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Advertising the sale of sex ("soliciting"), running a brothel, and living off the earnings of prostitution were illegal.

These laws were changed by the Prostitution Reform Act, passed in June 2003.

However, the act defined massage parlours as public places, so laws against soliciting in a public place applied to workers in parlours, and they were sometimes raided and entrapped by police posing as clients.

Workers in the parlours were also required to provide their names and addresses to the police.

Nevertheless, police continued to raid brothels, streets, and private residences of sex workers right up to the day before the Prostitution Reform Bill was passed by Parliament.

Along with food, water and timber, sex was one of the major commodities exchanged for European goods.

The Massage Parlours Act effectively allowed indoor commercial sex under a facade.

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However, the three members of the 1999–2002 coalition (Labour, Greens, Alliance) all had decriminalisation in their manifestos.This was based on the harm reduction model of New South Wales (1996).The bill was introduced on 21 September 2000, and placed in the ballot box, being drawn as number 3 and debated on 8 November as Bill 66-1 (), passing first reading .Other individuals included legal volunteers and MPs, in particular Maurice Williamson (National, Pakuranga 1987–present), Associate Minister of Health (1990–1996), and Katherine O'Regan (National, Waipa 1984–1996, List 1996–1999), who championed the bill in parliament.Labour returned to power (1999–2008), and Tim Barnett (Labour Christchurch Central 1996–2008) assumed responsibility for introducing it as a Private Member's Bill to decriminalise prostitution.

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