UPDATED 4.47PM Labour has responded cautiously to the news that the sale of nicotine e-cigarettes will be legalised in New Zealand.

Health spokesman David Clark said they're already here and they're already being used, so it makes sense to regulate them.

But he said it's not a silver bullet for smoking cessation.

"More than anything else the Government needs to step up to the plate and make sure that we have proper funding for smoking cessation programmes and make sure that we have a realistic path to our smoke free 2025 goal, because that isn't the case currently."

He said we should proceed with caution and be prepared to review it if evidence grows that these devices are being used as a gateway into smoking, rather than a path out of it.

A law change will be needed and is likely to be completed next year, although the Government has said it will do so sooner if possible.

Today's announcement is a big win for the e-cigarette industry - its products won't be in plain-packaging, nor will the hefty taxes on normal tobacco be applied.

As nicotine is classed as a medicine in New Zealand it can't be sold over the counter.

Managing director of Cosmic, Mark Carswell said today's announcement was a matter of meeting demand and is thrilled the Government's moving to make it legal by next year.

"You know what was happening was just common sense, really, because if you stand behind the counter for half an hour and talk to cigarette smokers coming in, who are now vaping, they are thankful.

"They are saying this is the best thing that they've ever encountered to try and get off cigarettes"

Associate Health Minister Nicky Wagner said the change came despite the fact scientific evidence of the safety of e-cigarettes was still developing.

And despite stressing the "low risk" approach taken because of that lack of certainty, Wagner encouraged reporters at Parliament to try vaping.

"I have [tried vaping]. But I'm not very good at it but I don't smoke either. I suggest anyone who smokes here has a go at vaping, too.

"Around the world we can't get clear research about this. But what we're thinking is they are about 95 per cent less harmful than cigarettes."

She said the Government had considered applying the same tobacco excise duties on vaping products but had decided not to.

"I think that's an important thing so when a smoker goes into the dairy he or she will see cigarettes at a very high price and e-cigarettes much cheaper."

Wagner was not concerned that some big tobacco firms were behind many e-cigarette products: "I think the important thing is we want the health outcomes. Whoever sells them...I don't think is really important."

The new rules for all e-cigarettes, whether they contain nicotine or not, include restricting sales to people 18 years and over, banning vaping in indoor areas where smoking is prohibited, and restrictions on advertising.

The Government had already announced its intention to legalise e-cigarette sales, and today's decision comes after consultation.

Nicotine patches and gum can be bought now, but nicotine e-cigarette liquid must be bought from overseas.

Users "vape" on an e-cigarette, inhaling its nicotine-containing vapour, in the way that smokers inhale the smoke of a tobacco cigarette, which contains nicotine plus many cancer-causing chemicals.

In England, e-cigarettes are the leading form of quit-smoking aid, used by 35 per cent of smokers trying to quit. However, some researchers argue that e-cigarettes risk providing a "gateway" into smoking for youth.

New Zealand's Ministry of Health has been monitoring evidence on the role of e-cigarettes for smoking cessation.

Maori Party co-leader Marama Fox this month said the Government should seriously consider subsidising vaping</a> as a tool to help quit smoking.

Today, Wagner said if an e-cigarette got approved as a stop-smoking medicine under the Medicines Act the Government may consider subsidising it.

About 546,000 Kiwis smoke daily, 15 per cent of the adult population. Every day on average, at least 13 people die from a smoking-related disease - about 5000 a year.

Half of smokers die from a smoking-related illness and on average their deaths will be 14 years earlier than if they didn't smoke.

- NZ Herald