GNS Science Annual Report 2009www.gns.cri.nz

Contents www.gns.cri.nz

A landmark bookon geoscience in New Zealand, A Continent on the Move, edited by Ian Graham of GNS Science, won the Environment Category of the 2009 Montana Book Awards.

01 Introduction and statistics02 Highlights04 GNS Science at a glance05 From the Chairman and the Chief Executive08 Geothermal energy 10 New Zealand’s new marine territory14 New take on the Wellington Fault16 Nanotechnology18 Awards and honours19 Management team20 Strategic overview21 Organisational structure22 Our public-good science23 Our commercial activities – applying our science24 Human resources26 Collaborations and partnerships28 Student support29 International linkages30 Board of Directors

32 Corporate Governance34 CRI Capability Fund Report38 Report of the Directors39 Income Statement39 Statement of Changes in Equity40 Balance Sheet41 Statement of Cash Flows42 Notes to the Financial Statements57 Performance Indicators60 Statement of Responsibility61 Audit Report62 Directory

Staff from our GeoNet project are part-way through installing a tsunami gauge network around the New Zealand coast and on several offshore islands, such as Raoul Island shown here. See: www.geonet.org.nz/tsunami

on geoscience in New Zealand, , edited

by Ian Graham of GNS Science, won the Environment Category

01Introduction

In 2008 New Zealand gained sovereign rights to an area of seabed three times the size of France. This 1.7 million square kilometres of our continental shelf, and our Exclusive Economic Zone, are shown on the cover. This new marine territory is likely to contain billions of dollars worth of resources, including minerals and petroleum.

This has extended New Zealand’s entire offshore area from 4 million square kilometres to 5.7 million square kilometres. The total area is equivalent to 14 times the size of California, or 1 percent of the Earth’s surface. Large parts of this vast offshore territory are unmapped and unexplored.

GNS Science played a key role in preparing New Zealand’s case to the United Nations, and piloted it through to a successful conclusion. New Zealand now has the opportunity and responsibility to understand, manage and protect this marine territory for current and future generations.

Highlights

Record annual revenue of $60.7 million

After-tax surplus of $1.54 million

After-tax return on equity of 7.7%

Staff of 370 (FTE 354)

Revenue per FTE of $171,000

163 papers in peer-reviewed journals in 2008

Shareholders’ equity increased to $20.4 million

GNS Science develops and markets non-invasive scanning technologies to help the meat, timber and horticulture industries in New Zealand and internationally with quality control in their processing plants.

GNS Science jointly leads a three-year research project using chemical, isotope and micro-fossil analyses to probe the mysterious ‘collapse’ of Easter Island society prior to European discovery.

02 03Highlights

Hazard identifi cation Together with Opus International Consultants, we produced detailed hazard reports that identifi ed 4% of the land area in Otago as being potentially subject to hazardous fl ooding and/or erosion. This work for the Otago Regional Council has raised public awareness of geological hazards and will be used in land use planning.

Pipeline audit To help Vector ensure security of supply to its 148,000 gas customers, we carried out an aerial survey and geotechnical study of more than 1000km of pipelines in the North Island. This enabled us to identify potential geological hazards and recommend mitigation strategies for the future.

Climate probe We led an international mission to collect ice cores from glaciers in New Zealand’s Southern Alps for climate research. Ice cores contain climate records, pre-dating written records. Scientists analyse annual layers in the cores for dust, trace elements and isotopes to track changes in climate indicators such as rainfall, wind strength and direction, and temperature.

Science outreach Our national touring exhibition NZ Fossils: Dead Precious!, sponsored by Shell NZ Ltd, has visited six museums and has already been seen by 361,000 people including many school groups. It will complete its national tour with a season at Te Papa in early 2010.

Courtesy of The Nelson Mail

Supporting oil exploration Our seismic processing software, Globe Claritas™, reached a milestone recently with a large sale to international seismic processing provider, Spectrum Geo Limited. Globe Claritas™ is now used at 75 sites internationally to process raw seismic data into images of sedimentary basins that are interpreted by geophysicists in the quest to fi nd new deposits of oil and gas.

Glacier movements We were part of an international group who found that the growth and retreat of glaciers in the Southern Hemisphere differs from those in the Northern Hemisphere. By using a new dating technique on glacial deposits in Mt Cook National Park, our isotope scientists achieved very precise dates for glacier movements dating back several thousand years. The fi ndings, published in Science, challenge widely held beliefs about the global climate system and how it functions.

Volcano monitoring Together with the Department of Conservation, we upgraded the Eruption Detection System on Mt Ruapehu to make it more robust. The number of monitoring instruments on the mountain has increased signifi cantly. Most notably there are more instruments to detect sound waves from a volcanic explosion. This improves the ability of the system to provide timely warning of an eruption to mountain users.

Managing groundwater Together with Horizons Regional Council, we undertook a detailed study of aquifers in the Manawatu-Wanganui region and found 19 different groundwater types based on chemical criteria. This new information will help Horizons manage the groundwater resources in the region sustainably.

Courtesy of Horizons Regional Council: David Lupton Photography

Food analysis Using isotope analysis, we have discovered how to distinguish between eggs from different farming systems – caged versus free-range and organic. When the technique is fully tested, it will offer the egg industry a method to verify labelling and increase consumer confi dence.

Oil and gas prospectivity Together with the Ministry of Economic Development, we have helped to open up large tracts of offshore New Zealand for oil and gas exploration. In the past year we completed major prospectivity studies of the Raukumara Basin, off the east coast of the North Island, and the Northland Basin, prior to licensing rounds. We estimate the petroleum potential of New Zealand’s deepwater sedimentary basins to be tens of billions of barrels.

Managing carbon emissions We have produced 22 comprehensive reports on the feasibility of carbon dioxide capture and storage in New Zealand. This work paves the way for developing a pilot-scale capture and storage project in New Zealand.

Sustainability We operate recycling schemes at our four offi ces and have introduced a range of energy-saving measures, including car-pooling and video conferencing. Recycling and composting from our two offi ces in Lower Hutt has substantially reduced the amount of waste sent to landfi lls.

Highlights GNS Science leads a New Zealand research consortium which has joined the world’s largest geoscience project – the Integrated Ocean Drilling Program – which will drill sediment cores off the Canterbury coast this summer to investigate the relationship between sea level and climate change over the last 30 million years.

In the past year, in partnership with our international and New Zealand collaborators, we continued our long-term programme of mapping and exploring the many submarine volcanoes in the Kermadec Arc, northeast of New Zealand.

Highlights

This year we published a quarter-million-scale digital geological map of Christchurch City, Canterbury, and the Chatham Islands showing the region in more detail than ever before.

04 GNS Science at a glance

GNS Science at a glance

GNS Science, Te Pu- Ao, is the New Zealand science institute that focuses on geological resources, environmental and industrial isotopes, and geological hazards. By applying our scientifi c knowledge, we create wealth, protect the environment, and improve the safety of people.

The benefi ts we deliver for New Zealand include: • wealth and security from energy,

mineral, and water resources• mitigation of the economic and social

effects of geological hazards • development of new technologies

such as nano-scale devices and non-invasive scanning.

These benefi ts arise directly from our research into processes and endowments within the Earth’s crust, including: • rocks, minerals, and groundwater• earthquakes, volcanoes, landslides

and tsunami• hydrocarbons and geothermal energy• geobiology and climate history • gravitational and electromagnetic fi elds• natural isotopes and radiation.

Our Ma-ori name, Te Pu- Ao, means the foundation, origin and source of the world in its entirety, from the atomic through to planetary scales. We are a research institute operating as a limited liability company owned by the New Zealand Government, and with an independent Board of Directors.

This unique structure allows us to:• focus on strategically important science

at a national level• engage in the full spectrum of science

from basic research through to consultancy and product development

• undertake work for the public and private sectors

• operate in New Zealand and internationally

• have autonomy and self-determination.

Visit our website www.gns.cri.nz

Each year we re-invest most of our tax-paid profi t in scientifi c equipment and infrastructure. This ensures our capabilities keep pace with international standards.

When we were established as a Crown Research Institute in 1992, we had assets of $14 million, revenue of $25 million a year and a staff of 253. Today we have assets of $41 million, revenue of $60 million and a staff of 370 (354 FTE).

Our clients include:• New Zealand central government

agencies• regional and local government• overseas government agencies• oil and gas exploration companies• geothermal energy exploration and

operating companies• hydroelectricity operating companies• the onshore and offshore minerals

exploration industries• meat, dairy, wool, timber, and horticulture

processing industries• insurance and reinsurance companies• engineers, developers, and infrastructure

companies• museums• research organisations in New Zealand

and overseas.

Staff and revenueOur 370 staff are located in Lower Hutt (75%), Taupo (20%), and Dunedin (5%).

