• Chairman’s Report
• The NIWA Executive
• Chief Executive’s Report
• The NIWA Board of Directors
• Financial Highlights
• NIWA’s Social and Environmental Contribution

Chairman’s Report

It is 10 years since the Crown Research Institutes were incorporated, and it is timely to reflect on NIWA’s performance. Since its establishment on 1 July 1992, NIWA has more than doubled its annual revenues to reach $81.3 million in 2001–02. In that time, pre-tax surplus has increased from $2.72 million to $7.47 million, and permanent staff numbers have grown by over 55%. As a newcomer to NIWA in the past 18 months, I am struck by the quality of our people and our innovative approach to the business of environmental science. NIWA successfully meets its dual commitments of undertaking first-class science for the benefit of New Zealand and operating a financially successful business.

The cash reserves built up from NIWA’s successful operation over the last 10 years enabled us to meet the commitment to the Crown as shareholder in 2001–02 by paying the earlier agreed special dividend of $19 million. This was paid in two tranches; $12 million in January 2002 and $7 million in June 2002. It was the first dividend paid to the shareholder since NIWA’s formation.

The advancement processes implemented by the Foundation for Research, Science & Technology (FRST) in 2001–02 included 30% of NIWA’s public good science programmes, largely in FRST’s Global Processes strategic portfolio. The outcome for NIWA was very pleasing, with an increase of $2.55 million in our FRST research funding, mainly for new initiatives in the bioactives and energy research areas. These initiatives include a strong element of providing benefits to Māori, through NIWA’s Maori development unit Te Kūwaha. Despite this success, there are currently very limited opportunities to maintain and grow the quantum of public good science in most of the core areas of NIWA’s environmental research. This is a key threat to NIWA’s future, because FRST-funded science is critical both for the retention and development of our scientists and for the future development of New Zealand.

In addition to the increase in our FRST funding, key achievements during 2001–02 included the investment of more than $2.5 million in NIWA’s new aquaculture facility at Bream Bay, which was opened in April 2002; increasing consultancy revenues for the eighth successive year to more than $26 million, which represents an increase of more than 130% since NIWA’s first year of operations in 1992–93; winning several new major research contracts in marine biodiversity and biosecurity; and establishing new National Centres in Fisheries and Aquaculture, Climate–Energy Solutions, Water Resources, and Aquatic Biodiversity and Biosecurity, which complement our existing National Climate Centre. We also achieved a very high level of utilisation of our research vessels, which are owned and operated by the wholly owned subsidiary NIWA Vessel Management Ltd. These and other major achievements are described in more detail elsewhere in this Annual Report.

In order to continue NIWA’s growth as a successful Crown Research Institute over the next 3 years, we will focus on enhancing our scientific capabilities and developing better products and services in the following key areas: aquaculture, bioactives, hazard forecasting and mitigation, biodiversity, biosecurity, and climate–energy issues related to the reduction of greenhouse gas emissions and energy efficiency and conservation. These efforts will be additional to maintaining NIWA’s current position as a market leader in the ongoing core areas of our business; namely, research and high level consultancy services in atmosphere, freshwater, fisheries, coasts, and oceans.

This year sees a major change in the management of NIWA with the retirement of Paul Hargreaves as Chief Executive in August 2002. On behalf of the Board, staff, and our clients, I would like to thank Paul for the major contribution he has made to NIWA, initially as a Board member and then as Chief Executive. Earlier this year the Board commissioned an international search for a successor, which resulted in the selection of Dr Rick Pridmore, NIWA’s Deputy Chief Executive (Strategic Development) to succeed Paul Hargreaves. Rick has been a key member of NIWA’s top management team over the past 8 years and now has the task of building his new executive team to carry NIWA forward. I am confident that the Chief Executive transition will be accomplished smoothly and successfully. NIWA’s achievements over its first decade have been due to the commitment and excellence of the Institute’s staff and management, and we are in a strong position to meet the challenges of the future.

Sue Suckling

Chair

The NIWA Executive

Rob Murdoch, Dene Biddlecombe, John McKoy, Clive Howard-Williams, Bryce Cooper (standing)
Rod East, Paul Hargreaves, Rick Pridmore (seated)

Chief Executive’s Report

Financial performance

NIWA has achieved a group operating surplus before tax of $7.465 million in the year to 30 June 2002, against $7.328 million in the previous year. Net surplus after tax was $4.730 million ($4.717 million in 2001). Gross revenue from research, consulting, vessel operations, and all other business activities was $81.312 million ($77.113 million). A further $970,000 has been transferred to the Research Vessel Replacement Reserve in accordance with the Board’s policy, building this reserve to $6.790 million. Shareholders’ funds at 30 June 2002 stood at $42.115 million after payment during the year of a dividend of $19 million to the Crown as shareholder. NIWA’s after-tax return on average shareholders’ equity was 9.63%. A total of $450,000 was allocated to NIWA’s ongoing staff profit-share scheme before arriving at the surplus before tax.

