The term income is now used with such a variety of meanings as to necessitate definition of a number of types of income. Generally, income is a continuing accrual of money to a person or group. Thus salaries and wages, interest earnings, gross or net business earnings, and social security benefits can all be characterised as income, whereas it is not usual to regard non-recurring receipts such as sales of land investments, or other capital assets as income.

Ultimately all income originates in current production and represents a claim against the total value of goods and services produced. The link between production and income generation is not always obvious, and incomes are frequently differentiated according to their different relationships to production. Factor incomes are those incomes accruing to the factors of production, land, labour, and capital; they include salaries and wages, income from self-employment, company and Government trading profits, interest and rents. Factor incomes are sometimes split into two groups: “earned” and “unearned” income. Unearned income includes dividends, interest, and rent, whereas earned income covers only those incomes derived from direct participation in production.

Income such as old age pensions and social security benefits are “transfer” incomes. This term covers the whole range of incomes where the income is not a reward for some service rendered but is an unrequited payment assessed in terms of individual needs, social welfare, or some similar consideration.

Income Levels

Attempts are sometimes made to compare income levels between different time periods. Such comparisons are made difficult by changes in the purchasing power of incomes through time. Thus, though a person's wage may increase during a five-year period by 26 per cent, the prices he pays for the goods and services he consumes may increase by 20 per cent. In this case the gain in real or effective wage rates is only 126-120/120 × 100 or 5 per cent. As an illustration of the power of this inflationary illusion, the table below sets out figures for various years for the index of nominal weekly wage rates, and for this index corrected by the consumers' price index to give an effective wage rates index.

(Monthly Abstract of Statistics, Department of Statistics.)

Note that the total increase during the period in the nominal wage rate is 195 per cent, while that in the effective wage rate is 19 per cent. This example demonstrates the difficulties inherent in comparing income levels through time.

Income Distribution

In considering income levels at any one point in time, several aspects of the problem present themselves. We may wish to consider the distribution of income within the community, the sectors of the economy in which incomes are generated, or the status in the productive process of those in receipt of income. In considering the distribution of incomes, it is convenient to classify incomes according to income groups and then to show these as percentages of totals. The following table is taken from a 1961 population census report where income is defined as all income other than social security benefits and war pensions. This factor is relevant in considering equality of income distribution as the influence of social security benefits, if included, would certainly have reduced the apparent inequality of incomes. There are 1,028,077 persons covered by the table.

(New Zealand Population Census, Incomes, Department of Statistics.)

A table of distribution of incomes received by income groups, while giving a picture of the New Zealand situation, does not give any information on how New Zealand compares with other countries. In his book, Portrait of a Modern Mixed Economy, Professor Westrate makes a comparison of New Zealand data with those for the United Kingdom, the United States of America, the Netherlands, and Sweden, and tentatively concludes that the New Zealand income distribution, before taxation and receipt of social security benefits, is less egalitarian than that of the United Kingdom but more so than that of the other three countries.

The data in the following table represent the results of an industrial classification of the salary and wage payments to employees during the year ended 31 March 1960.

(Supplement to April 1965 Monthly Abstract of Statistics.)

This information is extracted from returns required in connection with the “pay as you earn” income tax legislation. Therefore all employees are covered, and the payments are those which are made during a year which is uniform for all employers.

by John Victor Tuwhakahewa Baker, M.A., M.COM., D.P.A., Government Statistician, Wellington.

The first recorded estimates for New Zealand were those made at the turn of the century by T. A. Loghlan, the Government Statistician of New South Wales. His estimates were based mainly on income-tax data and were restricted to a measure of private, rather than national, income. In the world history of national accounting, Loghlan's estimates for the Australian States stand as the first official estimates of a nation's income. Loghlan's estimate for New Zealand in 1901–02 was £364 million. Official estimating began in New Zealand with an estimate for the 1925–26 March year of an aggregate private income of £136 million. This estimate was published in the 1932 Official Yearbook. About this time and in the following years several attempts of measurement of national income were made by private economists, including an exhaustive series of estimates by F. B. Stephens.

Official publication of national income estimates on the present pattern began in 1948 and has continued annually since then, and covers the period from 1938–39 up to the present day. From a total of £2149 million in 1938–39, national income has increased at a fairly steady rate of growth to £1,466 million in 1963–64. This growth is at an average annual rate during the period of over 8 per cent in money terms.

In New Zealand national income is measured in the prices obtaining in the year of measurement. During periods of inflation national income will thus tend to rise even if there is no change in the real value or quantity of goods and services produced.