Our revenue is generated from:• open bidding and negotiation for public-

good research contracts (40-45%)• consultancy, product development, and

laboratory services for the private sector (20-30%)

• monitoring geological hazards for the Earthquake Commission (15-20%)

• advice to central and local government agencies (5-10%)

• a government grant to maintain and enhance our capabilities (5-10%).

From the Chairman and Chief Executive

GNS Science is the New Zealand research institute that focuses on geological resources, environmental and industrial isotopes, and natural hazards.

Over the last year GNS Science has made signifi cant advances in each of these areas of scientifi c research for the direct benefi t of the people of New Zealand, and has enhanced its international reputation in the process.

Geological resourcesWe are New Zealand’s principal provider of knowledge and research in earth processes. These include hydrocarbons, geothermal energy, ocean exploration, paleoclimate research and environmental change. Our clients in the past year have included Contact Energy, Genesis Energy, Mighty River Power, OMV Resources, and Solid Energy.

We have maintained and grown our long-standing relationships with the Crown Minerals Division of the Ministry of Economic Development, and other government agencies engaged in the management of New Zealand’s natural resources.

Internationally, we have provided advice to the Australian CO2 Cooperative Research Centre, the governments of Brunei and the Philippines, Japanese power companies, and the Indonesian government and research organisations.

A major achievement this year, which is of enormous potential value to New Zealand, was the successful preparation of New Zealand’s case to the United Nations to obtain sovereignty over the Continental Shelf Extension to our Exclusive Economic Zone. Our scientists were directly responsible, through their marine geophysical work, for adding 1.7 million square kilometres of ocean fl oor to New Zealand’s sovereign territory.

The National Isotope CentreOur National Isotope Centre operates the only accelerator mass spectrometry facility in New Zealand. Last year the Board approved capital expenditure of NZ$3.4 million to replace the ageing accelerator currently used for radiocarbon dating. The new accelerator will enhance our dating capability and signifi cantly improve performance effi ciency for the benefi t of our growing customer base.

Research activities conducted by the National Isotope Centre include ion-beam implantation for nanotechnology; x-ray and gamma-ray imaging for industry; and stable isotope techniques for environmental tracing and ice-core analyses. The latter capability is critical to our research programmes on climate change and groundwater. Last year our water-dating laboratory was rated as the most accurate in the world.

Natural hazardsWe have maintained our national leadership position in natural hazards research and in related consulting services. These hazards include earthquakes, volcanoes, landslides and tsunami. This leadership position has been recognised both within New Zealand and internationally.

We have provided advice to government agencies in the United States, Australia and Japan regarding seismic risk to sensitive and critical infrastructure facilities.

A key collaboration for us is the relationship we have with the Earthquake Commission (EQC). This partnership has enabled the deployment of the GeoNet real-time hazards monitoring system, which has been brought to its present operational state over the last nine years. Last year the GeoNet project underwent an independent strategic review, which was extremely positive and recommended the continued maintenance of the network and its further enhancement.

GNS Science and The University of Auckland are jointly leading a seven-year research project called ‘Devora’ to improve the understanding of volcanic hazards in Auckland.

05From the Chairman and Chief Executive

From the Chairman and Chief Executive continued

06 From the Chairman and Chief Executive

Financial resultsFor the year ending 30 June 2009 our net surplus after tax was $1.54 million, which was a 14.9% increase on the $1.34 million achieved in the 2008 fi nancial year. This represents a return on average equity of 7.7% (2008: 7.1%). Our budget for the year included the proposed sale of our Gracefi eld property which is now surplus to requirements. The time taken to obtain clearance for the sale from the Offi ce of Treaty Settlements, and the deteriorating state of the property market, resulted in our inability to dispose of the property during the fi nancial year.

Total revenue from research, consulting and other operations totalled $60.7 million. This was 11% higher than the $54.5 million achieved in the prior year, and resulted from an 8% increase in Government research contracts and a 19% increase in commercial research and consultancy contracts and licence sales. Revenues earned from overseas customers increased by 28%, refl ecting the emphasis that the Company applied to developing overseas markets over the past few years.

Sectors which were particularly buoyant during the year included geothermal energy research and consultancy; work related to the United Nations Convention on the Law of the Sea; and sales of Globe Claritas™ seismic processing software licences.

Our workforce has increased from the 333 full time equivalents as at 30 June 2008 to 354 as at the end of the fi nancial year. This increase was largely attributable to the recruitment of additional scientists and technical staff.

In the course of the year we continued our programme of moving staff salaries to market rates to enable us to secure the required science resources in a fi ercely competitive market. Personnel costs continue to be our largest single expenditure item.

Shareholders’ equity at 30 June 2009 totalled $20.4 million, after providing for a dividend to shareholders of $240,000 (2008: $175,000).

Stakeholder relationshipsWe have continued to undertake research for the public good, to pursue excellence in all of our activities, and to translate the results of our research and technological achievements into tangible benefi ts for the people of New Zealand.

We have conducted our business in a fi nancially responsible manner, and have continued to protect and grow shareholder value. We have effectively managed and balanced both our public-good responsibilities and our business activities.

This split focus can be a signifi cant challenge. However, it is our view that the most effective way in which we can deliver research for the benefi t of New Zealand is by ensuring we meet the highest standards of science excellence in all of our research endeavours. It is also our view that this strategy is totally compatible with commercial success. It is our achievement in science excellence that has attracted and continues to attract government and commercial clients both onshore and offshore.

Over the years we have embarked on a deliberate programme of extending our stakeholder matrix and growing our stakeholder relationships. Apart from our key stakeholders who comprise our shareholders, the New Zealand public, and our employees, the broader family of stakeholders includes government agencies, government departments, commercial entities, the universities and iwi.

We are passionate in moving towards close, seamless relationships with universities. We see this as an essential part of keeping New Zealand at the global forefront of earth science education and research. This year we supervised over 95 students in their postgraduate endeavours.

As far as we are concerned science excellence and commercial success go hand in hand.

Con AnastasiouChairman

Jointly with Te Papa, we developed a motion simulator vehicle that takes museum visitors on a spectacular virtual ride along the ocean fl oor exploring the Kermadec Arc, northeast of New Zealand. The Deep Ride has had 48,000 passengers in its fi rst year of operation.

An important benefi t arising from our international work, especially in Asia, is its contribution to the enhancement of New Zealand’s diplomatic relationships with our neighbouring nations. We believe that our strategy of cooperation, collaboration and openness, in partnership with the Ministry of Foreign Affairs and Trade, will enable us to continue to strengthen and grow these relationships in the future not only for the benefi t of the Company, but also for the benefi t of New Zealand.

Community outreachWe have continued our programme of community outreach, taking our science to schools, to community organisations, and to the public at large. The NZ Fossils: Dead Precious! touring museum exhibition has already attracted over 360,000 visitors.

We are a founding corporate associate of Te Papa Tongarewa, the Museum of New Zealand, where with the assistance of EQC we built the Awesome Forces exhibit which remains the museum’s most popular attraction. Last year we worked with Te Papa to install a new experiential display, the Deep Ride, which provides a visual experience of submarine exploration and discovery in the Kermadec Arc, north of New Zealand. This display has proven immensely popular and is a highly effective way of taking science to the people.

Major environmental challenges of public concern are sustainability, and the mitigation and reduction of carbon dioxide emissions. Externally we provide guidance and assistance to others in addressing and responding to these challenges through our research and consulting activities. Internally we give effect to our commitment to corporate-based sustainability through energy effi ciency, recycling and associated programmes.

What of the future?Our key objective is to meet our revenue and profi t targets for the coming fi nancial year whilst maintaining our commitment to science excellence and the delivery of tangible benefi ts to our stakeholders. We believe that we are well placed to achieve this objective.

We have a signifi cant number of long-term contracts in place with major corporates and government entities. These contracts are the result of foresight and the careful strategic development of relationships. We have been selected by the Foundation for Research Science and Technology to lead the pioneering Natural Hazards Platform, which is the Government’s new fl agship vehicle for managing its science investment in natural hazards research.

The position we have achieved today, and the path along which we are heading, could not have been attained without the drive and determination of our people and the commitment and loyalty of our clients. These attributes, coupled with astute management and wise governance, have provided us with the means to successfully address the testing challenges of the past year, and will provide us with the capability to address the challenges of the years to come.

Con AnastasiouChairman

Dr Alexander MalahoffChief Executive

GNS Science and Victoria University of Wellington in collaboration with the Universities of Otago, Canterbury and Auckland, and a group of leading international scientists, are spearheading an ambitious, long-term research programme to drill into the Alpine Fault to investigate earthquake processes and establish a fault zone observatory in New Zealand. See: http://drill.gns.cri.nz/nzcdp

07

We are passionate in moving towards close, seamless relationships with universities. We see this as an essential part of keeping New Zealand as a global leader in earth science education and research.

