International securities regulations require that visitors read and acknowledge the disclaimer below before accessing information on this web site. Click Acknowledge and Hide Disclaimer below to hide the full disclaimer (requires JavaScript to be enabled).
Disclaimer - New Zealand Debt Management Office Web Site
- The information on this web site is issued by the New Zealand Debt Management Office (NZDMO) for informational purposes. It does not contain and is not an invitation or offer to buy or sell securities. Insofar as this web site refers to any offerings of securities, such offerings are directed to countries other than the United States and no offerings are made to persons accessing this web site within Australia.
- The NZDMO takes reasonable measures to ensure the quality of the data and other information produced by the NZDMO that is made available on this web site. However, the NZDMO makes no warranty, express or implied, nor assumes any legal liability or responsibility for the accuracy, correctness, completeness or use of any information that is available on or through this web site nor represents that its use would not infringe on privately owned rights. Further information contained on this web site is subject to change, completion or amendment without notice. Nothing contained on this web site is, or shall be relied on as a promise or representation by the New Zealand Government or the NZDMO as to the past or future. The contents of this web site should not be construed as legal, business or tax advice.
- This is a protected New Zealand Government web site. It is unlawful to intentionally cause damage to it or to any NZDMO electronic facility or data through the knowing transmission of any program, information, code, or command.
- The NZDMO systems to which this web site connects and related equipment are subject to monitoring. Information regarding users may be obtained and disclosed to authorised personnel, including law enforcement authorities, for official purposes. Access to or use of this web site constitutes consent to these terms.
- Reference to any specific commercial product, process, or service by trade name, trademark, manufacture, or otherwise does not constitute an endorsement, recommendation, or favouring by the New Zealand government or the NZDMO.
- For convenience and informational purposes only, the NZDMO server provides links to other web sites. These sites may contain information that is the copyright of third parties and subject to restrictions on reuse. Permission to use copyrighted materials must be obtained from the copyright owner and cannot be obtained from the NZDMO.
- The NZDMO is not responsible for the content of other web sites linked to or referenced from the NZDMO site. The NZDMO neither endorses the information, content, presentation, or accuracy of such web sites, nor makes any warranty, express or implied, regarding these external web sites.
- Each page on this web site must be read in conjunction with this disclaimer and any other disclaimer that forms part of it.
- By clicking on "Acknowledge and Hide Disclaimer" below, I confirm that I am either:
- resident outside of the European Economic Area; or
- person acting solely in my capacity as an authorised representative of an entity falling within one of the following descriptions:
- a legal entity authorised or regulated to operate in the financial markets, including: a credit institution, or investment firm, an other authorised or regulated financial institution, or insurance company, a collective investment scheme, a collective scheme management company, a pension fund, a pension fund management company, a commodity dealer, or an entity not so authorised or regulated but whose corporate purpose is solely to invest in securities;
- a national or regional government, a central bank, an international or supranational institution such as the International Monetary Fund, the European Central Bank, the European Investment Bank or other similar international organisations; or
- a legal entity which has two or more of (1) an average of at least 250 employees during the last financial year; (2) a total balance sheet of more than €43,000,000 and (3) an annual net turnover of more than €50,000,000, as shown in its last annual or consolidated accounts.
Disclaimer: The information on this web site is issued by the New Zealand Debt Management Office (NZDMO) for informational purposes. It does not contain and is not an invitation or offer to buy or sell securities. Each page on this web site must be read in conjunction with the disclaimer at http://www.nzdmo.govt.nz.
Service Industries
Service industries make up a large proportion of the economy, accounting for over two-thirds of GDP. After slowing in the late nineties, the sector recorded strong growth between 2002 and 2005, with annual growth averaging 4.1% during this time. Growth in the services industries has continued to exceed GDP growth, with annual average growth of 2.4% in the year to September 2008. Export-related activities such as primary sector production and tourism play an important part in trends in this sector. Growth is expected to slow during 2009 with the outlook for tourism weakening as prospects for the global economy continue to deteriorate.
Financial Services
Up until mid-2001, growth in the financial and business services sector was generally lower than in most other service industries. Annual average growth rates picked up to 7.0% in September 2002 after falling below 1% in 1998. For the decade from 1998, annual average growth generally held above 4% but a sharp fall left growth in the sector at 2.5% in the year to September 2008.
New Zealand's banking is dominated by four Australian-owned banks. The positions of Australian and New Zealand banks have been strengthened by additional access to central bank liquidity and government wholesale and retail guarantees during 2008, helping to maintain their assets and funding sources. As of June 2008, total assets of the banks registered in New Zealand amounted to $344 billion.