The period covered by the national income estimates has been one of fairly general inflation, with an average rate of increase of 4 per cent per annum in retail prices and of nearly 5 per cent per annum in wholesale prices. Consequently, not all of the 8 per cent per annum growth in national income can be regarded as real, for a substantial part is an inflationary illusion. There are no official estimates of increases in real national income, but studies made suggest that the rate of increase in real national income in the decade 1950–59 lies somewhere between 3 and 4 per cent per annum. A further assessment which can be made is to adjust the total for population change and derive a figure for real national income per head. The steady increase in population over the period means that growth in real national income per head will be lower than that in the range above.

The main totals of the national income estimates for 1963–64 are given in the following table:

As well as measuring total production in terms of the incomes of the factors which generated it, or in terms of how it was used, it can be classified according to the various sectors of the economy in which the income was generated.

In 1954–55 various sector contributions to net national output were:

In measuring national income and gross national product it is usual to restrict coverage in the main to the production of goods and services for sale. Thus the national income does not include any allowance for the output or production of housewives or of home gardening. The exclusion of some such forms of production is occasionally criticised by professional economists. For instance, in certain underdeveloped countries a substantial amount of subsistence farming exists, and some kind of assessment of the value of production for the producer's own use is therefore necessary. Such measurement raises many serious problems. In New Zealand allowance is made for one kind of income which does not take the form of a money flow. The item is provisional for the rental value of owner-occupied houses.

The total value of production can also be described in terms of the final use made of produced goods and services. The measure of total use made of goods and services produced is gross national expenditure and equals gross national product. This total includes measures of personal and Government consumption, capital formation, and changes in stocks held. An adjustment is also made for the difference between the total value of goods and services exported and of goods and services imported. This difference is known as net investment overseas.

An official estimation of national income is comparatively recent, and it is only since the 1939–45 War that international standards of measurement have been developed. From its inception the United Nations Statistical Office has played a central part in the development and formulation of national accounting procedures, and these are now followed in large part in most non-communist countries.

National income is one of a family of national accounting measures of New Zealand's total productive activity. It is possible to define total productive activity in many ways. The national accounting framework provides three main measures. One of these is national income, which includes all incomes generated in the processes of production of goods and services. It includes incomes earned as salaries and wages, income from self-employment (e.g., professional farming and private trading), company income, and that earned by Government and local-authority trading concerns. National income is usually referred to as national income at factor cost – that is, it includes all incomes accruing to the various factors of production.

The greater part of the total value of production is represented by factor incomes. In measuring the total value of production of goods and services (referred to as gross national product), it is also necessary to allow for other elements. These include two price effects, indirect taxation and subsidies, which enter into the value of goods sold. Allowance is also made for depreciation of capital – such provision for the maintenance of the nation's total working capital is financed from current production and is consequently a part of total current production. On the other hand, such provision is necessary if the nation's wealth is to be maintained, and consequently is not viewed as a part of the income generated and available for general use.

The varying contributions of net migration and natural increase to the growth of the non-Maori population are evident from Diag. 1. For the first 40 years of the colony, immigration was the principal means of populating the country and developing it. Since the adult population was young, it had a high rate of natural increase and the combination of a high level of immigration and natural increase brought the European population from about 1,000 in 1839 to half a million by the early eighties. From this point immigration ceased to be the principal means of population increase. The following table divides the non-Maori population at census dates from 1867 into those born overseas and those born in New Zealand, and demonstrates clearly the changing roles of immigration and natural increase in population growth.

*The figures in the third column exclude all Maoris counted as such in the census. They include a very small proportion of non-Europeans born in New Zealand – less than 1 per cent of the total in 1961. The figures in both columns exclude persons who did not state a country of birth (1,802 in 1961), and also persons in the Armed Services overseas in the censuses from 1945 onwards.

The percentage of immigrants in the non-Maori population at census dates is shown in Diag. 4. The decline is continuous until 1956 when post-war immigration raised the proportion of immigrants a little. Immigration, however, is no longer of any great direct significance in overall population growth or size. For instance, in the 10 years ended April 1961 the net increase in the number of persons born overseas was 73,431, compared with an increase in non-Maori population born in New Zealand of 350,137 together with an expansion of Maori population of 51,410. In other words, the increase in the number of immigrants in the population accounted for only a little more than 15 per cent of the total population growth. The future importance of immigration lies: (i) in its immediate contribution to the working population because there is usually a much greater proportion of persons of working age among immigrants than among the rest of the population, and (ii) in its stimulation of natural increase since, compared with the existing population, a much larger proportion of immigrants is in the higher fertility age groups.

by Ronald John Marolle, B.COM., Assistant Chief Research Officer, Department of Labour, Wellington.

