion rates are based on the number of legally-induced abortions. No information is available on spontaneous or illegal abortions.

Accreditation

The process by which a State (eg Canada) formally agrees to accept a head of mission from a second State (eg New Zealand) as that country's representative, with authority to act on the second State's behalf. A head of mission can be cross-accredited to act in a third State (eg Jamaica) while living outside its border (eg in Canada).

Ad valorem duty

A type of duty that is paid as a percentage of the imported goods' value.

Additions to fixed assets

Purchases of new and second-hand fixed assets, and the cost of work done by a firm's employees in producing, constructing and installing fixed assets for its own use.

ANZSIC06

The Australia New Zealand Standard Industry Classification is a hierarchical industrial classification that groups businesses based on the types of economic activities they carry out.

Assumption

A statement about a future course of behaviour from which demographic projections are derived.

Baby boom

Usually the period 1946–65, which is associated with high fertility rates and high numbers of births.

Balance of payments

(BOP) A statistical statement that systemically summarises, for a specific time period, the economic transactions of an economy with the rest of the world.

Balance of payments conceptual adjustments

Adjustments to international trade statistics to bring the value of exports and imports into line with balance of payments concepts. Imports are adjusted to free on board (fob) value. Exports are adjusted for goods shipped and sold on consignment.

Balance on current account

A balance of payments statement is presented as a series of accounts – current, capital and financial. The current account records the export and import of goods and services, income earned and paid and, under current transfers, offsetting entries to resources supplied or received from nonresidents. The sum of the exports of goods and services, earnings and resources received (inflows), less imports of goods and services, income paid and resources supplied (outflows) is the balance on current account. The account is usually in either surplus (inflows exceed outflows) or deficit (outflows exceed inflows).

Balance on current transfers

This is calculated by deducting total debit entries from total credit entries for all current transfers components, for example, income tax and international aid.

Balance on goods

This is calculated by deducting the total imports of goods from the total exports of goods. The balance is a surplus when exports of goods exceed imports.

Balance on income

This is calculated by deducting the total income accruing to foreign investors from their investments in New Zealand, from the total income earned by New Zealand investors from their investments abroad. Income includes profits, dividends and interest.

Balance on services

This is calculated by deducting total imports of services from total exports of services. Services include transportation, travel and insurance.

Balance on the external current account

(national accounts) This is the residual item for the external account – the excess of income from the rest of the world over payments to the rest of the world. A negative value indicates payments exceed income.

Banking sector

All units engaging in financial intermediation as a principal activity and having liabilities in the form of deposits or financial instruments.

Birth rate

(crude) The number of live births per 1,000 mean estimated population.

Births

Includes live births and stillbirths.

Bonds and notes

Financial instruments that give the holder the unconditional right to a fixed money income, or a contractually-determined variable money income.

Capital account

This account records all transactions that involve the receipt or payment of capital transfers, and acquisition or disposal of non-produced, non-financial assets such as patents and copyrights. The balance is equal to debit entries (inflows) minus credit entries (outflows).

Capital transfers to/from the rest of the world

(national accounts) This is the excess 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.

Census

A survey of the total population of interest. New Zealand's Census of Population and Dwellings, carried out at five-yearly intervals, is an example of a census.

Census night population count

A count of all people present in a given area on a given census night. The census night population count of New Zealand includes visitors from overseas, but excludes residents who are temporarily overseas on census night. For a subnational area, the count includes visitors from overseas and elsewhere in New Zealand (people who do not usually live in that area), but excludes residents of that area who are temporarily absent on census night.

Census undercount/overcount

Census undercount is the number of people missed by a census who were meant to be counted. Census overcount is the number of people counted by a census who should not have been counted, or who were counted more than once. Net census undercount is the difference between the under- and overcount, usually expressed as a percentage of what the complete count should have been, rather than as a percentage of what was counted.

Census usually resident population count

A count of all people who usually live in a given area, and are present in New Zealand, on a given census night. This count excludes both visitors from overseas and residents who are temporarily overseas on census night. For a subnational area, this count excludes visitors from overseas and elsewhere in New Zealand (people who do not usually live in that area), but includes residents of that area who are temporarily elsewhere in New Zealand on census night.

Chain-volume series

Chain-volume measures express gross domestic product and its components with price effects removed. To do this involves revaluing a current price time series (of components) in the price of a chosen base period. Since chain-volume measures are done at component level, the components are not additive.

Change in inventories

(national accounts) This consists of changes in:

  • stocks of outputs that are held by the units that produced them before the stocks are further processed, sold or delivered to other units

  • stocks of products acquired from other units that are intended to be used for intermediate consumption, or for resale without further processing.

They are measured by the value of the entries into inventories, less the value of withdrawals, and the value of any recurrent losses of goods held in inventories. Work in progress is included.

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 wharf or airport in New Zealand.

Compensation of employees

(national accounts) Total remuneration, in cash or in kind, payable to employees by enterprises. As well as salaries and wages, it includes contributions paid on an employee's behalf to a superannuation fund, a private pension scheme, the Accident Compensation Corporation, a casualty and life insurance scheme, and other fringe benefits.

Compensation of employees to/from the rest of the world

(national accounts) In principle, these items cover the compensation that residents of one country earn from employment in another, where they are classed as non-residents (because their stay is for less than 12 months). In practice, data available does not permit estimates of these items.

Consensual union/de facto union

Two people usually living in the same dwelling, but not in a registered marriage to each other, who share mutual concern for each other, have a degree of economic, social and emotional interdependence, and consider their relationship to be akin to marriage.

Constant price estimate

This is an estimate in which the portion of the sales movement caused by a price change has been removed.

Consulate-general

(foreign affairs) A country's office in a second country, which provides the full range of consular functions, and may also offer non-commercial trade or tourism activities. A consul-general is usually authorised to cover one large or significant consular district, or several smaller ones. A consulate (headed by a consul or honorary consul) provides only consular functions. An honorary consul is usually a national of the host country who performs consular duties on behalf of the foreign country.

Consumers price index

(CPI) The official measure of inflation in the New Zealand economy. The CPI measures changes in the prices of goods and services purchased by New Zealand households.

Consumption of fixed capital

(national accounts) This represents the reduction in the value of fixed assets used in production, during the accounting period, that results from physical deterioration, normal obsolescence, or normal accidental damage. It is valued at replacement cost.

Crown entity

A body established by law in which the government has a controlling interest, but which is separate from the Crown. Control can be through owning a majority of the voting shares or by having the power to appoint and replace a majority of the governing members.

Crown research institute

A government-owned business with a scientific purpose. There are nine institutes, each based around a productive sector of the economy or a grouping of natural resources.

Current account

This account records all transactions (other than those in financial items) that involve economic values and occur between New Zealand-resident and non-resident entities. Also recorded are offsets to current economic values provided or acquired without a quid pro quo. The major classifications are goods, services, income and transfers.

Current transfers to/from the rest of the world

(national accounts) These refer to current transfers that take place between residents in New Zealand and non-residents. Examples include government aid in the form of food, clothing and medical supplies; social contributions and/or benefits; and personal transfers such as gifts.

Death rate

(crude) The number of deaths per 1,000 mean estimated population.

Density

(of population) The average number of people per square kilometre (or hectare) in a particular locality.

Depreciation

Lowering of value, as charged in books of account, on fixed tangible assets.

Direct investment

Investments 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 is to have a significant influence in the management of the enterprise. The International Monetary Fund defines ‘significant influence’ in the direct investment enterprise as the investor holding at least 10 percent of the voting capital of the enterprise. Once the relationship is established, all forms of financial capital investment between the direct investor and direct investment enterprise are classed as direct investment, that is, equity and debt.

Direct investment income

Income earned by investors from their direct investment relationship with an enterprise. The income includes dividends (including bonus issues of shares), interest, earnings of branches, and direct investors' share of the earnings of direct investment enterprises that are not distributed.

Domestically-issued securities

These securities are domestically-issued bonds and notes, taken up directly by non-resident organisations and individuals, or through New Zealand organisations acting as nominees.

Dwelling

A structure, part of a structure, or a group of structures used, or intended to be used, as a place where people live.

Economically-significant enterprise

An enterprise meeting at least one of the following criteria:

  • greater than $30,000 annual GST expenses or sales

  • at least three for its rolling mean employment (the average employee count over the previous 12 months)

  • in a GST-exempt industry, except residential property leasing and rental

  • part of a group of enterprises

  • a new GST registration that is compulsory, special or forced (ie the business is expected to exceed the $30,000 limit)

  • registered for GST and involved in agriculture or forestry.

Employed

All people in the working-age population who, during the reference week: worked for one hour or more for pay or profit, in the context of an employee/employer relationship or self-employment; or worked without pay for one hour or more in work that contributed directly to the operation of a farm, business or professional practice owned or operated by a relative; or had a job but were not at work due to various factors (own illness or injury, personal or family responsibilities, bad weather or mechanical breakdown, direct involvement in an industrial dispute, or leave, or holiday).

Employee count

(EC) The count of all people who are paid a salary or wages, and pay tax on this payment. The EC refers mostly to employees, but includes a small number of working proprietors who also pay themselves a taxable salary or wage. The EC data is derived from the Employer Monthly Schedule, provided by employers to Inland Revenue.

Employer contributions

Payments by employers to superannuation, pension and welfare schemes, and accident compensation levies.

Employment status

This describes a person's employment status within the labour force. Employed people aged 15 years or over are classified according to whether they work for themselves or other people either in full- or 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. It can be a company, a partnership, a trust, an estate, an incorporated society, a local or central government organisation, a voluntary organisation, or a self-employed individual.

Estimated resident population

An estimate of all people who usually live in a given area at a given date. The estimated resident population of New Zealand includes all residents present in New Zealand and counted by the census (census usually resident population count), residents who are temporarily overseas (who are not included in the census), and an adjustment for residents missed or counted more than once by the census (net census undercount). Visitors from overseas are excluded. For a subnational area, the estimate includes residents of that area who are temporarily absent on census night but excludes visitors from elsewhere in New Zealand (people who do not usually live in that area). The estimated resident population at a given date after census includes births, deaths and net migration (arrivals less departures) of residents during the period between census night and the given date.

Ethnicity

An ethnic group is made up of people who have some or all of the following characteristics: a common proper name; one or more elements of common culture, which need not be specified but may include religion, customs or language; unique community of interests, feelings and actions; a shared sense of common origin or ancestry; and a common geographic origin. Ethnicity is self-perceived and people can belong to more than one ethnic group. People can identify with an ethnicity even though they may not be descended from ancestors with that ethnicity. Conversely, people may choose to not identify with an ethnicity even though they are descended from ancestors with that ethnicity.

Excise

A duty or tax on goods produced or sold within the country of origin.

Exports of goods and services

All goods and services produced by New Zealand residents and purchased by non-residents.

External migration

The short-term and long-term movement of overseas and New Zealand travellers in to and out of New Zealand. External migration statistics are compiled from individual migration forms filled in by passengers arriving in and departing from New Zealand. The classes of arrival and departure are: overseas visitor, New Zealand resident departing from New Zealand or returning after a short-term absence, permanent and long-term arrival, permanent and long-term departure.

Family

A couple, with or without children, or one parent with one or more children, usually living together in a household.

Fertility

The actual level of reproduction of a population, based on the number of live births that occur. Fertility is normally measured in terms of women of childbearing age.

Fertility rate

(total) The average number of live births that a woman would have during her life, if she experienced the age-specific fertility rates of a given period (usually a year). It excludes the effects of mortality.

Final consumption expenditure

(national accounts) Expenditure, including imputed expenditure, on goods and services according to which sector (private and government) actually pays for the goods and services, and therefore makes the decision on the expenditure.

Financial account

This account records transactions associated with changes in ownership of the foreign financial assets and liabilities of an economy. For example, foreign investors' purchases and sales of equity (shares) issues by New Zealand-resident companies, and the borrowing and lending overseas by New Zealand entities.

Financial derivatives

Financial derivatives are financial instruments that derive their value by reference to an underlying product or index. Financial derivatives involve:

  • future delivery, receipt or exchange of financial items such as cash or another derivative instrument

  • future exchange of real assets for financial items where the contract may be tradable and have market value.

Financial derivatives include, for example, currency swaps, interest rate swaps, futures, forward foreign exchange contracts, options (contracts), and warrants.

Financial performance

The broad heading for variables that measure the financial performance of a unit or group of units. This includes, for example, variables for income, expenditure, profit and stocks.

Financial position

The broad heading for variables that measure the financial position of a unit or group of units. Previously called the balance sheet, it includes assets, liabilities, equity, and investment in fixed assets.

First marriage rate

First marriages per 1,000 never-married women.

fob

(free on board) The current market value of goods in the country of origin, including all costs necessary to get them on board a ship or aircraft, but excluding freight, insurance, and other costs involved in transporting them to New Zealand.

Foreign direct investment in New Zealand

Investment in New Zealand-located enterprises by non-resident investors that meets the direct investment criteria. The financial account measures transactions that increase and decrease these investments. The international investment position statement measures the value of this investment at points in time.

Full-time employed

People working 30 hours or more a week.

Full-time equivalent employees

(FTEs) The number of FTEs equals the number of full-time employees, plus half the part-time employees.

General government sector

Central and local government units, other than the Reserve Bank of New Zealand.

Geographic unit

A separate operating unit engaged in one, or predominately one, kind of economic activity from a single physical location or base in New Zealand.

Gross

(national accounts) Used to denote values before deducting consumption of fixed capital.

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 used in the process of production, but before deducting allowances for the consumption of fixed capital.

Gross fixed capital formation

(national accounts) Measured by the total value, less disposals, of a producer's purchases of fixed assets, plus certain additions to the value of non-produced assets (such as subsoil assets or major improvements in the quantity, quality or productivity of land) realised by the productive activity of institutional units. 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 by New Zealand residents, within a given period, on final goods and services. This excludes goods and services used up during the production process.

Gross national income

(GNI, national accounts) The income accruing to New Zealand residents, within a given period, from their services in supplying factors of production in New Zealand and overseas, plus net taxes on production and imports, and before the deduction of allowances for the consumption of fixed capital. Previously referred to as gross national product.

Gross operating surplus

(national accounts) The surplus or deficit accruing from production. The residual item to the gross domestic product and expenditure account, obtained after deducting compensation of employees and taxes on production, less subsidies, from the value-added component.

Gross reproduction rate

The average number of daughters that a woman would have during her life if she experienced the age-specific fertility rates of a given year. It excludes the effect of mortality.

Gross tonne

The unit of actual weight of cargo, including packaging, but not including the weight of reusable containers.

Hapū

Subtribe.

Harmonised system

The New Zealand Harmonised System Classification is used for processing customs entries and publishing statistics on external trade.

Household

Either one person usually living alone, or two or more people usually living together and sharing facilities, in a private dwelling.

Imports of goods and services

All goods and services produced by non-New Zealand residents and purchased by New Zealand residents.

Indexes

An index is used to measure the total impact of changes in the attributes of commodities that 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 is held constant so that the price movement can be measured. The most frequently quoted index in New Zealand is the consumers price index, which reports quarterly changes in price levels of goods and services purchased by New Zealand households during a specified period. By expressing the changes in index form, price changes in commodities as diverse as beef, hairdressing and club subscriptions can all be aggregated to produce a measure of overall price change.

Indirect taxes

Taxes assessed on producers in respect of the production, sale, purchase, and use of goods and services, and which add to the market price of those goods and services. They include: sales tax, local authority rates, import and excise duties, fringe benefit tax, and registration fees (such as motor vehicle registration) paid by producers.

Inflation

An increase in the general or average level of prices of goods and services over a period of time.

Insurance

(balance of payments) This covers the provision of various types of insurance by non-residents to residents, and vice versa. All types of insurance and reinsurance are included: freight insurance on goods, reinsurance, and other forms of direct insurance (such as life, marine, general and fire, and accident). Also included are commissions related to insurance transactions earned by agents.

Intermediate consumption

(national accounts) The value of goods and services used as inputs in production.

International investment position

A statistical statement of the:

  • value and composition of the stock of an economy's financial assets, or the economy's claims on the rest of the world

  • value and composition of the stock of an economy's liabilities to the rest of the world.

Investment income

Income earned by foreign investors from their equity and financial assets invested in New Zealand (the debit or expenditure item), and the income New Zealand investors earn from their equity and financial assets invested abroad (the credit or income earned item).

Investment income to/from the rest of the world

(national accounts) This consists of:

  • Investment income, which represents transfers of income accruing to the owners of financial assets (mainly from earning interest and dividends) and tangible non-produced assets (from owning natural assets such as land, subsoil assets and water resources). This now includes reinvested earnings on overseas direct investment, where the retained earnings of a direct foreign investment enterprise are treated as if they were distributed and remitted to foreign direct investors in proportion to their ownership of the equity of the enterprise, and then reinvested by them in the enterprise.

  • Entrepreneurial income, which refers to actual withdrawals of income from enterprises operating overseas, such as branches of foreign companies.

Iwi

Tribe.

Kind of activity unit

A subdivision of an enterprise, consisting of one or more activity units for which a single set of accounting records is available.

Labour force

The labour force consists of people aged 15 and over who regularly work for one hour or more a week for financial gain, or who work without pay in a family business, as well as those who are not working, but are actively seeking and are available for work.

Labour force participation rate

The total labour force expressed as a percentage of the working-age population.

Labour income

(total) Before-tax income that people aged 15 and over receive in a financial year from all sources. This includes wages, salary, government benefits, interest, dividends, commission, and pre-tax business or farming income (less expenses).

Life expectancy at birth

The average length of life of a newborn baby, assuming they experience the age-specific mortality rates of a given period throughout their life. Life expectancy represents the average longevity of the whole population and does not necessarily reflect the longevity of an individual.

Loans

(balance of payments) Direct agreements between borrowers and lenders that involve the transfer of funds to the borrower, and the repayment to the lender over time. Loans include: 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 credit facilities, and non-market debentures and notes.

Long term

Refers to financial instruments with an original maturity of more than one year.

Marriage

(registered) The act, ceremony or process by which the legal relationship of husband and wife is constituted. In New Zealand, marriage must be solemnised by a celebrant or before a registrar of marriages.

Maturity profile

The residual maturity profile is based on the time remaining to scheduled maturity.

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 a simple or weighted arithmetic mean of monthly or quarterly population during the reference period.

Median

A value with an equal number of items on either side of it.

Median age

Half the population is younger, and half older, than this age.

Merchandise exports

Goods of domestic origin, and re-exports, sent from New Zealand to other countries. This includes goods leased for a year or more, but excludes goods for repair.

Merchandise imports

Goods from other countries landed in New Zealand, including goods leased for a year or more, but excluding goods for repair.

Merchandise trade

All goods that add to or subtract from the stock of material resources in a country, as a result of their movement in to or out of it. This includes goods leased for a year or more, but excludes goods for repair.

Monetary authority

The Reserve Bank of New Zealand.

Money market instruments

Securities generally giving the holder the unconditional right to receive a stated fixed sum of money on a specified date. These instruments are usually traded at a discount in organised markets. The predominant money market instruments in New Zealand are treasury bills, Reserve Bank bills, bills of exchange, and certificates of deposit.

National disposable income

(national accounts) The total income of New Zealand residents, from all sources, that is available for either final consumption (current spending) or saving.

Natural increase

The excess of live births over deaths. When deaths exceed births, this is described as a natural decrease, or a negative natural increase.

Net errors and omissions

This is a balancing item. The balance of payments statement employs a double entry system and so, in the accounting sense, it should always balance. In practice, this seldom occurs, due to factors such as the variety of data sources used, the probability that some transactions will not be captured, and the possibility of errors in reporting and compilation. Net errors and omissions (or the residual) is used to balance the accounts.

Net lending to the rest of the world

(national accounts) The residual item for the national capital account. If the nation's savings are insufficient to pay for all capital investment needed for production, the shortfall must be borrowed from overseas. Net lending to the rest of the world is then a negative item.

Net reproduction rate

The average number of daughters that a woman would have during her life if she experienced the age-specific fertility and mortality rates of a given year. A net reproduction rate of one means a woman would exactly replace herself.

New Zealand direct investment abroad

Investment by New Zealand investors in overseas-located enterprises that meets the direct investment criteria. The balance of payments financial account measures transactions that increase and decrease these investments. The international investment position statement measures the value of this investment at points in time.

New Zealand residents departing temporarily or returning after a short-term absence

A New Zealand resident whose absence from New Zealand is intended to be, or was, less than 12 months.

Not in the labour force

Any person in the working-age population who is neither employed nor unemployed. This residual category includes: retired people; those with personal or family responsibilities such as childcare and unpaid housework; people attending educational institutions; those permanently unable to work due to physical or mental disabilities; people who were temporarily unavailable for work in the survey reference week; and those not actively seeking work.