Transport
Transport is a major component of economic activity in New Zealand. The country's transport system owes its characteristics, not only to New Zealand's dependence on external trade and remoteness from many of its trading partners, but also to its rugged terrain, scattered population and the division of the country into two main islands spanning 2,011 kilometres in length. As a result, the establishment of a comprehensive network of roads (around 93,000 kilometres) and railways (3,900 kilometres) linked to ports and airports has involved capital costs that are high in relation to the size of the population. However, the efficiency of the country's internal transport system has played a critical role in New Zealand's economic growth.
Much of this transport infrastructure was initially developed and operated by government-owned monopolies. Today, the transport sector is largely deregulated and legislative barriers to competition have been removed. Many previously government-owned operations are now privately owned.
Roading: The allocation of funding and the management of state highway works are managed by a Crown Entity, the New Zealand Transport Agency. The actual construction and maintenance work is contracted to private sector companies.
Land transport infrastructure and its maintenance are funded primarily from distance-based charges for diesel vehicles, excise duties on petrol and motor vehicle registration charges. In addition, the government has recently appropriated additional funding to accelerate the construction of new highways and the provision of public transport. The government has also agreed to permanently direct all revenue collected from petrol excise duty to land transport investment from 1 July 2008.
There is legislative provision for tolling schemes for new highways undertaken without further specific legislation. The capital from these schemes can come from either the public funding body, or from private providers in partnership with the Government. The first new stretch of highway constructed under this legislation was completed in January 2009.
Railways: New Zealand's railway system connects all major population centres and includes rail ferries between the North and South Islands. Until October 1990, the system was maintained and operated by the government's Railways Department. In September 1993, the core business was sold to a consortium of New Zealand and overseas interests and was operated by Tranz Rail Holdings. In 2003, Tranz Rail was taken over by Toll Holdings and renamed Toll Rail.
In 2002, the government purchased track access rights for the Auckland railway corridor and transferred the corridor to Auckland local authorities to support regional initiatives to reduce traffic congestion.
In 2004, the government purchased the national rail network from Toll Rail for a nominal sum of $1.00, with an agreement to invest $200 million in the network over five years. Toll agreed to invest $100 million over the same period in rolling stock. The government also committed $500 million over five years to upgrade the Auckland rail network to improve passenger rail services. It has since committed a further $600 million to electrify the Auckland network and upgrade the Wellington network.
In mid-2008, the government completed the purchase of Toll Holding's rail business for $690 million, renaming it KiwiRail. On 1 October 2008, the New Zealand Railways Corporation (NZRC) acquired KiwiRail from the Crown. As a result, the government now owns and operates both the network infrastructure and rail services through NZRC. Additional funding for new rolling stock and infrastructure upgrades was also announced.
Shipping: Around 99% of New Zealand's total international trade by volume is carried by sea, with more than 30 global and regional shipping lines calling at New Zealand ports. Coastal shipping provides intra and inter-island links and plays a key role in the distribution of petroleum products and cement.
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. There are also smaller ports at Westport, Greymouth, Wanganui and Taharoa.
Benefits from the reform of New Zealand's port industry have been realised through corporatisation and privatisation of the ports and in lower stevedoring costs stemming from receptiveness to new technology, changes in conditions of employment and reduced manning levels.
New Zealand's shipping policy reflects the philosophy that the country's interests are best served by being a ship-using rather than a ship-operating nation. The policy seeks to ensure for New Zealand exporters and shippers 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.
Civil Aviation: New Zealand is one of the most aviation-oriented nations in the world. In a population of just over 4.3 million, there were some 9,300 pilot licences on issue at 30 June 2007 and 4,100 aircraft. Large aircraft are used for international and domestic freight and passenger transport. Light aircraft, including helicopters, are used extensively in agriculture, forestry and tourism.
New Zealand allows up to 100 percent foreign ownership of domestic airlines and there is no domestic air services licensing. Air New Zealand is the major domestic operator on main trunk and regional routes. Qantas and Pacific Blue also provide some main trunk services.
New Zealand has around 40 formal air services agreements with foreign governments. The government's international air transport policy is to maximise economic benefit to New Zealand, including trade and tourism, consistent with foreign policy and strategic considerations.
Currently, around 30 international airlines, including Air New Zealand, link New Zealand with the rest of the world with both freight and passenger services, some under code-share agreements. International flights operate from a number of international airports, of which Auckland, Wellington and Christchurch are the most significant. Hamilton, Palmerston North, Queenstown and Dunedin are secondary airports used for some international flights, mainly trans-Tasman.
The government owns just over 76% of Air New Zealand, having purchased shares in the company in 2001 following a period of difficult business and financial events.
Air New Zealand continues to be a publicly listed company on the New Zealand Stock Exchange. In the eight years of trading since acquisition by the government, Air New Zealand has restructured its operations, which has had the effect of restoring its balance sheet to a sound financial position. The airline has also made profits in each of those financial years and is looking to take delivery of new aircraft in 2009.