• Chairman’s Report
• The NIWA Executive
• Chief Executive’s Report
• The NIWA Board of Directors
• Financial Highlights
• Non-Financial Performance

Chairman’s Report

NIWA has produced a record financial result of $7.037 million pre tax, which results in an after-tax net profit of $4.693 million, an increase of 30.1% over the previous year. The overall return on average shareholders’ funds is an acceptable 10.7%. NIWA’s success in winning contracts from the Public Good Science Fund arises from well-conceived science strategies supported by very committed people.

Some have questioned the need for Crown Research Institutes to earn profits on their activities on the grounds that this could affect their research prowess. We argue that the CRI reforms introduced in 1992 have allowed NIWA to conduct its affairs in a way that has enabled profits to be reinvested in the Institute in greatly improved technology and equipment that has only served to advance science. Our strategic capital investment programme over the past 5 years is testimony to this, and the most recent acquisition, a Cray "supercomputer", will be a most important strategic science asset for NIWA and New Zealand. All of these very significant investments have been funded from within the company, and at no point have we had to seek grants from central Government.

This past year has seen NIWA take some exciting, fresh initiatives. The most significant of these have been the establishment of an operating subsidiary company in the United States, the formation of partnerships with four prestigious US science institutions, the establishment of a joint postgraduate institute in partnership with the University of Auckland, the acquisition of the Cray supercomputer, and the launch of a seasonal climate forecasting service. None of these would have been possible if NIWA had not been operating as a strongly profitable company with a capacity to reinvest and leverage its intellectual knowledge.

A  vital part of New Zealand’s public sector science reforms in 1992 has been the freedom of Crown Research Institutes to develop new science opportunities and follow up on other important science commitments through the "Non-Specific Output Fund" (NSOF) programme. This provides funding equivalent to 10% of the value of contracts won through the Public Good Science Fund in the previous year, representing approximately 5% of our total revenues. NSOF is the only source of R&D funds we have which allows us to have some control over our destiny as a research institute. All other funds under the New Zealand science system are competed for and driven principally by end-user demand. Universities are funded through Vote:Education and by contrast are unrestricted in how they direct their research investment. NIWA’s use of NSOF is described elsewhere in this report. It is clear that it represents the science lifeblood for New Zealand’s Crown Research Institutes.

Since the major reorganisation that led to "One NIWA" in 1994, which saw the removal of internal divisions, the company has operated extremely successfully and consistently bettered its targets. The management team that took charge at that time has remained in place, and the Board is confident that we will meet the objectives and goals we have committed to for 1999–2000.

Don Sollitt

Chairman

The NIWA Executive

John McKoy, Paul Hargreaves, Rod East, Rick Pridmore, Dene Biddlecombe

Chief Executive’s Report

Financial performance

NIWA has achieved a record consolidated net profit before tax of $7.037 million in the year to 30 June 1999 ($5.291 million in 1998), an increase of 33%. Net profit after tax was $4.693 million ($3.586 million). Gross revenue from research, consulting, and other business activities totalled $65.139 million ($58.458 million), an increase of 11.4%. A further sum of $970,000 has been transferred to the research vessel replacement reserve from net tax-paid profit in accordance with the board’s policy, building this reserve to $3.880 million. Shareholders’ funds at 30 June 1999 totalled $46.349 million ($41.656 million), and total assets stand at $57.772 million ($52.214 million). After-tax return on shareholders’ equity for the whole of NIWA was 10.7%, including the vessel-operating subsidiary. The final profit result is a notable achievement, not only as a record level since NIWA’s inception, but also in showing a significant advance over the original business plan.

The improvement against 1997–98 performance has arisen from increases in Public Good Science Fund and commercial revenues, offsetting a further decline in fisheries research revenues.

Costs throughout NIWA have generally been well contained and strong emphasis continues to be maintained on effective project control, which is fundamental to our ability to operate profitably. Our capital expenditure programme has been fully funded out of cash flows.

Public Good Science Fund

The 41% growth in NIWA’s PGSF revenue (including Non-Specific Output Funding) from $24.9 million in 1992–93 to $35.1 million in 1998–99, has been fundamental to our success as a Crown Research Institute. Maintenance and enhancement of our PGSF funding is of key importance to NIWA’s future. The opportunity for PGSF research attracts and keeps many of our best scientists. PGSF funding also leads to the creation of many of the products and skills we sell as scientific services to a wide variety of customers throughout New Zealand.