Operating expenditure

Expenditure from the main activities of an economic unit, usually directly incurred from sales of goods and services. Salaries and wages, interest, donations, and unusual expenditure (such as valuation changes) are excluded.

Operating income

Income from the main activities of an economic unit, usually from the sales of goods and services. Generally it excludes unusual expenditure (such as valuation changes), interest, dividends and subsidies.

Operating surplus

(financial accounts) Surplus or deficit of total income less total expenditure, before direct tax, payments to owners, and stock change.

Other investment

A residual category covering all forms of financial capital not included elsewhere (under direct, portfolio or reserves). Types of capital include trade finance (trade creditor and debtor accounts), loans, and deposits.

‘Other’ sectors

(balance of payments) Includes non-financial corporations, insurance companies, pension funds, other non-depository financial intermediaries, private non-profit institutions and households.

Output

(national accounts) Output represents the value of total production, including intermediate inputs. Deducting intermediate inputs from output gives the value-added component.

Overseas trade – exports and imports

New Zealand Customs Service entries relating to goods cleared. Overseas trade statistics show exports valued free on board (fob), and imports valued cost, including insurance and freight (cif) and value for duty (vfd).

Paid employees

People who have an employment agreement and who receive payment for their work in the form of wages, salary, commission, tips, piece rates, or pay in kind.

Part-time employed

People who usually work fewer than 30 hours a week.

Permanent and long-term arrivals

People who have spent the previous 12 months or more overseas and who arrive in New Zealand intending to stay 12 months or more.

Permanent and long-term departures

People who have spent the previous 12 months or more in New Zealand and who depart for an intended absence of 12 months or more.

Population estimate

Data from the most recent Census of Population and Dwellings, updated with estimates of births, deaths and net migration since the census.

Population projection

Indication of the future demographic characteristics of a population, based on an assessment of past trends and assumptions about the future course of demographic behaviour – fertility, mortality and migration.

Portfolio investment

Investment in equity securities of less than 10 percent of the voting stock of an enterprise; and investment in debt securities, such as bonds and notes, and money market instruments.

Provisional

(statistics) Statistics derived using preliminary or incomplete data, which are released before final data becomes available.

Purchase of non-produced non-financial assets to/from the rest of the world net

(national accounts) This refers to assets (tangible and intangible) that come into existence other than through production processes. Also included are the costs of ownership transfer on, and major improvements to, such assets.

Random rounding

Random rounding to base 3, as used in a census, means that all table cell values, including totals, are rounded as follows: zero and numbers that are already multiples of three are not changed. Other numbers are randomly rounded to one of the two nearest multiples of three, using fixed probabilities. For example, a nine is left unchanged, while eight could be rounded to either six or nine. Because rounding is done separately for each cell, rows and columns do not necessarily add up to the published totals.

Re-exports

Merchandise exports that were earlier imported into New Zealand and contain less than 50 percent New Zealand content by value. Examples are computer hardware, machinery and aircraft.

Re-imports

Goods, materials or articles imported in the same condition as they were exported from New Zealand. (One-third of New Zealand's re-imports are live animals, principally racehorses and dogs).

Replacement level fertility

The average number of children a woman needs to have to produce one daughter who survives to childbearing age. (Also described as the total fertility rate required for the population to replace itself, without migration.) The internationally accepted replacement level is 2.1 births per woman. This allows for females dying between birth and childbearing, and for the fact that on average, 105 boys are born for every 100 girls. The actual replacement level varies slightly among countries, depending on child mortality rates. In countries with high child mortality, the rate will need to be higher than 2.1 births per woman to achieve replacement level.

Reserve assets

External financial assets denominated in foreign currencies that are readily available to, and controlled by, monetary authorities.

Resident population

In census statistics, a resident is a person who self-identifies that they usually live in an area. In external migration statistics, a resident is a person who self-identifies on a departure card that they have lived in New Zealand for 12 months or more. On an arrival card, a resident identifies that they live in New Zealand, have been away for less than 12 months, and intend to stay in New Zealand for 12 months or more.

Resident population concept

A statistical basis for a population in terms of those who usually live in a given area at a given time. The census usually resident population count is a census measure, and the estimated resident population is a demographic measure, of the resident population concept.

Residents and non-residents

An individual or enterprise is a resident of New Zealand when their centre of economic interest is in New Zealand. Broadly, an individual is resident in New Zealand if they live in New Zealand for one year or more and their general centre of interest is New Zealand. This can apply to people who spend much of their time outside New Zealand, but still retain ‘permanent’ links with New Zealand. Resident individuals include: people whose usual place of living is New Zealand; New Zealanders living, travelling or working abroad for less than a year; New Zealanders living abroad studying; and New Zealand diplomatic or military personnel. An entity is resident in New Zealand if it engages in production of goods or services in New Zealand. Resident entities include New Zealand-located subsidiaries of overseas companies, and New Zealand-located branches or partnerships of overseas entities. Individuals and entities not regarded as residents of New Zealand are defined as non-residents. Non-resident entities include overseas-located subsidiaries, associates, and branches of New Zealand companies.

Rounding

Rounding of numbers involves replacing a given number with another one – the rounded number. In tables, rounding can create a discrepancy between a total shown and the total of individual cells in the table. Data may be rounded for ease of use, or for confidentiality reasons. Numbers are rounded when making statistical calculations, where it might not be possible, practical, or reasonable to record numbers to the last digit. Published statistics are often rounded to make them easily understood and readily comparable with other data. Such practices are quite acceptable, providing an adequate level of accuracy is retained.

Rural areas

Those areas not specifically designated as ‘urban’. Rural areas include towns with a population of fewer than 1,000 people, plus an administrative district (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). Included are: overtime, sick and holiday pay, bonuses, payments under penal-rate schemes, severance pay, value of free supplies, and sales commission paid to employees. Payments for working proprietors or partners are excluded.

Sample survey

A type of survey in which only a representative part of the population of interest provides information. The sample statistics are summarised and used to estimate statistics for the full population.

Saving

(national accounts) The residual item in the national income and outlay account. It is the amount of national disposable income left after current spending.

Seasonal adjustment

Adjustment made to statistical time series (usually monthly or quarterly) to provide a refined series in which the estimated fluctuations due to seasonal variations are removed.

Short term

Refers to financial instruments with an original maturity of less than one year.

Statistical discrepancy

In the New Zealand System of National Accounts, items making up gross domestic product (GDP) and expenditure on GDP are estimated independently, using diverse data sources. The combination of survey and other measurement and timing errors in the various components results in a difference between the estimates, which is the statistical discrepancy.

Stocks

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.

Subnational

Geographical units of a country (eg area units, territorial authorities, and regional council and urban areas) whose boundaries are defined for administrative, legal or statistical purposes.

Subsidies

(national accounts) Current unrequited payments made by governments to enterprises on the basis of the levels of their production activities, or the quantity or value of the goods and services that they produce, sell or import.

Taonga

Treasure.

Taxes on production and imports

(national accounts) Taxes payable on goods and services when they are produced, delivered, sold, transferred, or otherwise disposed of by their producers. Also included are taxes and duties on imports that become payable when goods enter New Zealand, or when services are delivered to resident units by non-resident units. They also include other taxes on production, which consist mainly of taxes on the ownership or use of land, buildings or other assets used in production, or on the labour employed, or compensation of employees paid.

Tenure

(of household) Tenure refers to the nature of the occupancy of a private household in a home – whether the household rents or owns the home, and whether payment is made for that right. It does not refer to the tenure of the land on which the home is situated.

Terms of trade

The ratio of goods export prices to goods import prices. Measures the purchasing power of New Zealand's merchandise exports in terms of its merchandise imports.

Trade credits

Accounts payable to, and prepayments received from, non-residents for imports and exports of goods and services.

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. Services include freight, air fares, freight insurance, port services, and stevedoring.

Travel

(balance of payments) Expenditure by foreign travellers in New Zealand and New Zealanders travelling overseas.

Unemployed

All people in the working-age population who, during the reference week, were without a paid job, were available for work, and had either actively sought work in the past four weeks or had a new job to start within the next four weeks.

Unemployment rate

The number of unemployed people expressed as a percentage of the labour force.

Urban areas

Non-administrative areas with urban characteristics and a high to moderate concentration of population. Main, secondary, and minor urban areas are differentiated by population size. Urban areas are currently defined as: main urban areas – centres with populations of 30,000 or more; secondary urban areas – 10,000–29,999 people; minor urban areas – 1,000 or more people, and not already classified as urban.

Value added

(national accounts) The value added to goods and services by the contributions of capital and labour (ie, after the costs of bought-in materials and services have been deducted from the total value of output).

vfd

(value for duty) The assessed value of merchandise imports on which duty is based. It approximates the current domestic value of goods in the exporting country.

Visitor from overseas

In census statistics, a visitor from overseas is a person who self-identifies that they usually live overseas. In external migration statistics, a visitor from overseas is a person who self-identifies on an arrival card that they intend to stay in New Zealand less than 12 months.

Vital statistics

Statistics for events such as births, deaths and marriages.

Wāhi tapu

Sacred place.

Whānau

Family.

Working-age population

Generally refers to the population aged 15 years and over.

Chapter 28. Abbreviations

  • ACC Accident Compensation Corporation

  • ANZSCO Australian and New Zealand Standard Classification for Occupations

  • ANZSIC Australian and New Zealand Standard Industry Classification

  • APEC Asia-Pacific Economic Cooperation

  • ASEAN Association of Southeast Asian Nations

  • ATM automated teller machine

  • BPM5Balance of Payments Manual, edition 5

  • CCMAU Crown Companies Monitoring Advisory Unit

  • cif cost, including insurance and freight

  • CNZM Companion of the New Zealand Order of Merit

  • CPI consumers price index

  • CRI Crown research institute

  • CTU Council of Trade Unions

  • DHB district health board

  • DOC Department of Conservation

  • EC employee count

  • EECA Energy Efficiency and Conservation Authority

  • EEO equal employment opportunities

  • EFTPOS electronic funds transfer at point of sale

  • ESR Institute of Environmental Science and Research

  • EU European Union

  • fob free on board

  • FRST Foundation for Research, Science and Technology

  • FTA free trade agreement

  • FTE full-time equivalent employee

  • GAAP generally accepted accounting practice

  • GATT General Agreement on Tariffs and Trade

  • GDP gross domestic product

  • GST goods and services tax

  • HLFS Household Labour Force Survey

  • HMNZS Her Majesty's New Zealand ship

  • ICT information and communications technology

  • IMF International Monetary Fund

  • ISO International Organization for Standardization

  • ISP Internet service provider

  • LINZ Land Information New Zealand

  • MAF Ministry of Agriculture and Forestry

  • MFAT Ministry of Foreign Affairs and Trade

  • MoRST Ministry of Research, Science and Technology

  • MP Member of Parliament

  • NCEA National Certificate of Educational Achievement

  • NGO non-government organisation

  • NIWA National Institute of Water and Atmospheric Research

  • NQF National Qualifications Framework

  • NZCS New Zealand Customs Service

  • NZQA New Zealand Qualifications Authority

  • NZSNA New Zealand System of National Accounts

  • NZTE New Zealand Trade and Enterprise

  • OCR official cash rate

  • OECD Organisation for Economic Co-operation and Development

  • PCNZM principal companion of the New Zealand Order of Merit

  • PHARMAC Pharmaceutical Management Agency of New Zealand

  • PHO primary health organisation

  • QC Queen's Council

  • QSO Queen's Service Order

  • R&D research and development

  • RMA Resource Management Act 1991

  • RNZ Radio New Zealand

  • RNZAF Royal New Zealand Air Force

  • RS&T research, science and technology

  • SOE state-owned enterprise

  • SPARC Sport and Recreation New Zealand

  • SSC State Services Commission

  • TAB Totalisator Agency Board

  • TUANZ Telecommunications Users' Association of New Zealand

  • TVNZ Television New Zealand

  • UN United Nations

  • UNESCO United Nations Educational, Scientific and Cultural Organisation

  • vfd value for duty

  • WCO World Customs Organization

  • WTO World Trade Organization

Chapter 29. Weights and measures

All statistics in this publication are in metric units.

Metric to imperialMetric multiples
Length
1 millimetre (mm)= 0.04 inches1 centimetre= 10 millimetres
1 centimetre (cm)= 0.39 inches1 metre= 100 centimetres
1 metre (m)= 39.37 inches1 kilometre= 1,000 metres
 =1.09 yards  
1 kilometre (km)= 0.62 miles  
Area
1 square metre (m2)= 10.76 square feet1 hectare= 10,000 square metres
 = 1.20 square yards1 square kilometre= 100 hectares
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 inches1 cubic metre= 1 million cubic centimetres
1 cubic metre (m3)= 35.31 cubic feet1 litre= 1,000 millilitres
 = 1.31 cubic yards1 millilitre (ml)= 1 cubic centimetre
1 litre (l)= 1.76 pints1 cubic metre= 1,000 litres
 = 0.22 gallons  
Mass (weight)
1 gram (g)= 0.04 ounces1 kilogram= 1,000 grams
1 kilogram (kg)= 2.20 pounds1 tonne= 1,000 kilograms
1 tonne (t)= 2,204.62 pounds  
 = 0.98 tons  
Velocity
1 kilometre per hour (km/h) = 0.62 miles per hour
Pressure
1 kilopascal (kPa)= 0.15 pounds per square inch1 megapascal= 1,000 kilopascals
1 megapascal (MPa)= 0.07 tons per square inch  
Temperature
Degrees Fahrenheit (°F)°F=°Cx 9/5 + 32  
Degrees Celsius (°C)°C = (°F-32) x 5/9  
Energy
1 kilojoule (kj)= 0.95 British thermal units1 megajoule (MJ)= 1,000 kilojoules
 = 0.24 calories1 kilowatt hour (kWh)= 3.6 megajoules
  1 gigajoule (GJ)= 1,000 megajoules
  1 terajoule (TJ)= 1,000 gigajoules
  1 petajoule (PJ)= 1 million gigajoules
Power
1 kilowatt (kW)= 1.34 UK horsepower1 kilowatt= 1,000 watts
  1 megawatt (MW)= 1,000 kilowatts
  1 gigawatt (GW)= 1,000 megawatts

Index

In all cases the word New Zealand has been abbreviated to NZ to save space in the index.

Names of organisations starting with NZ may also be found in an inverted form (eg String Quartet, NZ) and organisations may found in a relevant subject area (eg Department of Conservation, listed under the main heading: Conservation).

Ministries, departments, government agencies and other organisations cited in the Yearbook with a Māori name may be accessed by that name.

Acts of Parliament are included in the index when there is a major reference.

A

Abortion, 161–2
Abuse of children, 137, 138
Academy of Sport, NZ, 260–2
Access PHOs, 148
Access radio stations, 232
Accident Compensation Corporation, 167–8, 260, 455
Accident insurance, 167–8
Accidents
air, 429
collection of injury statistics, 170
external causes, 166
marine, 428
occupational safety and health, 170–1
prevention, 166–7
road crashes, 162–4
water, 165
Accommodation
employee count in sector, 356
GDP by industry, 344
use, 271, 273
Accounts
International accounts;
National accounts
Accreditation services
Standards and accreditation services
Administration of estates, Public Trust, 51
Administrative boundaries of NZ, 1
Adopt a Stream programme, 179
Adoption, 139–40
Adult education, 186
Advanced network, 228, 295
Advertising industry, 235–6
Advertising Standards Authority, 236
Advisory Committee on Assisted Human Reproduction, 143
Afghanistan, deployment in, 64, 79, 218
Africa
development assistance, 66
relationship with, 63–4
Age
abortion by, 162
deaths from external causes by, 166
first marriage, median age, 98
labour force participation by, 282
population
age-sex profile, 103–4
Asian peoples, 106, 124, 125
European, 106
Māori, 106, 117
mortality, 100–1
Pacific peoples, 106, 121–2
projections, 84–9
prisoners, 212, 213
unemployment by, 286
weekly earnings by, 289
Aged residential care, 154, 155
Aggregates, 403
AgResearch Ltd, 299
Agricultural compounds, regulation of, 154
Agricultural sector
bees and beekeeping, 369–70
Dairy industry
Livestock
Wool
biosecurity, 381
Dairy industry
Livestock
Wool
Crop & Food Research, 299
Dairy industry
Livestock
Wool
cropping farming prices, 339
Dairy industry
Livestock
Wool
crops, 370–1
Dairy industry
Livestock
Wool
current situation and trends, 357–8
Dairy industry
Livestock
Wool
dairy industry
Dairy industry
Livestock
Wool
eggs, 369
Livestock
Wool
employee count in sector, 356
Livestock
Wool
energy use, 389
Livestock
Wool
exports
Livestock
Wool
dairy products, 360, 366, 367, 368, 408, 460–1
Livestock
Wool
horticultural, 371
Livestock
Wool
meat, 360–1, 363–4, 408, 461–2
Livestock
Wool
wine, 374
Livestock
Wool
wool, 365–6
Livestock
Wool
farm types by number and area, 358
Livestock
Wool
GATT Uruguay Round, 357
Livestock
Wool
GDP by industry, 343, 344
Livestock
Wool
generally, 357
Livestock
Wool
genetic modification, 357
Livestock
Wool
horticulture, 370–4
Livestock
Wool
livestock
Livestock
Wool
MAF, 358–9
Wool
meat products, 361–4
Wool
methane research, 366
Wool
organic farming, WWOOF movement, 372
Wool
organisations, 358–9
Wool
pastoral agriculture, 359–61
Wool
research consortia, 302
Wool
water quality in farmed catchments, 310
Wool
wool
Wool
Agriculture and Forestry, Ministry of, 358–9
Aid
Defence and security;
Emergency and disaster relief;
International development assistance
AIDS Foundation, NZ, 155
Air Force, Royal NZ, 76–7
Air NZ Ltd, 45
Air pollution and health study, 144
Air quality, 308–9
Air Training Corps, 79
Air transport
Civil aviation
Airports
generally, 430
overseas cargo loaded and unloaded, 476–7
Alcohol
consumption, 151
CPI group, 336, 337
driving and, 440, 441
excise, 458, 498, 504
public health, 151
responsible drinking, 452
wine industry, 373–4
Alexander Turnbull Library, 243, 244
Allowances
disability, 133
Student allowance, 134, 181, 182
Training Incentive Allowance, 135
Animal products, regulation of, 154
Animal species, 12, 13
Annual holidays, employee entitlements, 278
Antarctica
cooperation with US, 62
Defence Force assistance, 80
fisheries, 71
Operation Antarctica, 80
Ross Dependency, 1, 70–1
treaty system, 71
Anthems, national, 55
Antiquities, protection of, 242–3, 255
ANZAC, 19, 72
ANZUS Treaty, 78
Aoraki/Mt Cook, 2
Aotearoa Fisheries Ltd, 384
APEC
generally, 62
value of trade with APEC countries, 476
Apiata, Corporal Willie, 64
Apparel, CPI group, 337
Apparel industry, 410
Apples, 372, 373
Apprenticeships, 283
Approved issuer levy, 504
Aquaculture, management of, 311
Arabian Gulf, deployment in, 79
Arab-Israeli conflict, 64, 78
Archaeological sites, protection of, 242–3
Architecture awards, 417
Archives
Archives NZ, 243
Cartoon Archive, NZ, 243
Film Archive, 251
Hocken Collections, 245
Sound Archives, 232
Area of NZ, 1–2
Argentina, relationship with, 62
Armed forces
NZ Defence Force
Armed offenders squads, 216
Arms convictions, 206
Army, NZ, 75–6
Arrivals and departures, 101–2
Art galleries, 241
Artefacts, protection of, 242–3, 255
Arts and cultural heritage
administration, 254–7
Archives NZ, 243
art galleries, 241
Cartoon Archive NZ, 243
censorship, 251–3
contribution to GDP, 239
copyright, 253–4
CPI group, 336, 337
Creative NZ
Authors' Fund, 246
generally, 256–7
Māori arts, 240
Cultural Indicators for NZ: 2006, 255
employee count in sector, 356
employment in sector, 239
film and video, 250–3
generally, 239
government expenditure, 239
Historic Places Trust, 241–2, 330
library services, 243–6
literature, 245, 246–7
Living Heritage, 242
Ministry for Culture and Heritage, 254–5
museums, 241
performing arts, 247–50
regional development, 257
research, 257
taonga tuku iho, 239–40
Te Papa Tongarewa, 241
ASEAN, 61–2, 77
ASEAN countries, value of trade with, 476
ASEAN Regional Forum, 62
ASEAN-Australia/NZ free trade negotiations, 61, 467
Asia
‘Boxing Day’ tsunami, 6
defence and security, 62
development assistance, 61, 66
relationship with, 61–2
Seriously Asia Fund, 61
trade, value of, 473–6
trade with, 61, 62
Asia NZ Foundation, 61
Asia Pacific Economic Cooperation
generally, 62
value of trade with APEC countries, 476
Asian population
age distribution, 106, 124, 125
ethnicities, 124
fertility rate, 97
growth, 105, 106
links with Asia, 61
migration to NZ, 124
proportion of total, 87
regional distribution, 125
Asia-Pacific Regional Interfaith Dialogue, 67
Assaults
convictions, 202
on Police, 216
Assets
international, 354–5
privatisation of state assets, 20
Assisted reproductive technology
Human assisted reproductive technology
Association of NZ Advertisers, 236
Association of South-East Asian Nations, 61–2, 77
AsureQuality Ltd, 359, 371
Attorney-general
generally, 200
reporting function under Bill of Rights Act, 49
Auahi Kore programme, 150
Auctioneers Act 1928, 450
Auditor-general, 44, 46
Australia
ASEAN-Australia/NZ free trade negotiations, 61, 467
business law coordination, 60
CER agreement, 60
CPI comparison, 338
defence relationship, 60, 77–8
FRANZ arrangement, 59
‘open skies’ aviation market agreement, 60
relationship with, 60
social security agreement, 136
synchrotron facility, 298
trade with, 60, 470–1
trans-Tasman travel arrangement, 60, 101
Australia NZ Food Standards Code, 60
Australia NZ Leadership Forum, 60
Australian and NZ Army Corps, 19, 72
Authors' Fund, NZ, 246
Automobile Association, NZ, 455
Automobiles
Motor vehicles
Avian influenza, pandemic planning, 159
Aviation
Civil aviation
Awards
architecture, 417
books, 245, 246
bravery, 48
EEO Trust, 126
exporters, 463
gallantry, 48
honours system, 48
sustainable business, 408

