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Download the Full 2011 Year in Review Year in Review enhancing the benefits of New Zealand’s natural resources1 enhancing the benefits of New Zealand’s natural resources NIWA Year in Review Contents 2011 Chairman & Chief Executive’s Report 2 Financial summary 8 Organisational responsibility 10 Our science 12 Our people 42 Directory 52 From the top of the atmosphere to the bottom of the ocean, NIWA is focused on enhancing the benefits of New Zealand’s natural resources Front cover: NIWA’s iconic Undersea New Zealand graphically identifies New Zealand’s ocean estate, the fourth largest in the world. staff across 16 sites in revenue from research and current environmental This page: This NIWA chart reveals the shape of the seabed in Cook Strait, New Zealand and Australia applied science services science projects uncovering some of the secrets hidden beneath the ocean (see page 32). Contents 1 Chairman & Chief Executive’s Report Enhancing our nation’s economic “New Zealand’s economic and environmental prosperity and environmental prosperity depends on robust, long-term science and applied research.” John Morgan, Chief Executive Never before in New Zealand’s history has the case for robust, long-term natural resources and environmental research and applied science services been made clearer than in the last financial year. As a country, we continue to we will have to make as a country navigate our way through difficult around our natural resources and economic times, made worse by environment in the coming years. unprecedented national disasters, Despite the challenges of the past like the Christchurch earthquakes year, NIWA has continued to perform and the Pike River mining tragedy. positively. Our productivity continues At the same time, New Zealand to improve and demand for our faces some very important services remains high. We continue environmental opportunities and to invest in essential technology, revenue from research and issues which, if not managed upgrade existing facilities, and align effectively, will continue to impact applied science services and strengthen our capabilities to on New Zealand economically. meet the country’s science needs, Issues like water quality and and we are well placed to meet our water allocation, energy supplies, responsibilities as outlined in our ocean resource management, the Statement of Core Purpose. changing climate, how we respond to natural hazards and increasing The year ahead will not be without numbers of extreme weather events, its own challenges, but the Board is earnings before interest, and making greater use of our vast confident NIWA is in a good position tax, and depreciation natural resources in a sustainable way. to face those challenges head on. I would personally like to thank The Government has recognised my fellow Directors, CEO John the importance that science and Morgan, his hard working Executive, innovation will play in New Zealand’s and all of the NIWA team for their future economic and environmental commitment and work this year. prosperity through the establishment In particular I would like to of the new Ministry of Science and commend the NIWA Christchurch profit after tax Innovation (MSI) – a single agency team for their resilience and tasked with driving the science and ongoing commitment. innovation sector in New Zealand forward. It is a move that the We can all be truly proud of the Board of NIWA welcomes, and we contribution NIWA makes to are already working closely with enhancing New Zealand’s economic MSI to meet our core purpose as and environmental prosperity New Zealand’s leading natural through the delivery of outstanding resources and environmental science based services. capital investment over the science services provider. last 4 years As the Prime Minister’s Chief Science Advisor Sir Peter Gluckman noted recently in his discussion paper on policy formation, science creates the platform for effective strategies and wise policy Chris Mace development. The Board of NIWA Chairman total assets agrees. NIWA has the skills and expertise to make a significant contribution to how New Zealand tackles the important decisions Chairman Chris Mace (left) and Chief Executive John Morgan. 2 Chairman & Chief Executive’s Report 3 Chairman & Chief Executive’s Report An unprecedented year Despite predictions that New Zealand would continue to face significant economic challenges in the 2010–11 financial year, few foresaw the unprecedented economic situation that lay ahead. Not only did New Zealanders staffing levels, and streamlining our At the same time, we are always continue to feel the lingering effects internal systems so our business looking for ways to improve what of the global economic crisis and operates more efficiently. we do and meet the demand for our our own economic recession, but we services, including upgrading our With this careful planning, and by also endured some of our nation’s national environmental monitoring responding with agility to the quickly greatest tragedies, with significant network and a $25 million refit changing economic environment, loss