Environmental Policy
The New Zealand Government has agreed that sustainable development principles should underpin its economic, social and environmental policies at home and abroad. "Sustainable development" integrates concern for social, economic and environmental issues. It involves thinking broadly about objectives and considering the long-term as well as short-term effects of policy decisions.
New Zealand's low population and limited industrial base means that environmental issues are generally less severe than in many industrialised countries. Many of the big environmental issues for New Zealand are also economic and public health issues. More sustainable use of water, managing marine resources, reducing waste and improving energy efficiency are all essential for creating wealth and quality of life as well as for environmental sustainability. However, the decline of the country's unique plants, animals and ecosystems is New Zealand's most pervasive environmental issue. Programmes are in place or under further development in all these areas.
More broadly, the Resource Management Act provides a national framework for balancing environmental protection with economic, social and cultural values. Local government has the major responsibility for planning and environmental approvals at a local level, with central government providing direction on matters of national importance. During 2009, the Act was amended to streamline and simplify processes and reduce costly delays for developers and investors while still maintaining necessary environmental protections. This has resulted in faster consent processing and improved compliance. A new agency, the Environmental Protection Authority, was created to facilitate decision-making on proposals of national significance.
Climate change presents a particular challenge for New Zealand, from both an international and domestic policy perspective. New Zealand is a small country with a unique emissions profile driven by the predominance of land-use industries. Despite New Zealand's relatively small contribution to global emissions, the government is nonetheless committed to participating constructively in the international climate change dialogue.
New Zealand's Emissions Trading Scheme (ETS), introduced in 2008, is the primary domestic policy for incentivising reductions in emissions. The first periodic legislative review of the ETS was completed in June 2011. The Review Panel recommended slowing the pace of implementation to align domestic efforts with international action on climate change. The government is scheduled to respond to these recommendations in 2012.
Selected Statistical and Financial Data
| 2007 | 2008 | 2009 | 2010 | 2011 | |
|---|---|---|---|---|---|
| (dollar amounts in millions) | |||||
| Gross Domestic Product at Current Prices[1],[2] | 168,663 | 181,721 | 185,220 | 187,355 | 198,043 |
| Annual % Increase (Decrease) in Real GDP[1],[2],[3] | 0.9% | 3.0% | (1.5%) | (0.7%) | 1.6% |
| Population[4] | 4,209 | 4,251 | 4,292 | 4,346 | 4,391 |
| Unemployment Rate[5] | 3.7 | 4.0 | 6.0 | 6.9 | 6.5 |
| Change in Consumer Price Index[6] | 1.8 | 5.1 | 1.7 | 1.5 | 4.6 |
| Exchange Rate[7] | 0.7559 | 0.7607 | 0.6374 | 0.6928 | 0.8150 |
| 90-Day Bank Bill Rate[8] | 8.32 | 8.68 | 2.78 | 3.07 | 2.65 |
| 10 Year Government Loan Stock Rate[8] | 6.72 | 6.42 | 5.97 | 5.51 | 5.04 |
| Terms of Trade Index[2],[9] | 1122 | 1242 | 1074 | 1210 | 1295 |
| Current Account Deficit as a % of GDP[2],[10] | (8.2%) | (8.4%) | (5.6%) | (2.5%) | (3.7%) |
| Year ended 30 June | 2006/07 | 2007/08 | 2008/09 | 2009/10 | 2010/11 | 2011/12[11] |
|---|---|---|---|---|---|---|
| (dollar amounts in millions) | ||||||
| Total Revenue | 74,589 | 81,479 | 79,928 | 74,725 | 81,563 | 83,637 |
| Total Expenses | 68,729 | 75,842 | 83,329 | 81,040 | 99,959 | 94,446 |
| OBEGAL[12] | 5,860 | 5,637 | (3,893) | (6,315) | (18,369) | (10,809) |
| Gains/(Losses) | 2,162 | (3,253) | (6.612) | 1,806 | 5,036 | (1,792) |
| Operating Balance | 8,022 | 2,384 | (10,505) | (4,509) | (13,360) | (12,601) |
| Operating Balance % of GDP | 4.7% | 1.3% | (6.8%) | (2.4%) | (6.7%) | (6.0%) |
| Total Assets | 180,347 | 200,835 | 217,151 | 223,355 | 245,215 | 245,615 |
| Total Liabilities | 83,520 | 95.321 | 117,636 | 128,367 | 164,328 | 177,333 |
| Net Worth | 96,827 | 105,514 | 99,515 | 94.988 | 80,887 | 68,282 |
| Net Direct Domestic Borrowing | (3,917) | 1,721 | 8,454 | 8,016 | 18,362 | - |
| Net Direct Overseas Borrowing | 312 | (1,296) | 717 | 409 | 787 | - |
| Internal Funded Debt | 26,860.4 | 28,210.4 | 29,614.5 | 38,575.5 | 60,519.9 | - |
|---|---|---|---|---|---|---|
| Internal Floating Debt | 2,303.4 | 1,655.0 | 7,505.0 | 8,065.0 | 7,326.0 | - |
| External Debt | 2,048.0 | 2,048.5 | 4,718.7 | 2,197.2 | 214.0 | - |
| Total Direct Public Debt | 31,211.4 | 31,913.9 | 41,298.2 | 48,837.7 | 68,059.9 | - |
- [1] Year ended 31 March.
- [2] 2011 data provisional. Prior years' data revised.
- [3] Production based - chain volume series expressed in 1995/96 prices.
- [4] June year resident population estimate.
- [5] June quarter, seasonally adjusted.
- [6] Annual percentage change, September quarter.
- [7] US$ per NZ$ monthly average for June.
- [8] June monthly average.
- [9] Year ended 30 June. Base: June quarter 2002 - 1,000.
- [10] This table is prepared in accordance with New Zealand Generally Accepted Accounting Practice (GAAP).
- [11] Pre-election Economic and Fiscal Update published 25 October 2011.
- [12] Operating Balance Excluding Gains and Losses. The OBEGAL is the operating balance excluding gains and losses on assets and liabilities of institutions such as the Accident Compensation Corporation, Earthquake Commission and the Government Superannuation Fund.
