Smart Covers are definitely not included and must be purchased separately.
The iPad has magnents built into it just for the Smart Covers, so i'd recommend these, especially because you can still see the beautiful design instead of hiding it in a big case.
Someone at work rang around to find who was selling in Wellington. Magnum Mac said they had no info. Harvey Norman said three shops would have them (not sure if they meant just the three HN shops). They would have 30 each of unknown types.