• Statistics of New Zealand for the Crown Colony Period: 1840–52, Auckland University College (1955)
• The Future Population of New Zealand, Calvert, G. N. (1946)
• History of Land Legislation and Settlement in New Zealand, Jourdain, W. R. (1925)
• A Survey of New Zealand Population, New Zealand Ministry of Works (1960)
• From Europe to New Zealand, Lochore, R. A. (1951)
• The Chinese in New Zealand, Fong, Ng B. (1959)
• Early New Zealand, 1788–1844, Tapp, E. J. (1958)
• Crown Colony Government in New Zealand, McLintock, A. H. (1958)
• The Colonisation of New Zealand, Marais, S. B. (1927)
• Population – New Zealand's Problem, Sinclair, H. I. (1944).

The principal legislation controlling immigration into New Zealand is the Immigration Act 1964, and the Undesirable Immigrants Exclusion Act 1919.

Most persons of British stock are admitted freely to New Zealand but certain classes of persons, irrespective of nationality or race, are prohibited from entry. They include any person who is insane, or suffers from a loathsome or dangerous contagious disease, or has committed certain criminal offences, or is considered likely to be disloyal or disturbing to peace and order, or has deserted from an overseas ship, or requires an entry permit and does not possess one.

Since January 1962, all persons other than New Zealand citizens have been required to be in possession of entry permits before landing in New Zealand. Previously, unrestricted entry (subject to the above prohibited classes) was available to persons of British birth and parentage and wholly of European origin. In the present legislation there is no suggestion of discrimination on the grounds of race or colour. Temporary permits for up to six months may be granted to visitors for the purposes of business, pleasure, or health, and there is provision also for temporary entry for educational purposes.

The Department of Labour analysed for 1962 the decisions on applications made under the Immigration Restriction Act of 1908 for entry into New Zealand. The analysis excluded British and Dutch assisted immigrants, and permits issued by overseas offices (which related principally to persons of British birth and parentage): in the main it covered alien applications. Decisions were made on 5,420 applications (some applications covered more than one person), and the entry of students was approved in 400 cases (91 per cent), entry of visitors in 2,614 cases (92 per cent), and admission of persons for permanent residence in 1,297 cases (61 per cent). Applications covered 55 nationalities (African being treated for convenience as one only), and approvals were given for 54, the single Syrian application being declined. This analysis seems to support the Department's claim that the admission of persons of other nationalities into New Zealand is determined solely by the merits of each case, and particularly on the ground that the applicant can fit reasonably well into our society.

As one would expect, immigration from Australia, New Zealand's nearest neighbour, has at times been substantial. Many of the early settlers were from Australia, and the regular flow was strongly reinforced by the “Australian invasion” during the gold rush of the sixties. There have been periods also when the net flow of migrants has been from New Zealand to Australia. Economic conditions in the two countries are the major determinants of the direction of net migration. The yearly movements in net migration for just over 100 years are shown in Diag. 3.

The following census results show the number of persons in New Zealand who were born in Australia: 1867, 11,313; 1871, 12,426; 1874, 13,601; 1878, 16,091; 1881, 17,277; 1886, 17,245; 1891, 15,943; 1896, 21,631; 1901, 26,901; 1906, 47,256; 1911, 50,693; 1916, 45,585; 1921, 48,045; 1936, 42,009; 1945, 36,789; 1951, 35,828; 1956, 35,916; 1961, 35,412. As evidence of total immigration from Australia, this tabulation, however, is misleading since it covers only Australians – that is, persons born in Australia. A great many of the arrivals from Australia, particularly in the early years, were persons born in the British Isles who first settled in Australia and then moved on to New Zealand. For instance, although there were only 11,313 Australians in the population in 1867, the total net migration from Australia for the period 1861–67 exceeded 50,000.