B

Bachelor degrees, sex ratio of, 188
Backpacker, accommodation use, 271, 273
Balance of payments, 348–55
Ballet, Royal NZ, 249
Bankers' Association, NZ, 484
Banking Ombudsman Scheme, 484, 485
Bankruptcy, 447–8
Banks and banking
Financial institutions;
Reserve Bank of NZ
Barley, 371
Beef cattle
breeds, 360
classification, 363
farming, 359
Meat & Wool NZ, 362
meat exports, 360–4, 461, 462
meat production prices, 362
meat production volumes, 362
meat products, 361
methane, 366
numbers
by category, 360
by region, 361
total population, 358, 359
tariff rate quotas, administration of, 361
veal, 358, 360–1, 362, 363, 364
Bees and beekeeping, 369–70
Benefits and pensions
Unemployment Benefit;
Work and Income
Bereavement leave, employee entitlements, 278
Best Fish Guide (Forest & Bird), 383
Bestselling books, 246
Better by Design programme, 409
Bibliography, National, 243
Biketawa Declaration, 60
Bill of Rights Act 1990, 49, 50
Biodiversity, 307–8, 319
Bioethics Council, 313
Bio-fuel research (aviation industry), 430
Biogas, 400
Biomass and waste, 400
Biosecurity
bio-control research, 359
MAF Biosecurity NZ, 315, 358–9, 381, 382
services, 358–9
Bird flu, pandemic planning, 159
Birds
grey warbler as ‘Bird of the Year’, 325
wetlands, 329
Births
Childbirth
Births, Deaths and Marriages registers, 99
Blood Service, NZ, 143
Boarding school bursaries, 180
Boarding schools, 185
Boards of trustees, schools, 177
Boat design and construction, 409–10
Bonded Merit scholarships, 181
Books, 246–7
Booksellers NZ, 246–7
Border security
counter-terrorism, 77
Defence Force assistance, 80
operations, 458
Borrowing
credit cards, 453–4, 484
credit charges, CPI group, 337
credit contracts and consumer finance, 450
government securities, 486–7
housing loans and mortgages, 414–5
public debt, 333, 504–5
Bougainville, deployment in, 60, 218
‘Boxing Day’ tsunami, 6
Brand NZ, 458
BRANZ, 302, 455
Bravery awards, 48
Brazil, relationship with, 62
Breast screening programme, 157
British sovereignty, 17
Broadband, 219, 220, 227–8
Broadcasting
Broadcasting Commission (NZ On Air), 223
Broadcasting Standards Authority, 223–4
Māori, 224, 240
parliamentary proceedings, 36
policy, 222–3
racing, 230, 266
radio, 230–2
television, 222–3, 228–30
Brunei, free trade agreement with, 61, 406, 467
Buddhist faith, 108
Budget, 490–2
Building and construction
awards, 417
building authorisations, 421–2
building code, 420
building products, Greenbuild website, 421
construction systems, 420
Department of Building and Housing, 417–9, 420
economic growth, 339–40
employee count in sector, 356
GDP by industry, 344, 419
gross fixed capital investment, 419
legislation, 420–1
new dwellings
average floor area, 423
units authorised, 422
NZ Green Building Council, 419
people engaged in industry, 419
price indexes, 422–3
prices, 339
regulatory policy, 418
work put in place, 422, 423
Burials, natural, 100
Business
advocacy, 279
business law coordination with Australia, 60
e-commerce, 222
indexation of contracts, 335
NZDipBus, 191
services
employee count by industry, 356
GDP by industry, 344
statistics, 355–6
Sustainable Business Awards, 408
visas, long-term, 116
Business NZ, 279
Butter, 366
Buy Kiwi Made, 406

C

CAB, 140
Cabinet, 37, 39
Cabinet Office, 37
Cadet forces, 79
Cafes
Restaurants and cafes
Campbell Island, 1
Canada
relationship with, 62
social security agreement, 136
Cancer
Cancer Control Council, 143
cervical cancer vaccine, 157
control of, 154
deaths, 154, 160–1
screening programmes, 157
smoking-related deaths, 151
SunSmart campaign, 150
Capital account
International accounts;
National accounts
Capital formation, 346–7
Capital stock, 347
Caravan park/camping ground use, 271, 273
Carbon emissions
Climate change
Carbon footprint of forestry industry, 378
Care and protection services, 137–8
Caregiver-provided education, 184
Cargo, overseas, 476–7
Caribbean, relationship with, 62
Carpet industry, 410
Cars
Motor vehicles
Cartoon Archive, NZ, 243
Casein, 366
Casino duty, 500
Casinos, 266, 267, 268
Cattle
Beef cattle;
Dairy industry
Caves, 2, 3
Cawthron Institute, 301
CCMAU, 45, 293
Cellular service providers, 224–5, 226–7
Censorship, 251–3
Census of Population and Dwellings
counting the population, 86
ethnicity definition, 106
identification as ‘New Zealander’, 107
online option, 104
population growth, 1858–2006, 85
rounding and random rounding, 87
Central government
Government
Centres of research excellence, 302
CER agreement, 60
Cervical cancer vaccine, 157
Cervical screening, 157
Chamber Music NZ, 248
Chatham Islands
Chatham Islands Council, 52
land area, 1
Cheese, 366
Cheque duty, 499, 504
Chicken production, 368–9
Chief executives, government departments, 45, 489–90
Chief Justice of NZ
generally, 196
salary and allowances, 197
Child abuse, 137, 138
Child and Youth Mortality Review Committee, 142
Child Disability Allowance, 133
Child sex offenders, extended supervision, 209
Child support, 135, 502–3
Child, Youth and Family
adoption services, 139–40
care and protection, 137–9
community services funding, 140
establishment of, 137
guiding principles, 137
youth justice services, 138–9
Childbirth
birth rate, 103
fertility rate, 84, 95–7
Human Assisted Reproductive Technology register, 96
median age of childbearing, 97
registration, 99
vital statistics, 99
Childcare centres, 182–4
Childcare Subsidy, 132
Children and young people
adoption, 139–40
Young offenders
age of population, 104
Young offenders
care and protection, 137–8, 139
Young offenders
child abuse, 137, 138
Young offenders
family group conferences, 138
Young offenders
family/whānau agreements, 137
Young offenders
health services, 157–8
Young offenders
immunisation, 153, 157
Young offenders
literacy, international comparisons, 174
Young offenders
minimum wage, 277–8
Young offenders
Mission-On healthy lifestyles campaign, 154, 263
Young offenders
names, 98
Young offenders
obesity prevention, 142, 150
Young offenders
offenders
Young offenders
oral health services, 158–9
physical activity, 263
Chile
free trade agreement with, 406, 467
relationship with, 62
China
free trade agreement with, 61, 467
trade, value of, 474–5
Chiropractors, 147
CHOGM, 68
Choral Federation, NZ, 248
Christian denominations, 108
Christian missionaries, 16–7
Chronology of events, c1300–2007, 22–7
Chunuk Bair, 72
Churches, religious affiliation and, 108
Cigarettes
Tobacco
Cinema
Film and video
Citizens Advice Bureaux, 140
Citizenship, 109–10
Civil aviation
aircraft, number of, 428
airports, 430
Airways NZ, 429–30
bio-fuel research, 430
Civil Aviation Authority, 428–9
domestic air services, 430
employee count in sector, 428
generally, 428
international air services, 431
International Civil Aviation Organisation, 428
jet fuel imports, 468
‘open skies’ agreement with Australia, 60
Pacific airspace capacity, 429
pilot licences, 428
traveller arrivals and departures, 431
Civil Defence and Emergency
Management, Ministry of, 168
Civil legal aid, 199
Civil unions
celebrants, 99
generally, 99
Property (Relationships) Act 1976, 127
Clark, Helen, 38
Clays, 403
Clerk of the Executive Council, 37
Clerk of the House of Representatives, 34
Climate
climate norms, 7, 9
extremes, 11
flooding, 11
hail, 11, 341
rain days, 9
rainfall, 9, 11, 341
sunshine hours, 9, 11
temperatures, 8, 9, 10, 11
tornadoes, 11
weather in 2007, 10–11
wind, 8, 11
Climate change
effects, 309
Greenhouse gas emissions
emissions trading scheme, 309, 389
Greenhouse gas emissions
food miles, 460
Greenhouse gas emissions
Framework Convention, 318, 319, 320
Greenhouse gas emissions
generally, 8, 10, 307, 309
Greenhouse gas emissions
‘Greenhouse effect’, 309
Greenhouse gas emissions
greenhouse gas emissions
Greenhouse gas emissions
Intergovernmental Panel on Climate Change, 8
international environmental work, 318–9
Kyoto Protocol
generally, 319, 320
NZ initiatives to meet commitments, 309
methane research, 366
World Environment Day, 39, 320
Clinical dental technicians, 145
Closer Economic Relations, 60
Clothing
CPI group, 337
household expenditure, 346
Clothing industry, 410
Cluster munitions treaty, 73
Clutha River, 2
Coaching, sports, 262–3
Coal, 312, 315, 390, 391, 397–9
Coalition government, 33
Coastal environment
conservation parks, 329
discharges into water, 317
length of coastline, 2
management of activities, 311
water quality, 310
Coastal shipping, 425, 426–7
Coat of arms, NZ, iv
Coins, 486
Colleges of education, enrolments, 193, 194
Colonial government, 17
Commerce and services
Auctioneers Act 1928, 450
cheque duty, 499
Commerce Act 1986, 443, 444
Commerce Commission, 444–5
companies, 443, 444
Consumer Affairs, Ministry of, 450–1
Consumer Guarantees Act 1993, 449–50
controls on trading, 448–52
corruption, international comparisons, 445
Credit (Repossession) Act 1997, 450
Credit Contracts and Consumer Finance Act 2003, 450
Dairy Industry Restructuring Act 2001, 445
Door to Door Sales Act 1967, 450
Electricity Industry Reform Act 1997, 443, 445
energy use, 389
Fair Trading Act 1986, 443, 444, 448–9
insolvency, 447–8
insurance industry, 454–5
Layby Sales Act 1971, 450
legal environment, generally, 443
Motor Vehicle Sales Act 2003, 450
NZX all index, 447
online sales, 450
partnerships, 443, 444
sale of liquor, 451–2
Securities Commission, 446–7
shop trading hours, 451
stock exchange, 445–6
Takeovers Panel, 445
Telecommunications Act 2001, 445
Unsolicited Goods and Services Act 1975, 450
Weights and Measures Act 1987, 450
Commercial fishing
Fishing and fisheries
Commissioner of Police, 215
Commodities, exports and imports
Exports;
Imports
Commonwealth, 68–9
Commonwealth Heads of Government, 68
Commonwealth of Independent States, relationship with, 63
Communicable disease control, 153
Communication Agencies Association of NZ, 235
Communications
advertising, 235–6
broadcasting policy, 222–3
CPI group, 337
Digital Strategy, 219, 220
employee count in sector, 356
GDP by industry, 344
generally, 219
ICT surveys, 219
magazines, 233
newspapers, 233–4
postal services, 236–8
radio, 230–2
telecommunications
relay service, 226
television, 222–4, 228–30
Community and voluntary sector
conservation work, 133
employee count in sector, 356
Family and Community Services, 138
GDP by industry, 344
Office for the Community and Voluntary Sector, 130
Police and, 218
public health services, 155
social services funding, 150
Community boards, 53
Community education, 186
Community law centres, 199–200
Community Oral Health Service, 158
Community policing, 217
Community Probation and Psychological Services, 208–9
Community Services Card, 133
Community support groups, 218
Community-based sentences, 209
Commuting, 432–3, 434
Companies
generally, 443, 444
liquidation, 448
receiverships, 448
registrations, 444
taxation, 497, 504
voluntary administration, 448
Comprehensive Nuclear Test-Ban Treaty Organisation, 67
Computers
high performance computing centres, 228
Conservation
biodiversity, 308, 319
community contribution, 133
Department of Conservation
administration of public conservation land, 265, 324, 326–30
conservation boards, 330
recreation promotion, 265
forest funds, 330
heritage collections, 244
history, 27
organisations, 330
protected areas, 308
tourism and, 272
workplaces, 280
Conservation Authority, NZ, 330
Conservation parks, 327
Consolidated accounts
National accounts
Constables, community, 217
Constitution
British sovereignty, 17
constitutional monarchy, 29
Declaration of Independence, 1835, 29
electoral system, 30–1
Executive, role of, 37
governor-general, 29–30
history, 29
Judiciary, role of, 29
nature of, 29
Parliament, role of, 30
parliamentary democracy, 29
parliamentary tradition, 30
premiers and prime ministers, 38
Queen of NZ, 29
separation of powers, 29
sources of, 29
Construction
Building and construction
Consular representation
Diplomatic and consular representation
Consumer Affairs, Ministry of, 450–1
Consumer finance, regulation of, 450
Consumer Guarantees Act 1993, 449–50
Consumer NZ, 451
Consumers price index
Prices
Contaminants, discharge into water, 316–7
Contaminated sites, 318
Controller and auditor-general, 44, 46
Convention on Biological Diversity, 318, 319, 320
Convention on the Conservation and Management of Highly Migratory Fish Stocks in the Western and Central Pacific Ocean, 59
Convictions
Criminal justice
Cook Islands
citizenship of NZ, 109
migration to NZ from, 122
special relationship with, 59
Cook, James, 16, 22, 27
Cook Strait inter-island ferries, 426
Copyright, 253–4, 304
Copyright Tribunal, 254
Coronial Services of NZ, 198
Corrections system
Community Probation and Psychological Services, 208–9
community-based sentences, 209
courtroom custodial services, 208
Department of Corrections, 208
extended supervision orders, 209
home detention, 209
parole, 209, 212
Prison Services, 210–1
prisoner escort, 208
prisoners, 212–3
proceeds of crime, 206–7
restorative justice scheme, 202
sentence of imprisonment, 205–6, 211, 212, 213
victims' rights, 211–2
Correspondence School, 185
Corruption, international comparisons, 445
Council for International Development, 66
Council of Trade Unions, NZ, 279
Counter-terrorism, 77
Court of Appeal
generally, 197
judicial salaries and allowances, 197
Courtroom custodial services, 208
Courts system, 196–8
CPI
Prices
Craft/Object Art Fellowship, 257
Creative Communities Scheme, 257
Creative NZ
Authors' Fund, 246
generally, 256–7
Māori arts, 240
Crèches, 183–4
Credit cards, 453–4, 483–4
Credit charges, CPI group, 337
Credit Contracts and Consumer Finance Act 2003, 450
Credit rating, foreign currency, 492
Credit Reporting Privacy Code 2004, 47
Credit (Repossession) Act 1997, 450
Crime
prevention and reduction, 207–8
proceeds of, 206–7
Criminal Investigation Branch, NZ Police, 217
Criminal justice
convictions, 201–5
Young offenders
arms, 206
Young offenders
by offence type, 201–5
Young offenders
dog control, 204, 206
Young offenders
drug offences, 203
Young offenders
fisheries, 206
Young offenders
local liquor bans, 204, 206
Young offenders
minors drinking in public place, 206
Young offenders
miscellaneous, 204, 206
Young offenders
motor vehicle conversion, 204
Young offenders
offences against administration of justice, 204, 205
Young offenders
offences against good order, 204, 205
Young offenders
other offences against the person, 203
Young offenders
property offences, 203–4
Young offenders
sale of liquor, 204, 206
Young offenders
tax-related, 206
Young offenders
traffic offences, 204, 441
Young offenders
violent offences, 201–2
Young offenders
DNA profiles, 217
Young offenders
duty solicitor scheme, 199
Young offenders
fines, enforcement of, 206
Young offenders
fingerprints, 217
Young offenders
legal aid, 199–200
Young offenders
offences recorded and resolved, 201
Young offenders
proceeds of crime, 206–7
Young offenders
protection orders, 204
Young offenders
Public Defence Service, 200
Young offenders
sentences and sentencing, 205–6, 209, 211
Young offenders
serious fraud, 200–1
Young offenders
Victim Support, 207
Young offenders
young offenders
Young offenders
Crop & Food Research, 299
Cropping farming prices, 339
Crown Company Monitoring Advisory Unit, 44, 45, 293
Crown entities, 44
Crown forests, MAF's role, 359
Crown Law, 200
Crown Research Institute Capability Fund, 295
Crown research institutes, 44, 298–301
Crown-owned land, 324
Crown-owned minerals, 401–2
Crustacean exports, 465–6
Cultural heritage
Arts and cultural heritage
Cultural Indicators for NZ: 2006, 255
Culture and Heritage, Ministry for, 254–5
Culture Online, NZ, 255
Currency, 485–6
Money
Current account
International accounts
Curriculum, school, 173
Customary fishing regulations, 383
Customs and excise, 458, 498, 499, 504
Customs Service, NZ
border security, 458
censorship law enforcement, 253
traveller arrivals and departures, 431
Cycle helmets, 439
Cycling, 263, 433