NIWA achieved outstanding success in the 1998–2000 Foundation bidding round, gaining an increase of $3.8 million (exclusive of GST) in the 1998–99 year and a further increase of $1.35 million in the 1999–2000 year. The increase for the 1999–2000 budget year has since been confirmed and our PGSF programmes, some of which stretch forward for up to 6 years, are proceeding.

Major changes arising from the Government-initiated Foresight Project undertaken over the past 18 months are now underway. These will see the Foundation for Research, Science & Technology emerge in a new role as a science investor. It is important that these changes to the Foundation’s role and modus operandi are evolutionary rather than revolutionary and are accompanied by raising the Foundation’s capability to make good investment decisions. As an environmental research institute, NIWA is encouraged by the broad definition of "wealth" implicit in the proposed changes, which is intended to encompass the science envelope’s environmental and social goals as well as economic. Likewise, we welcome the opportunity to engage in the future with the Foundation at board level to present our strategic portfolio and vision. To allow these transitions to take place successfully, key potential difficulties need to be addressed. These include:

• ensuring that strategic portfolio outlines are structured to enable the most effective and efficient use to be made of New Zealand’s science staff and resources; e.g., by integrating rather than separating science areas such as atmospheric and oceanographic research

• involving end-users in the negotiation process in a manner which enables key end-user needs to be defined and addressed without creating false expectations of what science can realistically deliver

• achieving open and vigorous scientific debate, when this is constrained by the needs of providers to achieve financial returns and by the barrier this places in the way of collaboration and exchange of ideas

• ensuring that increased reliance on science providers to take responsibility for assessing the scientific merit of research programmes does not favour providers that promise more than they can deliver

• minimising the potentially high transaction costs of the new allocation process

• ensuring that the Foundation has the capability to effectively operate the new purchasing process and consistently make good investment decisions, including recognising the value of currently funded research as well as new programmes.

Non-Specific Output Funding

NIWA was allocated $3.114 million of NSOF (exclusive of GST) in the 1998–99 year. NSOF is used in NIWA principally to develop new PGSF research programmes in response to end-user demands, to support new or developing PGSF programmes which have received insufficient funds to achieve their desired outcomes, to fund "high risk" strategic research, to cover for perceived errors in PGSF decision making, and to respond rapidly to environmental issues important to New Zealand (e.g., impact and spread of toxic algae; temporal and spatial variability in climate resulting from El Niño and La Niña events; quantification of greenhouse gas emission rates; rehabilitation of urban streams).

During the 1998–99 year, over 15 international experts were given research grants to fill important skill and knowledge needs in New Zealand, covering such areas as:

• finfish aquaculture
• improved fisheries stock assessment models
• enhanced medium-range forecasting techniques for New Zealand weather and climate
• the re-establishment of native plants in our lakes
• modelling pollution runoff from rural catchments
• improved understanding of how our ocean currents affect climate variability and the transport of marine organisms (e.g., toxic algae and juvenile lobsters).

Our 1998–99 postdoctoral fellowship programme assisted 19 young scientists in developing careers in New Zealand. Like our visiting scientists, they bring skills and recently developed insights which are essential to solve many of the complex environmental issues we are asked to address. Most of our past postdoctoral fellows have been brought on to permanent staff. Our new recruits are contributing to such important research areas as freshwater biodiversity, oceanic and terrestrial climate linkages, the development of natural systems for wastewater treatment, rehabilitation of urban streams, improved satellite technology, and the development of new aquaculture and marine natural products.

For our permanent staff, NSOF is increasingly becoming their "lifeline" to strategic science. With the intense focus on relevance in the PGSF and the high competition for limited funds, most of NIWA’s PGSF programmes have been steered towards low-to-moderate risk, highly achievable research targets, with few strategic science "frills". This trend has been exacerbated by the increasing sums of money being directed towards technology/information transfer within our established PGSF programmes, which have often received little or no increase in funds over the last 5 years. Without a relatively large component (about 40%) of our NSOF being used for "high risk" strategic research and associated technique development, the basis for future breakthroughs in PGSF science would be greatly weakened.

