1973
Britain joins European Economic Community and adopts their trade barriers
to New Zealand's agricultural products. Combined with high oil prices, this
was enough to devastate the economy.
1973-1984
Robert Muldoon's National Party expands welfare state and government
interventionism, running huge budget deficits financed with overseas money.
High inflation and unemployment cause massive emigration to Australia.
1975
Treaty of Waitangui Act passed to settle Maori land claimson the basis of
original treaty.
1984
New Labour government eliminates agricultural subsidies and wage and price
controls, lowers tax rates, begins a radical program of privatization.
1985
The bombing of the Rainbow Warrior from Greenpeace in Auckland by French
secret service agents. One man was killed (Fernando Pereira).
Economy
Since 1984 the government has been reorienting an agrarian economy
dependent on a guaranteed British market to an open free market economy
that can compete on the global scene. The government had hoped that dynamic
growth would boost real incomes, reduce inflationary pressures, and permit
the expansion of welfare benefits. The results have been mixed: inflation
is down from double-digit levels, but growth has been sluggish and
unemployment, always a highly sensitive issue, has exceeded 10% since May
1991. In 1988, GDP fell by 1%, in 1989 grew by a moderate 2.4%, and was
flat in 1990-91. Current (1994) growth is around 2-4% and rising.
The economy is based on agriculture (particularly dairy products, meat, and
wool (68 m sheep, 2 m dairy cows)), food processing, wood and paper
products, textiles, machinery, transportation equipment, banking and
insurance, tourism, mining. Fish catch reached a record 0.5 m tonnes in
1988. Highly dependent on external trade, New Zealand is currently trying
to move from being a primary to a secondary producer.
Currency
Decimal system based on New Zealand dollar, with cent denominations. Coins
are 5, 10, 20, and 50 cents, 1 and 2 dollars. Notes are 5, 10, 20, 50, and
100 dollars. Major credit cards are accepted widely.
Stockmarket
Same as overseas.
Interest Rates
Fluctuating between 6 and 8% depending on overseas markets.
Taxes
New Zealand operates a Goods and Services Tax of 12.5 per cent on ALL goods
and services sold and this is usually included in the display price. The
exceptions are purchases at duty free shops. Visitors cannot claim refunds
on this tax however when a supplier agrees to export a major item to a
visitors home address then GST will not be charged on the goods or the
freight.
Income tax 24% on first $30,874/year, 33% for every $ above this. There are
various rebates for things like low incomes, children, donations,
Housekeeper, Home/Farm/Vessel Ownbership, and others.
|Government Revenue Source|How it was expected to be |
|(1990) |spent (1990) |
|Income Tax |$16,95|Education |$3,912.|
|Gost and Service |0 |Health |5 |
|Tax |$5,500|Transport |$3,791.|
|Other Direct | |Administration |1 |
|Taxes |$360 |Development of |$711.6 |
|Excise Duties |$1,670|Industry |$2,769.|
|Highway tax | |Government |0 |
|Other Indirect |$670 |Borrowing |$1,231.|
|Tax |$790 |Foreign Relations |3 |
| | |Social Services |$575.1 |
| | | |$1,733.|
| | | |7 |
| | | |$10,292|
| | | |.1 |
|Total |$25,94|Total |$25,016|
| |0 | |.4 |
Life in General
Business Hours
Banks 9:00am to 4:30pm - can vary slightly. Otherwise, Monday to Friday
9:00am to 5:30pm. Late night for shopping is either Thursday or Friday.
Changes to the Shop Trading Hours Act means that most shops are open for
longer hours than this. Almost all are open Saturday morning, many are open
on Sunday with some shops and markets remaining open later during the week.
Automatic teller machines are widely available including a system in many
supermarkets and petrol stations called EFTPOS where you can buy goods with
your card and a PIN number and/or obtain cash. All international credit
cards are accepted in New Zealand. Travellers cheques can be changed in
banks, hotels, stores, etc.
There is no restriction on the amount of foreign currency which may be
brought into or taken from New Zealand. Funds may be in the form of bank
notes, coins, travellers cheques or any other instrument of payment.
