I'll second that jb. I live in a city of around 150,000 in Germany and the authorities have made it a bit pointless to use a car to get around; with cycle lanes bikes are normally faster from A to B and it's a lot easier to find a park (i.e. a post).

Also with enough bike paths, serious injury is less likely, helmets are less necessary and more people are willing to jump on a bike without the hassle of carting a helmet around all day or tying it up in the weather. Of the hundreds of people I see on a bike every day maybe 5% feel it necessary to wear a helmet. Now whether NZ would remove such safety legislation...