Dr Alexander MalahoffChief Executive

From the Chairman and Chief Executive

08 Geothermal energy powers on

New Zealand is fortunate to have abundant geothermal resources, only a portion of which have been tapped. We anticipate the geothermal component of our energy generation will increase from 10% currently to 20% by 2025. Propelling this develop-ment are a combination of the need for more base-load power, new technology, the push to reduce greenhouse emissions, and the economics of installing and operating electricity generation.

The GNS Science geothermal energy team is a key part of the current exploration and expansion in geothermal energy in New Zealand. Demand for our scientifi c and consulting services continues to grow, refl ecting the fact that our team’s expertise enhances value. We have been involved, at some level, in almost every geothermal energy development in New Zealand over the past fi ve decades. Some of the developments involve partnerships with Ma-ori, who are keen to benefi t from resources on their land.

Our services include exploration, reservoir management, drilling support, analysis of fl uids and gases, well-chemistry analysis and interpretation, and environmental monitoring.

Our connection to this industry started with the development of New Zealand’s fi rst geothermal energy plant at Wairakei in the 1950s. We continue to provide specialist services to the Wairakei-Tauhara

Left to right: Erin Wallin Geophysicist, Lisa Lind Geothermal Engineer (obscured), Geoff Kilgour Geologist, Alex McCoy-West Geothermal Geologist, and Andrew Rae Geothermal Geologist.

Geothermal resources are abundant in New Zealand. Energy tapped from this source offers security of supply and low greenhouse emissions.

Geothermal – a compelling energy solution

New Zealand’s geothermal electricity production is on track to double during the next decade. The rise of geothermal energy is no surprise. It works non-stop and without weather restrictions, has low greenhouse emissions, is renewable, and geothermal plants can co-exist with other land uses.

geothermal fi eld. We have provided expert advice in the development of the 100MW Kawerau power station, the biggest geothermal development in New Zealand for the past 20 years. We also provide key services to the 132MW Rotokawa power station, currently under development and scheduled for commissioning in 2010.

We recently started a four-year project to evaluate the possibility of tapping deeper and hotter geothermal resources in the Taupo Volcanic Zone. Geothermal energy is presently sourced from zones that are less than 3km deep, where fl uid temperatures are up to 330°C. Geothermal resources at depths of up to 7km deep are expected to exceed 400°C and potentially deliver far greater energy.

The research is led by GNS Science with specialist expertise from The University of Auckland, Victoria University of Wellington, Industrial Research Ltd, and a network of international collaborators. The focus is on gaining an improved understanding of the Taupo-Reporoa Basin – the largest known area in New Zealand of deep-geothermal activity. In particular, we want to acquire greater knowledge of the physical and chemical nature of the deep fl uids and the fl uid fl ow dynamics. As part of this project we will develop a three-dimensional computer model of the sub-surface in the Taupo-Reporoa Basin. This will open the way for exploration drilling.

10 UNCLOS – heading to come

In August 2008 the United Nations Commission on the Limits of the Continental Shelf confi rmed New Zealand’s sovereign rights over this large area of seabed beyond our Exclusive Economic Zone. This outcome was the result of 12 years of work by a group of our scientists, working with colleagues from the National Institute of Water and Atmospheric Research, Land Information New Zealand, and the Ministry of Foreign Affairs and Trade.

New Zealand now has sovereign rights over more than 5.7 million square kilometres of ocean fl oor, an area 22 times that of our land area, three-quarters the size of Australia, or 1 percent of the Earth’s surface.

The team was involved in all aspects of the project: planning and undertaking marine surveys, processing and analysing the data, supporting maritime boundary negotiations with Australia, preparing the 2600-page submission, and participating in discussions with the UN sub-commission in New York.

The strength and credibility of New Zealand’s submission, and of the team who prepared it, resulted in quick passage of the submission through the UN. New Zealand secured rights to 98% of the ocean fl oor described in the submission.

The continental shelf project required the scientists to compile all existing bathymetric, geologic and tectonic data for New Zealand’s offshore region, in some areas for the fi rst time. Where information was lacking, the team undertook 13 surveys with specialised vessels, totalling 365 days at sea. The team completely re-interpreted the geology and tectonics of New Zealand’s marine territory.

The expertise of the scientists who led this project is recognised internationally. In May 2009 they won a Wellington Gold Award for their work. They have assisted Brunei Darussalam, Malaysia, the Philippines, Tokelau and Sri Lanka to prepare their respective continental shelf submissions to the UN.

The scientists and technicians in New Zealand’s continental shelf team dedicated a signifi cant part of their careers to this project, and achieved an outcome that will have an enduring effect for all New Zealanders. Development of the resources contained in the extendedterritory will contribute to New Zealand’s long-term social and economic goals. The underpinning science of this 12-year project will support research in New Zealand’s offshore region for decades to come.

Left to right: Rob Johnston General Manager Business Development, Ray Wood Exploration Geophysicist and Project Leader, Vaughan Stagpoole Marine Geophysicist, Chris Uruski Geophysicist, Guy Maslen Seismic Processing Operations Manager, Hai Zhu Geophysicist, Dan Barker Marine Geophysicist, Karen Hayes Operations Assistant, Eileen McSaveney Technical Editor, Bryan Davy Marine Geophysicist. Absent: Jenny Black Geophysicist, Stuart Henrys Marine Geophysicist, Rick Herzer Marine Geologist.

The scientists and technicians in New Zealand’s continental shelf team have achieved an outcome that will have an enduring effect for all New Zealanders.

Pushing New Zealand’s boundaries further

Our staff played a major role in adding 1.7 million square kilometres of seabed to New Zealand’s offshore territory in the past year. This area, which is larger than most people can comprehend, is the same size as Alaska and is likely to contain billions of dollars worth of resources, including minerals and petroleum.

FACT

New Zealand has sovereign rights to offshore territory eight times the size of Texas or four times larger than the Republic of South Africa. The cost of extending New Zealand’s marine territory by 1.7 million square kilometres was 26 cents a hectare.

FACT

New Zealand’s frontier petroleum basins cover an area of about 1.2 million square kilometres, and may be capable of generating trillions of barrels of oil.

FACT

The most extensive known manganese nodule deposits in the New Zealand region are on the ocean fl oor southeast of the Campbell Plateau. At current prices the potential in-ground value of this resource is estimated at more than US$300 billion.

FACT

New Zealand is a submerged continent and 96% of our territory lies under the sea. New Zealand has continental-scale marine resources, opportunities and responsibilities.

FACT

One of our goals is to maximise the long-term social and economic benefi ts that are inherent in New Zealand’s vast offshore territory. There are opportunities for greater involvement of science organisations, industry, and government in unlocking the potential of our marine endowments.

FACT

Currently 70% of New Zealand’s offshore territory is unexplored. Commitment, time, investment and cooperation are needed to realise the scientifi c, social and economic opportunities available in this vast area.

KEY

Exclusive Economic Zone

New Zealand’s Extended Continental Shelf

New Zealand’s northern maritime boundary is subject to delimitation

OUR CLAIM AND BEYOND

New Zealand was the fi fth country behind Russia, Brazil, Australia, and Ireland to submit its continental shelf claim to the United Nations. To date only three claims have been fi nalised at the UN – Australia, Brazil and New Zealand. Fifty-one countries have submitted claims to the UN, and a further 44 have indicated they are likely to submit.

The process of preparing and submitting a claim can take many years and can be a daunting challenge. New Zealand’s claim comprising 2600-pages, plus a wealth of supporting material, was hailed internationally for its high quality. Even before New Zealand submitted its claim to the UN, GNS Science was a prominent participant at international meetings to discuss the science involved in continental shelf claims. Our competence in this area quickly became evident on the international stage and countries started asking us for advice in preparing their submissions to the UN.

To date we have undertaken substantial consulting work for Brunei Darussalam, the Philippines, Sri Lanka, Malaysia, Oman and the Tokelau Islands. In addition, a number of countries have sought our advice on particular aspects of their claims. This includes Japan, Denmark, Pakistan, South Africa, Canada, and the United States.

One of our advantages is that we have a large team of marine geophysicists, marine geologists and marine geochemists with many decades of cumulative experience. They cut their teeth on New Zealand’s complex plate margin geology and this has given them a rare skill-set. With our main collaborator, the National Institute of Water and Atmospheric Research, we have a particular strength in collecting and interpreting marine data to maximise its value and minimise costs. The submissions we compile are clear, authoritative and compelling.

The potential rewards of New Zealand’s successful claim at the UN are enormous. A single offshore oil well may represent an investment of more than $100 million. If successful, it could produce returns for New Zealand measured in billions of dollars.

Until recently, available evidence suggested the Wellington Fault ruptured at intervals of about 600 years and last ruptured about 450 years ago. The latest research fi ndings, from the It’s Our Fault project, show the Wellington Fault ruptures about every 900 years – and it last ruptured about 300 years ago. It’s Our Fault is a $3.5 million, seven-year, multi-agency research project that started in 2006.