The principal early contribution of Australia to New Zealand's population occurred prior to 1867. There was a small flow to Australia in the New Zealand depression of the late eighties, and a large intake of Australians during the prolonged Australian depression in the early 1900s. (From 1900 to 1908 the net gain to New Zealand exceeded 51,000.) The gain from Australia never again reached these proportions and consequently the numbers of Australians in the New Zealand population have since declined. In 1867, 6·9 per cent of persons born outside New Zealand were Australians; at the peak in 1911 the figure was 16·5 per cent, and in 1961, 10·4 per cent. Migrants who came from Australia in the early years of this century make up quite a large proportion of the Australians now resident in New Zealand. The 1961 census showed that 42·1 per cent of Australians had resided here for more than 40 years, and 19·4 per cent for between 20 and 40 years. In the 15 years ended March 1965 the net movement was in favour of New Zealand by some 27,860, of which the two years ended March 1963 accounted for more than 10,300, largely as a result of the Australian recession of 1961–62. In only three of the last 15 years has the net flow been in favour of Australia.

After the War. One of the earliest major movements from Europe to New Zealand after the Second World War was of “displaced persons” admitted by the Government by arrangement with the International Refugee Organisation during 1949 to 1953. Principal countries of origin or last residence were: Rumania, 918; Poland, 847; Latvia, 545; Yugoslavia, 504; Czechoslovakia, 336; Hungary, 280; U.S.S.R., 275; Lithuania, 242; Bulgaria, 199; Estonia, 189; and Ukraine, 179. There were also some Albanians, Austrians, and Germans. In all, arrivals in the official drafts totalled 4,584 and, in addition, there were some 250 fare-paying and sponsored persons.

Dutch immigration was considerable in the early 1950s. The first important group were 856 Dutch persons who came in 1946–47 under the Netherlands East Indies Recuperation Scheme. The Government's decision in 1950 to admit certain categories of non-British immigrants led to a contributory passage scheme being negotiated with the Netherlands Government. Up to 31 March 1963 this scheme brought 6,261 Dutch single men and women. Arrivals were fairly high in 1951–52 and 1952–53 (1,100 and 2,709 respectively) but then declined following the improvement of economic conditions in the Netherlands. It was also found that fewer skilled workers were available than had been expected. The number of Dutch immigrants individually assisted by the New Zealand Government declined to an aggregate of only 369 in the six years ended March 1963, and there have been none since under this scheme. Nevertheless, the Netherlands Government continued to give substantial financial assistance to all Dutch migrants and, in the case of workers in selected categories, the New Zealand Government granted a subsidy to the Netherlands Government in respect of transport costs. Persons assisted in this way are not included in the figures quoted above. The total number of Dutch immigrants who arrived in New Zealand from April 1950 to March 1965 was 25,124.

Other European immigrants who came under Government schemes included (i) single persons from Denmark, Germany, Austria, Switzerland, and Belgium, Malta, and Spain numbering 941 from 1955 to 1965; (ii) Hungarian refugees who came following the Hungarian uprising towards the end of 1956; (iii) some 200 “handicapped” refugee families from Europe; and (iv) 296 Greek girls specially trained for domestic service who arrived in 1962–65.

Prior to the Second World War there were not many Polynesians (other than New Zealand Maoris) in the population, but during the war years the numbers approximately doubled. A further steady increase took place in the late 1940s, and this became a much more rapid flow in the 1950s. Successive censuses gave the following figures for persons of Polynesian blood: 1951 – 3,624; 1956 – 8,103; and 1961 – 14,340. This represented an increase of nearly 300 per cent in 10 years. A notable change took place in that period in the proportions of females: in 1951, there were 102 female Polynesians to every 100 males, but by 1961 this had been reduced to only 91, indicating a fairly heavy migration of men. Not all of the increase is accounted for by additional migration: in 1951, there were 1,056 New Zealand born Polynesians (29 per cent of the total); in 1956, the number was 2,551 (31 per cent of the total); and in 1961, 5,640 (39 per cent of the total). How comparatively recent this migration has been is shown by the fact that, of the 8,700 Polynesians born out of New Zealand, 70 per cent had been in New Zealand less than 10 years and 38 per cent less than five years. None of the above figures include persons of mixed Polynesian and New Zealand Maori blood who are all grouped in the Maori population.

According to the census figures of April 1961, Polynesians were strongly concentrated in two urban areas: 71·3 per cent were located in Auckland, and 17·1 per cent in the Wellington-Hutt area. Most Polynesians have come from Western Samoa, the Cook Islands, Niue Island, and Tonga.

The evidence of the 1961 census concerning the duration of residence in New Zealand of persons born overseas indicates whether or not immigration has been recent. The following table for selected countries shows the proportion who arrived in New Zealand between April 1946 and April 1961 – that is, almost all post war arrivals counted in the 1961 census.

Note: It should be observed that birthplace does not indicate the ethnic group or nationality to which the person belongs. For example, most of the persons from Indonesia are Dutch; from Rumania and Turkey they are Greek; and from India and Malaya many are British.