One of the more fundamental, high-risk research projects supported with NSOF during 1998–99 involved a month-long voyage on our research vessel Tangaroa to the open Antarctic waters southwest of New Zealand. The purpose of the voyage was to determine whether the concentration of iron in Antarctic oceanic water limits phytoplankton growth and hence the rate of removal of carbon dioxide (a major greenhouse gas) from the atmosphere. The voyage involved scientists from five countries, who worked with NIWA staff through falling snow and waves exceeding 10 metres in height to complete the experiment. Despite these difficult conditions, the voyage was an unqualified success and has been heralded by many oceanographers worldwide as one of the more important oceanic experiments of the decade.

Fisheries

1998–99 was a year of further evolution in arrangements for the purchase of fisheries research in New Zealand, with the trend toward more research being commissioned by seafood industry quota-holding groups.

The Ministry of Fisheries continues to be a major client, although direct revenues from this source declined to $11.777 million in 1998–99 from $12.669 million in 1997–98 and $13.485 million in 1996–97. These changes reflect, in part, a reduction in the Ministry’s overall research budgets. NIWA continued to be the major provider of fisheries research services to the Ministry, successfully tendering for about 90% of the projects offered during the year. The spread of the tendering and evaluation processes throughout the year is, however, providing challenges in planning and organisation of resources such as research vessels.

Stakeholder groups have participated more with NIWA in designing and carrying out projects for the Ministry. Such activities have included the provision of vessels and staff, organisation of data collection, and sampling of catches, both on vessels and in processing facilities. We have actively sought such participation in preparation for the increasing degree of direct purchasing that will develop in the future.

An increasing number of fisheries research studies that would have been purchased by the Ministry in the past are now being directly purchased by stakeholder groups. NIWA scientists have been heavily involved in providing such services, reflecting an increasing degree of collaboration with the industry. In addition, fisheries research on topics beyond those required to meet the requirements of the Minister of Fisheries is increasingly being commissioned by industry groups and other agencies. A high proportion of this work is utilising the skills and resources available within NIWA.

Strategic Capital Investment

NIWA has maintained its commitment for the fifth successive year to invest significantly in strategic assets to advance its atmospheric and aquatic sciences. This year’s commitment was directed towards just two items: the development of improved acoustic equipment for fisheries research and the purchase of a high performance computer facility. We see the development of fisheries acoustic equipment as an essential contribution to our collaborative efforts with the Ministry of Fisheries and the seafood industry. The "supercomputer" will be used throughout NIWA and will significantly boost our modelling and forecasting skills.

High Powered Computing Facility (Supercomputer)

In June 1999 NIWA took delivery of the Cray T3E High Powered Computing Facility or "supercomputer", which has now been installed at Greta Point in Wellington. The supercomputer will be of enormous strategic importance to NIWA and is the culmination of a lengthy evaluation by an internal team of scientists and IT specialists. It will provide the foundation on which NIWA scientists will be able to develop a unique capability to predict environmental changes. In the future we expect to be forecasting climate and ocean circulation patterns and providing the best quantitative 3 to 48 hour predictions of weather, river flows, floods, storm surges, and waves available in New Zealand. We will be selling model output and tailored predictions to weather forecast providers, Regional Councils, electricity companies, farmers, and fishers as well as providing significant insights into the interactions between biological populations, climate, weather, and oceanographic processes. The Cray supercomputer, which at this stage is the fastest and most powerful machine in the Southern Hemisphere, is an important strategic asset for New Zealand. NIWA will not only use it for its own research purposes, but will also make it available to third party users. We believe it will be a factor in attracting and retaining high calibre scientists; making NIWA one of the most desirable research institutes in the Southern Hemisphere for atmospheric and oceanic science.

Commercial Revenues

NIWA’s commercial revenue (i.e., revenue other than that earned from the Public Good Science Fund and the Ministry of Fisheries) has grown by more than 56% — from $10.5 million at the time of inception in 1992–93 to more than $16.4 million (excluding vessel charter operations) in 1998–99. We focus on maintaining and increasing our revenue in the high quality, high value areas of the environmental consulting market.