The aim of the project is to make Wellington a more resilient city through fi nding out more about the likelihood of large earthquakes in the region and their impacts on people and infrastructure.

Damaging earthquakes will still occur in the Wellington region and the need for people to be prepared remains the same. There are about 50 active faults in the region and many are capable of producing a damaging earthquake.

However, the reduced probability of a near-term rupture of the Wellington Fault, which passes through Wellington City, provides more time for emergency management, engineering and other measures to be properly implemented. This will see the resilience of Wellington improve signifi cantly in coming decades.

The fi ndings mean that more frequent, moderate-sized earthquakes – magnitude 6 to 7 – or larger distant earthquakes, now have more relevance in terms of planning and preparedness in Wellington.

In scientifi c terms, the project has been seminal. It has extended our historical knowledge of the Wellington Fault from 600 years to 10,000 years and uncovered

Left to right: Project Leader and Geologist Russ Van Dissen; Project Manager Hannah Brackley; Associate Professor, School of Geography, Environment, and Earth Sciences, Victoria University of Wellington, Tim Little; and Marine Geologist, NIWA, Phil Barnes.

Recent investigations of the Wellington Fault show it is 50% less likely to rupture in the next 100 years than previously thought.

14 New take on the Wellington Fault

New take on the Wellington Fault

many ‘new’ ruptures that were unknown before 2006. Part of the project has seen geologists open up the Wellington Fault at several places along its 75km length to investigate its rupture history. This has involved digging a number of 2m-deep trenches across the fault to collect organic material for dating in our radiocarbon dating facility. Similarly, scientists have expanded their knowledge of the neighbouring Wairarapa Fault and now know of fi ve ruptures over the past 5000 years.

The computer model of active faults in the Wellington region now has rupture histories of more than 50 faults, as well as their complex interactions. Ten years ago, there were fewer than 10 faults in this model. A signifi cant outcome from this more sophisticated computer model is that we now believe earthquakes on the Wairarapa Fault, including the 1855 magnitude 8.2 rupture, have reduced the stress on the Wellington Fault. This has the effect of delaying the next rupture on the Wellington Fault.

The Wellington City Council has used the fi ndings from this project to re-negotiate its insurances. The Council has saved $2 million-a-year for insuring its $6 billion worth of assets, which includes buildings and infrastructure. As fi ndings from the project become more widely promulgated, many industries and agencies will benefi t.

The project is supported by the Earthquake Commission, Wellington City Council, the Accident Compensation Corporation, the Foundation for Research Science and Technology, and Greater Wellington Regional Council. The research is led by GNS Science, with signifi cant input from Victoria University of Wellington, NIWA, and the University of Canterbury.

For decades the popular wisdom was that Wellington’s big earthquake was imminent. However, recent investigations of the Wellington Fault suggest its next big rupture may be some way off.

They will also be used in ultra-effi cient computer processing chips and in miniature electric motors. The global market for these magnetic nanomaterials is believed to be worth billions of dollars a year.

Nanotechnology is the science of the extra-ordinarily small. Typically, nanostructures are about 1000 times smaller than a full-stop on this page. Particles of ordinary matter can behave in unusual and unexpected ways at the nano-scale. Electrical, chemical, physical, and optical properties change, which can make nanostructures vastly superior to conventional materials.

Our aim is to make New Zealand a niche leader in the international magnetic nano-materials sector. Typically these structures consist of nanometre-sized clusters of magnetic atoms embedded in an insulating material such as silicon dioxide. Using our range of three ion implanters, we have perfected a way of embedding atoms just under the surface of the host material.

The resultant nano-engineered material has superior properties to conventional materials used in electronics. Two of the main advantages are extreme miniaturisation and vastly superior electrical properties.

Worldwide, the development of these nanostructures has been held back by the diffi culty in achieving consistency and precision in making the structures. We have overcome this by perfecting an ion implantation technique that delivers structures of consistent attributes and performance. The tolerances are fi ne. Variation by a few atoms in terms of density and depth of implanting can markedly change the properties and performance of new nanomaterials.

Left to right: Nanotechnology Scientists Vivian Fang and Damian Carder, Team Leader Ion Beam Analysis, Nanotechnology and Air Particulates Andreas Markwitz, and Nanoelectronics and Ion Beam Analysis Scientist John Kennedy, with the GNS Science-built low-energy ion implanter.

16 Nanotechnology

Tiny structures with huge potential

Our nanotechnology facility is unusual in that it is one of the few in the world that can make nanostructures and measure their properties in the same process. A key to our success is having three low-energy ion implanters, including one that can implant two different elements simultaneously into a substrate. Our success is due to a combination of our skills and engineering facilities, and the fact that we have built nearly all of our nanotechnology equipment ourselves.

Our nanotechnology group has secured 10 New Zealand patents and one international patent for a number of their nanostructures and for some of their fabrication processes. We work closely with Auckland, Victoria, Massey, and Canterbury universities as well as Industrial Research Ltd. We are a founding member of the MacDiarmid Institute for Advanced Materials and Nanotechnology.

Internationally we work with leading collaborators in England, the United States, Germany, Japan, Australia, Singapore, and South Korea. Our nanotechnology facility routinely hosts postgraduate students from a number of countries to help with our research. Members of our nanotechnology group have published more than 200 papers in refereed science journals in recent years.

By the end of 2011, our goal is to have developed up to three different types of prototype nanostructure devices and to have demonstrated potential applications in the computer and electronics industries.

Our nano-electronics research and development projects are recognised as international leaders in this exciting new area of science. We are currently developing nanostructures that will one day make it possible to store vast amounts of data on computer hard drives.

Nanotechnology is a highly energised area of science that has exciting earning potential for New Zealand. Our nanotechnology programme is well connected internationally and has chalked up a number of impressive achievements.

The education outreach section of our website features a wide range of geoscience topics, photo galleries, teacher lesson plans, and videos. See www.gns.cri.nz/education

Awards and honours

18 Awards and honours

GNS Science is privileged to have exceptional staff who deliver benefi ts to New Zealand through their science. In the past year a number of our staff were recognised for their outstanding contributions to science.

Geomorphologist David Barrell was a co-author of a paper in Science showing that during the past 7000 years the advances and retreats of New Zealand’s largest glaciers have differed from those of Northern Hemisphere glaciers, pointing to strong regional infl uences on climate.

Geophysicist John Beavan was made an Honorary Member of the Institute of Surveyors.

Geophysicist Chris Bromley was reappointed Executive Committee Chairman of the International Energy Agency-Geothermal Implementing Agreement geothermal annex. He was also reappointed a Task Leader with the Agency’s environmental working group.

Geophysicists Grant Caldwell and Hugh Bibby were co-authors of a paper published in Nature on the role of fl uids in major faults in Marlborough.

Marine geologist Cornel de Ronde was a fi nalist in the Science and Technology category of The Dominion Post 2008 Wellingtonian of the Year Awards.

Ian Graham was Chief Editor of A Continent on the Move, which won the Environment Category in the 2009 Montana Book Awards.

Geomorphologist Mauri McSaveney was awarded an Editor’s Citation from the Journal of Geophysical Research-Earth Surface for excellence in refereeing.

The role that forensic palynologist Dallas Mildenhall is playing in the worldwide fi ght against counterfeit anti-malarial drugs featured in articles in the Smithsonian Magazine and The New York Times.

Polar climate scientists Tim Naish and Richard Levy, with signifi cant support from other researchers at GNS Science, had a paper published in Nature on the history of collapses of the West Antarctic ice sheet.

Geologist Andy Nicol won the 2008 McKay Hammer Award.

Seismologist Martin Reyners was elected a Fellow of the Royal Society of New Zealand.

Seismologist Martin Reyners, geophysicist Donna Eberhart-Phillips, and Graham Stuart (Leeds University) won the 2008 NZ Geophysics Prize for their article in Nature: The Role of Fluids in Lower-Crustal Earthquakes Near Plate Rifts.

Groundwater scientist Paul White was given a special award by the South Korean Water Resources Association for his efforts in promoting international co-operation.

GNS Science won the 2008 Opus International Services Exporter of the Year Award.

GNS Science won the Discovering Gold category in the 2009 Wellington Gold Awards for our offshore consultancy work in marine geology.

19Management team

Management team

Alexander Malahoff 01 Chief ExecutivePhD, University of Hawaii; DSc (Hon), Victoria University of Wellington Alex leads the management team and oversees the day-to-day management of the Company. He directs the team in strategy, policy, investment, and science programmes. Alex is a geophysicist and, before taking up his present role in 2002, he served as Professor of Oceanography and Chair of the Ocean Engineering Department at the University of Hawaii. He was also Director of the Hawaii Undersea Research Laboratory. Before that he was Program Director, Marine Geology and Geophysics at the Offi ce of Naval Research and Chief Scientist at the National Ocean Survey, NOAA in the United States.

