This design uses the New Zealand colours of Black and White over a sea of blue which bears a semblance of the Union Jack. Two red Koru symbolising growth emerges into the white. The southern cross is included on the black background.
I think this design works very well in a small size. The distinctive colours are spread across the flag and so should be recognisable when furled.
Blue symbolising the Pacific Ocean. Red symbolising Maori and wartime sacrifice. White Symbolising peace and the long white cloud. Black being New Zealand's adopted national colour.