While overall revenue has grown, our revenue from the Foundation for Research, Science & Technology, at $37.869 million, has remained almost flat for the third successive year because of limited opportunities to grow our public good science. The growth in our total revenue has resulted from substantial increases in commercial consultancy fee-for-service work, augmented by revenue from our research vessels. Although our overall financial performance remains buoyant, the rundown of core public good environmental science investment is a real concern for NIWA and for New Zealand. Within this constraint NIWA, continues to operate as an outstandingly successful environmental research institute, while performing exceptionally well from the shareholders’ point of view as a business.

Public Good Science and Technology

Public Good Science and Technology funding (PGST) represents a little over 46% of NIWA’s total revenue. This funding continues to underpin NIWA’s success as an environmental research institute, and keeps our staff at the forefront of scientific developments. Through this research we are able to deliver the fundamental science required to support the operational needs of New Zealand’s environmental sector, and provide new products for commercialisation by industry. In the past year NIWA has re-applied to the Foundation for Research, Science & Technology (FRST) for funding that supports about 30% of our research programmes. Applications were submitted to FRST in the research areas of bioactives, oceans, atmosphere, climate, energy, and methane mitigation. Although the available funding remained effectively static, NIWA successfully increased its funding through these applications by $2.55 million. There is a strong focus in our newly funded programmes on research which will provide benefit for Māori, provide technologies and a basis for sound policy initiatives to reduce New Zealand’s emissions of anthropogenic gases, and enable different sectors of our economy to adapt to climate variability and change. Our new research initiatives include:

• improving rural Māori communities through the utilisation of new energy technologies – a programme, led by NIWA’s Māori research unit Te Kūwaha, which will examine the use of wave, wind, and small hydroelectricity generating schemes as energy sources for isolated rural Maori communities;
• the revitalisation and enhancement of mātauranga hauora of aquatic environments – a programme, led by Te Kūwaha, which will work with Crop & Food Research to examine ways to improve Māori health by overcoming barriers to the consumption of kai moana, and re-establishing the central importance of aquatic environments in modern Māori culture (both as a taonga over which Māori exercise kaitiakitanga and as a source of physical and spiritual health); this programme is jointly funded by FRST and the Health Research Council;
• non-steroidal anti-inflammatory drugs from New Zealand biota – a joint research programme with Crop & Food Research and the Malaghan Institute of Medical Research which will capitalise on the significant opportunity that exists for New Zealand to derive wealth through commercialising non-steroidal anti-inflammatory drugs based on novel bioactives sourced from our unique marine and terrestrial organisms;
• Te Whatukura a Takaroa: nutraceuticals from seafood – joint research with Ngai Tahu Seafood to commercialise new bioactives derived from fisheries bycatch and by-product, with particular emphasis on nutraceuticals;
• global drivers and mitigation of global change – fundamental work on global change in the atmosphere and oceans with an increasing focus on studies which anticipate Government needs (e.g., obligations under the Kyoto Protocol), on the recognition of human drivers of change, and on the need for mitigation of greenhouse gas emissions; this programme includes the development of new lower-cost technologies for measuring methane to enable verification of animal management strategies which reduce ruminant methane emissions;
• adaptation to climate variability and change – research to provide information, predictions, and tools to help New Zealanders make best use of climate-dependent natural resources, adapt to natural variations in climate, improve efficiencies in energy generation and use, and identify and manage expected regional impacts of global climate change;
• consequences of Eart–-ocean change – environmental research to provide knowledge and tools which will lead to improved environmental management, hazard analysis, and resource evaluation of the vast ocean floor around New Zealand, from the coast to the abyssal ocean;
• transport emissions mitigation – work to establish a framework by which changes in technology and behaviour, such as vehicle and fuel types, human behaviour, work patterns, urban design and lifestyles, can be quantitatively related to changes in transport emissions; this framework will provide a basis for developing methods to curtail the rapid growth in transport sector greenhouse gas emissions.

Non-Specific Output Funding

NIWA was allocated $4.243 million (exclusive of GST) of Non-Specific Output Funding (NSOF) in the 2001–02 financial year.

NSOF provides Crown Research Institutes with funding equivalent to 10% of the value of public good science contracts awarded by FRST in the previous year, and it plays a major role in fostering NIWA’s strategic science, innovation, and staff morale. Without NSOF, we would have little control over how we wanted to develop as an Institute, and would struggle to bring new staff on board and ensure that existing staff stayed at the forefront of their fields of expertise. NSOF also allows us to import new ideas and skills from other research organisations (both here and abroad) through extended visits and secondments.

Without NSOF, many of our most significant scientific advancements would not have occurred or would have been greatly delayed. Services such as our National Centres would not exist. Major technology-transfer programmes, such as Sea and Learn and the Institute of Aquatic and Atmospheric Sciences, would cease. Many end-user manuals and handbooks would not have been written without support from NSOF, because substantial staff time would have to have been taken from major research initiatives. Wise use of NSOF has allowed NIWA to become a respected research organisation with a worldwide reputation for quality and multidisciplinary innovation.