Desmond Darby 02 General Manager, StrategyPhD, State University of New York at Stony BrookDesmond leads our strategy formation across the government and the private sectors, and advises the Chief Executive in these areas. He also manages the public relations and outreach staff. He previously managed our crustal dynamics team, and led the major research programme on The Effects of Plate Tectonics on New Zealand. Desmond is a Director of New Zealand Synchrotron Group Ltd and the New Zealand Centre for Advanced Engineering. He also chairs the Postdoctoral Fellowship Advisory Committee of the Foundation for Research Science and Technology.

Ian Graham 03

General Manager, Research PhD, Victoria University of Wellington; MMinTech, University of OtagoIan is responsible for maintaining an overview of the public-good research undertaken across the organistion. He monitors the delivery of contracted outputs, seeks ways to ensure viable research revenue streams, and ensures that lines of communication with the Foundation for Research Science and Technology, the Royal Society of New Zealand, other Crown Research Institutes, universities, and government agencies are open and constructive. Ian is an isotope geochemist with expertise in geochronology, volcanology, mineral deposition and terrane evolution.

Terry Webb 04 General Manager, Natural Hazards GroupPhD, University of CanterburyTerry leads the Natural Hazards Group which undertakes research and consultancy in earthquakes, volcanoes, landslides, tsunami, and geological mapping. He has been with GNS Science since 1992. A seismologist by training, Terry specialises in seismic and tsunami hazard and risk assessment.

Michael Isaac 05 General Manager, Natural Resources GroupPhD, The University of AucklandMike is responsible for the Hydrocarbons, Geothermal, Ocean Exploration, and Paleontology and Environmental Change sections. He is a geologist, with expertise in coal geology, sedimentary basin analysis, and geological mapping.

Frank Bruhn 06 General Manager, National Isotope Centre PhD, Bochum University, GermanyFrank is the Director of GNS Science’s National Isotope Centre (NIC). The NIC is New Zealand’s premier source of applied isotope science capability, comprising research teams and commercial service units in the IsoScan and Environmental Isotopes sections. Frank is a geochemist, specialising in the use of isotopes as tracers in biogeochemical cycles. He joined GNS Science in 2002 after having worked for the CSIRO in Australia and a radiocarbon dating laboratory in Germany.

Graham Clarke 07

Chief Financial Offi cerCA, BCA, Victoria University of WellingtonGraham leads the Company’s fi nance operations ensuring appropriate policies, procedures and practices are developed and maintained. His team provides the full range of fi nancial services to support the Company’s operations, including fi nancial reporting and advice to management and the Board to allow them to effectively undertake their respective roles. His team also takes responsibility for various operational aspects including procurement, property, insurance, and internal audit. Graham is a Director of Meatvision Ltd.

Rob Johnston 08 General Manager, Business Development and Information ServicesBSc, Dip ORS, Dip TchngRob’s portfolio includes managing the Company’s commercial operations and intellectual property issues. Rob joined GNS Science in 2004. He has extensive experience in managing information systems, corporate functions and processing operations in New Zealand companies. This includes senior positions with Tasman Forestry and with Public Trust.

Rawiri Faulkner 09

General Manager, Ma-ori StrategyBA, Victoria University of WellingtonRawiri was appointed in 2007 and has the role of building strong relationships with Iwi/Ma-ori groups that lead to opportunities in earth sciences and isotope technologies. He also provides support for GNS Science staff and management. Previously Rawiri held positions at the Foundation for Research Science and Technology and the Ministry of Research Science and Technology, as well as a variety of roles in local government. He has Iwi affi liations to Nga-ti Whakaue, Nga-ti Huia and Ngai Te Rangi.

Tony Stone 10 General Manager, Human ResourcesTony joined GNS Science in 2003 and was appointed General Manager, Human Resources in 2007. He has a Diploma in Industrial Relations from Victoria University and is a trained mediator. He is also a mentor for the Human Resources Institute of New Zealand mentoring programme. Payroll, training, recruitment, health & safety, and employee relations are Tony’s responsibility. Prior to joining GNS Science, Tony held HR positions in a number of private, public and health sector organisations.

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Strategic overview

20 Strategic overview

Our vision is to be recognised globally as a leading integrator of knowledge of earth systems and isotope-based technologies for the benefi t of society.

Key strategic issues Analysis of the needs of our stakeholders, and of the issues facing New Zealand, yields fi ve key strategic issues for us.

Culture – we must maintain a vibrant research culture even though product and consultancy revenues are increasing faster than research income. The more successful we are in applying our science, as required by the Crown Research Institutes Act 1992, the more we endanger the culture needed to fulfi l our purpose of undertaking research, as required by the same legislation.

Role – we must better inform Crown agencies and the public of our roles. Science is not a strong part of New Zealand’s culture and we need to continually assert our identity. Our public-sector and private clients often attract greater visibility than we do from the support we provide for them through applying our research results to their problems.

Capability – we must maintain and enhance our capabilities. Recruitment of high quality scientists is increasingly competitive world-wide, and we must continue to attract the best. While we often recruit from overseas, and this in the long run helps to change New Zealand’s culture to better appreciate science, we also work with universities so that New Zealand students are developed to be among the world’s best.

Investment – we must seize opportunities for investment in research and commercial applications. These applications not only prove the value of our research, but the associated revenue gives us greater self-determination than dependency on public research funding.

Financial viability – we must maintain our fi nancial viability through the present global economic downturn. Our viability depends on securing contracts in both the public and private sectors, both in New Zealand and overseas. None of these sectors is immune to the present global economic downturn, and this means we also are not immune.

Current environmentAt this year’s annual strategy review we resolved to implement a number of additional strategies to further consolidate and future-proof our position. These strategies include:• targeting strong clients who are well

resourced including government agencies, Iwi, and providers of essential services and infrastructure

• targeting strong economies which are weathering the current fi nancial climate better than others. These include economies in the Middle East, India and South East Asia. This strategy saw us win the Opus Regional Services Exporter of the Year Award last year

• continuing to develop our collaboration with government agencies, other Crown Research Institutes and universities to achieve enhanced effi ciencies and to avoid duplication

• continuing to work with the Foundation for Research Science and Technology to improve the effi ciency of funds allocation and remove the current ineffi ciencies in paper load and reporting processes.

Our two strategic advantagesOne of our strategic advantages is our location on the boundary of two tectonic plates in an English-speaking and politically stable part of the world. What distinguishes us globally is our ability to integrate our huge diversity of in-house skills through teamwork. These skills cover the spectrum of geology, geophysics, geochemistry, geobiology, and social science. These applied sciences are in turn supported by the fundamental disciplines of mathematics, chemistry, microbiology, and physics, including the physics of isotopes, radiation, and ion-beams. We foster this integration across disciplines and teams through allocating a signifi cant amount of our CRI Capability Funding to nurture capabilities both in basic science and also in those areas which cross internal structural boundaries.

Our stakeholder strategies are also implemented through this internal structure. This places a focus on the sectors where our research is applied, rather than solely on science disciplines. This focus on the applied sectors, as well as the basic science, challenges many of our new staff, and especially recent graduates. But it is those staff who rapidly surmount this challenge, and move beyond their discipline-focused university backgrounds, that are often of most value to us. We believe they are also of most value to the country. They constitute our other, and our primary, strategic advantage.

21Organisational structure

Organisational structure

ResearchIan Graham

Ma-ori StrategyRawiri Faulkner

StrategyDesmond Darby

National Isotope CentreFrank Bruhn

FinanceGraham Clarke

Human ResourcesTony Stone

Natural ResourcesMichael Isaac

Chief ExecutiveAlexander Malahoff

Origin of New Zealand’s crustGeological structureMapping and spatial dataTectonic deformationQuaternary processesGeohazard monitoringEarthquake processesEarthquake engineeringVolcanoesLandslidesTsunamiHazard assessmentRisk mitigation

Rafter radiocarbon laboratoryStable isotope laboratoryWater dating laboratoryGroundwaterSoil carbon cyclingAccelerator mass spectrometryIon-beam analysisNanotechnologyNon-invasive scanning

Natural HazardsTerry Webb

Business DevelopmentRob Johnston

Geological timePaleoclimatePaleodiversityHydrocarbonsCO2 sequestrationGeothermalMineralsGeomicrobiologyOcean explorationGas hydrates

Information Technology, Software Development, Database Management, Records Management, Library, Photography, Graphics, Outreach, Communications, Marketing, Intellectual Property Management, Asset Management, Financial Analysis, Offi ce Management

Our public-good science

Most of our research revenue comes from competitive government contracts administered by the Foundation for Research Science and Technology (FRST) and the Royal Society of New Zealand. We have more than 20 research programmes totalling $29.7 million and accounting for 50 percent of Company revenue. The duration of research contracts ranges from one to 10 years.