An interesting facet of an analysis of persons in the population born overseas is that men outnumber women by more than 12 per cent. (This is the main reason why the total number of men in the population exceeds that of women.) Out of 87 countries of birth identified in the 1961 census, this rule held good for 67. Most of the exceptions were very small groups, but notable cases where women outnumbered men were persons from Australia, South Africa, Tonga, Estonia, France, and Germany. On the other hand, in groups from some countries the margin in favour of men was quite substantial. The following supplied more than 25 per cent more men than women – Cyprus, Malaya, Isle of Man, Malta, Niue Island, Pitcairn Island, Tokelau Islands, Pakistan, Northern Ireland, Eire, Albania,* Austria,* Bulgaria,* China, Czechoslovakia, Denmark, Hungary, Indonesia, Israel, Japan,* Korea,* Netherlands, Norway,* Sweden,* Switzerland, Thailand, U.S.A., Yugoslavia. Many of these groups were small, but the total showed that men from these 28 countries outnumbered women by 11,805 or 54 per cent.

(*The excess of men over women exceeded 100 per cent.)

Emphasis has always been placed upon the stocking of New Zealand with people from the British Isles. This is very apparent from Diag. 2, which depicts the numbers of immigrants in the population at census dates from 1861 to 1961, and divides them into the principal countries of birth. The first noticeable feature is the overall trend. The number of persons born overseas rose steadily in the first 20 years, but since then it has risen or fallen within comparatively narrow limits despite a fourfold increase in total population. A second prominent feature is the very high proportion of persons from the British Isles throughout the entire period. The peak year was probably 1926.

In the latest year (1961) there were, however, actually fewer from the British Isles than in 1886, or in the period 1911 to 1926. Thus the proportion at 67 per cent of all immigrants was the lowest recorded. This was largely due to the 75-year decline in the numbers of Irish, who totalled 51,400 in 1886 and only 17,800 in 1961. Other points of note are (i) the relative consistency in the numbers of Scottish immigrants; (ii) the fluctuations in the numbers of Australians – with a bulge in the early 1900s; and (iii) the fairly marked rise in recent years of “other British” and foreign immigrants. In the 1961 census 338,673 persons indicated that their birthplace was other than New Zealand – the largest number in our history and surpassing the previous highest census figure of 1926 by 16,500. Nevertheless, the high rate of growth of New Zealand born resulted in the overseas born being the lowest proportion of the total population yet recorded (14 per cent, compared with 24 per cent in 1926).

Of those who indicated in the 1961 census that they were born overseas, 227,459 stated their birthplace as the United Kingdom and Ireland, 35,412 as Australia, 2,863 as Canada, and 2,191 as Africa. If we regard these as all of British stock, together with a few smaller groups which can be similarly identified, it may be said that persons of British origin accounted for some 79 per cent of all persons born out of New Zealand (compared with 82 per cent in the previous census). Of the rest, 21,206 (63 per cent) came from other Commonwealth countries and island dependencies, leaving 49,066 as foreign born (other than persons from Eire). The foeignr born represent only 14·5 per cent of the total overseas born and only just over 2 per cent of the total population. More than one-third (17,844) were Dutch. Other countries of origin included China, 4,194; Yugoslavia, 3,534; U.S.A., 2,616; Scandinavian countries, 2,507; Germany, 2,269; Poland, 2,140; Hungary, 1,496; and Italy, 1,427.

Including persons born in New Zealand, people of other than European or Maori race totalled 31,012 at census date in 1961 – only a little more than 1 per cent of the total population. A third of these were mixed with European or Maori blood. Polynesians comprised 14,340, most of whom were post-war arrivals; 8,524 were Chinese; 4,179 were Indians; and 124 were Pakistanis.

Asian Races. The gold rushes of the sixties introduced the first considerable number of non-British immigrants, especially Chinese. These came initially from Australia but later direct from China, the census in 1874 recording 4,814 Chinese residents. Prejudice against Chinese immigrants resulted in special restrictions on their entry to New Zealand, including a poll tax introduced in 1881 and not removed until 1944. Because of these measures Chinese immigration was very slight for some 60 years, but there has been a resumption on a small scale in the past 20 years, especially of women and families of local Chinese. At census date in 1961, 66 per cent of overseas born Chinese women had arrived in New Zealand since 1946, compared with 38 per cent of Chinese men. Forty-one per cent of immigrant Chinese men had been in New Zealand for 30 years or more, and among the overseas born, men outnumbered women by more than three to two. In 1956 the figures had been almost four to two. More than half the Chinese now in New Zealand have been born here.