Three major sectors of our commercial work — energy, Regional Councils, and policy/operational work for Government departments — provide 45% of our total commercial revenue. The increase in our commercial revenue over the last 4–6 years has come from strong growth in each of these major sectors as well as growth in many of the smaller sectors. We see substantial growth in our revenues in the future from some specific smaller market sectors, e.g., fisheries and aquaculture, but we anticipate that total commercial revenue from New Zealand sources will enter a period of stability rather than further rapid growth.

International Development

NIWA has reached a level of market dominance in New Zealand in much of the environmental consultancy work it undertakes. It is also clear that the Government is unlikely to make significant increases in its investment in the Public Good Science Fund in the immediate future. If NIWA is to grow and retain the commitment of its key staff, it must develop opportunities beyond New Zealand. During 1997–98 an extensive investigation of international market opportunities was undertaken by NIWA with the assistance of Tradenz and other resources. It became evident that the major opportunity for our services lay in advanced economies and in the United States in particular. There were, moreover, collaborations between US and NIWA scientists, going back over many years, on which science partnerships could be developed. Our strategy is to develop formal associations with prestigious US science partners, as well as business associations with appropriate environmental consulting firms. As a consequence, we have established an operating subsidiary company in the United States, NIWA (USA) Inc., a company registered in the State of Delaware.

At the same time we have established formal partnerships with four significant US science institutions: Colorado State University at Fort Collins; the Department of Marine Sciences at the University of Connecticut, Groton; the Virginia Institute of Marine Science, part of the College of William and Mary, Williamsburg; and the Smithsonian Environmental Research Centre, Edgewater, Maryland. Two of our US partners have been appointed to the board of NIWA (USA) Inc.: Professor Robert C Ward, Director of the Colorado Water Resources Research Institute, Colorado State University, and Professor Robert B Whitlatch, Professor of Marine Sciences at the University of Connecticut.

On the commercial front we have established business relationships with three US companies operating in the environmental consulting field. We expect these associations to enable the firms to provide an expanded range of specialist services by drawing on NIWA staff on a project basis. NIWA has the potential to significantly increase its revenue from international consultancy (including participation in US funded science projects) which is likely to require the employment of additional staff over time.

NIWA has the potential to become a truly international New Zealand owned research and consultancy business. We essentially sell the time of our staff, so we have only minimal involvement in activities such as licensing technology and IP protection. We see the growth of our international business as an effective means by which NIWA science can contribute to New Zealand’s economic success. This is in addition to the ongoing national benefits provided by our expertise in aquatic and atmospheric research.

NIWA and the Tertiary Sector

In November 1998, NIWA entered into an agreement with the University of Auckland to establish the Institute of Aquatic and Atmospheric Sciences (IAAS). The purpose of this joint initiative between NIWA and the University is to produce MSc and PhD graduates with a range of multidisciplinary skills that are required to fill present and future job opportunities in the aquatic and atmospheric sciences. The Institute is linked to the University’s Schools of Biological Sciences, Engineering, Geography, Environmental and Marine Sciences, and the Departments of Geography, Geology, Mathematics, and Physics.

Based on the University’s city and Tamaki campuses, the Institute covers a diverse range of research areas, including atmospheric chemistry, meteorology, climatology, oceanography, fisheries science and management, freshwater ecology, hydrology, hydraulics, coastal and estuarine marine science, ecotoxicology, marine and freshwater taxonomy, and aquaculture. It is the first formal association between a university and a Crown Research Institute in New Zealand to offer such an extensive postgraduate programme. NIWA and university staff will jointly teach a broad selection of programmes and supervise a range of postgraduate research projects. IAAS students will be provided with access to the full range of NIWA’s research facilities and equipment.

By combining the University’s learning facilities, NIWA’s research capabilities, and the expertise of the two organisations, we intend that IAAS will become an internationally recognised postgraduate teaching institution which will attract top students from New Zealand and overseas. Standards of entry will be high, to ensure the production of high quality graduates in areas of aquatic and atmospheric science where there is a global shortage of qualified specialists. We see IAAS as a logical step. It builds on our experiences with our established Centres of Excellence, provides a more comprehensive approach to enhancing NIWA’s links with the tertiary education sector, and will strengthen New Zealand’s research and educational capabilities.