D

Dairy cattle
breeds, 360
farming, 357, 359
methane, 366
numbers
by category, 360
by region, 361
total population, 359
Dairy industry
cooperative dairy companies, 366
Dairy Companies Association of NZ, 366–7
dairy company payout, 358
exports, 360, 366, 368, 408, 460–1
Fonterra, 366, 367
milk production and processing, 358, 366–8
Open Country Cheese Ltd, 368
prices for dairy product manufacturing, 339
Tatua Co-operative Dairy Co Ltd, 367–8
Westland Milk Products, 367
Dairy Industry Restructuring Act 2001, 445
Dance, 249
Daylight saving, 14
De facto relationships, Property (Relationships) Act 1976, 127
Deaths
abortion, 161–2
air accidents, 429
cancer, 154, 160–1
Defence Force personnel in UN missions, 78
drownings, 165
earthquakes, 4
eco-coffins, 100
external causes, 166
major causes, 160
natural burials, 100
number, 99
road accidents, 162–4
suicide, 155–6
volcanic areas, 6
workplace fatalities, 171
Debt
public, 333, 504–5
Debt instruments, 486–7
Declaration of Independence, 1835, 29
Deep sea volcanoes, 7
Deer, 358, 359, 361
Defence and security
Africa, 64
Defence
ANZUS treaty, 78
Defence
Asia, 61
Defence
Australia, relationship with, 60, 77
Defence
cluster munitions treaty, 73
Defence
Corporal Willie Apiata, 64
Defence
counter-terrorism, 77
Defence
disarmament, 73
Defence
employee count in sector, 356
Defence
expenditure, 72
Defence
Five Power Defence Arrangements, 72, 77
Defence
GDP by industry, 344
Defence
generally, 71
Defence
intelligence and security, 81–2
Defence
Middle East, 64
Defence
NZ Defence Force
Defence
Force Pacific region, 60, 77–8
personnel, number of, 72
policy, 72–3
United Nations, involvement in, 67
United States, relationship with, 62, 78
Defence Force
Air Force, 76–7
Army, 75–6
casualties, overseas, 79
community assistance, 79–80
emergency and disaster relief, 79–80
gallantry awards, 48
hydrographic survey work for, 75
international relationships, 77–8
Limited Service volunteer training courses, 79
locations, NZ, 73
mutual assistance programme, 77, 78
Navy, 74–5
Operation Antarctica, 80
personnel constituting, 71
Defence, Ministry of, 71
Demography
Asian population, 124–5
Māori, 116–7
Pacific peoples, 121–4
Denmark, social security agreement with, 136
Dental decay prevention, 159
Dental health services, 158
Dental research, 159
Dentists and other oral health practitioners, 145
Department of Building and Housing, 417–9, 420
Department of Conservation
Conservation
Department of Corrections, 208
Departments, generally
State sector
Departures and arrivals, 101–2
Deportation, 116
Depression era, 18
Design
Better by Design programme, 409
Design Mobel, 408, 409
urban design, 53
Design registration, 303–4
Designated character schools, 186
Development assistance (aid)
International development assistance
Development Resource Centre, 66
Dictionary of NZ Biography, 255
Didymo, 315
Diesel imports, 468
Dietitians, 147
Digital rights protection, 253
Digital Strategy, 219, 220
Diplomatic and consular representation
Asia, 61
European Union, 62–3
generally, 59
Middle East, 63
military representatives, 78
North Africa, 63
Pacific region, 59
Russia and CIS, 63
Director of Human Rights Proceedings, 50, 126
Disabled people
advisory committees, 142
Child Disability Allowance, 133
code of health and disability services consumers' rights, 146
Disability Allowance, 133
equipment and modifications services, 148
ethics committees, 143
Invalid's Benefit, 131, 132
Office for Disability Issues, 130, 133
special education, 176, 179
sport and physical recreation, 263
support services, 156
telecommunications relay service, 226
Disarmament, 73
Disaster insurance, 454–5
Disaster relief
Emergency and disaster relief
Discovery of NZ, 15–7
Discrimination, 49, 50, 126, 279
Disease
communicable disease control, 153
immunisation, 153, 157
Dispensing opticians, 147
Disputes tribunals, 198
District courts
generally, 197
judicial salaries and allowances, 197
District health boards, 141–2
DNA Profile Databank, 217
Doctors, 145
Dogs
dog control, offence convictions, 204, 206
Police, 217
Doha Development Round, 68, 320, 357
Dolomite, 403
Dolphins, 12
Domain name registration, 220
Domestic air services, 430
Domestic Purposes Benefit, 132
expenditure on, 135
number of people receiving, 134
weekly rates, 131
Domestic retail trade
Retail trade and services
Domestic violence
immigration and, 113
legislation, 127
Door to Door Sales Act 1967, 450
Double tax agreements, 501, 502
DPB
Domestic Purposes Benefit
Drama School, NZ, 249
Drinking water, 149–50
Driving
alcohol impairment, 440
licences, 439
motor vehicle running costs, 440
safety belts, 439
sentenced prisoners by offence and sex, 213
speed cameras, 216–7, 441
speed limits, 440
traffic offences and convictions, 204, 441
Drownings, 165
Drug Intelligence Bureau, 216
Drugs
misuse, 150–1
National Drug Policy, 150–1
offences, 203
prescription charges, 148, 149
seizures, 216
sentenced prisoners by offence and sex, 213
Duties (tax), 458, 498, 504
Duty solicitor scheme, 199
Dwellings
Housing

E

EAB, 82
Early childhood education
10-year strategic plan, 183
attendance, 183
enrolments, 193, 194
food and nutrition guidelines, 154
full-time equivalent teaching staff, 192
funding, 178–9
generally, 182–3
institutions, number of, 193
licensing, 183
Māori language, 183
Pacific children, 183
providers, 183–4
Earthquake Commission, 5, 6, 454–5
Earthquakes, 3, 4–5
East Asia Summit, 62
East Timor, deployment in, 62, 78, 218
EBEX21 regeneration sites, 376
Eco-coffins, 100
Eco-fashion label, 453
E-commerce, 222
Economic Development, Ministry of, 406
Economic science research, 294
Economy
business statistics, 355–6
International accounts
National accounts
Prices
exchange rates, 332, 334, 487–8
International accounts
National accounts
Prices
fiscal indicators, 333
International accounts
National accounts
Prices
fiscal policy, 332–3
International accounts
National accounts
Prices
foreign currency credit rating, 492
International accounts
National accounts
Prices
generally, 331
International accounts
National accounts
Prices
growth, 331, 332, 339–40
International accounts
National accounts
Prices
inflation rate, 332, 338
International accounts
National accounts
Prices
inflation target, 333
International accounts
National accounts
Prices
interest rates
International accounts
National accounts
Prices
key market rates, 487
International accounts
National accounts
Prices
monetary policy and, 334, 486
International accounts
National accounts
Prices
mortgages and, 415
International accounts
National accounts
Prices
international accounts
International accounts
National accounts
Prices
monetary policy, 333–4, 335, 486
National accounts
Prices
national accounts
National accounts
Prices
net debt, 333
Prices
net worth, 333
Prices
official cash rate, 334, 335, 486
Prices
operating balance, 333
Prices
prices
Prices
public debt, 333, 504–5
recent developments, 332
reforms of mid-1980s, 331
Education
administration of, 175–7
Schools
Early childhood education
Tertiary education
advanced computing network (KAREN), 295
Schools
Early childhood education
Tertiary education
boards of trustees, 177
Schools
Early childhood education
Tertiary education
compulsory schooling
Schools
Early childhood education
Tertiary education
CPI group, 337
Early childhood education
Tertiary education
curriculum, 173
Early childhood education
Tertiary education
early childhood education
Early childhood education
Tertiary education
Education Review Office, 176
Tertiary education
employee count in sector, 356
Tertiary education
funding, 178–82
Tertiary education
high performance computing centres, 228
Tertiary education
international students, 191–2
Tertiary education
Learning Media Ltd, 178
Tertiary education
literacy, international comparisons, 174
Tertiary education
Māori, 182
Tertiary education
National Qualifications Framework, 174–5
Tertiary education
NCEA, 175, 185, 186
Tertiary education
NZ Qualifications Authority, 176–7
Tertiary education
NZ Scholarship, 175, 185, 187
Tertiary education
NZ Teachers' Council, 177
Tertiary education
Pacific peoples' qualifications, 122
Tertiary education
Rural Education Activities Programme, 182
Tertiary education
school-age population, 87, 176
Tertiary education
special education
Tertiary education
funding, 179
Tertiary education
policy, 176
Tertiary education
schools, 186
Tertiary education
transport assistance, 179
Tertiary education
teacher registration, 177
Tertiary education
tertiary councils, 177
Tertiary education
tertiary education
Tertiary education
unemployment by level of attainment, 285, 286
Education and care services, 183–4
Education, Ministry of, 175–6
Education Review Office, 176
EEO Trust, 126
EFTPOS, 483, 484
Eggs, 369
E-government Strategy, 220–1
Elderly people
Older people
Elections
local government, 54
Parliamentary elections
observer missions overseas, 69
Parliamentary elections
parliamentary
Parliamentary elections
Electrical machinery
exports, 463–4
imports, 467–8
Electricity
consumption, 393
distributed generation, 391
distribution, 392–3
employee count in sector, 356
GDP by industry, 344
generally, 391
generation, 391, 392
prices, 339
renewable resources, 400
transmission, 391–2
Electricity Commission, 393–4
Electricity Industry Reform Act 1998, 443, 445
Electronic commerce, 222
Electronic waste recycling, 222
Elizabeth II, Queen, 29
Email
Internet
Embassies, overseas
Diplomatic and consular representation
Emergency and disaster relief
civil defence, 5, 168
Defence Force assistance, 79
insurance, 454–5
overseas
NZAID programmes and expenditure, 66
Pacific region, 59
Emergency hospital treatment, 159
Emergency Maintenance Allowance, 131
Emissions
Air quality;
Greenhouse gas emissions
Emissions trading scheme, 309
Employment
arts and cultural heritage, 239
assistance, 287–8
bereavement leave, 278
civil aviation sector, 428
discrimination, 279
EEO Trust, 126
employee count by sector, 356
employment survey, 355
equal employment opportunities, 279
flexible working arrangements, 277
holidays, 278
hours of work, 278
insurance industry, 356, 454
KiwiSaver, 487
labour relations, 275–7, 280
legal framework, 275–80
manufacturing sector, 356, 408, 409, 410
minimum entitlements, 277–8
minimum wage, 277–8
modern apprenticeships, 283
parental leave, 278
PAYE system, 496
safety and health, 170–1
seasonal work assistance, 287
sick leave, 278
smoke-free workplaces, 153
teaching staff, 192
Transition to Work assistance, 287
union membership, 279
work permits, 114–6
work stoppages, 279–80
workers' advocacy, 279
working-age population, 87
Employment courts
generally, 197
judicial salaries and allowances, 197
Employment Relations Act 2000, 275–6
Employment Relations Authority, 277
Encyclopedia of NZ (Te Ara), 20, 255
Energy
biofuel research, aviation industry, 430
Minerals
biogas, 400
Minerals
biomass and waste, 400
Minerals
coal, 390, 391, 397–9
Minerals
consumption, 311
Minerals
agricultural sector, 389
Minerals
commercial sector, 389
Minerals
households, 389
Minerals
industry, 389
Minerals
manufacturing, 411
Minerals
transport sector, 311, 387, 389
Minerals
electricity, 387
Minerals
consumption, 393
Minerals
distributed generation, 391
Minerals
distribution, 392–3
Minerals
employee count in sector, 356
Minerals
GDP by industry, 344
Minerals
generally, 391
Minerals
generation, 391, 392
Minerals
prices, 339
Minerals
renewable resources, 400
Minerals
transmission, 391–2
Minerals
energy efficiency and conservation strategy, 309, 311, 388–9
Minerals
energy strategy, 311, 387–8
Minerals
environment and, 390–1
Minerals
environmental accounts, 341
Minerals
gas, 390, 391, 396–7
Minerals
generally, 387
Minerals
geothermal, 390, 391, 399
Minerals
greenhouse gas emissions, 311, 387, 391
Minerals
hydro, 390, 391, 399
Minerals
hydrogen fuel gas, 391
Minerals
landfill gas, 397, 400
Minerals
minerals exploration and mining
Minerals
oil, 390, 391, 394–5
primary energy supply, 391
prisons, 211
renewable resources, 311, 390, 391, 399–401
research and development, 391
self-sufficiency, 390, 395
solar energy, 401
sources, 311
supply, 311
supply and demand balance, 389–90
use by fuel type, 311
wave energy converter, 300
wind energy, 400–1
workplace conservation measures, 280
Energy resources levies, 504
Enterprising community grants, 134, 285
Environment
Adopt a Stream programme, 179
Climate change
Coastal environment
Energy
Minerals
air pollution and health study, 144
Climate change
Coastal environment
Energy
Minerals
air quality, 308–9
Climate change
Coastal environment
Energy
Minerals
biodiversity, 307–8, 319
Climate change
Coastal environment
Energy
Minerals
climate change
Climate change
Coastal environment
Energy
Minerals
coastal
Coastal environment
Energy
Minerals
conservation parks, 329
Energy
Minerals
energy
Energy
Minerals
erosion, 313, 317
Minerals
Fonterra's initiatives, 367
Minerals
forest protection funds, 330
Minerals
generally, 307
Minerals
genetic modification, 357
Minerals
hazardous substances, 315
Minerals
international coordination, 318
Minerals
international environmental institutions, 320
Minerals
international work, 318–20
Minerals
land cover, 308, 313
Minerals
land use, 313, 315
Minerals
marine environment, 311, 330, 427, 428
Minerals
MFAT, role of, 318, 320
Minerals
minerals
Minerals
mining cleanup, 402
national parks, 326, 327, 328
new organisms, 315
overseas trade and, 320
ozone layer depletion, 309–10, 319
Parliamentary Commissioner for the Environment, 44, 50
plastic shopping bags, 451
Powelliphanta snails, 312
radioactive substances, 315
research, 295–6, 297
reserves, 329
soil quality, 312–3, 316–7
television programmes, 230
tourism and, 269, 272
Volunteer Service Abroad, 60
water quality, 310
wetlands, 329
whale sanctuaries, 329–30
World Heritage Areas, 326–7
Environment Court
generally, 198
judicial salaries and allowances, 197
Environmental accounts, 341
Environmental Risk Management Authority, 315
Environmental Science and Research, Institute of, 301
Environmental support services for disabled people, 156
Enviroschools Foundation, 185
Equal employment opportunities, 279
Equal Employment Opportunities Commissioner, 126
Equal Employment Opportunities Trust, 126
ERMA, 315
ERO, 176
Erosion, 313, 317
ESR, 301
Estate duty, 504
Ethics Committee on Assisted Reproductive Technology, 143
Ethnic Affairs, Office of, 113
Ethnic groups
age distribution, 106
Asian population
European ethnic group
Māori
Pacific peoples
Asian
Asian population
European ethnic group
Māori
Pacific peoples
census definition, 106
European ethnic group
Māori
Pacific peoples
composition of population, generally, 87–9, 105–6
European ethnic group
Māori
Pacific peoples
convicted offenders, 205
European ethnic group
Māori
Pacific peoples
country of birth, 107
European ethnic group
Māori
Pacific peoples
European
European ethnic group
Māori
Pacific peoples
fertility rate, 97
Māori
Pacific peoples
fetal and infant mortality rate, 161
Māori
Pacific peoples
life expectancy, 100
Māori
Pacific peoples
Māori
Māori
Pacific peoples
modern apprenticeships, 283
Pacific peoples
Pacific peoples
Pacific peoples
population projections, 88–9
school leavers
attainment levels, 185
by year level, 186
unemployment, 287
European ethnic group
convicted offenders, 205
population
age distribution, 106
census of 1871, 18
decrease, 105, 106
fertility rate, 97
projections, 88–9
proportion of total, 87
unemployment, 287
European Union relationship with, 62–3
trade with, 476
Events, c1300–2007, 22–7
E-waste recycling, 222
Exchange rates, 332, 334, 487–8
Exchange reserves financing, 333
Excise and excise-equivalent duty, 458, 498, 499, 504
Exclusive economic zone, 80, 381
Executive government
Cabinet, 37, 39
composition of, 39
Executive Council, 37, 39
function, 195
ministers, appointment of, 37
Exercise
Sport and physical recreation
Exports
annual percentage change in value, 347
Asia, 61
Australia, 60, 471
award winners, 463
balance of merchandise trade, 459
balance of payments, 348–51
boat and ship manufacturing, 410
book publishing, 247
China, 474–5
coal, 399
dairy products, 360, 366–8, 408, 460–1
excise-equivalent duty, 458, 498, 499, 504
food miles, 460
forest products, 379, 380, 462–3
fruit, 371, 464–5
horticultural exports, 371
1CT goods and services, 222
iron ore, 402
Japan, 473–4
machinery, 463–4
main destination countries, 470
major commodities, 459–60
marine industry, 410
meat, 360–1, 363–4, 408, 461–2
merchandise trade by country grouping, 476
nuts, 464–5
oil, 395
Pacific region, 59
re-exports, 458, 459
seafood, 385–6, 465–6
seeds, 371
textiles, 411
United States, 472
valuation of, 458
values and volumes of goods and services, 347
vegetables, 371, 464–5
white clay, 403
wine, 374
wool, 365–6
External Assessments Bureau, 82
External migration, 101–2
Immigration
External trade
Exports;
Imports;
Overseas trade
Extinct species, 12, 13

F

Fair Trading Act 1986, 443, 444, 448–9
Families
health of, 156
issues, 127
Family and Community Services, 138
Family assistance provisions, 132–3
Family Benefit, 134, 135
Family courts
generally, 197
judicial salaries and allowances, 197
Family group conferences, 138, 139
Family Planning Association, NZ, 155
Family tax credits, 132, 502
Family/whānau agreements, 137
Farming
Agricultural sector
Fatalities
Deaths
Feeding our Futures programme, 150
Ferries, inter-island, 426–7
Fertility rate
generally, 84, 95–7
Māori, 117
Fetal mortality rates, 161
Fiji
migration to NZ from, 123
Police deployment in, 218
Film and Literature Board of Review, 252
Film and video
censorship, 251–3
cinema admissions, 251
distribution and exhibition, 250
Film and Video Labelling Body, 252
Film Archive, 251
Film Commission, 250
screen industry businesses, 250
screen industry revenue, 250
top NZ films at box office, 251
Finance
GDP by industry, 344
Government finance
local government, 54–5
Government finance
public sector
Government finance
Finance sector
employee count, 356
Financial account
International accounts
Financial institutions
Banking Ombudsman Scheme, 484, 485
Reserve Bank of NZ
banking services, 482–4
Reserve Bank of NZ
cashless society, 484
Reserve Bank of NZ
EFTPOS, 483, 484
Reserve Bank of NZ
generally, 479
Reserve Bank of NZ
online banking, 483
Reserve Bank of NZ
other deposit-taking institutions, 485
Reserve Bank of NZ
ownership of banks, 480
Reserve Bank of NZ
registered banks, 479, 481–4
Reserve Bank of NZ
regulation, 480, 484, 485
Reserve Bank of NZ
Reserve Bank of NZ
Reserve Bank of NZ
Fines, 206
Fingerprints, 217
Fire ants, 315
Fire brigades, incidents attended by, 169
Fire Service, 169–70
Fire Service Commission, 169, 455
Firearms, convictions for offences, 206
First past the post voting system, 32
Fiscal indicators, 333
Fiscal policy, 332–3
Fish, 12
Fish and game councils, 44
Fish and Game NZ, 265
Fish exports, 465–6
Fishing and fisheries
Antarctica, 71
commercial catch limits, 382–3, 384
convictions for offences, 206
customary fishing regulations, 383
employee count in sector, 356
energy use, 389
environmental accounts, 341
exclusive economic zone, 381
fish buying guide, 383
fish stock assessment process, 384
GDP by industry, 344
NZ control, 384
Pacific region, 59
protection, Defence Force assistance, 80
quota management system, 311, 382–4
recreational fishing, 264
registered commercial vessels, 383, 384
resources, 381–2
seafood exports, 385–6, 465–6
sustainability, 311, 383
Five Power Defence Arrangements, 72, 77
Fixed capital formation, 346–7
Flag, NZ, iv
Flag, first, iv, 31
Flooding, 11
Fluoridation of water, 159
Fonterra Co-operative Group, 366, 367
Food and Agricultural Organization (UN), 67
Food and beverages
CPI group, 336
Exports
exports
Exports
household expenditure, 346
safety and quality, 153–4
Food manufacturing industry, 408
Food miles, 460
Food Safety Authority, NZ, 153–4, 359
Food Standards Australia and NZ, 154, 460
Footwear, CPI group, 337
Footwear manufacturing industry, 410
Foreign Affairs and Trade, Ministry of
disarmament division, 73–4
environment division, 318, 320
functions, 57–8
NZAID, 59–60, 65–6
Foreign aid
International development assistance
Foreign currency credit rating, 492
Foreign exchange rates, 332, 334, 487–8
Foreign investment in NZ
generally, 348, 351–5
land, 323
Foreign pensions, taxation of, 501
Foreign-born residents, 107
Foreign-exchange reserves financing, 333
Forests and forestry
biosecurity, 381
carbon footprint, 378
carbon sinks, 319
conservation
forest funds, 330
parks, 329
Crown forestry licences, 324
Crown forests, MAF's role, 359
EBEX21 regeneration sites, 376
employee count in sector, 356
environmental accounts, 341
exports and imports, 379–80, 462–3
generally, 375
Māori interests, 377
ownership, 376, 377
panel production, 379
planting and production, 377
pulp and paper, 378, 380
resources, 12, 375–7
Scion, 298–9
timber, 379, 380–1
wood supply, 376
Forum Fisheries Agency, 59
Foundation for Research, Science and Technology, 296–7
FPP voting system, 32
France, Australia, NZ arrangement, 59
Franz Josef Glacier, 2
Fraud, 200–1
Free trade agreements, 59, 61, 68, 406, 467
Freeview satellite service, 222–3, 228
Freight
Rail transport;
Shipping
Fresh water
environmental accounts, 341
quality, 310
sport fishing, 265
Fringe benefit tax, 497
Fruit
apples, 372, 373, 464
area planted by region, 373
exports, 371, 464–5
kiwifruit, 372, 373, 464
pears, 372, 373
pipfruit marketing, 372
stone fruit, 371, 373
Summerfruit NZ, 371
ZESPRI International Ltd, 372
Fuel excise, 458, 498, 499, 504
Fuels
Energy;
Mineral fuel imports;
Oil;
Petroleum