The principal ways in which NSOF is used in NIWA are:

• developing new public good research programmes in response to a wide range of end-user demands; these programmes include management of aquaculture structures, joint research with Māori on tuna (eels), restoration of whitebait fisheries, identifying coastal regions at risk from tsunamis, cage culture of lobsters, and industrial applications through marine biotechnology;
• supporting new or developing public good research programmes which have received insufficient funds to achieve desired outcomes (e.g., effects of pollution on estuaries, freshwater biodiversity, kingfish broodstock development, shellfish disease, sustainable management of dairy shed effluents);
• funding “high risk” strategic research (e.g., development of coastal ecosystem models, biomedical applications from marine invertebrate fibres);
• developing new technologies (e.g., high-resolution seabed mapping, surveillance tools to detect incursions of exotic marine species);
• responding rapidly to environmental issues of importance to New Zealand (e.g., Antarctic coastal biodiversity, marine biosecurity, control of exotic freshwater weeds, effects of mussel farm debris on marine ecosystems).

Within each of these categories, NSOF supports not only the efforts of our own staff, but also those of visiting scientists, postdoctoral fellows, and postgraduate students.

During the 2001–02 financial year, eight international experts were given research grants to fill important skill and knowledge needs in New Zealand, covering such areas as:

• high-resolution seabed mapping;
• developing measures of marine biodiversity in New Zealand;
• coupled chemistry–climate modelling of the atmosphere;
• mapping soil moisture across New Zealand;
• estimating the abundance of reef fish;
• quantifying atmospheric bromine.

Our 2001–02 postdoctoral fellowship programme assisted 29 young scientists in developing careers in New Zealand. As with our visiting scientists, they bring skills and recently developed insights which are invaluable when solving many of the complex environmental issues we are asked to address. Many of our postdoctoral fellows have become permanent staff. Our new recruits are contributing to such important research areas as freshwater biodiversity, weather and climate forecasting, greenhouse gases, ozone and UV radiation, restoration of degraded freshwater ecosystems, catchment management, improved satellite technology, habitat management to improve wildstock fisheries, sediment impacts in streams and estuaries, and marine ecotoxicology.

NSOF was also used to support 14 PhD and 2 MSc research projects, and to run 16 Sea and Learn classes for New Zealand secondary school students on our research vessel Kaharoa. This marine education programme provides an opportunity for senior secondary school students to experience hands-on, “real-life”, marine multidisciplinary science through a day trip on Kaharoa. More than 200 students participated, and there were three voyages specifically for Maori students, jointly funded with Te Ohu Kai Moana. NSOF also supported the education of thousands of young New Zealanders through our marine biodiscovery room at Kelly Tarlton’s Underwater World in Auckland.

Fisheries science

Over the last year NIWA has continued to maintain and develop New Zealand’s core fisheries science expertise. The Ministry of Fisheries (Mfish) is still the major agency commissioning fisheries research, although the demand for fisheries science from fishing industry stakeholders is steadily increasing. This has been evident in studies on aspects of the oyster, paua, scallop, hoki, and orange roughy fisheries.

The major focus of fisheries research in New Zealand continues to be the management of sustainable fisheries. Projects aimed at stock assessments for the key commercial species, such as snapper, rock lobster, hoki, and orange roughy, form the bulk of the fisheries research portfolio. NIWA provides more than 90% of the research tendered by MFish. With the initiatives to include a much greater number of species in the Quota Management System, NIWA has been able to support MFish by providing analyses for a wide range of small fisheries, ranging from knobbed whelks to octopus. This task has, however, highlighted for many ecosystems the great shortage of information for well-informed management.

The development of research into aspects of fisheries dealing with the environmental principles in the Fisheries Act has also continued. NIWA staff have made major contributions in areas such as the evaluation of bycatch from commercial fishing, the impacts of fishing activities on benthic habitats, and the relationships between fisheries and aquaculture developments. In 2001–02 we have also contributed to the development of the capability of Maori groups to evaluate coastal resources, mainly through MFish contracts.

NIWA has maintained its contribution to international fisheries organisations through involvement in the Commission for the Conservation of Antarctic Living Marine Resources and various tuna and billfish organisations in the Pacific. We have maintained our links with fisheries research organisations in Chile and Australia, and are playing a major role in a consortium conducting a year-long acoustic and trawl survey of fisheries in the United Arab Emirates. Here, NIWA will provide technical advice and training in design, implementation, and analysis of the surveys, plus training and advice in fish ageing techniques.

Marine biodiversity and biosecurity

Over the year, NIWA continued to expand its research activities in biodiversity and biosecurity, especially that component funded by the Ministry of Fisheries. There were 11 MFish projects, worth almost $1 million, running during the year. In addition, NIWA won new biodiversity/biosecurity research contracts totalling $3.3 million. These will start in the next financial year. Research topics included surveillance for exotic marine organisms in New Zealand, studies on marine encrusting algae, Ross Sea (Antarctica) benthic ecology and biodiversity, and seamount biodiversity. Collaboration with a number of other institutions and universities is a feature of several of these projects. Exciting research possibilities are opened up by some of these new initiatives; for example, development of incidence prediction tools for invasive marine species, and increased understanding of the roles of the very important but poorly known marine crustose coralline algae.

Commercial revenue

Commercial science and consultancy revenue (i.e., from sources other than the Foundation for Research, Science & Technology, the Ministry of Fisheries, and the research vessels) was $26.737 million in 2001–02, about $1.4 million more than last year.