The joint Centres of Excellence were set up earlier with individual New Zealand universities and are now well established and currently support 30 PhD and 20 MSc students. In particular, good progress is being made at the University of Canterbury, where the focus is on aquaculture and marine ecology, at Otago in chemical and physical oceanography, at Waikato in coastal oceanography and marine geology, at Auckland in fish biology and fisheries, and at Victoria University in Wellington in atmospheric and climate research.

The contribution NIWA has made at the University of Canterbury was recognised recently by the appointment of our Christchurch Manager, Dr Clive Howard-Williams, as an Adjunct Professor within the University.

Research Vessel Operations

NIWA Vessel Management Limited is a fully owned subsidiary which owns and operates the research vessels Tangaroa (deep water) and Kaharoa (inshore and coastal). The company employs the vessel staff and is responsible for ensuring that the vessels meet agreed research schedules and for negotiating charter agreements with the various users. The vessels are an integral part of the operations of NIWA Science, and virtually all vessel work is derived from that source. Vessel capacity is marketed by NIWA Science, normally as part of integrated research proposals involving science staff. The Vessel Company has had a very successful year, with increases in overall revenue of 17%.

A new initiative, utilising RV Kaharoa, is our "Sea and Learn" programme, designed to provide free marine education to 6th and 7th form students based on a long running programme run by one of our US science partners, the University of Connecticut. A series of day trips will be made from New Zealand ports taking students to sea under the supervision and tuition of senior teachers and NIWA staff. Twenty sea days have been committed in the latter part of 1999, funded at this stage by NIWA. We are seeking sponsors to help support this programme next year and beyond.

National Climate Centre for Monitoring and Prediction

During the past year, concerns about variations in New Zealand’s climate have increased, and drought has had a major impact on the economy. NIWA highlighted this during 1998 by publicising an analysis of the past 20 years’ of climate data in New Zealand and the South Pacific and identifying significant climate shifts in different regions of New Zealand which have been having a significant effect on production sectors of the economy. We have since followed up this initiative by establishing a monthly Climate Update Service which provides a summary of New Zealand’s climate, including soil moisture and river flows, with a rolling seasonal outlook. This information is disseminated in published form and is accessible throughout the country through our website. Our goal is to help New Zealanders manage for climate variations, such as last year’s drought, and to assist farmers and others to improve their decision making and reduce climate-related losses. NIWA climate specialists are available for consultations. The Climate Update is being provided as a public service, and customised services can be provided for groups or organisations wanting more specific detailed analysis.

Maori

NIWA’s commitment to the development of strong Maori relations has continued this year with the signing of two new Memoranda of Understanding with Ngati Muaupoko and Te Aohanga Incorporation. As part of these agreements, greater emphasis has been placed on informing iwi about what we are doing and what we have found. These exchanges range from hui to routine meetings with Trust boards, to specialised reports and our new Maori Development web page.

Cultural training and development of staff continues to be met with enthusiasm. These courses are essential for staff to gain a better appreciation of the issues surrounding kaitiakitanga, manawhenua, and manamoana. A highlight of the training sessions this year was the noho marae held at Waihi village, where staff experienced the hospitality and history of Ngati Turumakina ki Tuwharetoa.

He mihi nui tenei ki a Ngati Turumakina ki Tuwharetoa.

Non-Financial Performance

NIWA has a number of non-financial performance obligations which arise from the CRI Act 1992, and these are reported in a special section in this report. In particular, under the heading of "Benefits to New Zealand", we are committed to make available the scientific expertise and knowledge of some of our key staff in providing advice needed to meet New Zealand’s obligations to various international conventions. This occurs particularly in the areas of climate variability and climate change, and often the commitment is not adequately funded by the responsible Government ministry. In these instances, we have recorded the cost as a "social dividend" to New Zealand, which NIWA has carried. In the year to 30 June 1999 the total value of this contribution was more than $400,000. This is a cost NIWA willingly bears to ensure that the best advice is available to the Crown on these key scientific and technical issues.

Year 2000 Issues

NIWA is well advanced in managing any potential problems associated with Year 2000 issues. All relevant systems were tested early this year. We believe that there is only a small risk of any substantial impact on the functions and operations of the business.

