If you actually read the laws in "medicines" in New Zealand there is a way e-liquid can be legally sold, used, distributed. This is an e-mail I sent to the Ministry of Health recently:
This is the LAW in regard to medicines:
"if the medicine is not an injection or eye preparation, only if the concentration of the medicine is greater than 10 milligrams per litre or per kilogram."
So nicotine the medicine can be sold in New Zealand, in e-cigs that make no therapeutic claims, provided the above provision is maintained.
10 milligrams per litre, I can see room for movement.
So I've worked it out. The hate tobacco and all smokers lobby can't legally prevent the sale of tobacco in New Zealand, so they target every opportunity the tobacco companies can exploit to make money, from nicotine. The W.H.O. effectively says the nicotine lobby, (tobacco companies) must prove their products safe, whilst at the same time dismissing all claims made by the tobacco companies that their nicotine products in e-cigs are safe.
So Medsafe will never approve an e-cig.
The rumour started, I presume, by the Ministry of Health says people can import for their own personal use Nicotine, but I can find no reference so far in the law that mentions any such dispensation.
So the law says effectively that it OK to smoke tobacco, and not OK to use any product that is not an approved smoking cessation scheme, that incorporates nicotine, even though the law says nicotine is only a medicine if the active ingredient is 10 milligrams per litre or per kilogram of whatever the nicotine is suspended in.
The devices themselves for vaporizing are legal provided they are not making any therapeutic claims. The devices can't be declared 'medicines' as they are not organic or synthetic, which is what the law regarding medicines says they must be.
Medicines Act 1981 No 118 (as at 01 July 2014), Public Act 3 Meaning of medicine, new medicine, prescription medicine, and restricted medicine – New Zealand Legislation
So Medsafe is wrong to say vaporizers are 'medicines.'