NIWA’s commercial revenue is largely derived from providing fee-for-service advice to a wide range of public and privately owned entities. These clients include the hydroelectric energy industry, regional and local councils, the aquaculture industry, and Government agencies. The continuing strong demand for our services shows the relevance of NIWA’s core science skills when addressing the sustainable use of resources. A particular strength is our ability to assemble multidisciplinary teams and associated equipment to provide a comprehensive solution for the client. Recent advances in the usability of computing software has facilitated a growing trend for us to package our knowledge of ecosystems into computer-based tools which can be interrogated directly by the client or wider end-user groups. Examples include a decision-support system for water allocation and a classification system for river environments, both of which provide scientific underpinning for resource management decisions.

The keys to our success continue to be the commitment of our staff to providing a high quality service, delivered on time and within budget. Raising awareness of new capabilities is achieved through client-focused newsletters and brochures, participation at selected conferences, workshops, and trade shows, and direct presentation to clients. A particular initiative during 2001–02 has been the establishment on our website of the National Centres (www.niwa.co.nz/nc), identifying our capabilities in addressing critical issues facing New Zealand.

Research vessel operations

NIWA has owned and operated the research vessels Tangaroa (deep water) and Kaharoa (inshore and coastal) for the past 7 years. The vessels undertake a wide variety of work covering NIWA’s ocean science programmes funded through contracts from the Foundation for Research, Science & Technology, fisheries stock assessment contracted by the Ministry of Fisheries, and many different maritime projects for other organisations, such as seabed surveys to delineate New Zealand’s Continental Shelf, and hydrographic surveys for Land Information New Zealand (LINZ). Demand for RV Tangaroa has grown to a level where the vessel was deployed for 344 days at sea in the past year. This has led to very tight turnarounds in port and placed considerable strain on the operation, but despite this all our commitments have been met.

Tangaroa returned to Antarctica for the fourth successive year, this time to undertake a 30-day voyage for the Japanese National Institute of Polar Research. Negotiations are currently taking place for a further voyage for the Japanese in February–March 2003. At the conclusion of the Japanese Antarctic voyage in Hobart in March, a day aboard Tangaroa was arranged for a number of senior Australian representatives from the Australian Antarctic Division, the National Oceans Office, and the Commonwealth Scientific & Industrial Research Organisation to familiarise them with the capability of the vessel.

The final segment of the survey of New Zealand’s Continental Shelf was completed for LINZ in June. This completes a major project in which NIWA played a leading part, with the Institute of Geological & Nuclear Sciences, and which will result in claims being submitted to the United Nations for the extension of New Zealand’s undersea boundaries.

Kaharoa was at sea for 209 days in the past year, which included the continuation of the hydrographic survey in Foveaux Strait, and a further Sea and Learn programme for senior high school students, which operated out of North Island ports during June.

During the year the Ministry of Defence commissioned a review of New Zealand’s hydrographic survey capability. The major providers of hydrographic survey work in New Zealand are the Royal New Zealand Navy and NIWA. The review recommends a “provider panel” of hydrographic survey providers for a 5-year period and notes the presence of both the Navy and NIWA as Government-owned providers. It also notes that by undertaking a wide range of marine studies, including hydrographic surveys for the Government, NIWA uses its research vessels in an efficient and cost-effective manner.

Bream Bay Aquaculture Park

The Hon Pete Hodgson officially opened NIWA’s new $2.5 million aquaculture facility at Bream Bay, south of Whangarei, on 24 April 2002. The ceremony was attended by more than 200 guests and included a pōwhiri, official speeches, a seafood lunch, and a tour of the facilities. It was particularly pleasing to see the diverse representation of our guests because the opportunities offered by the facility will be maximised through wide involvement of the seafood industry, Māori, venture capitalists, and local and central Government agencies.

With the increasing global demand for seafood unable to be met from wild fisheries, there is a substantial opportunity for New Zealand to grow its export revenues from aquaculture by diversifying into new, high-value species. The main aim of Bream Bay Aquaculture Park is to bridge the gap between small-scale research into these new aquaculture species and their commercial-scale production. The world-class facilities have been specifically designed with this aim in mind, and include a large-volume seawater pumping and filtration system, live-feed production rooms, specialised finfish and shellfish hatchery and nursery areas, and a pathology unit.

The facility is up-and-running with staff on-site, a variety of shellfish and finfish projects underway, and further projects coming on-stream. Our desire to have the seafood industry closely involved in developments at Bream Bay is being realised through these projects. Sealord Shellfish has been the first industry partner to locate staff on site to take advantage of the facilities and the opportunity to work on projects alongside NIWA staff. We anticipate further partnership arrangements occurring at Bream Bay as the economic opportunities arising from new-species aquaculture become increasingly apparent.

National Centre for Fisheries and Aquaculture

NIWA has very strong capabilities in fisheries and aquaculture planning, development, and research that benefit from the wide blend of scientific skills available within New Zealand’s second largest Crown Research Institute. We have established the National Centre for Fisheries and Aquaculture to enhance access to this expertise. Although fisheries and aquaculture research can be seen as very different disciplines, they are closely linked in practice because the technical, biological, and ecological understanding required is similar. The Centre is now supported by a newsletter, Fisheries and Aquaculture Update, and a webpage, bringing fisheries and aquaculture developments to the attention of stakeholders across the industry.

