Power Simon: Privacy (Cross-border Information) Amendment Bill — First Reading 
Power Simon: Privacy (Cross-border Information) Amendment Bill — First Reading 
[Volume:653;Page:2337] 
Hon SIMON POWER (Minister of Justice) 
: 
 I move  
That the Privacy (Cross-border Information) Amendment Bill be now read a first time. 
 At the appropriate time I intend to move that the bill be referred to the Justice and Electoral Committee for consideration. The Government recognises that in an increasingly difficult economic environment we need to take positive steps to improve the international competitiveness of New Zealand businesses. The bill contributes to this aim by assuring our international business partners that their customers’ personal information will be protected. To this end the bill amends the Privacy Act 1993 by introducing new provisions to govern the cross-border transfer of personal data and to facilitate the cross-border enforcement of privacy laws. 
As things stand there is nothing in the Privacy Act to prevent data received from overseas being transferred outside New Zealand to a jurisdiction without adequate privacy protection. Nor does the Privacy Act allow foreign nationals who are resident overseas to make privacy information requests. In an era of increasing globalisation and e-commerce our inability to assure our international business partners that their customers’ personal information will be protected is a potential impediment to growth. This is a serious risk for New Zealanders and New Zealand businesses that wish to enter into international arrangements. Currently the only option is for those companies to enter into special contractual arrangements for privacy protection resulting in additional transaction costs. 
This Government is committed to doing all that it can to enhance New Zealand’s competitive advantage—for example as a supplier of information communications and technology services in the international business arena. This bill will enhance New Zealand’s case for a finding by the European Union that we have adequate data protection and privacy laws. Countries that have an adequate privacy legal framework may be given so-called white list status meaning that data from Europe may be sent and received freely. EU approval will mean that New Zealand businesses face reduced red tape and costs when doing business with Europe. 
Although the changes aim to more closely align New Zealand’s privacy laws with the current EU directive on privacy the bill is not solely Eurocentric. 
Hon Lianne Dalziel 
: I was going to say that! 
Hon SIMON POWER 
: I thought you might. It has wide international application. Recognition by the EU will assist New Zealand to gain recognition by other countries and trading blocs that maintain data export controls. Although such countries do not generally have formal approval processes they are likely to recognise an EU finding given the stringent standards involved. The changes will also enhance New Zealand’s standing as a privacy-conscious and privacy-protective country with our existing and developing international business partners. 
The bill authorises the Privacy Commissioner to issue a data transfer prohibition notice if he or she is satisfied on reasonable grounds that personal information received from overseas is being routed through New Zealand to circumvent another country’s privacy laws. It will be an offence to fail to comply with a transfer prohibition notice but existing appeal rights to the Human Rights Review Tribunal will be available to affected parties. An essential part of all privacy regimes is ensuring individuals are able to access and correct the data that agencies hold about them. The bill will enable foreign nationals who are not in New Zealand to access any of their personal information that is held here. 
The bill also looks to future international arrangements with overseas privacy enforcement authorities. The amendments dealing with the cross-border enforcement of privacy laws will complement the European Union directive on privacy. The bill is the first step in facilitating the adoption of the OECD’s mutual assistance framework and compliance with the APEC privacy framework which when fully implemented will contribute to APEC’s efforts to increase cross-border trade and grow regional e-commerce. 
The bill also authorises the Privacy Commissioner to consult with overseas privacy enforcement authorities like the Privacy Commissioner where there is a potential for overlapping jurisdiction or where it appears that the overseas authority has sole jurisdiction. The Privacy Commissioner will be able to transfer all or part of a complaint to an overseas authority but only if both the complainant and the overseas authority agree. Likewise New Zealand’s Privacy Commissioner may receive complaints transferred from an overseas privacy enforcement authority. The cross-border privacy enforcement provisions establish a mutual assistance framework between enforcement authorities that will benefit individuals both here and overseas. 
The Privacy Commissioner has stated: “Globally businesses are becoming extremely aware that information is an asset and are seeking to put measures in place to protect that information against loss or misuse.” I agree as I am sure the Hon Lianne Dalziel does with those comments. New Zealand cannot continue to do what it has always done if we wish to foster greater competitiveness in an increasingly international economy. The changes to the Privacy Act that are proposed by this bill which are no doubt supported by many parties in this House will directly benefit New Zealand from both a business and an individual privacy perspective. I commend the bill to the House.