Little AndrewELECTORAL AMENDMENT BILL (NO 2)First ReadingHon ANDREW LITTLE (Minister of Justice): I move That the Electoral Amendment Bill (No 2) be now read a first time.This bill amends the Electoral Act 1993 to ban foreign donations in New Zealand parliamentary elections. It establishes that only those who are part of New Zealand's democracy should participate in our electoral system. It reduces the risk of foreign money influencing our political process and it does that by banning foreign donations.The risk of foreign interference is of real concern and is a real risk. The Justice Committee has heard evidence in public of the nature of this risk as they've conducted their inquiry into the 2017 general election which also coincided with their inquiry into the 2016 local body elections. That inquiry at least into the 2017 general election has been going on for a long time and that inquiry showed from those who made submissions and those who gave evidence that the risks around foreign interference and foreign influence are very real. It would be negligent and irresponsible of the Government of the day to not take note of that evidence and of the risks that are apparent as we head into our general election year next year.Now when it was pretty clear what the risks were and that we had gaps in our law and that it was appropriate that the Government of the day do something about it I indicated publicly that I was keen for the Justice Committee to conclude their inquiry and give them a chance and for this House indeed to consider the recommendations of that committee because that committee is looking closely at these issues. I know they've got a range of issues that they are considering—that's a matter of public record—and I am eagerly awaiting their report but I also said that if the committee was not able to conclude their work in this area in enough time for us to make changes for the next general election the Government would proceed to make those changes. So here we are in the last session of Parliament for the year on the cusp of an election year next year and we need to make these changes.This House would be failing its duty to the electors of New Zealand if it pooh-poohed the evidence given to the Justice Committee disregarded it or played games or did whatever and thought that it was OK to expose our democratic system our electoral system to the risks that are very clear cut and have been manifest in democracies around the world. This Government is not prepared to take that risk and is not prepared to dither and dilly-dally and play games. It is time to make sure that the gaps in our electoral law are covered off so that New Zealand voters can face our democratic system our election system free from the threats and risks of foreign interference. So that's why this bill is here and that's why this bill is being considered under urgency. What a pity—what a pity—that the Justice Committee has not been able to conclude their very important work come up with their conclusions and inform the House but it is what it is and we're stuck with what we've got.I might add too that the advice has been very clear to me as Minister of Justice that there are a number of problems with our Electoral Act 1993. The way it has been characterised to me is that it is effectively the 1956 Act with MMP added and a lot of distortions and gaps have opened up in it that really need to be seriously addressed cohesively coherently and together. But it simply isn't possible to do that—to cover off every problem to cover off every gap—in time for next year's general election. But the promise that this Government makes is that if re-elected we will commence that work—ground up thoroughgoing review—of our electoral laws and our electoral framework with a view to making sure that in an election probably by 2026 we will have legislation covering our electoral system relevant to the 21st century and safeguarding New Zealand's democratic interests. Ideally one wants to do these things on a cross-party basis but sometimes personalities and parties opposite are not capable of engaging on that basis and so one has to pick one's time and look at the moment to do that.So we come back to this the Electoral Amendment Bill (No 2) and its objective. In addition to banning foreign donations with a de minimis sort of allowance of $50 to cover off the odd raffle ticket sold to a person who is not resident in New Zealand not qualified to vote but is here or the bucket collections that sometimes happen. It nevertheless bans foreign donations because I think the one thing that is very clear is New Zealanders want to know that our electoral system cannot be bought by those with deep pockets from abroad. But it does more than that; it's not just a ban on the donations. It now places on party general-secretaries a due diligence requirement—a requirement to take reasonable steps in relation to donations—to ensure that they comply with the law. Now obviously that will apply in relation to foreign donations but actually the way it applies it will end up applying to all donations. So party general-secretaries need to make sure that the donations received comply with the law and for that matter candidates in the electorate contests must ensure that the donations that they are receiving comply with the law.Now I am sure as the debate unfolds there'll be members on all sides who will have examples of things that they think are wrong about the way the law has been applied or the way parties have applied the law in their respective eras. I'm not sure how helpful that is to the debate. I've already acknowledged there are gaps in our law—there are improvements we can make in our law—but given the fact we don't have the benefit of the collective wisdom of the Justice Committee and the evidence they've gathered in relation to the 2017 election we are not embarking on wholesale reform. That will have to wait for another time or for another Parliament—I expect the next Parliament—but in the meantime we have to deal with the very real risk that we're facing at the moment.So a combination of the foreign donations ban the added requirement on party general-secretaries to exercise due diligence and candidates to exercise due diligence in relation to the donations they receive—all of those things will help. What will also help is a requirement in this bill that party general-secretaries must be resident in New Zealand and a further requirement to deal with this issue is that advertisements taken out online taken out on social media platforms must have the sorts of attribution provisions that apply to any other paid advertising for a general election.So all of those things go some way to filling the gap that is there in our law at the moment. It won't be perfect. It won't meet every gap that is there but it will go a lot longer than what is there at the moment to providing and ensuring greater integrity of our electoral system and of our democratic systems and processes.So I've covered that off. I've covered off the provisions of the bill what the limits are the fact that there is a $50 tolerance for that and by enacting that legislation now it means we go into the general election next year we go into 2020 very sure from the outset that we have a clear unequivocal regime around foreign donations and people can enter the election process next year with considerable certainty. Parties can organise themselves around the law and be very certain about what it means and know what their obligations are. I am advised that the Electoral Commission will give appropriate guidance and advice on how they intend to police and oversee the due diligence requirements on party general-secretaries. I've made it clear in my discussions with officials that I expect there to be a bit of a sliding scale a bit of proportionality to apply so the smaller the donation the less rigorous you can tolerate the due diligence requirements being. But if it's $150000 from a company whose name is New Zealand Mongolian Thoroughbred Racing Ltd" then I expect much more rigorous and intensive due diligence requirements to be fulfilled. So that's the stuff about which the Justice Committee received advice is threatening the integrity of our electoral and our democratic system.So all of those things will make a difference. This bill sends a very strong signal that our electoral system is not for buying by wealthy overseas donors and it sends a very strong signal from the parties at least on this side—and I hope parties on the other side because some have said to me that they support a ban on foreign donations—that this House will send a strong signal to the voters of New Zealand that they take seriously the threats to our electoral system and that this House is prepared to do something meaningful about it. That's what this bill does. It sets us up well for a fair proper well-run election for next year an election that will be conducted with integrity about which voters can have confidence in the result. On that basis I commend the bill to the House."