G

Gallantry awards, 48
Galleries, art, 241
Gallipoli, 19, 72
Gambling Commission, 268
Gambling, problem, 151, 268, 500
Game Bird Habitat Trust Board, NZ, 330
Game fishing, 264
Game hunting, 264–5
Gaming, 266, 267
Gaming duty, 500, 504
Gas, 390, 391, 396–7
GATT Uruguay Round, 68, 357
GCSB, 81–2
GDP
Gross domestic product
General elections
Parliamentary elections
General practitioners
Doctors;
Primary Health Organisations
Genetic modification, 357
Genetic origins, information about, 96
Geographic Board, NZ, 325
Geography
climate
Climate
earthquakes, 3, 4–5
extremes, 2
geology, 3–7
landscape, 3–4
physical features, 1–3
place names, 325
vegetation, 12–3
volcanoes, 3, 4, 6–7
wildlife, 12, 13
GeoNet, 5, 7
Geothermal energy, 390, 391, 399
Giant weta, 321
Gift duty, 499, 504
Gift options for international development assistance, 65
Glaciers, 2
Global Environmental Facility, 320
Global warming
Climate change
GNI
Gross national income
GNS Science, 5, 300
Goats
farming, 361
meat exports, 364, 461
God Defend NZ (national anthem), 55
God Save the Queen (national anthem), 55
Gold
discoveries, 19th century, 18
generally, 312, 402
Goods and services tax, 498, 504
Goods, exports and imports
Exports;
Imports
Government
administration
State sector
Government finance
Local government
State sector
employee count, 356
State sector
Government finance
Local government
State sector
GDP by industry, 344
State sector
Government finance
Local government
State sector
departments, generally
State sector
Government finance
Local government
State sector
Executive
Government finance
Local government
State sector
Cabinet, 37, 39
Government finance
Local government
State sector
composition of, 39
Government finance
Local government
State sector
Executive Council, 37
Government finance
Local government
State sector
function, 193
Government finance
Local government
State sector
ministers, appointment of, 37
Government finance
Local government
State sector
finance
Government finance
Local government
State sector
information matching programmes, 221
Local government
State sector
local
Local government
State sector
national anthems, 55
State sector
securities market, 486–7
State sector
state sector
State sector
Government bonds, 486
Government Communications Security Bureau, 81–2
Government finance
accounting practice, 492–3
Budget, 490–2
chief executives, duties and responsibilities, 489–90
external reporting, 493–5
foreign currency credit rating, 492
generally, 489
government expenses, 492
operating balance, 493
public account taxation and national disposable income, 504
public debt, 333, 504–5
revenue and expenses as proportion of GDP, 491
statement of cash flows, 495
statement of financial performance, 494
statement of financial position, 494–5
tax revenue, 503, 504
Government works, land held for, 324
Governor-general
former representatives, 30
functions and powers, 29–30, 36, 37
Satyanand, fudge Anand, 30
Royal Assent, 36
Grain crops, 370–1
Grapes, 373, 374
Greece, social security agreement with, 136
Green Building Council, NZ, 419
Green Cabs fleet, 439
Green Party, cooperation agreement with government, 33
Greenbuild, 421
‘Greenhouse effect’, 309
Greenhouse gas emissions, 8, 309
agricultural sector, 366
by source, 309
EBEX21 regeneration sites, 376
energy sector, 311, 387, 391
food miles, 460
household purchase of carbon credits, 400
methane research, 366
ozone-depleting gases, 309
reduction initiatives, 309, 311
Greenstone, 311, 403
Grey warbler, 325
Gross domestic product
arts and cultural heritage sector and, 239
building and construction industry, 419
by industry, 343–4
definition, 339
expenditure on, 344–5
GDP and expenditure account, 340
government revenue and expenses as proportion of, 491
growth, 331, 339–40
manufacturing sector and, 406
principle aggregates, 340
research and development expenditure and, 294
Gross fixed capital formation, 346–7
Gross national income
definition, 339
per person, 332
principle aggregates, 340
Ground water quality, 310
Guardian visas, 114
Guardians of NZ Superannuation, 349
Gulf Cooperation Council, free trade negotiations, 406

H

Hail, 11, 341
Hay and silage crops, 370–1
Hazardous substances, regulation of, 315
Health
accidents
Accidents
Deaths
Public health
Health services
CPI group, 337
Deaths
Public health
Health services
death, causes of
Deaths
Public health
Health services
household expenditure, 346
Public health
Health services
occupational safety and health, 170–1
Public health
Health services
problem gambling, 151, 268
Public health
Health services
public health
Public health
Health services
research, 143–4, 296
Health services
services
Health services
Health and Air Pollution in NZ study, 144
Health and Disability Commissioner, 145, 146
Health and Disability Ethics Committees, 143
Health Information Privacy Code 1994, 47
Health Information Strategy Action Committee, 143
Health, Ministry of, 141
Health Research Council of NZ, 143–4, 296
Health services
advisory committees, 142–3
Public health
benefits and subsidies, 148–9
Public health
Blood Service, 143
Public health
code of health and disability services consumers' rights, 146
Public health
complaints, 145, 146
Public health
CP1
Public health
group, 337
Public health
district health boards, 141–2
Public health
employee count in sector, 356
Public health
expenditure, 144
Public health
hospital services, 148, 159
Public health
mental health, 155
Public health
Ministry of Health, 141
Public health
organisation of, 141–6
Public health
Primary Health Organisations, 148
Public health
professionals, regulation of, 145–7
Public health
public health
Public health
Health Sponsorship Council, 150
HealthPAC, 148–9
Healthy Eating – Healthy Action strategy, 142
Hector's dolphins, 12
Herald of Arms, NZ, 46
Heritage
Arts and cultural heritage
Heritage areas, world, 326–7
High Court of NZ, 197
High performance computing centres, 228
Highways and motorways, 435
Hiking, 264
Hillary, Sir Edmund, 21
Hindu faith, 108
Hire purchase, 450
Historic Places Trust, NZ, 241–2, 330
Historic reserves, 329
History
20th century, 18–20
British sovereignty, 17
Christian missionaries, 16–7
chronology of events, c1300–2007, 22–7
conservation, 27
discovery, 15–6
economic depression, 18
Labour governments, 19, 20
National governments, 19–20
politics, 18–20
History Online, NZ, 255
Hocken Collections, 245
Holidays, employee entitlements, 278
Home detention, 209
Home nursing and home help, 148
Home ownership
Housing
Home-based early childhood care, 183, 184
Home-based schooling, 185–6
Honey bees and production, 368–9
Honours system, 48
Horticulture, 370–4
HortResearch Ltd, 299
Hospital services, 148, 159
Hostel accommodation use, 271, 273
Hotels
employee count in sector, 356
household expenditure, 346
use, 271, 273
House of Representatives
Parliament
Household Labour Force Survey
definitions used, 281
unemployment, measurement of, 284
Households
borrowing, 415
carbon credit purchase, 400
consumption expenditure, 346
contents and services, CPI group, 337
energy use, 389
home heating
emissions, 309
insulation, 167
income, 289, 345
telecommunications services, access to, 225
Housing
accommodation assistance, 417, 418
Building and construction
construction
Building and construction
CPI group, 336, 337
Department of Building and Housing, 417–9
home ownership
generally, 413
number of privately-owned dwellings, 414
house prices
generally, 336, 413–4
inflation pressures, 332
house sales, 414
household expenditure, 346
Housing NZ Corporation, 415–7
loan approvals by Housing NZ, 417
loans and mortgages, 414–5
new dwellings
average floor area, 423
units authorised, 422
NOW Homes project, 414
residential tenancies, 418
retirement villages, 418
Smarter Homes website, 416
State Housing Appeals Service, 418
unit titles, 418–9
Weathertight Homes Resolution Service, 419
Human assisted reproductive technology
advisory committee, 143
ethics committee, 143
HART register, 96
Human rights
complaints, 50, 126
national action plan, 49, 127
UN reporting requirements, 67
UN resolutions, support of, 67
unlawful discrimination, 49, 126, 279
Human Rights Commission, 49, 50, 126, 127
Human Rights Review Tribunal, 50, 126, 198
Humanitarian Action Fund, 66
Humanitarian assistance, 66
Hunting and shooting, 264–5
Hydro energy, 390, 391, 399
Hydrogen fuel gas, 391
Hydrographic survey work for Defence Force, 75
Hydrography, national, 322

I

ICT goods and services, sales of, 222
ICTs, 219–22
Ilmenite, 402
ILO, 67, 276
Immigration
Asian population, 124
citizenship
approvals by country of birth, 111
granting of, 109–10
legislation and policy, 109
domestic violence policy, 113
family-sponsored residence stream, 112–3
international/humanitarian residence stream, 113
legislation and policy, 101, 110
net migration, 101–2
overseas-born residents, 107
Pacific access, 113
Pacific peoples, generally, 121–4
partnership policy, 113
refugees, 101, 113
removal and deportation, 116
residence streams, 110
Samoan quota, 113
skilled/business stream, 110, 112
skills shortage lists, 115
sources of migration, 114
temporary entry, 114–6
Immigration NZ, 110
Immunisation, 153, 157
Imports
annual percentage change in value, 347
Australia, 471
balance of merchandise trade, 459
balance of payments, 348–9
China, 474–5
forest products, 379, 380
Japan, 473–4
machinery, 467–8
main countries of origin, 470
major commodities, 466–7
merchandise trade by country grouping, 476
mineral fuels, 468–9
oil, 395
Pacific region, 59
passenger vehicles, 469
United States, 472, 473
valuation of, 458–9, 466
values of goods and services, 347, 348
Imprisonment
Prisons
Income
annual, 288, 289
Taxation
by region, 289
Taxation
household, 289
Taxation
personal income, 288–9
Taxation
salary and wage rates, 289–90, 291
Taxation
taxation
Taxation
weekly earnings, 288, 289
Income support, 130–2
Independent Police Conduct Authority, 216
Independent schools, 185
Independent Youth Benefit, 131
Indexation of contracts, 335
Indonesia, police deployment in, 218
Industrial designs, registration of, 302–4
Industrial Research Ltd, 300
Industry
energy use, 389, 411
Manufacturing industry
Service industries
fatal accidents, 171
Manufacturing industry
Service industries
manufacturing sector
Manufacturing industry
Service industries
modern apprenticeships, 283
Service industries
national certificates and diplomas, 174–5
Service industries
research associations, 302
Service industries
service industries
Service industries
Straight2Work partnerships, 134
training
programmes, 186–7
vocational qualifications, 174, 190–1
Infant mortality rates, 158, 161
Inflation
rate, 332, 338
target, 333
Influenza, pandemic planning, 159
Information and communication technologies, 219–22
Information matching programmes, 47, 221
Information privacy principles, 47
Information technology goods and services, sales of, 222
Injuries
accident insurance, 167–8
prevention, 166–7, 170–1
Inland Revenue
child support payments, collection of, 135, 502
Taxation
student loan repayments, administration of, 503
Taxation
taxation, generally
Taxation
Inmates
Prisons
Insects, 12
Insolvency, 447–8
Inspector-general of intelligence and security, 81
Institute of Environmental Science and Research Ltd, 301
Insulation of houses, 167
Insurance, accident, 167–8
Insurance and Savings Ombudsman, 455
Insurance Council of NZ, 455
Insurance industry
employee count in sector, 356, 454
GDP by industry, 344
generally, 454–5
Integrated circuits, layout designs, 304
Integrated schools, 185
Intellectual Property Office of NZ, 302
Intellectual property rights, 253–4, 302–4
Intelligence and security agencies, 81–2
Intensive supervision, sentence of, 209
Interest rates
key market rates, 487
monetary policy and, 333–4, 335, 486
mortgages, 415
Interfaith and inter-cultural dialogue, 67
Intergovernmental Panel on Climate Change, 8
Inter-island ferries, 426
International accounts
balance of payments, 348–51
capital account, 350
current account
balance as proportion of GDP, 353
deficits and surpluses, 332, 353–4
generally, 348, 349
trade in services, 350
financial account, 351
generally, 348
international assets and liabilities, 354–5
international investment position, 348, 352–3
sources of international investment, 353
International Accreditation NZ, 305
International air services, 431
International Atomic Energy Agency, 67
International Civil Aviation Organisation, 428
International copyright agreements, 254
International Court of Justice, 67
International development assistance
Afghanistan, 64
Africa, 64, 66
Asia, 61, 66
gift options, 65
humanitarian assistance, 66
international agencies, 66
Iraq, 64
Latin America, 66
NZ non-government organisations, 66
NZAID, 59–60, 65–6
Pacific region, 59–60, 65–6, 70
UN Relief and Works Agency, 64
International Energy Agency, 69
International environmental coordination, 318
International environmental institutions, 320
International environmental work, 318–20
International investment, 348
International Labour Organization, 67, 276
International relations
Africa, 63, 64
International development assistance
Asia, 61–2
International development assistance
Australia, 60
International development assistance
Canada, 62
International development assistance
Caribbean, 62
International development assistance
development assistance
International development assistance
diplomatic and consular representation, 58, 59
European Union, 62–3
generally, 57–8
interfaith and inter-cultural dialogue, 67
international organisations, 67–9
Latin America, 62
Middle East, 63–4
NZ territories, 69–71
Pacific region, 59–60
United States, 62
International Security Assistance Force (Afghanistan), 64
International students
generally, 191–2
visas, 114
International tourism, 270–2
International Whaling Commission, 318, 320
Internet
access and use, 219–22
activities, 221
advanced network, 228
broadband, 219, 220, 227–8
dial-up access, 219
Digital Strategy, 219, 220
domain name registrations, 220
e-commerce, 222
e-government strategy, 220–1
ICT surveys, 219
Internet NZ, 220
Māori presence, 220
sales, 450
service providers, 224–5, 226–7
spam email, 222
subscribers, 220
travel planning and experience sharing, 269
Invalid's Benefit, 131, 132, 134, 135
Investment, international, 348, 351–5
In-work tax credits, 132, 502
IPONZ, 302
Iraq, deployment in, 64, 79
IRD
Inland Revenue
Ireland, social security agreement with, 136
Iron ore, 402
Islamic faith, 108
Islands
conservation in subantarctic islands, 327
outlying, 1
ISO certification service, 304–5
Israeli-Arab conflict, 64, 78

J

Japan
CPI comparison, 338
value of trade with, 473–4
Jersey and Guernsey, social security agreement with, 136
Jobs
Employment;
Labour force
Judges
appointment, 195
complaints against, 195
removal from office, 195
role, 195
salaries and allowances, 197
Judicial Committee of the Privy Council, 196
Jury service, 200
Justice, Ministry of, 196
Justice system
corrections
Corrections system
Criminal justice
Young offenders
courts system, 196–8, 199–200
Criminal justice
Young offenders
criminal justice
Criminal justice
Young offenders
young offenders
Young offenders
Justices of the Peace, 197

K

KAREN, 295
Kindergartens, 183
Kingitanga, 117
Kiwi Bonds, 487
Kiwifruit, 372, 373, 464
KiwiSaver, 487
Knowledge creation funding, 294–5
Kōhanga reo, 120–1, 183
KOHA-PICD, 66
Kosovo, deployment in, 79
Kupe, 15
Kura kaupapa Māori, 120, 185
Kyoto Protocol
generally, 319, 320
NZ initiatives to meet commitments, 309

L

Labour force
definition of, 281
employment status, 282–3
full- and part-time employment, 283
growth, 282
industry structure, 283–4
modern apprenticeships, 283
occupational structure, 284
older people, 278
participation rates by sex and age, 281, 282
unemployment, 284–7
Labour governments, 19, 20, 33
Labour market
discrimination, 279
Labour force
employers' advocacy, 279
Labour force
employment assistance, 287–8
Labour force
equal employment opportunities, 279
Labour force
income, 288–90
Labour force
international organisations, 276
Labour force
labour costs, 290–1
Labour force
labour force
Labour force
labour relations, 275–80
minimum entitlements, 277–8
unemployment, 284–7
union membership, 279
work stoppages, 280
workers' advocacy, 279
Labour Party, minority coalition government, 33
Labour relations, 275–80
Lahar risk, 5, 6
Lakes, 2, 3
Lamb
exports, 360, 361, 363, 364
meat production volumes, 362
Land
area, 1–2
Crown-owned, 324
erosion, 313, 317
land cover, 308, 313
Landcorp, 325
Māori land, 324
number of land transfer documents processed, 322
NZ Geographic Board, 325
overseas parties, acquisition by, 323
rural sales, 323
soil quality, 312–3, 316–7
stamp duty, 499
survey system, 321–2
title registration, 322
use, 313, 315
valuation, 325
Land Information NZ
generally, 321
land administered by, 324
Land transport
Rail transport;
Road transport
Land Transport NZ, 433–4
Land wars, 19th century, 17
Landcare Research NZ Ltd, 299–300
Landcorp Farming Ltd, 325
Landfill gas, 397, 400
Landfills, 318
Landonline, 321
Landscape, 3–4
Language
languages spoken, 109
official, 120
Pacific peoples, 122
Latin America
development assistance, 66
relationship with, 62
Law centres, 199–200
Law Commission, 199
Lawyers, duty solicitor scheme, 199
Layby Sales Act 1971, 450
Layout designs, 304
Leader of the Opposition, 34
Learning Media Ltd, 178
Lebanon, deployment in, 64
Legal aid, 199
Legal deposit system, 243
Legal Services Agency, 199–200
Legal system
attorney-general, 196
Judges
Chief Justice of NZ, 196
Judges
salary and allowances, 197
Judges
community law centres, 199–200
Judges
courts system, 196–9
Judges
Crown Law, 200
Judges
Judges
Judges
jury service, 200
Justices of the Peace, 197
Law Commission, 199
legal aid, 199
Legal Services Agency, 199–200
Ministry of Justice, 196
Queen as source of legal authority, 195
separation of powers, 195
solicitor-general, 200
tribunals, 198–9
Leisure
gaming, 266, 267
Sport and physical recreation
lotteries, 266, 267–8
Sport and physical recreation
racing, 266
Sport and physical recreation
sport
Sport and physical recreation
Liabilities, international, 354–5
Liberal governments, 18–9
Library services
conservation, 244
Hocken Collections, 245
legal deposit system, 243
National Library, 243–4
NZ National Bibliography, 243
Parliamentary Library, 244–5
public libraries, 245
specialist library and information centres, 246
universities, 245
Life expectancy, 101
Life insurance, 454
Limestone, 403
Limited Service volunteer training courses, 79
LINZ
generally, 321
land administered by, 324
Liquidations, 448
Liquor, sale of
convictions for offences, 204, 206
generally, 451–2
licensing, 452
Literacy of students, 174
Literature, 245, 246–7
Livestock
beef cattle
Beef cattle
Dairy cattle
Sheep
dairy cattle
Dairy cattle
Sheep
deer, 358, 359, 361
Sheep
goats
Sheep
farming, 361
Sheep
meat exports, 364
Sheep
numbers by category, 360
Sheep
pigs, 361, 368
Sheep
poultry
Sheep
generally, 368–9
Sheep
meat exports, 461
Sheep
prices, 339
Sheep
sheep
Sheep
slaughter, 364
stock feed, 359, 370–1
total numbers, 359
types, 360–1
Living Heritage initiative, 242
Lizard species, 308
Loans
housing, 414–5
regulation of, 450
Local government
boundaries, 51
categories of local authorities, 51
community boards, 53
decision making, 51
elections, 54
finance, 54–5
functions and powers, 51, 52–3
income, 51
legislation applicable, 51
local bills, 51
new cities, constitution of, 52
organisation of, 51–2
population estimates, 93–4
rates, setting of, 51
regional councils, 52
review authority, 51
sources of power, 51
special purpose local authorities, 53
territorial authorities, 52–3
unitary authorities, 53
urban design, 53
Local Government Commission, 54
Local Government Official Information and Meetings Act 1987, 46, 47, 51
Local television services, 230
Lockouts, 280
Lotteries, 266, 267–8
Lottery duty, 500
Lottery Grants Board, NZ, 267–8

