New Zealand

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1914-1918

One of every three men between 20 and 40 killed or wounded fighting for
Britain in World War I.

1939

New Zealand sends troops to fight for the Allies in Europe.

1941-45

Threatened by Japan, defended by United States Navy (eventually led to
ANZUS pact in 1951, a defensive alliance with the U.S. and Australia).

1947

New Zealand becomes independent by adopting Statue of Westminster.

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

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