Fisheries and aquaculture contribute greatly to the New Zealand economy. Our goal is to use the unique set of skills within NIWA to help New Zealanders with the further development and sustainable management of marine resources.

see: www.niwa.co.nz/ncfa

National Climate Centre

Helping New Zealanders manage for climate variations, including droughts, is the focus of NIWA’s National Climate Centre, which was established in 1999. The Centre’s newsletter, The Climate Update, is published each month, and (like all NIWA’s newsletters) is available free in printed form or through NIWA’s website. The Climate Update summarises the previous month’s air temperatures, rainfall, soil moisture, and river flows, provides regional seasonal climate outlooks, and updates the public on matters of interest, such as the development of El Niño conditions across the Pacific. The Centre also prepares the monthly The Island Climate Update in collaboration with staff from weather and climate agencies from Australia and the Pacific Islands.

Climate Centre staff also produce regular media releases to the general public on climate conditions and outlooks, and these are widely reported. Experts from the Centre travel regularly through the country, giving talks to groups of farmers, local Government officials, and others. A regular climate slot is presented on No. 8 Wired on TV3, and quarterly climate briefings are provided to agricultural sector representatives and Government officials through the Ministry of Agriculture and Forestry. We are addressing a growing demand from local Government officials for regional assessment of climate hazards and advice on how these might vary in the future because of climate change.

The climate affects productive enterprises ranging from farming to energy generation, and Centre staff are kept busy responding to requests for data and advice. A specialist service we are particularly proud of is the detailed mapping of climate conditions (e.g., growing degree-days or strong winds) and the frequency of climate hazards (e.g., the earliest frost). These maps can be combined with soil and crop information to help people manage their land sustainably and identify new crops and other land-use opportunities. We are collaborating with soil scientists and agricultural specialists from other Crown Research Institutes and universities in several studies for regional and local Government. These include a large-scale, climate-mapping project for the Otago Regional Council (GrowOtago) as well as studies for Tararua District Council and the Kaipara and Far North District Councils.

see: www.niwa.co.nz/ncc

National Centre for Climate–Energy Solutions

The Centre was established in March to create new economic, social, and environmental opportunities associated with climate change and energy reform. It has attracted considerable attention through public presentations and newsletters. Although debate has centred on climate change, the main driver for global warming is the release of carbon dioxide into the atmosphere through the burning of fossil fuels. Because of this adverse environmental impact and the finite lifetime of this energy source, we need to look closely at alternative sources of energy as well as maximise the efficiency of national energy use, particularly in transport.

We have established a series of exciting initiatives in collaboration with the Energy Efficiency and Conservation Authority, the Building Research Association of NZ, and CRL Energy Ltd. One example is an integrated study of the economic and environmental barriers to the generation and uptake of energy from renewable sources. Another is developing tools for New Zealand companies to take advantage of the “Kyoto Cross Border and Joint Implementation Projects”. The Centre has also provided guidance and information for the New Zealand Business Council for Sustainable Development report on Climate Change Opportunities.

see: www.niwa.co.nz/ncces

National Centre for Water Resources

NIWA launched the National Centre for Water Resources in April 2002 to help bridge the gap between science and the community in the field of water resources. The Centre publishes quarterly summaries of river flows, groundwater levels, and river water quality, in collaboration with the Institute of Geological & Nuclear Sciences, the Ministry for the Environment, and regional councils. It operates as a focal point for media and resource managers to contact scientists with technical queries and problems relating to water resources.

New organisations are continuing to approach NIWA with offers to work with the Centre, making it a truly collaborative effort. The Centre is using a quarterly newsletter, Water Resources Update, as well as webpage updates, to disseminate water quality and quantity summaries, and to publish short articles on topical issues and summaries of recent research results.

The Centre is also developing two new projects; one to unify New Zealand’s diverse freshwater databases, and one to build a national flood-forecasting capability. The Freshwater Information New Zealand project builds on the River Environment Classification, and will allow freshwater data from a wide variety of sources to be linked to a common map database, allowing easy access using the internet and geographic information systems. The national flood-forecasting project is producing daily flood forecasts, up to 48 hours ahead, by combining forecasts from atmospheric models and catchment models. A pilot project is underway with 12 catchments around New Zealand, with the aim of covering the whole country.

see: www.niwa.co.nz/ncwr

National Centre for Aquatic Biodiversity and Biosecurity

On 27 June 2002, NIWA launched the National Centre for Aquatic Biodiversity and Biosecurity, the fifth of its national centres. The new Centre will provide research to support the Government’s new Biodiversity Strategy and the emerging Biosecurity Strategy by addressing aquatic biodiversity and biosecurity issues around New Zealand and in the Southern Ocean and the Ross Sea. Several NIWA research projects already address these topics. The Centre will help bring research results to the community, including industry, iwi, councils, and Government agencies. It will enhance access to NIWA’s aquatic biodiversity and biosecurity expertise, increase awareness of any issues facing New Zealand, foster collaboration and cooperation between organisations here and overseas, and provide new tools and services.