Air pollution researchFRST recently awarded us $350,000-a-year in new funding for a three-year research programme to understand the sources of fi ne particle air pollution in New Zealand towns and cities. Research has indicated that about 900 deaths annually are associated with fi ne particle air pollution in New Zealand. Using our accelerator-based analysis capabilities, we will investigate the composition of air particulate matter at several urban locations. The research will help in the development of strategies to mitigate the main sources of air pollution, without penalising minor sources. The out-come of improved air quality in towns and cities will result in signifi cant economic and social benefi ts for New Zealand.

New structure for natural hazards researchPublic good research into natural hazards moved to a new footing this year with the announcement by Government of a new funding arrangement. We will lead the Natural Hazards Research Platform, the fi rst arrangement of its type that will see essential research into natural hazards receive secure long-term funding for at least 10 years. The research will cover earthquakes, volcanoes, tsunami, landslides, fl oods, and other weather-related events.

The new platform devolves much of the management of the research to the research providers. The aim is to encourage better collaboration among research providers and improve the uptake of research by end-users. We will host the Platform, with NIWA and GNS Science acting jointly as ‘anchor’ organisations. They will be partnered by Auckland, Massey, and Canterbury universities and Opus International Consultants. The Platform will have an annual budget of about $14 million for the next 10 years. The Platform Manager is Kelvin Berryman of GNS Science.

New Zealand’s oil and gas resources FRST recently renewed funding forour petroleum resources programme for a further six years, increasing it to $3.1 million-a-year through to late 2015. The programme addresses fundamental geoscientifi c problems, uncertainties and risks associated with the search for oil and gas in New Zealand’s sedimentary basins. The focus is on defi ning, mapping, quantifying and depicting how petroleum forms, migrates and is entrapped in subsurface rock layers. The aim is to improve prediction of new petroleum accumulations and to hasten their discovery.

Exploring our offshore territoryFRST recently awarded us a further $950,000-a-year for six years to explore and understand New Zealand’s vast offshore territory. The programme will provide fundamental knowledge for informed policy development and responsible management of marine resources. There is a strong focus on frontier hydrocarbon-bearing sedimentary basins. Research priorities will be infl uenced by government and industry interests, and by opportunities arising from national and international collaboration.

Backbone fundingThis year we were awarded $655,000 annually in new funding from FRSTto maintain and develop our nationally signifi cant databases and scientifi c collections. The funding is being invested in fi ve areas including a mapping archive, the national paleontological collection and database, and the national groundwater monitoring programme.

22 Our public-good science

23Our commercial activities – applying our science

Our commercial activities – applying our science

For a number of years revenue from our commercial work has grown faster than revenue from public-good research contracts. Commercial revenue in the year to 30 June 2009 was $21.9 million, a 19% increase on 2008. Growth came from contracts in New Zealand and overseas, with our broad customer base being an asset.

While fee-for-service consultancy provides most of our commercial revenue,product sales and laboratory services have also increased. Product sales consist mainly of database products, software, and non-invasive scanning technology.

Commercial work provides a key input into future research priorities. It also stimulates our research staff who want to see their work used.

Opening new areas for oil explorationWe are working with Crown Minerals to produce a prospectivity report to attract oil exploration in the 160,000km2 Reinga Basin, northwest of Auckland. This has involved the interpretation of 5400km of high quality 2D seismic data collected earlier this year. Although this deepwater area is adjacent to the Northland and Taranaki basins, there are subtle differences in its geology. Early indications are that there are a number of large geological structures that are prospective. The area will be offered for exploration in 2010.

Reducing hazard impacts in VietnamThis year we completed a two-year contract to reduce the impact of earth-quakes and tsunami in Vietnam. The NZ Aid-Asia Development Assistance Facility contract saw us working with the Institute of Geophysics in Vietnam to build its capacity to complete a tsunami hazard assessment for the 3400km-long coast of Vietnam. We also helped to initiate the design and building of a national earth-quake monitoring network and operations centre in Vietnam, based on the world-class GeoNet project in New Zealand.

Radiocarbon dating work comes from many countriesWe continue to attract radiocarbon dating business from many countries, with about 80% of the 3000 samples we date annually from international clients. In the past year the diverse range of dating samples included soil and plant material, charcoal and wood, and fossilised bones of a wide range of animal remains including bats, mammoths, snails, tortoises, and whales.

Export Award for overseas consultancy An increase in our overseas consulting activities saw GNS Science win the 2008 Opus Services Exporter of the Year Award. Entries were open to organisations based in the Wellington region. Our entry was based on a range of business criteria including strong export revenue growth, excellence in marketing, commitment to quality management, robust export growth strategy, and business planning.

Our international revenue in the past fi nancial year was $6.2 million and is expected to rise to $7.9 million by 2010/11. Contributors include consultancy in geological hazards and geothermal energy, marine geology work in the Asia-Pacifi c region, radiocarbon dating, sales of seismic processing software Globe Claritas™, and lumber gauges.

Wellington Gold AwardGNS Science won the Discovering Gold category of the 2009 Wellington Gold Awards for our consultancy work in marine geology. During the past year we have sold consultancy services to countries to help them prepare their continental shelf submissions to the United Nations. The Discovering Gold category recognises achievement in the commercial application of science and technology. The awards are open to all enterprises in Wellington and it is the third time in the 11-year history of the awards that GNS Science has won the Discovering Gold category.

Commercial revenue grew 19% in the past year. All of our commercial revenue comes from either competitive tenders or from clients who use us as their preferred supplier of specialist and scientifi c services.

Human resources

Having the right staff, with the right skills, in the right places.

Being a good employer We take our obligations as a good employer seriously. The approach taken by our managers refl ects this, as does the overall culture of GNS Science. We pride ourselves on the gender balance and ethnic diversity of our workforce, and the way we address the needs of our staff. As at 30 June 2009, we employed 370 staff (354 FTE).

We encourage staff to take regular breaks and to plan their leave. We are also as fl exible as possible with regard to working from home and fl exible working hours to suit family circumstances. Our equal employment opportunity (EEO) policy encourages all staff to make the most of their talents and abilities.

This year we undertook a staff satisfaction survey and achieved a response rate of 68%. Our overall score in the survey showed our staff were more positive than when we ran the last survey. We run these surveys about every two years.

We place emphasis on workforce planning. This involves not only succession planning, but also assessing our portfolio of scientifi c and technical skills so we can take advantage of new opportunities.

RecruitmentWe have been managing our recruitment through an internet-based recruitment system for the past nine months. This has been extremely successful for job applicants and ourselves in managing the application process. It has allowed people who are interested in employment with us to be automatically advised by email of positions that might be of interest to them.

Staff inductionSeveral times each year we run induction courses for new employees. Courses include presentations from senior manage-ment and specialist staff, and tours of our facilities. This provides new staff with a thorough overview of the organisation and its operations, and the opportunity to meet and talk with senior managers in a relaxed environment. As part of this programme, we include performance management and aspects of health and safety.

Relationship with the PSAWe have a very good relationship with the Public Service Association (PSA). We fi nd the relationship extremely valuable and are mindful of the advantages it brings to us as an organisation. The PSA represents 51% of our staff, and we have had initial discussions about formalising our relationship with them to further enhance it.

Health and safetyWe make every effort to ensure a safe working environment for our staff and visitors at all times. This year we advanced from Primary to Secondary status in the Accident Compensation Corporation’s Workplace Safety Management Practices Programme.

We provide a wide range of training related to health and safety, including: • four wheel drive• fi rst aid• working at heights • quad bike• traffi c management• fi re extinguisher use.

Courses are run at different levels to refl ect the varying needs of staff and we review our training regularly.

Each of our sites has an active Health and Safety Committee to ensure that staff have input into health and safety issues. We have a senior management Health and Safety Committee that provides oversight to our health and safety system. Our health and safety resources are available on our intranet, including the annual health and safety training plan.

For some years we have had two organisations, Seed and Workplace Support NZ, providing on-site support for staff.

Remuneration and promotionWe have a well established system for re-muneration increases and promotion for our staff. The management team assesses all staff annually, and individual remuneration increases are awarded based on perform-ance. Our remuneration bands are based on market data and are updated annually.

In addition to the remuneration review process, science staff can apply for progression through the science grades. To assist with the scientifi c evaluation of these applications, a panel of senior scientists assesses them and makes recommendations to management.

24 Human resources

25Human resources

Source of appointments to permanent positions

2009 2008 2007 2006 2005New Zealand private sector 8 16 19 23 6New Zealand government 8 10 2 5 1New Zealand university 10 3 6 9 3Overseas 24 21 11 6 6Total 50 50 38 43 16

Staff departures for the following opportunities

2009 2008 2007 2006 2005Private sector 0 7 1 3 3Working overseas 7 3 3 1 0Government/university 1 2 5 7 3Full-time study 3 1 0 1 1 Career change 0 1 2 0 0Lifestyle (includes family, retirement, returning overseas, or relocating within New Zealand) 11 10 12 12 8Other 2 4 3 3 0Total 24 28 26 27 15

2008

2007

2006

2005

8.4%

Staff turnover for year ended 30 June 2009

8.4%

8.7%

4.7%

2009 6.5%

Professional developmentWe encourage ongoing skill development by running a wide range of courses for staff including presentation skills, project management and performance management.

