Adams Amy: Telecommunications (Interception Capability and Security) Bill — Third ReadingText is subject to correctionAdams Amy: Telecommunications (Interception Capability and Security) Bill — Third Reading[Sitting date: 05 November 2013. Volume:694;Page:14325. Text is subject to correction.]Hon AMY ADAMS (Minister for Communications and Information Technology): I moveThat the Telecommunications (Interception Capability and Security) Bill be now read a third time. Can I begin by thanking members for their work on this bill. It has been given a thorough examination with considerable consultation with industry and stakeholders and the subsequent amendments have made a good bill better. The fundamental reason that I have sought to introduce this bill is to safeguard New Zealand public safety and security. This will be done by ensuring that it is technically and practically possible for surveillance agencies to intercept communications where there is a warrant or other lawful authority to do so and by introducing a formal framework to ensure the security of our telecommunications networks.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. As the Police Association has said in its support of this bill the “lawful interception of telecommunications … is a crucial aspect of police investigations.” In fact the Police Association said itself that “There are very few serious crime investigations where telecommunications interception data is not important.” The information “can be used to prove a motive to prove an association between people to track movements related to other persons or evidence or otherwise to build a picture of a suspect’s movements or activities. … Police use of interception capability however also extends beyond crime investigations to missing persons investigations [for example] where every minute counts. Successfully locating a missing person … relies on telecommunications data being obtained in an efficient fashion.”In New Zealand we are changing the way we use our telecommunications. We are increasingly online chatting texting and sending emails rather than calling on our home phones. It is critical that our legislation keeps pace with these changes and allows surveillance agencies the ability to help keep New Zealanders safe. We are also in the process of building greater internet and mobile connectivity. Initiatives like the Ultra-fast Broadband Initiative the Rural Broadband Initiative and the allocation of radio spectrum for fourth-generation mobile networks will have a dramatic impact on New Zealand’s connectivity. Not only is the technology faster smarter and globally reaching but our industry has fragmented and we have seen a proliferation of new entrants in the market.The first part of the bill therefore modernises the existing interception capability regime and ensures that obligations on the telecommunications industry are targeted futureproof and flexible. It reduces the obligations for many network operators making their obligations more in-line with actual operational need. A number of network operators will face substantially reduced compliance costs as a result. Industry members told me that the current Act is inflexible and cumbersome. To address this the bill allows for a faster and broader exemption process for interception obligations which includes the ability to grant class exemptions.The bill also provides the ability to specify standards relating to how network operators format the information to be given to surveillance agencies which industry has told me will save it considerable expense. Given comments from some groups about the interception obligations I want to clarify the following points. The bill does not change the authority of agencies to intercept telecommunications and it does not change existing privacy protections. This bill relates only to real-time interception. It does not require data to be stored nor stored data to be disclosed.The second aspect of the bill puts in place a formal network security framework to help keep New Zealanders safe from unwelcome intrusions on our telecommunications networks where those intrusions can seriously affect our national security. Individuals are increasingly reliant on the internet and information and communications technology. Many of our critical infrastructure providers including our electricity gas and finance providers are reliant on the security of their telecommunications networks. Our increasing reliance on these networks means that we are evermore vulnerable to cyber-attacks and it increases the potential scale of loss and damage that they can cause. A network security regime is an important part of a wider multi-pronged approach to managing cyber-threats. The regime in the bill is necessary to ensure that our networks are kept safe from unauthorised access or the unauthorised copying altering or diverting of data. Until now New Zealand has not had a formal scheme in place to effectively manage and address potential national security risks associated with our public telecommunications networks. Instead the Government Communications Security Bureau (GCSB) currently works in partnership with a number of network operators to ensure proportionate and appropriate measures are in place to protect the security of the networks.This bill will formalise and build on these existing partnerships to ensure that all network operators engage with the Government and give certainty and clarity to network operators about when how and on what to approach the Government. Network operators are facing new and ever-increasing threats that are advanced persistent and sophisticated. In this area the GCSB has access to specialised information about potential vulnerabilities and threats. Network operators simply do not have access to this level of information which can make it difficult for them to make informed decisions about the design build and operation of their networks. I want to be clear about the scope of this framework. This is not about the GCSB getting involved in the day-to-day management of the network nor is it about it having open access to a network. It has no power to dictate what may go in or be used in a network. Instead it is about building partnerships to keep networks safe thereby reducing risks posed to national security. The network security framework will give network operators and the GCSB the ability to work together in a structured and consistent way and it will showthat New Zealand is taking network security seriously making it a more attractive place to do business.The compliance framework that underpins the bill builds on the framework in the current Act but makes it more flexible and appropriate. A two-tiered enforcement system will see minor breaches of compliance dealt with by way of breach notice while serious non-compliance will still be dealt with in the courts. This is a welcome change to the current regime in which all non-compliance must go straight to the High Court. In the rare event that court proceedings arise from matters in the bill protections have been put in place to protect any classified security information so that it will not disadvantage the non-Crown party. Provision has also been made to appoint a special advocate to assist the non-Crown party by accessing the classified information on their behalf. These provisions were strengthened during the select committee process to provide additional protection to network operators and service providers in court proceedings.There has been much talk about the definitions in this bill and to whom they actually apply so let me be clear: the definition of “network operator” has not changed from the current Act. This definition has been sensibly applied since 2004 and has not caused problems in practice. If a company does not have obligations today as a network operator it will not have obligations arising from this bill as a network operator. The bill puts beyond doubt that the definition of “service provider” includes companies domiciled both within New Zealand and overseas if they make their telecommunication services available in New Zealand. Service providers already have a duty to assist when they are served with an interception warrant and this duty remains.The Telecommunications (Interception Capability and Security) Bill is an important piece of legislation. It modernises the current framework provides clarity and flexibility for the industry in relation to interception obligations and will allow us to keep pace with future changes in the telecommunications sector. Maintaining law and order and national security is crucial to a well-functioning society and keeping our networks secure is the first line of defence against adversaries. I commend this bill to the House.