A new quarterly newsletter, Aquatic Biodiversity & Biosecurity, and a new website, have been launched to help provide information to stakeholders about new research, not only from NIWA, but also from other research providers and funders. The tools and services include the Freshwater Fish Database; web-based, species/habitat, map-based tools such as Freshwater Information New Zealand; and identification guides to help equip central and local Government, communities, and other sectors protect and restore biodiversity. We are also developing ways to complement mātauranga Māori in biodiversity/biosecurity management.

see: www.niwa.co.nz/ncabb

Relationships with Universities

The Institute of Aquatic and Atmospheric Sciences (IAAS), which was established as a joint initiative with the University of Auckland in 1999, has continued to flourish. The Institute is run by a Board of Studies and has links to the Schools of Biological Sciences, Engineering, and Environmental and Marine Science. There are also links to the Geography, Mathematics, and Physics Departments. A plan for a physical location of IAAS on the University campus is now underway with the likelihood of further expansion of the Institute. Currently, the NIWA and University staff involved supervise PhD, ME, and MSc projects in various multidisciplinary fields, including fisheries, hydrology, marine and freshwater ecology, aquaculture, and climatology.

The Institute’s student roll has continued to increase over the last year, and 18 PhD and 4 MSc students were registered in June 2002. In addition, three further PhDs were awaiting registration. Student study grants were obtained from various sources (e.g., Commonwealth Scholarships, Foundation for Research, Science & Technology (FRST) Tūāpapa Pūtaiao Māori Fellowships, FRST Enterprise Scholarships (Bright Future scheme), University of Auckland postgraduate grants, and NIWA scholarships). IAAS is gaining an international reputation in multidisciplinary science and provides a significant contribution to the young scientist pool in targeted areas where there are clear national needs. It is anticipated that the IAAS will continue to grow over the next year.

Postgraduate Centres of Excellence continue to operate successfully with the University of Canterbury (Aquaculture and Marine Ecology), the University of Otago (Chemical and Physical Oceanography), and Victoria University of Wellington (Atmosphere and Climate Research).

Working with Māori

NIWA is committed to its policy of building strong relationships with Māori, and conducting research of relevance to the exercise of kaitiakitanga and new economic opportunities for Māori (for example in aquaculture). This policy is implemented through our Māori development unit, Te Kūwaha o Taihoro Nukurangi (Te Kūwaha), which can be literally translated as “The Gateway to NIWA”. Te Kūwaha comprises Māori researchers within NIWA with the mandate to conduct environmental research with a Māori focus, to develop strong relationships at a “flax-roots” level with Māori organisations, to raise awareness of the Māori perspective within NIWA, and to facilitate collaborative research between NIWA and Māori.

NIWA’s interactions with Māori are frequent, varied, and extend throughout the country. During 2001–02, Te Kūwaha played an active role in ensuring new research programmes being advanced by NIWA delivered outcomes to Māori. A particular emphasis of Te Kūwaha in this past year has been to extend their activities to developing specific proposals for research “by Māori, for Māori, with Māori”. This has seen the success of collaborative proposals on energy sources for remote Māori communities, investigating the relationships between Māori health and access to seafood, the development of eel fattening technologies, aspects of mussel aquaculture, and sourcing bioactives from the marine environment. By securing funding for these projects, the foundations have been laid for NIWA’s skills to contribute directly to the aspirations of Māori. I look forward to hearing of the success of these initiatives in the future.

Te Kūwaha has grown in strength of purpose and capability, becoming an important part of the “NIWA fabric” and increasingly influencing what we do and how we do it. Its long-term success will rely on our ability to recruit suitably qualified Māori researchers. This highlights the need to encourage young Māori into careers in environmental science. We currently have two Māori PhD Fellows supported within Te Kūwaha, and, in association with Te Ohu Kai Moana, run a Māori-centred marine experience for young Māori involving our research vessel Kaharoa. These initiatives represent part of our commitment to the development of future Māori research capacity.

NIWA International

A strong business alliance has been established in the United States with Limno-Tech Inc. of Ann Arbor, a nationally recognised leader in developing cutting-edge technology to assess, model, and manage environmental problems affecting surface water, ground water, and sediments. Established in 1975, with a staff of more than 90, Limno-Tech has worked on over 800 high-impact projects throughout the USA and has assisted clients in more than 300 watersheds. NIWA and Limno-Tech are combining resources in joint bids in the USA. Our particular skills and experience are highly relevant to that market.

In Australia we have been bidding for a variety of jobs through our office in Brisbane. By drawing on a combination of our Australian and New Zealand skill bases, with Australian collaborators, we are picking up contracts from significant clients. We have also established formal and informal relationships with several Australian research organisations, including Griffith University (Queensland) and the Cooperative Research Centre for Catchment Hydrology.

Time of change

After 8 years I am stepping down as Chief Executive, to be succeeded by Dr Rick Pridmore, hitherto Deputy Chief Executive (Strategic Development). Rick has made a major contribution to NIWA’s success, firstly as Research Director, and latterly in his present strategic role.

At the end of its first decade, NIWA is in a very strong position, with a high reputation for its science, a strong demand for its very wide range of services, and a considerable depth of managerial talent. I have no doubt that, under Rick Pridmore and his Executive, NIWA will continue to flourish and grow in strategic importance to New Zealand.