Staff

Permanent staff numbers now total 560, which represents a small increase over the previous year. NIWA has been a consistent hirer of staff since its inception and has seen an increase of more than 70 positions since 1992–93, excluding the introduction of fisheries staff in 1995. Our growth in turn has placed demands on our infrastructure, and the significant expansion of the Hamilton site in 1997–98 was followed this year by the extension of our Christchurch premises. The building extensions at Christchurch have accommodated the recent move of NIWA Instrument Systems staff from Kainga, north of Christchurch, on to the central site in Riccarton.

This year’s outstanding financial performance has been achieved only by a very substantial human effort, given that the bulk of our revenues are fees for service. This has placed significant personal demands on many of our staff and is something that should never be taken for granted. We will endeavour over time to improve the levels of remuneration for staff who are prepared to enhance NIWA through their personal contributions.

Conclusion

1998–99 has seen NIWA take some very significant strategic steps, including our commitment to work with the tertiary sector in New Zealand and to establish ourselves in the United States. The challenge we have in this coming year is to build on these initiatives and produce some real results from them. We are confident that, with the strength of our management team and our very flexible management structure, we will be able to meet our objectives.

Finally, I would like to record the outstanding contribution of NIWA’s senior management team in driving our successful achievements over this past year and acknowledge the strong support given by our Board of Directors, which has been essential in allowing us to move ahead with confidence.

Paul Hargreaves
Chief Executive

The NIWA Board of Directors

Don Thompson, Alex Laing, Don Sollitt, John Montgomery, Paul Morgan, Brian Rhoades

Financial Highlights

Non-Financial Performance

Benefits to New Zealand

NIWA’s research and related services are focused strongly on meeting New Zealand’s needs. In 1998-99 the extent of services provided by NIWA included $35.1 million to the Foundation for Research, Science & Technology, $11.8 million to the Ministry of Fisheries, $17.5 million to other New Zealand purchasers, and $0.8 million (1% of total) to purchasers outside New Zealand.

In addition, NIWA’s expertise is made available to various Government departments, at no cost to the Crown, to provide policy advice and meet New Zealand’s obligations to international conventions to which this country is a signatory. Examples include provision by NIWA of:

• New Zealand’s Co-ordinator for Science and Technology Agreements between New Zealand and the Federal Republic of Germany.
• Personnel to assist in the selection of potential environmental indicators in association with the Ministry for the Environment.
• New Zealand’s Representative at the Fourth Meeting of Ozone Research Managers of the Parties to the Vienna Convention for the Protection of the Ozone Layer.
• Convening Lead Authors, Lead Authors and Reviewers of chapters of the Third Assessment Report of the Intergovernmental Panel on Climate Change (IPCC).
• The IPCC Bureau Working Group II Vice-Chair for World Meteorological Organisation Region V, whose role is to help co-ordinate and disseminate climate change information relevant to the southwest Pacific and to provide the scientific backdrop against which domestic and, in particular, international climate change policy is developed.
• New Zealand’s Representative at the International Conference on CLIVAR, the Climate Variability and Predictability Programme, which has become the primary research component of the World Climate Research Programme.
• Two members of the New Zealand delegation, and the Working Group Co-ordinator for Ozone Depletion, at the 1999 Valdivia Group Co-ordinating Committee Meeting.
• New Zealand’s Representative at the Twelfth Session of the Commission for Agricultural Meteorology of the World Meteorological Organisation.
• New Zealand’s Representative at an International Workshop on Guidelines and Priorities for Systematic Inventories of Biological Diversity convened by Systematics Agenda 2000 International.
• New Zealand’s Representative at the United Nations Environment Programme "Environmental Effects Meeting", held under the Vienna Convention on Substances which deplete the Ozone Layer.
• New Zealand’s Co-ordinator and contact point for the "Virtual Centre for Environmental Technology Exchange Project", operated under the auspices of the APEC Industrial Science and Technology Working Group.
• Convenor of the Royal Society of New Zealand Climate Committee, whose responsibility is to advise Government and the general public on climate issues.
• Two members of the National Science Strategy Committee on Climate Change, whose responsibility is to advise Government on national research needs and progress.
• Personnel to supply advice on climate issues to the New Zealand Permanent Representative to the World Meteorological Organisation.
• Chairman of New Zealand’s National Commission for the UNESCO International Hydrological Programme.
• New Zealand’s Representative to the IGBP Ecosystem Dynamics (Globec) Programme.
• New Zealand’s Representative to the International Hydrological Programme of the World Meteorological Organisation.
• Personnel to supply advice on hazard mitigation to the Ministry for Emergency Management.