M

Machinery and equipment
economic growth, 340
exports, 463–4
imports, 467–8
MAF, 358–9
MAF Biosecurity NZ, 315, 359, 381, 382
Magazines, 233
Mail services, 236–8
Maize, 370, 371
Malaghan Institute of Medical Research, 144, 302
Malaysia, free trade negotiations, 61, 406
Mana Tohu Mātauranga o Aotearoa (NZQA), 176–7
Manaaki Whenua (Landcare Research NZ Ltd), 299–300
Manatū Kaihokohoko (Ministry of Consumer Affairs), 450–1
Manufacturing industry
Better by Design programme, 409
business development, 406–8
contribution to GDP, 406
economic activity survey, 411
employment, 356, 409, 410, 411
energy consumption, 411
food industry, 408
GDP by industry, 344
general environment, 405
major groups, 408–11
marine industry, 311, 409–10
plastics, 408
tariffs, 405–6
textiles, 410–1
wine industry, 374
Manuka honey, 370
Māori
20th century history, 20–1
Māori population
artefacts and traditional sites, 242–3
Māori population
broadcasting, 224
Māori population
convicted offenders, 205
Māori population
cultural heritage, 239–40
Māori population
customary fishing, 383
Māori population
Declaration of Independence, 1835, 29
Māori population
demography, 116–7
Māori population
discovery and settlement of NZ, 15
Māori population
early society, 15–6
Māori population
education
Māori population
draft education strategy, 182
Māori population
generally, 182
Māori population
kōhanga reo, 120–1, 183
Māori population
kura kaupapa Māori, 120, 185
Māori population
wānanga, 44, 177, 188, 302
Māori population
wharekura, 120
Māori population
fisheries settlement assets, 384
Māori population
forestry interests, 377
Māori population
health services, 157
Māori population
Internet presence, 220
Māori population
land wars, 17
Māori population
Māori King movement, 117
Māori population
organisations, 119–20
Māori population
physical activity, 263
Māori population
population
Māori population
religious affiliation, 108
smoking, prevalence of, 152
taonga tuku iho, 239–40
te reo Māori, 120–1, 240
toi iho, 257
unemployment, 287
writers' awards, 245
Māori Appellate Court, 198
Māori Arts and Crafts Institute, 240
Māori Congress, 120
Māori Council, NZ, 119–20
Māori Development, Ministry of, 119
Māori Education Trust, 182
Māori electoral districts, 41, 42
Māori electoral option, 31, 40
Māori Heritage Council, 240
Māori Internet Society, 220
Māori land, 324
Māori Land Court
generally, 198, 324
judicial salaries and allowances, 197
land blocks administered by, 324
Māori Language Commission, 120, 240
Māori population
age distribution, 106, 117
female-to-male ratio, 117
fertility rate, 97, 117
fetal and infant mortality rates, 161
growth, 105, 106
infant mortality rates, 158
life expectancy, 100
pre-European contact, 15
projections, 88–9
proportion of total population, 87, 116
regional distribution, 117, 118
Māori Television, 224, 240
Māori Trustee, 119
Māori Women's Welfare League, 120
Mapping services, 321–2
Marine environment, 311, 427, 428
Marine industry, 311, 409–10
Marine pollution, 311, 427, 428
Marine reserves and parks, 311, 330
Maritime NZ, 427–8
Marriages
celebrants, 99
first marriage, median age, 98
generally, 99
licences, 99
Property (Relationships) Act 1976, 127
rate, 98
Marsden Fund, 294
Maternity services, 148
Measures, metric, 450
Meat
consumption, 361
exports, 360–1, 363–4, 408, 461–2
NZ Meat Board, 361
production volumes, 362
products, 361–4
schedule prices, 362
sheep meat production, 358
Meat & Wool NZ, 362
Mechanical machinery
exports, 463–4
imports, 467–8
Mediation of employment relationship problems, 276
Medical Council of NZ, 145
Medical education, 145
Medical laboratory scientists and technologists, 147
Medical professionals and technologists, 145–7
Medical radiation technologists, 147
Medicines
misuse, 150–1
National Drug Policy, 150–1
prescription charges, 148, 149
Members of Parliament
Parliament
Men
life expectancy, 101
prisoners, 212
Meningococcal B immunisation, 153
Mental health services, 148, 155
Merchandise trade
Overseas trade
Metals, 402
Methane research, 366
Methanol production, 397
Methyl bromide, 381
Mexico, relationship with, 62
MFAT
Ministry of Foreign Affairs and Trade
Michael King Writers' Fellowship, 257
Middle East
relationship with, 63–4
UN Truce Supervisory Organization, 64, 78
Midwives, 146, 148
Migration
external, 101–2
internal, 91
Military
Defence Force
Military Police company, 76
Milk production and processing, 358, 366–8
Mineral fuel imports, 468–9
Minerals
coal, 312, 315
Crown Minerals Act 1991, 315
Crown ownership, 401–2
environment and, 311–2
exploration and mining, 312, 315–6, 401–2, 402
exports, 402
generally, 311–2, 401
gold, 312
metals, 402
mining cleanup, 402
non-metallic, 402–3
petroleum, 316
Miner's Benefit, 134, 135
Minimum family tax credits, 502
Minimum wage, 277–8
Mining
employee count in sector, 356
GDP by industry, 344
Ministries, generally
State sector
Ministry for Culture and Heritage, 254–5
Ministry of Agriculture and Forestry, 315, 358–9
Ministry of Civil Defence and Emergency Management, 168
Ministry of Consumer Affairs, 450–1
Ministry of Defence, 71
Ministry of Economic Development, 406
Ministry of Education, 175–6
Ministry of Foreign Affairs and Trade
disarmament division, 73
environment division, 318, 320
functions, 57–8
NZAID, 59–60, 65–6
Ministry of Health, 141
Ministry of Justice, 196
Ministry of Māori Development, 119
Ministry of Research, Science and Technology, 293
Ministry of Social Development
Social Development, Ministry of
Ministry of Women's Affairs, 126
Ministry of Youth Development, 127–8, 130
Mission-On campaign, 154, 263
Misuse of drugs, 150–1
MMP voting system, 30–1, 32–3
Mobile phone service providers, 224–5, 226–7
Modern apprenticeships, 283
Mollusc exports, 465–6
Monetary policy, 333–4, 335, 486
Money
cashless society, 484
currency, 485–6
foreign exchange rates, 332, 334, 487–8
interest rates, 334, 486
official cash rate, 334, 335, 486
Moral rights, 254
MoRST, 293
Mortality
by age and sex, 100
Child and Youth Mortality Review Committee, 142
death rate, 103
fetal mortality rates, 161
infant mortality rates, 158, 161
median age at death, 101
Perinatal and Maternity Mortality Review Committee, 143
vital statistics, 99
Mortgages, 414–5
Motel use, 271, 273
Motor Vehicle Sales Act 2003, 450
Motor Vehicle Traders Register, 436–8
Motor vehicles
accidents, 162–4
age profile, 439
commuting, 432, 433, 434, 440
conversion, 203, 204
fees, 504
GreenFleet programme, 444
imported passenger vehicles, 469
inspection, 439
registers, 436–8
registration and licensing, 436–8
running costs, 440
safety belts, 439
Motorways, 435
Motu Ihupuku (Campbell Island), 1
Mountaineering, 264
Mountains, 2
Movies
Film and video
MPs
Parliament
Mt Cook, 2
Mt Ruapehu lahar, 5, 6
Multinational Force and Observers (Sinai), 64, 79
Murder, sentencing for, 211
Museums, 241
Music
Chamber Music NZ, 248
Choral Federation, 248
Māori, 240
National Youth Orchestra, 248
NZ Music Commission, 247
NZ On Air, 223
NZ Opera Ltd, 249–50
Symphony Orchestra, 247–8
Muslim faith, 108
Mutton
exports, 360, 361, 363, 364
meat production volumes, 362
Mutual assistance programme (NZ Defence Force), 77, 78

N

Names, children's, 98
Naming of places, 325
National accounts
capital stock, 347
consolidated accounts
external account, 342–3
GDP and expenditure account, 340
national capital account, 341–2
national income and outlay account, 340–1
environmental accounts, 341
external trade, 347–8
generally, 339–40
gross domestic product
arts and cultural heritage sector, 239
building and construction industry, 419
by industry, 343–4
definition, 339
expenditure on, 344–5
GDP and expenditure account, 340
government revenue and expenses as proportion of, 491
growth, 331, 339–40
manufacturing sector, 406
principle aggregates, 340
research and development expenditure and, 294
gross fixed capital formation, 346–7
gross national income
definition, 339
principle aggregates, 340
household sector, 345–6
national disposable income
definition, 339
national income and outlay account, 340–1
principle aggregates, 340
public account taxation and, 504
national saving and net overseas borrowing, 342
National Advisory Committee on Health and Disability, 142
National Advisory Committee on Health and Disability Support Services Ethics, 142
National anthems, 55
National assets, privatisation of, 20
National Beekeepers' Association, 370
National Bibliography, NZ, 243
National Certificate of Educational Achievement, 175, 185, 186
National certificates and diplomas, 174, 190–1
National Cervical Screening Programme, 157
National disposable income
National accounts
National DNA Databank, 217
National Drug Intelligence Bureau, 151, 216
National Drug Policy, 150–1
National environmental standards, air quality, 309
National governments, 19–20
National Heritage Preservation Incentive Fund, 242
National identity, protection of symbols, 255
National immunisation schedule, 153
National Institute of Water and Atmospheric Research Ltd, 7, 300–1
National Land Transport Fund, 434, 499
National Land Transport Programme, 434
National Library of NZ, 243–4
National parks, 326
National Preservation Office, 244
National Qualifications Framework, 174–5
National Radio, 230, 231–2
National reserves, 329
National Topographic/Hydrographic Authority of LINZ, 322
National War Memorial, 255
National Youth Orchestra, 248
Natural burials, 100
Natural disasters, relief for
Emergency and disaster relief
Natural gas, 390, 391, 396–7
Nature Heritage Fund, 330
Nature reserves, 329
Nautical charts, 75
Navigation safety, 75
Navy, Royal NZ, 74–5
NCEA, 175, 185, 186
Neglect of children, 137, 138
Net migration, 101–2
New organisms, regulation of, 315
New Zealanders, identification as, 107
Newspapers, 233–4, 235
Ngā Kaitiaki 0 Ngā Taonga Whitiāhua (NZ Film Archive), 251
Ngā Pou Taunaha o Aotearoa (NZ Geographic Board), 325
Ngā Taonga Kōrero (Sound Archives), 232
Ngā Whenua Rahui fund, 330
Niue
citizenship of NZ, 109
migration to NZ from, 123
special relationship with, 59
NIWA, 7, 300–1
Non-resident withholding tax, 500, 504
North Island
land area, 1
population, 90, 91
Not for profit sector
Community and voluntary sector
Notifiable diseases, 153
NOW Homes project, 414
Numeracy of students, 174
Nurses, 146
Nursing services, home-based, 148
Nut exports, 464–5
Nutrition
Mission-On campaign, 154
obesity prevention, 142, 150
Nutrition survey, 142
NZ Academy of Sport, 260–2
NZ Agency for International Development, 59–60, 65–6
NZ AIDS Foundation, 155
NZ Army, 75–6
NZ Authors' Fund, 246
NZ Automobile Association, 440, 455
NZ Bankers' Association, 484
NZ Bill of Rights Act 1990, 4 9
NZ Blood Service, 143
NZ Cadet Forces, 79
NZ Cancer Control Strategy, 154
NZ Cartoon Archive, 243
NZ certificates in engineering, 191
NZ Choral Federation, 248
NZ Conservation Authority, 330
NZ Council of Trade Unions, 279
NZ Culture Online, 255
NZ Customs Service
Customs Service, NZ
NZ Defence Force
Defence Force
NZ Diploma in Business, 191
NZ Drama School, 249
NZ Energy Efficiency and Conservation Strategy, 309, 311, 388–9
NZ Energy Strategy, 311, 387–8
NZ Exchange Ltd, 445–6
NZ Exclusive Economic Zone, 381
NZ Family Planning Association, 155
NZ Film Archive, 251
NZ Film Commission, 250
NZ Fire Service, 169–70
NZ Fire Service Commission, 169
NZ First, confidence and supply agreement, 33
NZ flag, first, 31
NZ Food Safety Authority, 153–4, 359
NZ Game Bird Habitat Trust Board, 330
NZ Geographic Board, 325
NZ Green Building Council, 419
NZ Herald of Arms, 46
NZ Historic Places Trust, 241–2, 330
NZ History Online, 255
NZ Institute for Crop & Food Research Ltd, 299
NZ Lottery Grants Board, 267–8
NZ Māori Council, 119–20
NZ Meat Board, 361
NZ Music Commission, 247
NZ National Bibliography, 243
NZ On Air, 223
NZ Opera Ltd, 249–50
NZ Order of Merit, 48
NZ Parole Board, 212
NZ Police
Police
NZ Police International Service Group, 218
NZ Pork Industry Board, 368
NZ Positive Ageing Strategy, 137
NZ Post Ltd, 236–8
NZ Press Association, 234
NZ Press Council, 234–5
NZ Public Service
State sector
NZ Qualifications Authority, 176–7
NZ Racing Board, 266
NZ Register of Quality Assured Qualifications, 177, 187
NZ Scholarship, 175, 185, 187
NZ School of Dance, 249
NZ Society of Authors, 246
NZ Special Air Service Group, 64
NZ Standard Time, 13–4
NZ String Quartet, 248
NZ Superannuation
generally, 135
number of people in receipt of, 134
portability, 136–7
weekly rates, 131
NZ Superannuation Fund, 349
NZ Symphony Orchestra, 247–8
NZ Teachers' Council, 177
NZ Tourism Strategy 2015, 269
NZ Trade and Enterprise, 58, 405, 406–8, 409, 457–8
NZ Transport Agency, 434
NZ Venture Investment Fund Ltd, 297
NZCE, 191
NZCTU, 279
NZDipBus, 191
NZI National Sustainable Business Awards, 408
NZQA, 176–7
NZSIS, 81
NZX, 445–6
NZX all index, 447

O

Oats, 370
Obesity prevention, 142, 150
Occupational safety and health, 170–1
Occupational therapists, 147
Ocean management, 319–20
Fishing and fisheries
OECD
Organisation for Economic Co-operation and Development
Offal exports, 461–2
Offences
Criminal justice;
Young offenders
Office for Disability Issues, 130, 133
Office for Senior Citizens, 130, 137
Office for the Community and Voluntary Sector, 130
Office of Ethnic Affairs, 113
Office of Film and Literature Classification, 252–3
Office of the Insurance and Savings Ombudsman, 455
Office of Treaty Settlements, 119
Offices of Parliament, 44
Official assignee, duties under Proceeds of Crime Act 1991, 206–7
Official cash rate, 334, 335, 486
Official Information Act 1982, 46, 47
Official languages, 120
Offshore islands, land area, 1
Oil
generally, 394–5
imports, 468
Older people
labour force, 278
Office for Senior Citizens, 130, 137
Positive Ageing Strategy, 137
public health services, 154–5
residential care, 154, 155
Olympic Games, 261
Ombudsmen, 44, 46–7
Onion crop research, 299
Online banking, 483
Online sales, 450
ONTRACK, 432
Open Country Cheese Ltd, 368
Open Polytechnic of NZ, the, 188
Opera, NZ, 249–50
Operation Antarctica, 80
Opticians, 147
Optometrists, 147
Oral health practitioners, 145–6
Oral health services, 158–9
Oral History Centre, 244
Oranga Pumau (HEHA strategy), 142
Order of NZ, 48
Organic farming, WWOOF movement, 372
Organisation for Economic Co-operation and Development
energy
primary supply, 388
renewables, 388
Environment Policy Committee, 320
GNI per person, 332
infant mortality rates, 161
inflation rate, 338
NZ involvement in, 69, 276
research and development expenditure, 294
river water quality, 310
student literacy, 174
trade, value of, 476
Orphan's Benefit, 131, 132–3, 134, 135
Osteopaths, 147
Out of School Care and Recreation Subsidy, 132
Outdoor leisure activities, 263–4
Outpatient services, 159
Overseas investment in NZ
generally, 348, 351–5
land, 323
Overseas relations
International relations
Overseas trade
Africa, 63–4
Exports
Imports
APEC countries, 476
Exports
Imports
ASEAN countries, 476
Exports
Imports
Asia, 61, 62, 473–6
Exports
Imports
Australia, 60, 470–1
Exports
Imports
balance of merchandise trade, 459
Exports
Imports
Canada, 62
Exports
Imports
cargo, 476–7
Exports
Imports
Caribbean, 62
Exports
Imports
China, People's Republic of 474–5
Exports
Imports
Customs Service, 458
Exports
Imports
development and administration, 457–9
Exports
Imports
environment and, 320
Exports
Imports
European Union, 62–3, 476
Exports
Imports
exports
Exports
Imports
food miles, 460
Imports
free trade agreements, 59, 61, 68, 406, 467
Imports
imports
Imports
Japan, 473–4
Latin America, 62
liberalisation, 68
merchandise exports, main destination countries, 470
merchandise imports, main countries of origin, 470
merchandise trade by country grouping, 476
Middle East, 63–4
NZ Trade and Enterprise, 457–8
OECD countries, 476
Pacific region, 59
Russia and CIS, 63
shipping services, 425, 426, 427
suppression of confidential data in statistics, 458
trading partners, 470–6
United States, 62, 472–3
World Customs Organization, 458
WTO, 68
Overseas-born residents, 107
Oxfam's gift option, 65
Ozone layer depletion, 309–10, 319