Our in-house Leadership Programme has continued to be a success with our managers and team leaders. We also use the Executive Management programme at the Mt Eliza Business School in Australia. We undertook a review of our in-house programme this year to confirm that it aligned with the Mt Eliza programme.

Personal and family securityThrough group life and income protection insurance schemes, we provide financial support for employees and their families in the event of death or injury.

We assist employees with retirement planning by holding retirement seminars. Some staff are members of the Government Superannuation Fund and the Individual Retirement Plan, and 48% contribute to the KiwiSaver scheme. We also offer a group scheme discount arrangement for medical insurance, which is used by 24% of staff.

Collaborations and partnerships

GNS Science is a highly collaborative organisation that works with a wide range of organisations in New Zealand and internationally. The following list is not exhaustive, but it refl ects the diversity of our activities and the breadth of our relationships.

Determining Volcanic Risk in Auckland (DEVORA)GNS Science is collaborating with The University of Auckland in a seven-year, $5 million project to better understand the hazards and risks associated with a future volcanic eruption in Auckland. The Earthquake Commission is the foundation funder of this collaboration, called project DEVORA.

Natural Hazards CentreGNS Science and the National Institute of Water and Atmospheric Research (NIWA) partner in the operation of the Natural Hazards Centre. It provides New Zealanders with a single point of contact for the latest research, resources, and scientifi c expertise in natural hazards. The Centre delivers world-class information and research to emergency and resource managers, the science community, and other stake-holders. Visit: www.naturalhazards.net.nz

Hazards business clustersGNS Science is a member of Earthquake Engineering New Zealand, a network of more than 30 consultants, researchers, manufacturers, and educators specialising in international work in earthquake engineering, seismology, and related services. GNS Science is also a member of the Natural Hazards NZ Business Cluster, a grouping of 30 organisations that support mitigation, risk reduction, and recovery projects after major natural disasters in the Asia-Pacifi c region.

Joint Centre for Disaster ResearchMassey University and GNS Science have set up a Joint Centre for Disaster Research. Based at Massey’s Wellington campus, the centre teaches at a postgraduate level, conducts research, and undertakes commercial work for clients in New Zealand.

Links with IndonesiaGNS Science and the University of Gadjah Mada in Indonesia work together on a wide range of earth science topics including earthquake, landslide, tsunami, fl ood and volcanic hazards.

Working with VietnamGNS Science and the Vietnamese Academy of Science and Technology work together in a wide range of earth science areas, including earthquake, landslide and tsunami hazards.

Emergency management groupsGNS Science regularly provides advice on volcanic activity to civil defence and emergency management groups, and to the Department of Conservation in the North Island. We play key roles in the Central Plateau Volcanic Advisory Group and the Auckland Volcanic Science Advisory Group.

Earthquake Commission and GNS Science GNS Science has a long-term partnership with the Earthquake Commission – the funder of our GeoNet Project which is building and operating a world-class geological hazards monitoring system for New Zealand.

Advanced degree in petroleum geosciencesGNS Science and Victoria University of Wellington offer a postgraduate degree in petroleum geosciences. The two-year Masters degree is open to all earth science students with the aim of addressing the worldwide shortage of geoscientists in the petroleum exploration industry.

Seafl oor resources within New Zealand’s EEZGaining new knowledge and improved understanding of New Zealand’s vast offshore territory is a major programme within GNS Science. To achieve this, GNS Science collaborates with NIWA, the National Ocean and Atmospheric Administration (NOAA), Woods Hole Oceanographic Institution, IFM-Geomar of Germany, the University of Hawaii, and other international science agencies.

26 Collaborations and partnerships

Novel scanners for the food industry With ANZCO Foods Ltd, GNS Science has a joint venture company Meatvision, which develops and commercialises innovative scanning technology for the food industry.

Australian SynchrotronGNS Science is a member of the New Zealand Synchrotron Group Ltd, which is a foundation partner of the Australian Synchrotron. The stadium- sized scientific facility in Melbourne was commissioned in 2007. It creates beams of intense light for imaging structures down to the molecular scale. Synchrotrons are an increasingly important tool for research in almost all areas of science. As a foundation partner, New Zealand scientists have access to the facility and the opportunity to be at the forefront of scientific development.

Nanotechnology and advanced materialsGNS Science is a member of the MacDiarmid Institute for Advanced Materials and Nanotechnology, one of New Zealand’s Centres of Research Excellence.

Reconstructing past Southern Hemisphere climateGNS Science operates an ice core storage and analytical facility in Lower Hutt in collaboration with Victoria University. It analyses ice cores from Antarctica and New Zealand glaciers using isotopic and geochemical techniques to ‘retro-monitor’ Southern Hemisphere climate. The initiative recognises the importance of Antarctica as a driver of global climate, and New Zealand’s location at the boundary between Northern and Southern Hemisphere climate systems.

Keeping track of groundwater quantity and qualityGNS Science works with regional councils to model geology and groundwater flows, to assess the groundwater available for use.

We work with all of the regional councils and territorial authorities in New Zealand to manage the National Groundwater Monitoring Programme (NGMP). This partnership fosters sustainable use of New Zealand’s groundwater resources and provides a national perspective on groundwater quality.

Working with Nga-i Tahu on greenstoneWe collaborate with the Ru-nanga of Nga-i Tahu to assess the distribution and characteristics of pounamu (greenstone) in the South Island. We have undertaken major surveys of this resource in Otago, Southland, and Westland on behalf of Nga-i Tahu. Knowledge gained from this project enables informed management of pounamu and protection of the taonga, as well as providing public-good information on river transportation and erosion processes.

Life in the extremesGNS Science and our New Zealand and international collaborators have made significant advances in understanding the diversity of microbial life in New Zealand’s volcanic and geothermal areas. Our extremophile group has had several papers published in high profile journals, including the prestigous Nature. The team continues to isolate novel microorganisms and explore the genomics of extremophilic bacteria. They are also researching thermophilic degradation of cellulose for biofuels.

Long-term relationship with Te PapaGNS Science is a founding corporate associate of Te Papa, the Museum of New Zealand. We provide the museum with scholarship, collections, and staff time. We helped build Awesome Forces, the museum’s most popular permanent attraction.

27Collaborations and partnerships

Student support We support postgraduate students with scholarships and co-supervision. In the past year we co-supervised 97 students. Of these, 18 held GNS Science scholarships, details of which we provide below.

28 Student support

Sarah Beanland Memorial Scholarships

Student University Degree Supervisors Topic

Amandine Chambord Victoria Universityof Wellington

PhD Dr Rupert Sutherland (GNS Science) and Prof Euan Smith (VUW)

The plate-tectonic evolution of the South Pacifi c since the late Cretaceous

Rosemary Cody Victoria University of Wellington

PhD Dr James Crampton (GNS Science) and Dr Tim Naish and Dr Lionel Carter (VUW)

The stability of the Antarctic ice sheet over the past 4.5 million years

Hannu Seebeck University of Canterbury

PhD Dr Andy Nicol (GNS Science) and Prof Jarg Pettinga (Canterbury)

The relationship between active faulting and volcanism in the Taupo Volcanic Zone

Other GNS Science scholarships

Student University Degree Supervisors Topic

Ben Andrew University ofWaikato

MSc Dr Chris Hollis (GNS Science) and Dr Cam Nelson (Waikato)

Sedimentological and geochemical evidence for an Antarctic ice sheet in the Paleocene

Scott Barnard University of Canterbury

PhD Dr David Johnston (GNS Science) and Prof Jim Cole (Canterbury)

Analysis of vulnerability of city infrastructure to volcanic ash

Jan Bauer Victoria Universityof Wellington

PhD Dr Peter King and Dr Brad Ilg (GNS Science), Prof Tim Stern (VUW) and Dr Beate Leitner (Origin Energy)

A study of the depositional systems and tectonics of the offshore Taranaki Basin using 2D and 3D seismic data

Eric Bilderback University of Canterbury

PhD Dr Nicola Litchfi eld (GNS Science), Prof Jarg Pettinga and Dr Mark Quigley (Canterbury)

The role of deep-seated landslides in the Waipaoa source-to-sink system

Julia Bull Victoria University of Wellington

MSc Dr Nancy Bertler (GNS Science) and Prof Joel Baker (VUW)

Trace-element chemistry of coastal Antarctic snow as a proxy for changes in atmospheric circulation

