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Royal honours were awarded in New Zealand from the very beginning of settlement. Governor George Grey received the first honour granted to a New Zealand resident, becoming a Knight Commander of the Order of the Bath, in 1848.
For more than a hundred years the unadulterated British honours system was used for New Zealand. In 1975, after a review of the system, two uniquely New Zealand honours were integrated into it: the Queen's Service Order (QSO) and Queen's Service Medal (QSM). In 1987, the Order of New Zealand (ONZ) was instituted as the supreme New Zealand honour. Finally, in 1995- 6, a further review of the system resulted in the termination of awards of almost all British honours and the creation of a multi-tiered New Zealand Order of Merit (ONZM) to replace them.
Locally awarded Knighthoods and Damehoods were initially retained in the upper tiers, but later discontinued after 2000, however, honours personally awarded by the Queen were not affected, thus New Zealanders are still eligible for membership in the Order of the Garter, Royal Victorian Order, and the Order of Merit -- theoretically making Knighthood still possible in the New Zealand Honours System though future awards are unlikely.
The appellations "The Right Honourable" and "The Honourable" strictly are not honours but distinctions made to certain people due to King or Queen's trust in them (e g the saluation in official correspondence as the "right trusty and honourable A.B.").
The Order of New Zealand is the highest locally awarded civilian honour in New Zealand; in heraldic terms, it is a first-level honour. Below it is the New Zealand Order of Merit, its position in the heraldic hierarchy is unclear. Below that lie the Queen's Service Order (a fourth-level honour) and the Queen's Service Medal (a sixth-level honour). Both of the latter are awarded either "for Community Service" or "for Public Service".
The Orders ranked by precedence, are as follows:
Holders of a KNZM, DNZM or GNZM were and remain entitled to use 'Sir' or 'Dame' as appropriate, and the wife of a KNZM or GNZM who uses her husband's surname is entitled to the courtesy title 'Lady'. With the institution of the DCNZM and PCNZM, no locally awarded honour now carries a title; those who hold honours from previous systems remain entitled to use their titles.
British and Commonwealth orders and decorations State decoration