Prime Minister Jacinda Ardern says a move to orange will be made "as soon as possible" - and different regions could move at different times. 

Speaking to media on Thursday, Ardern said the Government will assess moving levels in the first week of April, and will take into account the impact on the health system. 

If the health system is getting back to normal levels that would influence the decision. 

Different regions could be at different levels depending on how the hospitals are coping. 

She also said despite vaccine mandates being dropped in April, there are some circumstances where they will still be needed - and it's up to employers to decide. 

Ardern said the Ministry of Business Innovation and Employment (MBIE) is updating the advice for businesses in the face of mandates and legal challenges, with some businesses having already made their own adjustments. 

She announced yesterday that while the traffic light system will stay in place, the rules will ease as the peak of Omicron cases drops away - including crowd sizes, vaccine passes, mandates and scanning. 

She said on Thursday while there is concern over education no longer being vaccine mandated from April, the sector has very high vaccination rates anyway. 

She added while she understood the concern of parents, the decision was made on the advice of experts. 

National Party leader Christopher Luxon says while National understands why some sectors like aged care and health care should still be mandated, the traffic light system - and eventually all mandates - should be scrapped. 

"There's no need for them as we go forward as the threat is very different - we're stuck in a 2020 mindset in 2022." 

He added National has "been supportive" of the Government's vaccine mandates, but wants them to push on. 

"As we go forward, if the risk [of Covid-19] was to change, we've got the tools." 

On the traffic light system, Luxon said it should no longer exist. 

"I don't think the system should exist, we've caught ourselves up in a system that doesn't make sense." 

The country is still at the red setting – which will now have a limit of 200 people maximum inside, but no limit for outside venues – but that will be reviewed on April 4 and regularly from that point. 

While some in the hospitality sector were disappointed about the restrictions of 200 people inside, on Newstalk ZB this morning, Covid-19 Minister Chris Hipkins said the country would remain at the red setting while Omicron hospitalisations were still high. 

Those numbers were expected to drop as the number of cases dropped from the peak, and once that happened the Government could look at moving to orange, which has no gathering limits. 

"Once we get through this peak we will be aiming to move back down the traffic lights - back to orange and eventually, if we can get there, back to green again," Hipkins said. 

However, the move to the green light setting – where mask use is only encouraged, rather than required – could be months away: officials' advice issued after the PM's announcement noted "people should not expect this to happen before the end of winter". 

That was because of the likelihood of more spikes in Omicron cases, as well as the re-opening borders bringing an increase in seasonal flu and other viruses. 

Under the changes announced yesterday, from 11.59pm Friday, even at the red setting, there will be no gathering limits at outside venues meaning spectators can return to many sports venues and festivals. 

For inside venues, such as restaurants and pubs, the cap will lift from 100 to 200 people – but requirements for customers to be seated and distanced remain in place. 

Other businesses are also preparing for further easing under the traffic light changes from April 4 – including the end to the vaccine pass system, scanning and the dropping of vaccine mandates for staff in all but the health sector, aged care and Corrections facilities as well as at the border and MIQ. 

From that date, it will be voluntary for businesses to decide on their vaccination policies for staff and whether to allow unvaccinated people on the premises.