Ake Fagereng University of Otago PhD Dr Susan Ellis and Dr Martin Reyners (GNS Science), Prof Rick Sibson (Otago)

A study of subduction-related fault processes under New Zealand

Marc Giba University College Dublin

PhD Dr Andy Nicol (GNS Science), Prof John Walsh and Dr Conrad Childs (Dublin)

Evolution of Tertiary normal faults in the Taranaki Basin

Michael Guggenmos Victoria University of Wellington

MSc Dr Chris Daughney (GNS Science) and Prof Bethanna Jackson (VUW)

Comparative study of water quality in rivers and aquifers in the Wairarapa

Simon Hills Massey University PhD Dr James Crampton (GNS Science) and Dr Mary Morgan-Richards (Massey)

The genetic evolution of marine molluscs

Kevin Lee University ofWaikato

MSc Dr Matt Stott (GNS Science) and Dr Ian MacDonald (Waikato)

Characterisation of a thermophilic bacterium isolated from geothermal soils in New Zealand

Catriona Menzies University of Southampton

PhD Dr Simon Cox (GNS Science), Dr Tim Henstock and Prof Damon Teagle (Southampton)

Fluids and thermal structure of New Zealand’s Alpine Fault

Peter Murmu Victoria Universityof Wellington

PhD Dr John Kennedy (GNS Science) and Dr Ben Ruck (VUW)

Magnetic ion implantation into zinc oxide for nano-electronic applications

Dean Podolsky University ofCanterbury

PhD Andrew King (GNS Science), Prof Jim Cole and Prof Jim Tully (Canterbury)

Time-variant hazard and risk communication analysis of the northern Whakatane district

Rachael Rhodes Victoria Universityof Wellington

PhD Dr Nancy Bertler (GNS Science) and Prof Joel Baker (VUW)

High resolution stable isotopes and geochemistry from the Mt Erebus saddle ice core, Antarctica

Michael Tayler University of Waikato

MSc Dr Chris Hollis (GNS Science) and Prof Cam Nelson (Waikato)

Sedimentological and geochemical evidence for Antarctic ice sheets in the Paleocene

29International linkages

International linkages

GNS Science offi cially represents New Zealand on the following committees or international groups:• Australia New Zealand Minerals and

Energy Council Chief Government Geologists Conference (ANZMEC CGGC)

• International Atomic Energy Agency Regional Co-operative Agreement (IAEA RCA)

• Incorporated Research Institutions in Seismology (IRIS)

• International Energy Association (IEA) Geothermal Experts’ Group

• International Consultative Group on Food Irradiation.

GNS Science has formal Memoranda of Understanding (MOU) with the following organisations:• Australian Research Council• Chilean National Commission for

Scientifi c and Technical Research (CONICYT)

• China Earthquake Administration• China Geological Survey• Helmholtz Centre Potsdam GFZ

German Research Centre for Geosciences (previously GeoForschungsZentrum Potsdam)

• Geological Survey of Japan• GeoScience Australia • Hebei Bureau of Prospecting and

Development of Geology (China)• Institute of Geology and Institute

of Mineral Resources (China)• International Atomic Energy Agency• Japan Marine Science & Technology

Centre (JAMSTEC)• Jeonnam Regional Environmental

Technology Development Centre (JETeC) in South Korea

• Korean Institute of Geology, Mining and Minerals (KIGAM)

• Korean National University• Massey University• Ministry of Geology and Mineral

Resources, China (MGMR)• Ministry of Civil Defence and

Emergency Management (MCDEM)• Nankai University (China) • National Ocean and Atmospheric

Administration (NOAA)

• New Energy and Technology Development Organisation, Japan (NEDO)

• New Zealand Centre for Advanced Engineering

• Ocean Technology Foundation (USA)• Oxford University• Pacifi c Marine Environmental Laboratory

(PMEL)• Seoul National University• Taranaki Regional Council• Tohoku University (Japan)• Transit New Zealand• Universitas Gadjah Mada (Indonesia)• University of Canterbury• University of Hawaii • University of La Réunion (France)• US Department of Commerce• US Geological Survey• Vietnamese Academy of Science

and Technology (VAST).

These MOUs provide for the exchange of staff involved in collaborative projects as well as partial funding for research initiatives.

GNS Science also represents New Zealand on unions and associations of the International Council of Scientifi c Unions (ICSU), and other international scientifi c committees, specifi cally:• ANDRILL – a multinational investigation

of Antarctica’s role in Cenozoic – Recent global environmental change

• International Association of Seismology and Physics of the Earth’s Interior (IASPEI)

• International Association of Volcanology and Chemistry of the Earth’s Interior (IAVCEI)

• International Union of Geological Sciences (IGUA)

• International Union of Geodesy and Geophysics (IUGG)

• National Association of Geochemistry and Cosmochemistry

• Scientifi c Committee of Antarctic Research (SCAR)

• United Nations Convention on the Law of the Sea (UNCLOS).

GNS Science also has strong research and collaborative links with many overseas universities.

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Board of Directors

30 Board of Directors

Con Anastasiou 01 ChairmanBA, LLB (Hons)WellingtonCon is the principal in his own law fi rm in Wellington. He specialises in corporate commercial law, intellectual property, and resource management. He is a member of the New Zealand Law Society, a Fellow of the New Zealand Institute of Management, a member of the New Zealand Institute of Directors, and an Associate of the Arbitrators’ and Mediators’ Institute of New Zealand. Con is also Chairman of Airways Corporation of New Zealand Limited.

Ross Butler 02 Deputy Chair BA (Economics), Graduate Diploma in Applied Finance and Investments Nelson Ross is a professional company director. He is Chairman of the Council of Nelson Marlborough Institute of Technology, and Mortgage Link (NZ) Limited, and Vice President of the Board of Swimming New Zealand. He is a Director of the Property Insight joint venture, Marlborough Lines Limited, Triplejump Limited, Nelson Bays Football, and the Nelson Bays Enterprise Education Cluster. Merlot Limited, his own consulting group, provides interim chief executive, governance, and project services.

Ellen Förch 03 PhD AucklandEllen is Director of Research at Auckland University of Technology and Head of the Research Offi ce. Her activity is focused on guiding institutional research strategies, building research culture and developing research funding strategies. Previous positions include Director of Research Advancement in the Vice-Chancellor’s Offi ce at The University of Auckland, Manager of Environmental Monitoring at Hawke’s Bay Regional Council, Research Manager at the Open Polytechnic of New Zealand, and a Programme Manager at the Foundation for Research Science and Technology. She is also a long-standing Director of the Cawthron Institute, Nelson.

John Walters 04

BA, LLBAucklandJohn is a senior lawyer in Auckland. He is the Principal of Walters Law Solicitors and acts for a wide range of private and corporate clients, specialising in commercial and property law. He is a Director of Aotearoa Credit Union, and of Te Rau Matatini Ltd, and is a member of the New Zealand Institute of Directors.

Jane Taylor 05 LLB (Hons), LLM, Dip. Acc QueenstownJane is a Queenstown-based barrister specialising in civil law and equity, and is an independent hearings commissioner in resource management matters. She is a former Chartered Accountant with experience in business and share valuations, corporate fi nance, insolvency and company reconstruction, and litigation support. She is currently the Chair of the Milford Sound Piopiotahi Community Trust and Lakes Leisure Limited, Deputy Chair of the Research and Education Advanced Network Limited, Director of the Legal Services Agency and council member of the Otago District Law Society. Jane is a member of the New Zealand Institute of Directors, the New Zealand Law Society, and the Institute of Chartered Accountants of New Zealand.

John Hercus, QSO 06

MScChristchurch John is a former chief executive of the Christchurch Polytechnic. In that time he pioneered a number of reforms including the provision of tertiary education for science technicians and technologists. He has also worked for two decades internationally: for UNDP, UNESCO, ILO, and the Asian Development Bank as an international expert in higher education. His governance experience includes directorships at NIWA, MetService, and the Fire Service Commission. He has also held directorates in companies involved in technology development and international education.

Tom Campbell 07

BSc Queenstown(Appointed 1 July 2009)Tom is a Director of Todd Corporation and of Alcan International and was formerly Managing Director of Comalco in New Zealand. He will shortly retire from his role as Global Head of Technology for Rio Tinto Alcan. He was formerly Chairman of New Zealand Aluminium Smelters and Chairman of Anglesey Aluminium in the United Kingdom.

Sarah Schiess 08

MSc (Civil Engineering)Wellington (Retired 30 June 2009)Sarah is a consultant with URS New Zealand Limited. Her areas of expertise include soil and groundwater remediation, sustainable land development, groundwater resource evaluations, and the Resource Management Act in relation to such issues. She has 28 years’ experience working for large multinational corporations as well as environmental and engineering fi rms in the United States and New Zealand.

Mike Williams 09

MA (Hons) Auckland (Retired 22 December 2008)

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