Visitors may convert surplus New Zealand currency at any outlet authorised
to deal in foreign exchange.
Events
Some of the noteworthy cultural events include: Summer City Programme
(January to February; Wellington) which is a series of festivals around the
city; Marlborough Food & Wine Festival (2nd week in February; Blenheim);
International Festival of the Arts (February, even-numbered years only;
Wellington), an entire month of national and international culture; Golden
Shears Sheep-Shearing Contest (March; Masterton), a must for lovers of
sheep, scat and sweat; and Canterbury Show Week (November; Christchurch)
which has agricultural exhibits, rides and local entertainment.
Tipping
Tipping is not unheard of in New Zealand. Employed people don't depend on
tips for their income and service charges are not [usually] added to hotel
and restaurant bills. Tip for service if you think it's deserved.
Getting There & Away
The overwhelming majority of visitors arrive by air. There are three
airports that handle international flights: Auckland (the major exit/entry
point), Wellington and Christchurch. Departure tax on international flights
is NZ$20. A few cruise ships visit New Zealand, but there are no regular
passenger ship services and working your way across the Pacific as crew on
a yacht now seems a thing of the past.
Getting Around
Although New Zealand is a compact country and generally easy to get around,
it makes good sense to fly - especially for the views over the mountains or
volcanoes. A variety of discounts also makes flying economical. New Zealand
has two major domestic airlines: Air New Zealand and Ansett New Zealand.
Several smaller airlines - Mt Cook Airline, Eagle Air and Air Nelson - are
partly owned by Air New Zealand and have been grouped together as `Air New
Zealand Link'. This network provides thorough coverage of the country.
New Zealand also has an extensive bus network, with the main operator being
InterCity (servicing both the North Island and South Island). The two other
major bus operators are Newmans (North Island) and Mt Cook Landline (South
Island). Services on main bus routes are frequent (at least once a day);
unfortunately they can be expensive and slow. A good alternative is to use
shuttle bus companies which are smaller, cheaper and friendlier than the
large bus companies. Some of them are designed to cater especially for
foreign travellers and/or backpackers and have lots of little `extras' that
make them particularly attractive; other companies, perhaps drawing on the
experiences of Ken Kesey and his Merry Pranksters, can take you around New
Zealand on `alternative' buses which are often an unhurried way of seeing
the country.
Main train routes are few, though train travel is reasonably quick. Trains
are modern and comfortable, and the fares are sometimes cheaper than those
by bus on the same routes.
Car travel (New Zealanders drive on the left) is recommended as the roads
are good and well signposted and the distances short. Rentals of cars,
motorcycles and campervans are popular with a range of special deals
available.
There are plenty of boat services, including the Interislander ferry
(operating between Wellington in the North Island and Picton in the South
Island.
And finally, there's always cycling around the country. Many travellers
describe New Zealand as a cyclists' paradise: it's clean, green, uncrowded
and unspoiled, and there are plenty of places where you can camp or find
cheap accommodation. Bicycle rental can be daily, weekly or monthly and is
inexpensive.
Crime
While it may be `safe' compared to most other countries, serious crime does
exist here and visitors should take sensible precautions. Always lock your
vehicle, and don't leave it in isolated locations for extended periods.
Avoid leaving valuables visible in the car. Avoid areas/situations which
appear unwholesome. The emergency phone number (police, ambulance, fire) is
111, and ask the operator for the service required (this can be used from
payphones without paying).
Health
New Zealand operates a no-fault accident compensation scheme which covers
residents and visitors. Personal injury through accident entitles the
injured party to compensation for reasonable expenses related to the
accident. Due to abuse, this has been reworked recently and compensation is
far harder to obtain.
Water Supply
New Zealand cities and towns have good public water. Water is safe to drink
out of the tap. The water in Christchurch *is* totally untreated and is
supposed to be the purist domestic water supply in the world...
In bush walking areas giardia has been found so its advisable to check
before drinking from rivers or streams. Boiling water for five minutes or