of life. As a result, New Zealand of our largest research vessel, NIWA has continued to be a posted its worst-ever deficit in May Tangaroa. The refit included the profitable and thriving business this year, and the flow-on effects for installation of a dynamic positioning in 2010–11. Our final results show our economy continue to be felt today. (DP2) system – making Tangaroa an revenue of $117.9 million, with even more valuable New Zealand There is, no doubt, more uncertainty earnings before interest, tax, asset for ocean science, surveying, and instability to come before we and depreciation (EBITDA) of and exploration. see a full economic recovery. $16.3 million and profit after tax How quickly and decisively of $1.3 million – a sound result, With continuing investment in New Zealand responds now will albeit lower than budgeted, given essential technology, including determine our nation’s economic the tough operating environment. purchasing the Southern prosperity in the years ahead. The same is true for NIWA. Like other businesses, we have not been immune to the unusually Tangaroa – New Zealand’s largest single science asset returns after a $25 million upgrade. (Peter Marriott, NIWA) challenging economic environment, and we have had to respond accordingly. Despite the strong demand for NIWA’s science based Hemisphere’s most powerful NIWA’s skills and expertise has prepared for extreme weather services, we forecast relatively supercomputer, upgrading our never been more evident than now. events and natural hazards, static revenue this year. In reality, finance and project management The establishment of the new • Seeking to maintain New Zealand’s it dipped. systems, and investing in new IT Ministry, along with other initiatives ‘clean, green’ image, through hardware and software, NIWA is We were, however, incredibly to better align the functions of better management of our natural well placed to provide science based fortunate to suffer only very minor the Crown Research Institutes environment, services that will contribute to the damage and disruption to our with the needs of the sectors they prosperity of New Zealand in the • Helping New Zealand contribute Christchurch operations after serve, provide the foundation NIWA years ahead. to important global environmental the September and February needs to make an even greater issues like the changing climate. earthquakes. Although more than contribution to New Zealand’s half our Christchurch staff suffered Science is at the forefront of economic growth. Making greater use of our damage to their homes, they New Zealand’s future natural resources showed considerable resilience In his speech at the opening of Contributing to New Zealand’s To boost New Zealand’s economy, and stoicism. Without their the new Ministry of Science and economic recovery and growth scientists at NIWA are looking continued dedication to see the job Innovation (MSI), Dr Wayne Mapp Right now, NIWA has more than at how we can get greater value done, our performance this year said “creating a Ministry which 1000 science projects on the go from our natural resources, in a would certainly have been more spans both science and innovation through our National Science sustainable way. This year, that significantly affected. shows the Government’s intent to Centres. NIWA’s science will research has included quantifying place science at the forefront of Our response to the challenging continue to drive New Zealand’s valuable mineral deposits from New Zealand’s future.” economic environment included economic recovery and growth by: submarine volcanoes in the tightly managing our costs, and At NIWA, we have long held the view Kermadec Arc, and determining how • Identifying ways to make better carrying out an operational review to that New Zealand’s economic and to best protect the unique biological use of our vast natural resources ensure our capabilities were aligned environmental prosperity depends communities of animals which in a sustainable manner, with the nation’s science needs. on robust, long-term research thrive in that hot and chemically rich This included making changes to our NIWA’s supercomputer – greatly enhanced business management with new forecasting accuracy. (Dave Allen, NIWA) and applied science. The need for • Ensuring New Zealand is better environment. 4 Chairman & Chief Executive’s Report 5 Chairman & Chief Executive’s Report We also provide scientific advice The year ahead company, our customers, and throughout we have proven, time to the Ministry of Fisheries on the It would be imprudent to suggest New Zealand to ensure we maintain and time again, what an important sustainable harvest of more than that the unusually tough economic the right capabilities to meet the contribution NIWA is making to 100 fish species, and in July we conditions we faced in 2010–11 are country’s science and innovation New Zealand’s future prosperity signed a contract with the Ministry now behind us, as a company or needs in a cost-effective and as the country’s leading natural of Fisheries to provide deepwater as a nation.
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