The 10 year old corporate science experiment undertaken in New Zealand is unique in the world and has brought benefits of freedom to invest and form external associations. This freedom has been tremendously important for an environmental research institute such as NIWA, which undertakes work in the oceans and the atmosphere, requiring large-scale science assets.

NIWA has achieved real success in fulfilling the key principles set out in the Crown Research Institutes Act of undertaking research for the benefit of New Zealand, pursuing excellence, and at the same time operating as a very successful business. The strong uptake and growth of our consulting services by a wide range of organisations, both in New Zealand and internationally, to resolve a wide variety of environmental issues confirms the relevance of our public good science. Increasingly, through our new National Centres, we are moving into the field of environmental prediction. The push into these new areas is being driven through our public good science, without which these developments would not take place. Our current business plan emphasises the strong science push into new areas, such as aquaculture, bioactives, natural hazards, biodiversity, biosecurity, and climate–energy issues. Further opportunities exist for NIWA to increase its contribution to New Zealand Inc. through greater input into the Government policy process.

Staff

Over the past 8 years, 90 new positions have been created, and we now have 588 permanent staff. The stability of our science and support teams has been a key factor in NIWA’s success. At its heart, NIWA is a first-class environmental science organisation which undertakes high level consultancy off the back of its science. The people who undertake much of this work are themselves senior scientists, usually working very long hours. It is their ability to be able to maintain their science commitment that gives NIWA its special value to our clients. It remains a deep concern that our core public good science funding is declining in real terms over time.

In this past year our staff have been at full stretch with an unprecedented range and level of large-scale consulting work. We have met all our commercial obligations alongside our science commitments, and maintained our high reputation among a very wide and diverse range of clients. I am privileged to have served such an outstanding and committed team of people as Chief Executive over the last 8 years.

Paul Hargreaves
Chief Executive

The NIWA Board of Directors

John Hercus, Graham Hill, Sue Suckling (Chair), Carolyn Burns, Chief Executive Paul Hargreaves, David Sharp, Paul Morgan (Deputy Chair).
Inset: Miranda Cassidy. (Troy Newton joined on 18 June 2002.)

Financial Highlights

Full financial details from the NIWA 2002 Annual Report available from
General Manager – Finance, NIWA, Private Bag 99 940, Newmarket, Auckland

NIWA’s Social and Environmental Contribution

New Zealand’s international obligations

NIWA’s expertise is made available to various Government departments to provide policy advice and meet New Zealand’s obligations to international conventions to which this country is a signatory. Examples include:

• The Intergovernmental Panel on Climate Change (IPCC) Bureau Working Group II Vice-Chair for the World Meteorological Organization Region V, whose role is to help coordinate 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;
• Chair of the Regional Steering Committee for UNESCO’s International Hydrological Programme for Southeast Asia and the Pacific;
• Authors and reviewers of chapters of the United Nations Environment Programme/World Meteorological Organization Scientific Assessment of Ozone Depletion, which must be lodged with the United Nations by the end of 2002 as part of the terms of the Montreal Protocol;
• New Zealand Coordinator of the Global Climate Observing System (GCOS).
• Co-Chair of the Scientific Planning Group of the Asia Pacific Network for Global Change Research;
• Member of the International Ozone Commission of the International Union of Geodesy and Geophysics;
• Member of the Steering Committee of the International Network for the Detection of Stratospheric Change;
• Chair of the Stock Assessment Group of the Commission for the Conservation of Antarctic Marine Living Resources;
• New Zealand’s representative on the International Science Steering Committee for the International Geosphere-Biosphere Programme (IGBP) Surface Ocean Lower Atmosphere Study (SOLAS);
• New Zealand’s representative on the Coordinating Committee for the IGBP Aerosol Characterisation and Process Studies;
• Southern Ocean reviewer for the joint International Oceanographic Commission/International Hydrographic Organisation General Bathymetric Chart of the Oceans (GEBCO) Programme;
• New Zealand’s representative on the International Union for the Conservation of Nature (IUCN) Sharks Specialist Group;
• New Zealand representative at the United Nation’s Food and Agricultural Organization (FAO) meeting on Management of Deepwater Fisheries Resources;
• President of the International Bryozoology Association;
• Member of the New Zealand Royal Society Biodiversity Subcommittee;
• Member of the International Committee of Ocean Biogeographic Information System (OBIS);
• Member of the Species 2000 Asia–Oceania Working Group and Taxonomy Group;
• New Zealand representative at the Scientific and Technical Advisory Group Workshop of the Global Biodiversity Information Facility (GBIF);
• Member of the Steering Committee for the European Commission Framework V CYCLOPS Programme;
• New Zealand representatives at the 13th session of the Commission for Climatology of the World Meteorological Organization;
• Member of the World Meteorological Organization’s Expert Team on Infrastructure for Long Range Forecasting;
• 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;
• New Zealand’s representative to the IGBP Ecosystems Dynamics (GLOBEC) Programme;
• Personnel to supply advice on climate issues to the New Zealand Permanent Representative to the World Meteorological Organization;
• Co-Chair of the IGBP Global Atmospheric Methane Synthesis Project;
• New Zealand’s representative to the Joint Global Ocean Flux Study (JGOFS);
• New Zealand’s Hydrological Advisor to the Permanent Representative of the World Meteorological Organization;
• Member of the Advisory Working Group of the World Meteorological Organization’s Commission of Agricultural Meteorology;
• Chair and Secretary of New Zealand’s National Commission for the UNESCO International Hydrological Programme.

