New Zealand has an active development and field test programme in genetically modified (GM) crops but no large-scale GM crops have ever been tested or commercially released in New Zealand.  Currently, the release of GM crops in New Zealand is regulated by the Hazardous Substances and New Organisms (HSNO) Act.  The HSNO Act has a wide scope of matters that must be taken into account during decision-making, including environmental, public health, cultural and economic effects.  The HSNO legislation is 'risk averse' with respect to environmental risk because an application to release a GM crop must be declined if it fails to meet the 'minimum standards' that relate to the GM crop's potential environmental effects.  There are three types of application routes by which GM crops can be introduced to the environment: field test (contained), conditional release and full release.  Controls requiring monitoring for environmental effects can only be imposed for field test or conditional release approvals. Experience in New Zealand has shown that appropriate scientific methods have not always been available for effective monitoring of environmental effects.  Additionally, as a consequence of being a small nation, environmental research cannot always be carried out independently of the approval holder, and funding sources are limited for comprehensive long term monitoring studies.