The only other Asiatic group of importance, but of more recent origin than the Chinese, comprises Indians and Pakistanis. Of the 4,403 recorded in the 1961 census, 2,501 (58 per cent) were born out of New Zealand and 1,823 (73 per cent of those born overseas) had arrived since 1946. Some of the Indians in New Zealand have come from Fiji.

From Northern Europe. The 1864 census showed that 505 persons were born in France – evidence of the early French interest in New Zealand – and 1,999 born in Germany, many of whom had just come from Australia. But the principal period of early European immigration was during the seventies and eighties when nearly 8,000 European migrants were assisted to New Zealand. The largest groups were German (3,185), Danish (2,009), Norwegian (743), and Swedish (727). Most of the Scandinavians came in under the “special settlements” schemes of land development, and settled in the Manawatu block and in the Seventy-mile Bush at Norsewood and around Dannevirke. Independent German immigration continued until 1914 (there were 3,400 German settlers between 1900 and 1914), but after that it virtually stopped except for the arrival of refugees from the Nazi regime prior to the Second World War. Most of the Polish residents came either in 1944 among the Polish refugees or among the displaced persons in 1949 to 1953.

Southern Europeans. A nucleus of 300 Italians arrived under the Government schemes from 1875 to 1877, and a small but uneven flow has continued. Most of the Italians are found in Wellington, Auckland, Nelson, and Canterbury. The first Yugoslavs (principally Dalmatians) came later than the Italians, worked the Northland gum fields, and later settled on some of the poorer land. Today about 80 per cent of them are found in Auckland and Northland. Most of the Yugoslavs now in New Zealand are of long residence.

Another old-established racial group in New Zealand is composed of Syrians and Lebanese. Most of them live in the cities, particularly in Auckland, Wellington, and Dunedin. In the 1961 census 1,082 persons so described themselves, but 84 per cent were born in New Zealand, demonstrating that the original migration took place many years ago.

Early Policies

Settlement Companies and Provincial Governments. Schemes for the encouragement of emigration to New Zealand began with the early settlement companies. The original proposals of the New Zealand Company for the sale of land in Wellington stated that 75 per cent of the purchase money was to be applied to the costs of emigration. This was reduced to 50 per cent by the Imperial Government's New Zealand Company's Colonisation Act 1847. The Otago Association allocated three-eighths and the Canterbury Association one-third.

For many years the principal inducements offered to immigrants continued to be associated with the grant or sale of land. In 1855 the Central Government promulgated regulations which remitted part of the purchase money for land to retired British naval and army officers – a concession later extended to all ranks. The Auckland Provincial Council in 1855 provided certain lands free of cost to retired members of the forces, and also to other emigrants in proportion to their outlay on emigration. By the Auckland Waste Lands Act 1858, land was to be set apart exclusively for sale to emigrants, and emigration agents were to be appointed in the United Kingdom with authority to grant land orders to persons who wished to emigrate to the Province of Auckland. Other Provincial Councils passed similar legislation.

A scheme much in favour in the sixties and seventies was the promotion of “special settlements”. Each comprised a block of undeveloped rural land, for the settlement of which a contract was let. The contractor usually undertook to introduce emigrants from the United Kingdom to settle the land. Among the special settlements which were established successfully were the areas in and around Foxton, Feilding, Palmerston North, Featherston, Dannevirke, Norsewood, Te Puke, Te Aroha, Katikati (Tauranga), Whangarei, Catlins River, Mataura, Kaipara, and Oakura (Taranaki).

Government Policies to 1890. The Central Government took little direct action to foster immigration in the early years of the colony. In 1862, however, Sir George Grey had some correspondence with a German company which requested him to accept some 500 German immigrants in Taranaki, but negotiations broke down. The following year a Danish company negotiated with the Government for 150 Danish immigrants to settle in the Waikato on the promise by the Government of grants of land and payment of half the passage money. The same year the Government decided to promote a larger European population in the belief that strong settlements in the North Island were essential for the preservation of peace with the Maoris. Labourers, mechanics, small farmers, and “capitalists” were sought. The first two classes were offered free passage money and a few acres of land, or half the passage money and a larger land area. To encourage land development and attract farmers, the Government offered suitable men a free grant of land not exceeding 500 acres. An Immigration Advisory Board was established in England, and £200,000 was earmarked for immigration in 1864, increased to £600,000 in 1865.

