Adams Amy: Telecommunications (Interception Capability and Security) Bill — First ReadingText is incorporated into the Bound VolumeAdams Amy: Telecommunications (Interception Capability and Security) Bill — First Reading[Sitting date: 08 May 2013. Volume:689;Page:9694. Text is incorporated into the Bound Volume.]Hon AMY ADAMS (Minister for Communications and Information Technology): I moveThat the Telecommunications (Interception Capability and Security) Bill be now read a first time. At the appropriate time I intend to move that the Telecommunications (Interception Capability and Security) Bill be considered by the Law and Order Committee and that the committee present its final report on or before 20 September 2013.The telecommunications sector has been evolving rapidly in recent years with the development of faster smarter and globally reaching technologies networks and services. The change has been accompanied by a fragmenting industry structure and the proliferation of new entrants in the telecommunications industry. Our legislation needs to keep pace with these changes and be flexible to accommodate continued change in the coming years. With the increasing day-to-day reliance on the internet and information communications technology by the Government businesses and individuals a secure telecommunications infrastructure is essential to protect New Zealand’s national security interests including our economic well-being. The ability for the Government to appropriately use telecommunications capabilities is also important in the fight against crime.This bill has two main parts. Firstly the bill will repeal and replace the Telecommunications (Interception Capability) Act 2004 updating existing obligations on network operators to invest in specialised equipment and expertise to enable lawful interception. Secondly the bill will introduce a formal framework to ensure the security of our telecommunications networks through partnership between the Government and network operators where there may be a risk to New Zealand’s national security or economic well-being.Lawful interception relates to the ability of New Zealand Government agencies to intercept private telecommunications where they have the lawful authority to do so. The bill is about the obligations on the telecommunications companies and their relationships with surveillance agencies. It will not in any way alter the authority of police or intelligence and security agencies to intercept telecommunications nor will it reduce the checks and balances on how these agencies can access and use privatecommunications information. These matters are dealt with under separate legislation that must be complied with before the regime under this legislation can be utilised.Today interception of telecommunications plays a vital role in investigating disrupting and prosecuting serious crime detecting and prosecuting international and domestic cyber-crime combating threats to national security and responding to emergencies like kidnappings. Surveillance agencies rely heavily on the cooperation and compliance of telecommunications companies for interception. This bill aims to make the interception capability obligations on industry more proportionate and remove the need for unnecessary expenditure. This will be done by removing or reducing obligations in areas where they are unnecessary for operational reasons they are duplicated or they are disproportionately expensive.To ensure flexibility and responsiveness the bill provides that other telecommunications providers can be deemed to have interception capability obligations noting that all network operators and service providers will retain their current obligation to assist with interception warrants regardless. These provisions will be exercised through a ministerial direction and can be used only when more onerous obligations are justified for reasons of law enforcement or national security.The bill also makes other changes such as specifying the international standard to be adhered to when formatting intercepted material for delivery to the surveillance agencies providing a speedier process for exemptions clarifying the obligations under the duty to assist and stating clearly that these include help with decryption and that the duty applies to both domestic and offshore providers and allowing network operators to share specialised equipment and staff. These changes will make a significant positive difference for network operators. Their obligations will be clearer and more easily varied when appropriate and the costs of complying will be more proportionate.The Government already works closely with telecommunications providers to address national security risks relating to the design build and operation of telecommunications infrastructure. It is timely that this arrangement be formalised to take account of the rapid changes in technology changes in industry structure the entry of new and specialist providers and our ever-increasing reliance on the internet and information and communications technology and its security to conduct our lives. The security of telecommunications networks are critical if we are to prevent the unauthorised ability to access copy or divert data and prevent espionage or the disruption of critical services we all take for granted—for example in our banking and energy services.The bill will introduce provisions that will mean network operators will be obliged to engage with the Government through the Government Communications Security Bureau on network security where it might affect New Zealand’s national security or economic well-being. The bill gives network operators direction on when to notify the Government Communications Security Bureau and about what. It puts obligations on both the network operator and the bureau to notify each other as soon as they become aware of network security risks or potential risks. It provides a step-by-step process for addressing those risks.These provisions are about formalising the existing relationship and the existing partnership approach based on principles of working cooperatively and collaboratively with each other and agreeing on decisions and actions that are effective and proportionate to the risk. In rare circumstances where agreements cannot be reached there is provision for a ministerial direction. This direction will be issued only after taking into account submissions by both the Government Communications Security Bureau and the network operator and after consulting with other relevant Ministers and only where a significant national security risk is evident. The direction may require thenetwork operator to refrain from a particular course of action to undertake a specific activity or to make a specific change to the design build or operation of their network.The lawful interception and network security regimes are both underpinned by a shared compliance and enforcement framework. A register of network operators will be established with network operators being required to register details including the size of the customer base and services provided. Surveillance agencies will be given the power to request information from network operators relevant to their obligations.Network operators can be asked to participate in compliance testing for interception capability and their chief executives can be required to certify that they are compliant with the legislation. The new two-tiered enforcement regime for non-compliance distinguishes between minor non-compliance and serious non-compliance. Minor non-compliance will be dealt with by way of a notice requiring that the breach be remedied within a specified period of time. Serious non-compliance will be dealt with through the High Court as is currently the case in existing legislation.These changes to the current legislation are necessary to modernise existing interception capability requirements and to establish a formal and transparent framework for network security. The provisions in this bill will ensure that New Zealand’s telecommunications providers have a clear understanding of how to meet their interception obligations and will safeguard our telecommunications infrastructure. The bill will provide greater certainty and transparency for the telecommunications industry and the New Zealand public. I commend the bill to the House.