In some of the above examples, travel costs for NIWA staff have been met from the International Science and Technology Linkages Programme administered by MoRST, but NIWA has borne the additional costs involved in report writing and provision of policy advice to the Crown. Our records of staff time show that the total cost of such activities to NIWA in 1998-99 was more than $400,000. This is a cost which NIWA willingly bears to ensure that the best advice is available to the Crown on these key scientific and technical issues.

Staff composition

Staff numbers, turnover, and age composition

Age breakdown (%) by 10-year age groups

Research Output

NIWA’s research output for 1998 included 234 papers in international, externally refereed, scientific journals, series or books; 147 papers in local, internally, or editor-refereed journals, series or books; 465 conference papers and abstracts; 69 research monographs or books; 2 popular books; and 345 scientific and technical reports. Full details of these publications are published separately from this Annual Report.

Application and Promotion of Science

In the 1998–99 financial year, NIWA supplied information and services to New Zealand users (excluding the Foundation for Research, Science & Technology and the Ministry of Fisheries) through consultancies and contracts to the value of $17.5 million. We achieved 100% of the technology transfer objectives in our PGSF contracts during this period and conducted five TBG contracts to the value of $210,000. The availability to end-users and degree of use of NIWA’s three Nationally Significant Databases continued at levels similar to, or higher than, those in previous years. We serviced over 3,200 requests for information from the National Climate Database (which also has 118 registered online users), 580 requests for information from the Water Resources Archive and 104 requests for information from the New Zealand Freshwater Fisheries Database. During the 1998-99 year, 96 magazine and newspaper feature articles written by NIWA staff were published. NIWA staff appeared in 10 science-related television feature programmes and were involved in 9 radio interviews during the year.

Social Responsibility

An example of NIWA’s efforts in this area is our principal sponsorship of the Auckland City, Waikato, Bay of Plenty and Wellington Regional Science Fairs, and additional sponsorship of the Central Northland, North Harbour, Taranaki, Nelson, Canterbury-Westland, South Canterbury and Otago Regional Science Fairs. These sponsorships promote science in secondary and intermediate schools and to the community at large. In recognition of 1998 as the International Year of the Ocean, NIWA jointly sponsored Ocean Voyage ’98 and school essay and art competitions to foster awareness of the special nature of New Zealand’s oceanic environment.

Good employer

NIWA has put in place a performance management system and remuneration policy that pays for the range, depth, and type of skills of our staff, recognises an individual’s worth to NIWA and the value of each staff member’s contribution, and allows for career development of staff. We also provide superannuation and life insurance schemes for staff. NIWA has implemented a comprehensive Health and Safety Plan, which has met the requirements of all site inspections by the Occupational Health Service of the Department of Labour. The number of work-related accidents in 1998-99 was 101, of which 8 required staff to take time off work. These are slightly below the levels of the previous year. The number of days lost due to work-related accidents in 1998-99 represented a very low level (less than 0.3%) of total working days. Our Human Resources Policy and Procedures Manual, which was developed and is added to as required by a Staff Working Group, addresses a wide variety of issues from Staff Training and Equal Employment Opportunity to Recruitment and Remuneration. This Manual is available on-line to all staff. Retention of key staff through facilitation of effective science is a major objective of NIWA’s management. This includes such aspects as a strong capital investment programme to purchase state-of-the-art science equipment, a project management system which gives staff the opportunity to lead and direct research projects with a high level of responsibility for scientific and financial performance, and a substantial overseas travel programme for staff. In addition, we operate Technical Training and Sabbatical Awards for staff and a Visiting Scientist Programme.

Copies of full NIWA Annual Reports are available at the main public libraries and from:

NIWA
Private Bag 99940
Newmarket
Auckland