In 1869, under the New Zealand Commissioners Act, I. E. Featherston and Francis Dillon Bell went to England to negotiate with the British Government on a variety of subjects including the planning of an organised and selective immigration programme. In the following year, as part of the Vogel scheme, there followed the Immigration and Public Works Act, envisaging an extensive programme of railways and road development financed by loans. Adjacent lands were to be opened up for settlement as the railways and roads were pushed ahead. The works programme was accordingly linked to a virile immigration programme to provide the labour for the works and the settlers for the land. The Act enabled £1,000,000 to be set aside for immigration. Immigrants were to be of two types: (a) those selected in the United Kingdom by the Agent-General, and (b) persons living there who were nominated by New Zealand residents. Immigrants were originally required to pay a small portion of the fare, but from 1873 free passages were offered. The 1870 Act required cooperation between the Central Government and the provinces but as this proved to be lacking, in 1871 a second Act enabled the Government to act alone. In order to encourage land settlement to a greater degree, an Immigration Land Act was passed in 1873 entitling immigrants to certain land grants.

The high rate of immigration in the early seventies resulting from these measures has already been mentioned. The Vogel schemes, though sound enough in principle, were over-ambitious and extravagant, and a recession in 1879 led to the adoption of less liberal provisions in regard to passages and a tightening up of conditions applying to the nomination scheme. From 1871 to 1880 more than 100,000 assisted and nominated immigrants arrived in the country: in the next 12 years the total number was less than one-seventh of this figure. From 1881, only the nominations scheme operated. Government encouragement of immigration fluctuated with the uncertain state of the economy, and in the prolonged trade depression of the late eighties and early nineties finally came to an end. The nomination scheme was formally discontinued in December 1890, though a few immigrants already accepted, arrived in 1891. In all, the Government-sponsored schemes from 1871 to 1891 had brought in 114,907 immigrants: of these 31,693 were nominated.

Government Interest Revived. From 1891 to 1903 there were no official Government schemes of immigration, but in 1893 the Agent-General in London arranged an agreement with the New Zealand Shipping Co. (later extended to other companies) for reduced fares to be given to persons with a minimum capital (mostly farmers) likely to prove successful settlers. The Government made no contribution. In 1903 the Government decided to assist immigration again by subsidising fares, these subsidies to be additional to the shipping companies' reductions which were still operating. In 1906 a modified nominations scheme was reintroduced relating to domestic servants, farmers, and farm workers. The scheme was extended in 1913 to cover other categories of workers. Boy immigrants for farm labour were also sought. Although variations were introduced from time to time, the 1913 scheme of nominated and assisted immigration remained the substance of the Government's immigration policies for more than 20 years. From 1900 to 1914, 35,669 immigrants were assisted, but the war years naturally saw a marked decline, only 2,647 assisted immigrants (mostly nominated) arriving from 1915 to 1918.

1919 to Second World War. The new tide of immigration which followed the war began with the arrival of men of the Imperial forces, and of wives and fiancées of New Zealand men who fought overseas. The flow was increased by a decision of Government in 1920 to take in 10,000 persons a year from the United Kingdom, and by an agreement with the United Kingdom Government under the Empire Settlement Act 1922 by which the two Governments were to share the cost of assisted passages for immigrants. Arrivals under these schemes rose from 3,569 in 1919 to 10,766 in 1926. After 1926, business conditions were less buoyant and from May 1927 the assisted scheme was suspended except for domestics and single women, wives of earlier immigrants, and boys under certain juvenile schemes. The numbers of assisted immigrants declined steadily until with the onset of the depression of the thirties there were very few arrivals.

Special attention was paid in this period to juvenile immigration. There were at least six schemes, and the numbers brought out from 1924 to 1931 were: Flock House boys, 423; Flock House girls, 121; Public School boys, 645; Church of England boys, 494; Salvation Army boys, 564; Empire Exhibition Scholarship boys, 12 – a total of 2,259.

Nominally, the reduced immigration scheme of the late nineteen twenties remained in effect between the depression and Second World War but it was little used. Persons assisted from 1936 to 1941 numbered less than 60 and from 1942 to 1946 there were none.