P

Pacific Agreement on Closer Economic Relations, 59
Pacific Forum Line, 59
Pacific Island Countries Trade Agreement, 59
Pacific Islands Forum, 59
Pacific peoples
convicted offenders, 205
demography, 121–2
early childhood education, 183
educational qualifications, 122
fetal and infant mortality rate, 161
languages, 122
largest ethnic groups, 122
migrant quota, 113
migration to NZ, 122–4
population
age distribution, 106, 121–2
fertility rate, 97
growth, 105, 106
projections, 88–9
proportion of total population, 87
regional distribution, 122
religious affiliation, 122
smoking, prevalence of, 152
unemployment, 287
Pacific region
Biketawa Declaration, 60
defence and security, 60, 77–8
development assistance, 59–60, 65–6, 70
diplomatic and consular representation, 59
disaster coordination, 59
emergency and disaster relief, 59
environmental issues, 320
exports, 59
imports, 59
radio broadcasting, 230, 231
relationship with, 59–60
social security agreements, 137
trade with, 59
Pākehā
European ethnic group
Palestinian-Israeli conflict, 64, 78
Pandemic planning, 159
Parental leave, 278
Parental tax credits, 502
Parents as First Teachers, 183
Parks
conservation, 329
marine, 330
national, 326–8
Parliament
Budget, 490–1
Governor-general
function, 195
Governor-general
governor-general
Governor-general
House of Representatives, 32–6
bills, types of, 36
clerk, 32, 34, 36
composition of 48th Parliament, 34–5
debates, 36
freedom of speech, 32
functions, 32
Leader of the Opposition, 34
legislative procedure, 36
salaries and allowances, 33
select committees, 36
sessions, 32
Speakers, 32, 34
television coverage, 36
Offices of Parliament, 44
political parties
representation, 33
role, 32–3
seats held after general elections, 31
Youth Parliament, 127, 128
Parliamentary Commissioner for the Environment, 44, 50
Parliamentary elections
2005 election, 40
electoral boundaries and districts, 40–2
electoral rolls, 40
enrolment, 40
FPP system, 32
Māori electoral districts, 41, 42
Māori electoral option, 31, 40
MMP system, 30–1, 32–3
voter turnout, 40, 41
voting patterns, 41
voting process, 40
Parliamentary Library, 244–5
Parole, 209, 212
Parole Board, NZ, 212
Partnerships, 443, 444
Pasifika Early Childhood Education Services, 183
Passenger vehicle imports, 469
Pastoral agriculture, 359–61
Pastoral Greenhouse Gas Research Consortium, 366
Pastoral leasehold land, 324
Patents, 302–3
PAYE system, 496
Pears, 372, 373
PEN NZ Inc, 246
Penal institutions
Prisons
Pensions
expenditure on, 135
foreign pensions, taxation of, 501
number of people in receipt of, 134
NZ Superannuation, 131, 134, 135, 136–7
People's Republic of China
China
Performers' rights, 254
Performing arts, 247–50
Perinatal and Maternity Mortality Review Committee, 143
Persistent organic pollutants, 318
Personal computers
Computers;
Internet
Personal information, disclosure of, 47
Personal Property Securities Register, 436–7
Personal services
employee count in sector, 356
GDP by industry, 344
Peru, relationship with, 62
Pests and diseases
bio-control, 359
didymo, 315
fire ants, 315
marine pest management, 382
sea squirt, 315, 382
thistle control, 359
varroa mite, 370
Petrochemicals, 397
Petroleum
distribution, 395
end use, 395
exploration and mining, 316
fuels excise, 458, 498, 499, 504
imports, 468
refinery, 395
retailing, 395
unleaded petrol, 395
PHARMAC, 149
Pharmaceutical benefits, 148
Pharmacists, 147
Physical recreation
Sport and physical recreation
Physiotherapists, 146
Pigs and pigmeat, 361, 362, 368
Pikihuia Awards, 245
Pipfruit
area planted, 373
exports, 372
marketing, 372
Place names, 325
Plant species, 12–3
Plant variety rights, 304
Plastic shopping bags, 451
Plastics industry, 408
Platinum group metals, 402
Playcentres, 183
Playgroups, 184
Plunket Society, 155
Podiatrists, 147
Police
armed offenders squads, 216
assaults on, 216
censorship law enforcement, 253
Commissioner, 215
community policing, 217
community support groups, 218
complaints against, 216
Criminal Investigation Branch, 217
dogs, 217
drug seizures, 216
fingerprint processing, 217
generally, 215
International Service Group, 218
operations, 216–8
overseas deployments, 218
Police Infringement Bureau, 216–7
population per sworn officer, 215
prosecutors, 215
search and rescue, 216
Special Tactics Group, 216
speed cameras, radars and lasers, 216–7, 441
wiki for new Policing Act, 215
Youth Education Service, 217
Police detention legal assistance, 199
Political history, 18–20
Political parties
representation, 33
role, 32–3
seats held after general elections, 31
Pollution
air, 308–9
air pollution and health study, 144
marine environment, 311, 428
water, 317
water quality, 310
Polynesian discovery and settlement of NZ, 15
Polynesian peoples
Pacific peoples
Polytechnics/institutes of technology
enrolments, 193, 194
governance, 177
list of, 188
number of, 44
Open Polytechnic of NZ, 188
research, science and technology, 302
vocational qualifications, 174, 190–1
Population
age-sex profile, 103–4
Asian population
Population growth
Māori population
Asian
Asian population
Population growth
Māori population
components of change, 95–102
Population growth
Māori population
counting, 86
Population growth
Māori population
country of birth, 107
Population growth
Māori population
distribution, 90–4
Population growth
Māori population
estimated population, 1885–2007, 90
Population growth
Māori population
ethnic composition, 87–9, 105–6
Population growth
Māori population
European
Population growth
Māori population
age distribution, 106
Population growth
Māori population
census of 1871, 18
Population growth
Māori population
decrease, 105, 106
Population growth
Māori population
projections, 88–9
Population growth
Māori population
proportion of total population, 87
Population growth
Māori population
external migration, 101–2
Population growth
Māori population
fertility rate, 84, 95–7
Population growth
Māori population
growth
Population growth
Māori population
internal migration, 91
Māori population
life expectancy, 101
Māori population
local government areas, 93–4
Māori population
Māori
Māori population
mortality, 100–1
net migration, 101–2
North Island, 90, 91
overseas-born, 107
Pacific peoples
age distribution, 121–2
growth, 105, 106
projections, 88–9
proportion of total population, 87
regional distribution, 122
regional estimates, 93
rounding and random rounding, 87
rural, 92–3
school-age, 87, 176
South Island, 90, 91
urban, 92–3
vital statistics, 99
Population growth
censuses, 1858–2006, 85
components of change, 95–102
ethnic groups, 87–9, 105–6
future demographic trends, 83–4
historical and projected, 83, 84
projections
age groups, 85, 86–7, 88
components of population change, 85
dependency ratio, 86
educational age groups, 87, 176
ethnic population, 88–9
generally, 85
regional populations, 89
Pork, 361, 368
Pork Industry Board, NZ, 368
Ports
generally, 427
overseas cargo loaded and unloaded, 476–7
Positive Ageing Strategy, NZ, 137
Postal services, 236–8
Potato crop research, 299
Pouhere Taonga (NZ Historic Places Trust), 241–2, 330
Poultry industry
exports, 461
generally, 368–9
Poultry Industry Association of NZ, 369
Pounamu, 311, 403
Powelliphanta snails, 312
Precipitation, total volume, 341
Premiers, former, 38
Prescription charges, 148, 149
Preservation of heritage collections, 244
Press Association, NZ, 234
Press Council, NZ, 234–5
Preventive detention, 211
Prices
building and construction indexes, 422–3
consumers price index
deflation uses, 336
expenditure weights, 335, 336
generally, 334
groups of items, 336–7
indexation of contracts, 335
inflation rate, 332, 338
inflation target, 333
international comparisons, 338
monetary policy, 333–4, 335
price collection, 335
retail prices of selected items, 337
generally, 334
houses, 413–4
producers price index, 338–9
share price movement, 446
Primary Health Organisations, 148
Primary production
Agricultural sector;
Forests and forestry
Prime ministers
former, 38
Helen Clark, 38
Prime Television, 229
Prisons
energy cost reduction, 211
inmate employment, 214–5
inmates per mean population, 210
new facilities, 210
NZQA units and credits achieved by inmates, 213
offences against prison discipline, 215
parole eligibility and final release, 212
Prison Services, 210
prisoner escort, 208
prisoners, 212–4
sentence of imprisonment, 205–6, 211, 212
Privacy commissioner, 47–8
Private schools, 185
Private training establishments, 180
Privatisation of state assets, 20
Privy Council, 196
Probation services, 208–9
Problem gambling, 151, 268
Problem gambling levy, 500
Producers price index, 338–9
Progressive Party, coalition agreement, 33
Property (Relationships) Act 1976, 127
Property offences, 203–4
Property, school, 180
Property services, employee count in sector, 356
Protected areas network, 308
Protected Disclosures Act 2000, 47
Protected objects, 242–3, 255
Protection orders, 204
Psychologists, 146
Public Advisory Committee on Disarmament and Arms Control, 74
Public debt, 333, 504–5
Public health
alcohol, 151
cancer control, 154
child health, 157–8
communicable disease control, 153
disability support services, 156
drinking water, 149–50
drug misuse, 150–1
drug policy, 150–1
family health, 156
food safety and quality, 153–4
generally, 149
immunisation, 153, 157
Māori health, 157
marketing healthy lifestyles, 150
mental health, 155
not-for-profit organisations, 155
older people, 154–5
oral health, 158–9
pandemic planning, 159
sexual and reproductive health, 156–7
suicide prevention, 155–6
tobacco, 151–3
women's health, 157
Public holidays, employee entitlements, 278
Public hospitals, 148, 159
Public libraries, 245
Public radio, 230–2
Public register privacy principles, 47
Public sector finance
Government finance
Public Service
State sector
Public transport, commuting, 432–6
Public Trust, 51
Publications and publishing
books, 245, 246–7
censorship, 251–3
magazines, 233, 235
Māori and Pacific writers, 245
newspapers, 233–5
NZ National Bibliography, 243
Pulp and paper industry, 378, 380
Push Play, 263

Q

Qualifications
National Qualifications Framework, 174–5
NCEA, 175, 185, 186
NZ Scholarship, 175, 185, 187
quality assurance, 176
secondary school leavers, 185
tertiary education
bachelor degrees, sex ratio of, 188
completions, 190
Register of Quality Assured Qualifications, 187
unemployment by educational attainment, 285, 286
vocational, 174, 190–1
Quality Improvement Committee, 143
Qualmark NZ Ltd, 271
Quarantine fumigant, 381
Queen Elizabeth II National Trust, 330
Queen of NZ, 29
Queen's Service Medal, 48
Queen's Service Order, 48

R

Race Relations Commissioner, 126
Racing
broadcasting, 230, 266
generally, 266
Racing Board, NZ, 266
Radiation Protection Advisory Council, 143
Radiation technologists, 147
Radio
broadcasting policy, 222–3
broadcasting standards, 223–4
commercial radio, 232
community access, 232
Māori broadcasting, 224, 240
NZ On Air, 223
Pacific region, 230, 231
public radio, 230
Sound Archives, 232
spectrum management, 231
Radio Network of NZ Ltd, 232
Radio NZ, 230, 231–2
Radio Trackside, 266
Radioactive substances, regulation of, 315
Radiocommunications, 231
Rail transport
commuting, 432, 436
freight transport, 432, 433
history, 15, 431–2
noise reduction, 436
passenger services, 432–3
Rain days, 9
Rainfall, 9, 11, 341
Rakiura, land area, 1
RAMSI, 60, 79, 218
Raoul Island, land area, 1
Rates
rating valuations, 325
setting of, 51
Receivership, 448
Recreation
CPI group, 336, 337
employee count in sector, 356
household expenditure, 346
Recreation reserves, 329
Recycling of e-waste, 222
Refugee immigration, 101, 113
Regional Assistance Mission to the Solomon Islands, 60, 79, 218
Regional councils, 52
Regions
arts development, 257
Asian population, 125
employees in manufacturing, 410
fruit plantings, 373
income by, 289
livestock distribution by, 361
Māori population, 117, 118
Pacific peoples, 122
population estimates, 93
population projections, 89
retail sales by, 453
television services, 230
Registers
births, deaths, marriages and civil unions, 99
Human Assisted Reproductive Technology Register, 96
motor vehicles, 436–8
public register privacy principles, 47
Registration
banks, 480
companies, 444
health service professionals, 145–7
land titles, 322
motor vehicles, 436–8
ships, 427
teachers, 177
Relationship property legislation, 127
Religious affiliation, 108, 122
Removal from NZ, 116
Renewable energy
Energy
Reproductive health, 156–7
Reproductive technology
Human assisted reproductive technology
Rescue operations
Defence Force assistance, 80
Police, 216
Research, science and technology
advanced network, 228, 295
Cawthron Institute, 301
CCMAU, 293
centres of research excellence, 302
Crown Research Institute Capability Fund, 295
Crown research institutes, 298–301
economic research, 294
energy sector, 391
environmental research, 295–6, 297
expenditure as proportion of GDP, 294
Foundation for Research, Science and Technology, 296–7
funding, 294–7
high performance computing centres, 228
intellectual property rights, 302–4
knowledge creation, 294–5
Marsden Fund, 294
MoRST, 293
NZ Venture Investment Fund Ltd, 297
organisation of, 293
polytechnics, 302
potatoes and onions, 299
research agencies, 298–302
research associations, 302
research consortia, 302
Roadmaps for Science, 298
Royal Society of NZ, 296, 297
Smash Palace Fund, 257
standards and accreditation services, 304–5
synchrotron facility, 298
system, 297
tax credits, 298
universities, 297, 302
Vote Research, Science and Technology, 294–6, 297
wānanga, 302
wave energy converter, 300
Reserve Bank of NZ
as part of state services, 44
assets and liabilities, 481
bank registration and supervision, 480
functions, generally, 479
government securities registers, 487
monetary policy, 333–4, 486
regulation of non-bank deposit takers, 485
Reserve boards, 44
Reserves, 329
Resident withholding tax, 496, 504
Residential care
older people, 154, 155
young offenders, 139
Residential sector
Households;
Housing
Residential Tenancies Act 1986, 418
Resource management
contaminated sites, 318
discharges into water, 317
district planning, 314
land use constraints, 315
mineral exploration and mining, 316, 402
national policies, 313–4
planning framework, 313–4
public involvement, 315
purpose of RMA, 313
regional policies and plans, 314
resource consents, 315
soil management, 312–3, 316–7
sustainable management, 314
waste and landfills, 318
water management, 316, 317
Restaurants and cafes
employee count in sector, 356
GDP by industry, 344
household expenditure, 346
Restorative justice scheme, 202
Retail trade and services
credit cards, 453–4
employee count in sector, 356
GDP by industry, 344
information technology goods and services, 222
plastic shopping bags, 451
prices of selected items, 337
retail sales, 452–4
sales by industry, 452
sales by region, 453
Retirement
KiwiSaver, 487
NZ Superannuation, 131, 134, 135, 136–7
NZ Superannuation Fund, 349
Retirement Commission, 136
Transitional Retirement Benefit, 134, 135
Retirement Villages Act 2003, 418
Rivers
generally, 2
greatest flow, 2
management, 316
water quality, 310
Road transport
accidents, 162–4
alcohol impairment, 440
commuting, 432, 433, 434, 436
cycle helmets, 439
cycling, 433, 434
driver licensing, 439
emissions, 308–9
fuel excise, 458, 498, 499, 504
funding, 434
generally, 433
Green Cabs fleet, 439
Land Transport NZ, 433–4
motor vehicle registers, 436–8
National Land Transport Fund, 499
NZ Transport Agency, 434
road user charges, 499, 504
reading network, 434–5
safety, 163, 438–41
safety belts, 439
sentenced prisoners by offence and sex, 213
speed cameras, radars and lasers, 216–7, 441
speed limits, 440–1
traffic offences and convictions, 204, 213, 441
Transit NZ, 434
transport services licensing, 436
vehicle inspection, 439
vehicle registration and licensing, 436–8
walking, 433, 434
Roadmaps for Science, 298
Ross Dependency, 1, 70–1
Rounding and random rounding, 87
Royal Honours, 48
Royal NZ Air Force, 76–7
Royal NZ Ballet, 249
Royal NZ Navy, 74–5
Royal NZ Plunket Society, 155
Royal Society of NZ, 296, 297
Ruapehu eruption, 8
Ruapehu lahar, 5, 6
Rural Education Activities Programme, 182
Rural land sales, 323
Rural population, 92, 93
Russia, relationship with, 63

S

Safety
accident prevention, 166–7
air, 428, 429
civil defence emergency management, 168
fire protection, 169–70
maritime, 427–8
occupational safety and health, 170–1
road, 163, 438–41
water, 165
Salaries and allowances
Judges, 197
parliamentary, 33
salary and wage rates, 289–90, 291
Sale of liquor
convictions for offences, 204, 206
generally, 451–2
licensing, 452
Salmon, 265, 384
Salt, 403
Samoa
citizenship of NZ, 109
migrant quota, 113
migration to NZ from, 123
Satyanand, Judge Anand, 30
Save the Children's gift option, 65
Scenic reserves, 329
Scholarship, NZ, 175, 185, 187
Schools
administration of education, 175–8
Adopt a Stream programme, 179
assessment of students, 186
boarding, 185
boarding bursaries, 180
boards of trustees, 177
Community Oral Health Service, 158
Correspondence School, 185
crime prevention programmes, 217
curriculum, 173
designated character schools, 186
enrolments, 193, 194
Enviroschools Foundation, 185
food and nutrition guidelines, 154
full-time equivalent teaching staff, 192
funding, 178–80
generally, 184–5
governance, 177
home-based schooling, 185–6
independent (private) schools, 185
institutions, number of, 193
integrated schools, 185
international students, 191–2
kura kaupapa Māori, 120, 185
literacy, international comparisons, 174
Living Heritage initiative, 242
NCEA, 175, 185, 186
number of days required to be open, 185
NZ Scholarship, 175, 185
property, 180
school leavers
attainment levels, 185
by year level, 186
school-age population, 87, 176
special education
funding, 179
policy, 176
transport assistance, 180
special schools, 186
state schools, 185
structure of system, 184
terms, 185
transport, 180
types, 185–6
wharekura, 120
Science sector
Research, science and technology
Scientific literacy of students, 174
Scientific reserves, 329
Scion, 298–9, 378
Scott Base, 70
Sculpture, wind-powered, 248
Sea Cadet Corps, 79
Sea squirt, 315, 382
Seafood exports, 385–6, 465–6
Seaports, overseas cargo loaded and unloaded, 476–7
Search and rescue
Defence Force assistance, 80
Police, 216
Seasonal work assistance, 287
Secretariat of the Pacific Community, 59, 60
Secretary of the Cabinet, 37
Securities Commission, 446–7
Securities market
generally, 445–7
government securities, 486–7
Security
Defence and security
Security Intelligence Service, 81
Security interests in vehicles, registration of, 436–7
Seed certification, 371
Seed exports, 371
Select committees, 36
Senior citizens
Older people
Sentences and sentencing, 205–6, 209, 211
Serious Fraud Office, 200–1
Serpentine, 403
Service industries
employee count in sector, 356
GDP by industry, 343, 344
Services, exports and imports
Exports;
Imports
Sex offences, 202, 213
Sex offenders, extended supervision, 209
Sex ratios
age-sex distribution, 103
employment
by industry, 284
by occupation, 284
labour force participation rates, 281, 282
modern apprenticeships, 283
weekly earnings, 288, 289
Māori, 117
mortality, 100–1
prisoners, 212
school leavers
attainment levels, 185
by year level, 186
tertiary education
bachelor degrees, 188
convicted offenders, 205
deaths from external causes, 166
field of study and level of study, 189
unemployment, 286, 287
Sexual health, 156–7
Share market, 445–6
Sheep
farming, 359
lamb
exports, 360, 362, 363, 364
meat production volumes, 362
Meat & Wool NZ, 362
methane, 366
mutton
consumption, 361
exports, 363, 364
meat production volumes, 362
numbers, 358, 359
by category, 360
by region, 361
total export value, 461
total meat production, 362
wool
exports, 364–6
marketing, 365
prices, 365
production, 358, 364–5
uses, 364
Ship design and construction, 409–10
Shipping
bulk shipping, 427
coastal, 425, 426–7
domestic sea freight strategy, 427
inter-island shipping services, 426
marine pollution, 311, 427, 428
maritime accidents, 428
maritime safety, 427–8
overseas trade, 425, 426, 427
ports, 427
registered vessels, 427
seafarer qualifications, 427
wrecks, 428
Shooting and hunting, 264–5
Shop trading hours, 451
Sick leave, employee entitlements, 278
Sickness Benefit, 131, 132, 134, 135
Silage crops, 370–1
Silica sand, 403
Silver, 402
Sinai, Multilateral Force and Observers, 64, 79
Singapore, free trade agreement with, 61, 406, 467
Single transferable vote system, 54
SIS, 81
Skiing, 264
Skilled migrants, 110, 112
Skills-based work visas and permits, 115
Skink species, 308
SKY Network Television Ltd, 229, 230
Smokefree programme, 150
Smoke-free workplaces, 153
Smoking, prevalence of, 152
Smoking-related deaths, 151–2
Snails, 312
Snowboarding, 264
Social development
aims, 129
Work and Income
child support payments, collection of, 135
Work and Income
Citizens Advice Bureaux, 140
Work and Income
definition, 129
Work and Income
research, 296
Work and Income
StudyLink, 134–5, 181–2, 503
Work and Income
trans-Tasman travel arrangement, 60
Work and Income
welfare benefits
Work and Income
Social Development, Ministry of, 129–40
aims, 129
Child, Youth and Family
Work and Income
Child, Youth and Family
Child, Youth and Family
Work and Income
functions, generally, 129–30
Work and Income
Ministry of Youth Development, 127–8, 130
Work and Income
Office for Disability Issues, 130, 133
Work and Income
Office for Senior Citizens, 130, 137
Work and Income
Office for the Community and Voluntary Sector, 130
Work and Income
Work and Income
Work and Income
Social framework
Asian population
Asian population
Ethnic groups
European ethnic group
Human rights
Immigration
Māori
Pacific peoples
Social development
citizenship, 109–10
Ethnic groups
European ethnic group
Human rights
Immigration
Māori
Pacific peoples
Social development
ethnicity, generally
Ethnic groups
European ethnic group
Human rights
Immigration
Māori
Pacific peoples
Social development
European ethnic group
European ethnic group
Human rights
Immigration
Māori
Pacific peoples
Social development
human rights
Human rights
Immigration
Māori
Pacific peoples
Social development
immigration
Immigration
Māori
Pacific peoples
Social development
languages spoken, 109
Māori
Pacific peoples
Social development
Māori
Māori
Pacific peoples
Social development
Pacific peoples
Pacific peoples
Social development
religious affiliation, 108
Social development
social welfare
Social development
Social security agreements, 136–7
Social welfare benefits
Work and Income
SOEs, 44–5
Soil quality and conservation, 312–3, 316–7
Solar energy, 401
Solicitor-general, 200
Solomon Islands, deployment in, 60, 79, 218
Sorted (Retirement Commission's website), 136
Sound Archives, 232
South Africa, 64, 66
South Island
land area, 1
population, 90, 91
South Pacific Applied Geoscience Commission, 59
South Pacific Commission
Secretariat of the Pacific Community
South Pacific Forum, 59
South Pacific Regional Environment Programme, 59, 320
South Pacific Regional Trade and Economic Cooperation Agreement, 59
Sovereigns
former, 29
governor-general, appointment of, 30
Queen Elizabeth II, 29
Spam email, 222
SPARC, 259–63
Speaker of the House of Representatives, 32, 34
Special air service group, NZ, 64, 76
Special Benefit, 133
Special education
funding, 179
policy, 176
special schools, 186
transport assistance, 180
Special Needs Grant, 133
Special purpose local authorities, 53
Speed cameras, 216–7, 441
Speed limits, 440
Sport and physical recreation
Academy of Sport, 260–2
Active Communities initiative, 262
coaching, 262–3
Department of Conservation's role, 265
disabled people, 263
generally, 259
Green prescriptions, 262
high-performance athletes, 260–1
Mission-On, 263
No Exceptions strategy, 263
Olympic Games, 261
outdoor activities, 263–4
physical activity rates, 260
Push Play, 263
SPARC, 259–63
tai chi for older people, 260
Te Roopu Manaaki, 263
young people, 263
Stamp duty, 499
Stamp issues, 237, 238, 304
Standards and accreditation services
science and technology sector, 304–5
tourist accommodation, 271
Standards NZ, 305
State and state-integrated schools
Schools
State assets, privatisation of, 20
State highways, 435
State Housing Appeals Service, 418
State sector
CCMAU, 45, 293
composition, 42–5
controller and auditor-general, 46
Crown entities, 44
EEO groups, 279
government administration
employee count, 356
GDP by industry, 344
human rights, 49–50
NZ Bill of Rights Act 1990, 49
Offices of Parliament, generally, 44
official information, 46, 47
Ombudsmen, 44, 46–7
parliamentary commissioner for the environment, 50
privacy commissioner, 47–8
Public Trust, 51
public service departments
Budget, 490–2
chief executives, 45, 489–90
full-time equivalent staff employed, 44
list, 43–4
Reserve Bank of NZ, 44
state services, 43–4
State Services Commission, 45
state services commissioner, 45
state-owned enterprises, 44–5
tertiary education institutions, 44
State-owned enterprises, 44–5
Statistical calculations, rounding and random rounding, 87
Step up scholarships, 181
Stewart Island, land area, 1
Stock
Livestock
Stock exchange, 445–6
Stockholm Convention on Persistent Organic Pollutants, 319
Straight2Work industry partnerships, 134
Streams, water quality, 310
Streets, 435
Strikes, 280
String Quartet, NZ, 248
Student allowance, 134, 181, 182
Student loan scheme, 134, 181, 503
Students
Early childhood education;
Schools;
Tertiary education
StudyLink, 134, 181–2, 503
Subantarctic islands, conservation in, 327
Sudan, deployment in, 64, 79
Suicide, 155–6
Sulphur, 403
Summerfruit NZ, 371
Sunshine hours, 9, 11
SunSmart campaign, 150
Superannuation Fund, NZ, 349
Superannuation, NZ
generally, 135
number of people receiving, 134
portability, 136–7
weekly rates, 131
Supercomputers, 228
Supervision, sentence of, 209
Supreme Court of NZ
generally, 196
judicial salaries and allowances, 197
Surveying
hydrographic survey work for Defence Force, 75
land, 321–2
Sustainability
eco-fashion label, 453
Enviroschools Foundation, 185
fisheries, 311, 383
Greenbuild website, 421
GreenFleet programme, 444
NOW Homes project, 414
office buildings, 419
prisons' energy use, 211
Smarter Homes website, 416
Sustainable Business Awards, 408
Sustainable Business Network, 444
sustainable management under Resource Management Act 1991, 314
tourism, 269, 272
World Summit on Sustainable Development, 320
Symbols of national identity, protection of, 255
Symphony Orchestra, NZ, 247–8
Synchrotron facility, 298

