England endured a miserable start to their Test series against New Zealand as the hosts took control at the University Oval.
Despite seeing the first day's play in Dunedin washed out, England had gone into Test confident they could fashion a result from the match.
However they now face a mountain to climb as debutants Bruce Martin and Hamish Rutherford helped New Zealand into a commanding position.
Martin, the 32-year-old left-arm spinner, claimed 4-43 as England were dismissed for 167 - their lowest total in the first innings against New Zealand.
Rutherford then rubbed salt into the wounds as he made an unbeaten 77 - and with Peter Fulton adding 46 not out, New Zealand closed on 131-0, a deficit of just 36.
Only Jonathan Trott, James Anderson and Steven Finn managed any real success with the bat - with Kevin Pietersen and Nick Compton dismissed for ducks.
England's innings got off to a poor start when Compton failed to trouble the scorers, Tim Southee bowling the under pressure opening in just the third over.
Alastair Cook (10) became the first of Neil Wagner's four victims when he was caught at point by Rutherford, while Pietersen fell to the next delivery when he was trapped leg before.
Ian Bell survived the hat-trick delivery but that only delayed the inevitable as Wagner finally got his man for 24 - with Rutherford again holding the catch - and England were on the ropes at 71-5 when Joe Root (4) was caught at second slip off Trent Boult.
Things failed to improve after lunch as Matt Prior (23) cut slow left-armer Martin straight into the hands of point, while Trott's fine resistance was finally ended when he mistimed a sweep straight to Boult. Trott had scored 45 off 121 balls and had looked in fine form before his own moment of madness.
Stuart Broad (10) also fell to Martin, until England's tailenders managed to frustrate the hosts.
Steven Finn and James Anderson added 47 runs for the ninth wicket before Wagner got the breakthrough. Finn (20) was caught by Rutherford, while Anderson was the last-man out for 23 - with Martin claiming the wicket.
Rutherford and Fulton then proved there were few demons in the pitch as they scored freely.
Rutherford's half-century came off 65 balls, although he survived two close calls - with Broad putting down a tough caught and bowled opportunity while Pietersen failed to hold on to a straightforward chances.