Recent Policy

Immigration Resumed After Second World War. The immediate post-war views on immigration were coloured by the need to ensure the satisfactory and rapid rehabilitation of New Zealand ex-servicemen, though the wider issue of future population was also a matter for concern. Thus in December 1945 the House of Representatives set up a Parliamentary Committee “to consider ways and means of increasing the population of the Dominion”. The Committee found that “our future generations must in the main be born within our own shores”, and on the matter of immigration its recommendations were cautious. Among other things it said: “It is obvious that the shortages in secondary industries, and to a lesser extent, in tertiary industries, cannot be made up in the short run from our own population. There is a great deal to be said for a carefully planned immigration policy. By planning we mean that the immigrants should be carefully selected for their occupational aptitudes”.

The Government had taken steps already to alleviate an acute shortage of staff in mental hospitals by recruiting female workers in the United Kingdom, and 158 of these arrived in 1946–47 and, later, a further 82. Then in July 1947 the Government announced its new immigration scheme. It covered single residents of the United Kingdom suitable for and willing to accept employment in selected occupations in New Zealand where labour shortages were acute. Free passages were offered ex-servicemen from the Second World War: others were required to pay £10. In every case, a contract to remain in the selected employment for two years was required. An Immigration Council representative of the major national organisations was established to advise the Minister of Immigration on policy and the size of intake from time to time. A nominations scheme was added in 1949. In May 1950 the whole scheme was substantially broadened. The age limits for unmarried British immigrants (including nominated persons) was raised to 45, all passages were to be free, and the scheme was extended to certain categories of married British immigrants with up to two (later four) children. A new trend was the acceptance, after negotiations and conclusion of agreements with the countries concerned, of a number of single non-British men and women between the ages of 20 and 35.

The 1950 scheme has remained the basis of the immigration programme but the categories of workers accepted have been altered on occasion to suit the changing needs for different classes of workers and to effect reductions or increases in the assisted immigration targets made necessary by fluctuating economic conditions. The flow of assisted immigrants has therefore been uneven, reaching a peak of 7,581 in 1952–53, declining to 4,332 in 1954–55, approximating 5,000 for several years following, and falling to 2,231 in 1960–61. In March 1961 the Government announced a target of 5,000 assisted immigrants for the following year, but the economic outlook took a turn for the worse and the target was later reduced to half this figure. It was thought that this reduction would be achieved principally by limiting recruitment to skilled and experienced workers for industries particularly short of labour and once again requiring contributions from the immigrants themselves towards their fares – £25 from single men and £50 from family groups. But the tap of supply is not easily turned on and off at will, and in this case the list of accepted persons waiting for transport had to be disposed of before any reduction could become effective. In the meantime the economic outlook had substantially improved. The net result was the arrival of 3,584 assisted immigrants in 1961–62 and 4,532 in 1962–63.

As a result of a recommendation to Government from the Export Development Conference held in June 1963, and supported by the Immigration Advisory Council, the official annual target was amended to 3,500 in the following August. But it was stated at the time that a large number of suitable applicants were awaiting passages in the United Kingdom and still coming forward; as a consequence, in the next 12 months some 4,500 assisted immigrants were expected to arrive. Thus the new objective could not become effective until 1964–65, and in an attempt to make it effective by reducing the demand for assisted passages, the contributions towards transport costs from new applicants were raised to £50 for single men and women and £100 for family groups. This, however, proved a greater deterrent than was expected and applications fell so markedly that in June 1964 the contributions required from immigrants were halved to the earlier figures. The intake objective was retained at 3,500 for the year. The target was actually exceeded, the number of assisted immigrants being 4,347 in 1963–64 and 4,400 in 1964–65. The official objective was raised to 4,000 in June 1965.

From the end of the Second World War to March 1965, 72,026 assisted immigrants arrived under the basic schemes, together with 4,584 displaced persons, 1,117 Hungarian refugees, and a number of European refugee families. Some 1,622 persons also arrived under subsidy schemes. Of the number arriving under the basic schemes, 64,628 (90 per cent) were from the United Kingdom.

The Government immigration schemes since the Second World War have had one primary objective – to supplement the labour force in New Zealand. Thus, assisted immigrants comprised principally persons of working age (especially young adults) within specified occupational categories and skills. The number of assisted immigrants was substantially exceeded by persons who paid their own passages or air fares in full, and these naturally comprised a much wider age group. Most of these “voluntary” immigrants were from the United Kingdom and Australia, a small proportion from South Africa, and a rising number (though still small in relation to total migration movements) from Polynesia.

The following table supplies the numbers of immigrants who arrived under free and assisted passages in each decade from 1871 to 1960 and gives for the same periods the net gain from migration.

Note: In the following four calendar years, 1961–64, Government assisted immigrants numbered 16,533 and the net gain from migration was 55,894.