Scratch your Head? What is going on Here?

The Judge that made a ruling that it is now “legal” to decimate the New Zealand Sovereign Flag must be making new laws up as he goes along.   His ruling is illegal if you consider the following act of parliament “FLAGS, EMBLEMS, AND NAMES PROTECTION ACT 1981 NO 47 (AS AT 07 JULY 2010), PUBLIC ACT”.
Refer: http://www.legislation.govt.nz/act/public/1981/0047/latest/DLM52211.html
The New Zealand Flag and Ensigns
11 Offences involving New Zealand Flag

• (1) Every person commits an offence against this Act who,—
• (a) without lawful authority, alters the New Zealand Flag by the placement thereon of any letter, emblem, or representation:
• (b) in or within view of any public place, uses, displays, destroys, or damages the New Zealand Flag in any manner with the intention of dishonouring it.

(2) In this section the New Zealand Flag means any flag of the design depicted in Schedule 1 or of any other design that so closely resembles it as to be likely to cause any person to believe that it is the design depicted in that schedule.
(3) In any prosecution for an offence against this section the onus of proving that any alteration of the New Zealand Flag was lawfully authorised shall be on the defendant.
Thanks John B for bringing this to our attention.