Right, I have heard back from the NZ dept transport and this is what they had to say
Good morning Caroline
Thank you for your email dated 12 October 2007.
If you hold a full licence, this enables you to drive either a manual or automatic vehicle. If you have been driving a automatic vehicle for a long period of time you can still drive a manual vehicle without having to undergo any driving test. However some individuals may feel they need some practice or lessons in a manual vehicle to build up confidence in driving this type of vehicle again, however this is down to personal choice and is not a requirement.
I hope this information is helpful.
Kind regards
Senior Customer Service Representative
Contact Centre
So it appears you can drive a manual if you only have a licence for an automatic vehicle .Personally this is a bit silly as there is quite a difference between manual and automatic. I think the UK have the right policy here.
Kerry, I think your friend must have a restricted licence.
Hope this helps