I have always struggled with the concept that MSNZ "control" motor sport in NZ. They would perhaps like to control it but from a legal perspective they can't control it.
There was a similar situation in Australia a few years back where a track owner and competitors had enough of CAMS and gave them "two fingers". CAMS threatened them with all sorts of reprisals which came to nothing and they broke away and set up their own structure AASA (
http://australianautosportalliance.com/). They have arranged their own insurance cover and the costs of licences, permits and log books are a fraction of what CAMS charges.