In some of the above examples, travel and some other costs for NIWA staff have been met from sources such as the International Science and Technology Linkages Fund and the International Technical Input Programme, but NIWA has borne the cost of staff time involved in attending the meeting, report writing, and the provision of policy advice. Our records of staff time show that the total costs of such activities to NIWA in 2001–02 was more than $300,000. 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.

NIWA staff routinely contribute to various intergovernmental treaties, processes, and agreements; for example:

• Montreal Protocol on substances which deplete the ozone layer
• United Nations Framework Convention on Climate Change
• Kyoto Protocol
• Vienna Convention for the Protection of the Ozone Layer
• United Nations Convention on Biological Diversity
• Commission for the Conservation of Antarctic Marine Living Resources
• Antarctic Treaty
• Madrid Protocol to the Antarctic Treaty
• United Nations Convention on Law of the Sea

Research output

NIWA’s research output for 2001 included 269 papers in international, externally refereed, scientific journals, series or books; 184 papers in local, internally, or editor-refereed journals, series, or books; 583 conference papers and abstracts; 91 research monographs or books; 3 popular books; and 723 scientific and technical reports. Full details of these publications are published separately from this Annual Report.

Application and promotion of science

In the 2001–02 financial year, NIWA supplied information to New Zealand users (excluding the Foundation for Research, Science & Technology and the Ministry of Fisheries) through consultancies and contracts to the value of more than $24 million. In addition, we achieved 100% of the technology transfer objectives in our PGSF contracts during this period and commenced Technology for Business Growth and Technet contracts to the value of more than $115,000. The availability to end-users and degree of use of NIWA’s three Nationally Significant Databases continued at similar levels to previous years. We serviced more than 2000 requests for information from the National Climate Database (which also has more than 120 registered online users), over 300 requests for information from the Water Resources Archive, and more than 380 requests for information from the New Zealand Freshwater Fisheries Database. During 2001, 189 magazine and newspaper feature articles written by NIWA staff were published. NIWA staff made 24 science-related television appearances, and were involved in 52 radio interviews during the year.

Education

NIWA is strongly committed to the advancement of science education and knowledge. Our commitment is aimed at schools and universities, and in some cases the wider public. The school sponsorship programme in 2001–02 again targeted three areas: the Sea and Learn programme, regional school science fairs, and Kelly Tarlton’s Discovery Room.

• The 2001–02 Sea and Learn programme took place in May and June 2002. NIWA provided pupils from each of 13 schools with a 1-day hands-on science voyage on our coastal research vessel Kaharoa from the ports of Wellington, Tauranga, and Auckland. In addition to the direct schools programme, we ran 3 days of courses for Maori students in conjunction with, and under contract to, Te Ohu Kai Moana. The teaching resource for the programme was developed jointly by NIWA scientists and school science teachers and is linked to the New Zealand science curriculum. The teacher on board the vessel was supported by a Royal Society Science, Mathematics and Technology Fellowship.
• NIWA is the major sponsor of the Auckland City, Waikato, Bay of Plenty, and Wellington Regional Science Fairs, and provides additional sponsorship of the Central Northland, North Harbour, Taranaki, Nelson, Marlborough, Central South Island, South Canterbury, and Otago Regional Science Fairs. These sponsorships promote science in secondary and intermediate schools and to the community at large. NIWA staff helped judge at the fairs, and were consistently impressed by the high standard and innovation of the entries.
• NIWA continued its sponsorship of the marine educational facility at Kelly Tarlton’s Underwater World in Auckland. This is known as the “NIWA Discovery Room” and is aimed largely at primary and intermediate age children. It provides interactive marine science in varied formats, such as a touch pool, hands-on experiments, and life under the microscope. In addition, in 2001–02 NIWA supported the national exhibition “Earth’s Fury” which travelled to five major New Zealand cities. The exhibition was staged by Science Alive. The NIWA exhibit involved an interactive model of flooding rivers.
• NIWA has continued to strengthen and expand links with New Zealand universities. The postgraduate Centres of Excellence with three universities and the joint NIWA–University of Auckland Institute of Aquatic and Atmospheric Sciences continued to operate successfully. Overall, NIWA staff acted in a supervisory role for over 90 postgraduate students across seven universities during last year, and we currently provide 10 NIWA PhD scholarships in skill areas that we have identified as priorities for the future. These cover a wide range of topics, including coastal ecology, aquaculture, greenhouse gas production, and the ecology of eels linked to Maori cultural values. Many of our supervised students have received funding from the Foundation for Research, Science & Technology’s Enterprise Scholarships (a Bright Future scheme).

Staff composition

Staff numbers, turnover, and age composition for the year ended 30 June 2002

Age breakdown (%) by 10-year age groups

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 2001–02 was 100, of which only 4 required staff to take time off work. These are slightly below the levels of the previous year. The number of days (38) lost due to work-related accidents in 2001–02 represented a very low level 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 online 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