T

TAB, 266
Tai chi, 260
Taihoro Nukurangi (NIWA), 300–1
Takeovers Panel, 445
Talent-based visas and work permits, 115–6
Tariffs
GATT Uruguay Round, 68, 357
manufacturing sector, 405–6
WTO Doha Development Round, 68, 320, 357
Tasman, Abel, 16
Tasman Glacier, 2
Tatua Co-operative Dairy Co Ltd, 367–8
Taupo Fishery Advisory Committee, 330
Taxation
cheque duty, 499, 504
companies, 497, 504
convictions for offences, 206
double tax agreements, 501, 502
excise and excise-equivalent duty, 458, 498, 499, 504
foreign pensions, 501
foreign-source dividend withholding payments, 504
fringe benefit tax, 497
fuel excise, 458, 498, 499, 504
gaming duty, 500, 504
gift duty, 499, 504
goods and services tax, 498, 504
imputation credits, 496
income tax, 496–7
individuals, 496, 504
international tax, 500–2
non-resident withholding tax, 497, 500, 504
non-residents, 500–1
public account taxation and national disposable income, 504
rebates, 496–7
research and development expenditure tax credits, 298
resident withholding tax, 496, 504
revenue from, 504
road user charges, 499, 504
stamp duty, 499
tax rates, 496, 497
taxation review authorities, 503
Working for Families tax credits, 132, 502
Taxis, green fleet, 439
Te Āhurutanga (NZ Register of Quality Assured Qualifications), 177, 187
Te Aka Matua o te Ture (Law Commission), 199
Te Ara – the Encyclopedia of NZ, 20, 255
Te Hakituatahi o Aotearoa (First Flag of NZ), 31
Te Kāhui Tika Tangata (Human Rights Commission), 49, 50, 126, 127
Te Kaunihera Māori (NZ Māori Council), 119–20
Te Komihana Tirotiro Aitua Waka (Transport Accident Investigation Commission), 426
Te Kooti Whenua Māori (Māori Land Court), 198, 324
Te Kotahitanga Manu Reo o Aotearoa (NZ Choral Federation), 248
Te Kura Toi Whakaari 0 Aotearoa (NZ Drama School), 249
Te Mana Matapono Matatapu (Office of the Privacy Commissioner), 47–8
Te Manatū Ahuwhenua Ngāherehere (MAF), 358–9
Te Manatū Pūtaiao (MoRST), 293
Te Manatū Whakahiato Taiohi (Ministry of Youth Development), 127–8
Te Māngai Pāho, 224
Te Matatini Society Inc, 240
Te Ohu Kaimoana, 384
Te Papa Tongarewa, 241
Te Pou Oranga Kai o Aotearoa (NZFSA), 359
Te Pou Taki Kōrero (Learning Media Ltd), 178
Te Pouherenga Kaiako o Aotearoa (NZ Teachers' Council), 177
Te Puna Mātauranga o Aotearoa (National Library of NZ), 243–4
Te Puna Tahua (NZ Lottery Grants Board), 267–8
Te Puni Kōkiri, 119
Te Rākau Whakamarumaru (Ministry of Civil Defence and Emergency Management), 168
Te reo Māori, 120–1, 240
Te Reo Whakapuaki Irirangi, 224
Te Roopu Manaaki, 263
Te Rōpū Wāhine Māori Toko i te Ora (Māori Women's Welfare League), 120
Te Rōpū Whakatarairanga Hauora (Health Sponsorship Council), 150
Te Tāhuhu o te Mātauranga (Ministry of Education), 175
Te Tari Hara Tāware (Serious Fraud Office), 200–1
Te Tari Matawaka (Office of Ethnic Affairs), 113
Te Tari Tohu Taonga (National Preservation Office), 244
Te Taura Whiri i te Reo Māori (Māori Language Commission), 120, 240
Te Whakakotahitanga o Ngā Iwi o Aotearoa (Māori Congress), 120
Teacher registration, 177
Teachers' Council, NZ, 177
Teaching staff, 192
Tearfund's gift option, 65
Technology sector
Research, science and technology
Telarc SAI Ltd, 304
Telecommunications
advanced network, 228
broadband, 219, 220, 227–8
generally, 224
high performance computing centres, 228
household access, 225
Kiwi Share TSO, 225–6
local loop unbundling, 226
operational separation of Telecom, 226
regulated services, 225
regulatory bodies, 225
relay service, 226
Telecom NZ Ltd, 224, 226–7
Telecommunications Act 2001, 445
Telecommunications Commissioner, 224
TelstraClear Ltd, 224, 227
TUANZ, 227
Vodafone NZ, 224, 227
Television
broadcasting policy, 222–3
broadcasting standards, 223–4
community access, 230
environmental programmes, 230
Freeview, 222–3, 228
local content, 229, 230
Māori broadcasting, 224, 240
most popular programmes, 229
NZ On Air, 223
parliamentary proceedings, 36
service providers, 228–30
TVNZ charter, 222
Television NZ Ltd, 222, 228–9
TelstraClear Ltd, 224, 227
Temperatures, 8, 9, 10, 11
Temporary Additional Support, 133
Tenancies, residential, 418
Tenancy Tribunal, 198
Tenders, 450
Territorial authorities
generally, 52–3
population estimates, 94
Terrorism, 77
Tertiary councils, 177
Tertiary education
accommodation benefit, 181
Wānanga
administration, 177
Wānanga
affordability and access, 187
Wānanga
attendance, 187
Wānanga
enrolments 1875–2006, 194
Wānanga
by educational institute, 193
Wānanga
by field of study, level of study and sex, 189
Wānanga
full-time equivalent teaching staff, 192
Wānanga
funding, 180–2, 187
Wānanga
generally, 186–8
Wānanga
health professionals, 145–7
Wānanga
institutions, number of, 44, 193
Wānanga
international students, 191–2
Wānanga
library services, 245
Wānanga
Open Polytechnic of NZ, 188
Wānanga
polytechnics/institutes of technology, 188
Wānanga
private training establishments, 180, 189
Wānanga
qualifications
Wānanga
bachelor degrees, 187
Wānanga
completions, 190
Wānanga
Register of Quality Assured Qualifications, 187
Wānanga
scholarships, 181, 182
Wānanga
scope of, 186
Wānanga
statement of priorities, 187
Wānanga
student allowance, 134, 181, 182
Wānanga
student loan scheme, 134, 181, 503
Wānanga
StudyLink, 134–5, 181–2, 503
Wānanga
Tertiary Education Strategy, 187
Wānanga
tertiary-age population, 87
Wānanga
universities, 188
Wānanga
vocational qualifications, 174, 190–1
Wānanga
wānanga
Wānanga
Tertiary Education Commission, 187
Textile industry, 409, 410–1
Thailand
Closer Economic Partnership Agreement, 406, 467
Thistle control, 359
Timber, 379–81
Time zone, 14
Timor-Leste, deployment in, 62, 78, 218
Tobacco
cigarette packets, 152
consumption, 152
CPI group, 336, 337
excise, 458, 498, 504
smoking-related deaths, 151–2
Toi iho, 257
Toi te Taiao (Bioethics Council), 313
Tokelau
citizenship of NZ, 109
migration to NZ from, 124
NZ jurisdiction, 1
special relationship with, 59, 69–70
Toll Holdings Ltd, 432
Toll NZ, 432–3
Tomb of the Unknown Warrior, 255
Tonga
migration to NZ from, 124
Police deployment in, 218
Topography, national, 321–2
Tornadoes, 11
Totalisator Agency Board, 266
Totalisator duty, 500
Tourism
100% Pure NZ campaign, 270
accommodation, 271
attractions, 268–9
Brand NZ, 458
events, 269
generally, 268
government agencies, 270
household expenditure, 346
international visitors, 270–2
market, 268
online technologies, 269
STAR project, 272
sustainability, 269, 272
Tourism Industry Association NZ, 270
Tourism NZ, 270
Tourism Strategy 2015, 269
transport, 272
Trackside, 230, 266
Trade
domestic retail trade, generally, 452–4
Exports;
Imports;
Overseas trade
environment and, 320
Exports;
Imports;
Overseas trade
overseas
Exports;
Imports;
Overseas trade
Trade Aid, 66
Trade and Enterprise, NZ, 58, 405, 406–8, 409, 457–8
Trade union membership, 279
Trademarks, 303
Trade-weighted index, 487, 488
Traditional sites, protection of, 242–3
Traffic offences
convictions, 204
number of offences and infringements, 441
sentenced prisoners by offence and sex, 213
Training benefit, 134, 135
Training Incentive Allowance, 135
Tramping, 264
Transit NZ, 434
Transition to Work assistance, 287
Transitional Retirement Benefit, 134, 135
Trans-Pacific Strategic Economic Partnership, 62, 406, 467
Transport
civil aviation
Civil aviation
Road transport
commuting, 432–3, 434
Road transport
CPI group, 336, 337
Road transport
emissions, 308
Road transport
employee count in sector, 356
Road transport
energy use, 311, 387, 389
Road transport
GDP by industry, 344
Road transport
generally, 425
Road transport
household expenditure, 346
Road transport
international visitors, 272
Road transport
rail
Road transport
commuting, 432
Road transport
freight transport, 432, 433
Road transport
history, 15, 431–2
Road transport
noise reduction, 436
Road transport
passenger services, 432–3
Road transport
road transport
Road transport
school children, 180
shipping, 425–8
Transport Accident Investigation Commission, 426
Transport Agency, NZ, 434
Trans-Tasman travel agreement, 60, 101
Tranz Rail, 432
Treasury bills, 486
Treaty of Waitangi
claims under, 118–9
Office of Treaty Settlements, 119
significance of, 117
signing of, 17
Tribunals, 198–9
Trout, 265
Trust administration, Public Trust, 51
Tsunami (Boxing Day 2004), 6
Tsunami monitoring network, 6
TUANZ, 227
Turners and Growers, 372
TV
Television
TV3, 229
TVNZ, 222, 228–9

U

Unemployment
by age, 286
by educational attainment, 285, 286
by ethnicity, 287
by sex, 286, 287
demographic and social characteristics, 285–7
employment assistance, 287–8
Enterprising Community grants, 134, 285
rate, 285
seasonal work assistance, 287
Straight2Work industry partnerships, 134
Transition to Work assistance, 287
Work and Income, 130–3
Unemployment Benefit
entitlement, 131
expenditure, 135
income adjustment, 131
number of people in receipt of, 131–2, 134
student hardship, 182
weekly rates, 131
Union membership, 279
Unit Titles Act 1972, 418–9
Unitary authorities, 53
United Future, confidence and supply agreement, 33
United Kingdom
CPI comparison, 338
social security agreement with, 136
United Nations
Alliance of Civilisations, 67
contributions to, 67
Convention on Biological Diversity, 318, 319, 320
Environment Programme, 320
Framework Convention on Climate Change, 318, 319, 320
generally, 67
human rights resolutions, 67
International Court of Justice, 67
MFAT's role in coordination of international environmental work, 318
specialised agencies, 67
UN Truce Supervisory Organization, 64, 78
UNESCO, 67
United States
CPI comparison, 338
defence relationship, 62, 78
relationship with, 62
trade, value of, 472–3
trade with, 62
Universities
bachelor degrees, sex ratio of, 188
governance, 177
library services, 245
list of, 188
number of, 44
research funding and activities, 297, 302
University of the South Pacific, 60
Unsolicited Goods and Services Act 1975, 450
Unsupported Child's Benefit, 133, 134, 135
number of people in receipt of, 134
weekly rates, 131
Urban design, 53
Urban population, 92–4
Uruguay, relationship with, 62
Uruguay Round, GATT, 68, 357

V

Vaccination, 153, 157
Valuation of land, 325
Valuers' Registration Board, 325
Varroa mite, 370
Vava'u Declaration on Pacific Fisheries Resources, 59
Veal, 361, 362, 363
Vegetable exports, 371, 464–5
Vegetation, 12–3
Vehicles
Driving;
Motor vehicles;
Road transport
Venison exports, 361, 461
Venture Investment Fund Ltd, NZ, 297
Veteran's Pension, 131, 134, 135, 136–7
Veterinary medicines, regulation of, 154
Vice-regal representatives, 30
Victim Support, 207
Victims' rights, 211–2
Video
Film and video
Violent offences, 201–2, 213
Visas, 114–6
Visitor's permits, 114
Vital statistics, 99
Vocational qualifications, 174, 190–1
Vodafone NZ, 224, 227
Volcanoes, 3, 4, 6–7
Voluntary administration (insolvency), 448
Voluntary sector
Community and voluntary sector
Volunteer Service Abroad, 60, 64, 66
Voting
local government elections, 54
Parliamentary elections
parliamentary elections
Parliamentary elections

W

Wages
minimum wage, 277–8
salary and wage rates, 289–90, 291
Waitangi National Trust Board, 330
Waitangi, Treaty of
Treaty of Waitangi
Waitangi Tribunal, 20, 118–9, 199
Walking and walkways, 264, 265, 433, 434
Wānanga
enrolments, 193, 194
generally, 188
governance, 177
number of, 44
research, science and technology, 302
War memorials and graves, 255
War pensions, 134, 135, 136
Wars, involvement in, 19
Waste
e-waste recycling, 222
landfill gas, 397, 400
landfills, 318
Water
accidents, 165
drinking water, 149–50
environmental accounts, 341
fluoridation, 159
management, 316, 317
pollution, 317
quality, 310–1, 316, 317
Water Safety NZ, 165
Watercare Services' Adopt a Stream programme, 179
Wave energy converter, 300
Weapons, convictions for offences, 206
Weather
Climate
Weathertight Homes Resolution Service, 419
Weeds, bio-control, 359
Weights and Measures Act 1987, 450
Welfare benefits
Social development
Westland Milk Products, 367
Weta, 12, 321
Wetlands, 329
Whale sanctuaries, 329–30
Whales, 12
Whaling Commission, 318, 320, 329
Whānau agreements, 137
Whangaehu Valley, lahar risk, 5
Wharekura, 120
Wheat, 371
Wholesale trade
employee count in sector, 356
GDP by industry, 344
prices, 339
Widow's Benefit, 131, 132, 134, 135
Wiki for new Policing Act, 215
Wildlife, 12, 13
Wildlife reserves, 329
Willing Workers on Organic Farms, 372
Wind, 8, 11
Wind energy, 400–1
Wind-powered sculpture, 248
Wine industry, 373–4
Women
health services, 157
issues, 126
life expectancy, 101
prisoners, 213, 214
Women's Affairs, Ministry of, 126
Wool
exports, 365–6
marketing, 365
prices, 365
production, 358, 364–5
uses, 364
Work and Income
accommodation assistance, 417, 418
Unemployment Benefit
advance payments, 134
Unemployment Benefit
CPI-related adjustment of payments, 131, 335
Unemployment Benefit
employment assistance, 130, 131, 287–8
Unemployment Benefit
Enterprising Communities, 134, 285
Unemployment Benefit
family assistance, 132–3
Unemployment Benefit
hospitalisation of income support client, 135
Unemployment Benefit
income adjustment, 131
Unemployment Benefit
income support, 130–1
Unemployment Benefit
industry partnerships, 134
Unemployment Benefit
NZ Superannuation, 131, 134, 135, 136–7
Unemployment Benefit
other assistance, 133
Unemployment Benefit
seasonal work assistance, 287
Unemployment Benefit
services, 130–7
Unemployment Benefit
social security agreements, 136–7
Unemployment Benefit
Special Needs Grant, 133
Unemployment Benefit
Transitional Retirement Benefit, 134, 135
Unemployment Benefit
Transition to Work assistance, 287
Unemployment Benefit
types of benefits and pensions, 130
Unemployment Benefit
Unemployment Benefit
Unemployment Benefit
Veteran's Pension, 131, 134, 135, 136–7
war pensions, 134, 135, 136
Work permits, 114–6
Working for Families, 132, 502
Working holiday schemes, 115–6
Working-age population, 87
Workplaces
child education and care services, 183–4
conservation, 280
EEO Trust, 126
KiwiSaver, 487
safety and health, 170–1
smoke-free, 153
work stoppages, 279–80
World Customs Organization, 458
World Environment Day, 39, 320
World Health Organization, 67
World heritage areas, 326–7
World Heritage Committee (UN), 67
World Summit on Sustainable Development, 320
World Trade Organization
Doha Development Round, 68, 320, 357
environmental goods and services, 320
establishment, 68
World wars, involvement in, 19, 72
Wrecks (ships), 428
Writers and writing, 245, 246–7
Writers' Fellowship, Michael King, 257

Y

Young offenders
convicted offenders, 205
dealing with, 205
diversion, 217
family group conferences, 139
home-based care, 139
residential care, 139
youth justice services, 138–9
Youth aid section, NZ Police, 217
Youth courts, 197–8
Youth Development, Ministry of, 127–8, 130
Youth Development Partnership Fund, 128
Youth Development Strategy Aotearoa, 128
Youth Education Service, 217
Youth Health Action Plan, 158
Youth issues, 127–8
Youth minimum wage, abolition of, 277
Youth Orchestra, National, 248
Youth Parliament, 127, 128

Z

Zeolite, 403
ZESPRI International Ltd, 372