Education, tougher sentences and voluntary accords have been mooted by the Justice Ministry as potential ways to tackle knife crime.
The measures has been raised in a report released on Thursday, which was requested by Justice Minister Simon Power to stimulate debate as public concern about knife possession and crime escalates.
The Justice Ministry report presents police data showing apprehension and prosecution rates for knife possession under the Summary Offences Act have remained relatively stable over the past decade.
But apprehension figures regarding knives and offensive weapons under the more serious Crimes Act increased significantly between 1999 and 2008. It was estimated only 19% of the latter incidents involved knives.
The ministry said it did not consider current penalties for knife possession to be particularly low compared to similar offending, but that consideration could be given to raising penalty levels under the Summary Offences Act for being found in public with a knife without a reasonable excuse (currently up to three months in jail or a $2000 fine).
It also said consideration could be given to raising from two years to three the maximum term under the Crimes Act for being found in public without reasonable excuse with a knife, offensive weapon or disabling substance.
The report said Britain had introduced knife crime reforms after a series of high-profile incidents gained attention there in 2007, but it was too early to tell if they had been effective.
That included penalty increases, greater search powers for police and advertising and education.
The ministry report said initiatives such as Fresh Start, which targets the most serious young offenders, and education in schools is more likely to be effective than advertising campaigns.
It said work it is going alongside the Law Commission to restrict the availability of alcohol to young people is likely to help reduce knife crime incidents, and suggested initially trying to limit access to knives through a voluntary accord involving retailers, police and local authorities.
Power said he is considering all options presented.
"It's timely we have a debate on knife possession to ensure knife crime does not escalate. I'm very keen to hear what the public thinks about these options and will be monitoring the debate closely," he said.
Power said he planned to make decisions on the issue in time to present to cabinet within six to eight weeks.