Barker Rick: Border Security Bill — Second Reading 
Barker Rick: Border Security Bill — Second Reading 
[Volume:617;Page:13165] 
Hon RICK BARKER (Minister of Customs) 
: 
 I move  
That the Border Security Bill be now read a second time 
. This bill is part of a comprehensive approach by the New Zealand Government to keeping New Zealand secure and to ensuring that our export trade is facilitated expeditiously across foreign borders at all times including at a time of heightened international security concern. There is no question that we must address national security. The Border Security Bill will put New Zealand’s security on the front foot. The bill will enhance New Zealand’s international reputation as a reliable low-risk trading partner and will help make New Zealand a safe destination for the tourism industry. 
I want to thank the members of the Government Administration Committee for their work on this bill. They have proposed a number of amendments that will ensure protection of New Zealand’s borders while still respecting the rights of the individual. 
 The Border Security Bill amends the Customs and Excise Act 1996 and the Immigration Act 1987 as they affect border trade and security. In summary the changes will firstly improve the security of global travel and trading environments; secondly strengthen the gathering and sharing of intelligence; thirdly ensure better use of information to assess risk; fourthly enhance customs enforcement powers at the border; and fifthly strengthen and enhance immigration processes relating to persons intending to travel to New Zealand. 
I want to deal firstly with cargo security. Our export destinations are increasingly taking measures to ensure they do not import anything undesirable. The United States for example is introducing an approach that will put imports into either a red lane or a green lane. To qualify for the green lane the US must recognise the exporter as a trusted trader and his or her country of origin will count in that assessment. Otherwise the goods face automatic red lane scrutiny and the likelihood of added costs. The majority of customs administrations around the world including APEC members and the European Union are also working on trade security measures. 
These measures have the potential to slow down our trade and add costs to traders unless we go on the front foot. This Government wants to ensure that New Zealand’s export trade is seen as trustworthy and is moved expeditiously through the green lane of overseas border controls. To achieve that we must take responsibility for ensuring we are not exporting risk and we have to demonstrate that security assurance to our trading partners. 
The Customs Service has a four-part strategy to achieve that: accurate electronic information about all goods entering transiting or leaving New Zealand; intelligence-based risk assessment of those goods; targeted smart and low-cost examination of cargo identified as a potential risk using non-invasive or X-ray technology; and voluntary agreements to reduce risk—the Secure Exports Partnership programme. The Border Security Bill underpins that strategy. The legislation enables the Customs Service to access electronically the computerised cargo management systems of organisations in the trade and transport chain such as freight forwarders and consolidators. The bill also establishes the legislative environment for the Secure Exports Partnership scheme where Government and business work together to protect the interests of New Zealand traders. The bill and the systems behind it will enable the Customs Service to give assurance to overseas customs administrations that goods exported under the scheme are packed securely and pose no security threat and that there are no other goods packed with them. They then have to be conveyed securely and without interference to a place of shipment and then shipped. 
The aim of a supply chain security strategy is that all New Zealand trade will have the Customs Service seal of approval—either through the Secure Exports Partnership scheme or through risk assessment and examination prior to shipment. Our trade will then be regarded by overseas customs administrations as low-risk thereby minimising inspection disruption and delay and facilitating clearance on arrival. It will be up to individual exporters whether they participate in the Secure Exports Partnership scheme but it is clear from the level of interest that they are willing to do so. The Customs Service has over 90 applications from businesses interested in the scheme so far. 
The only concern that has been raised is over the funding of this and other parts of the supply chain security strategy. That is an issue that has been raised right across the industry both in submissions to the select committee and in consultation meetings with the Government. It is a fact that securing the supply chain costs money. However the benefit for traders from trade security is the facilitation of trade in an increasingly uncertain global environment. For New Zealand the main cost of enhancing trade security is in providing the Customs Service with the capability to screen shipments deemed to be at risk. To achieve this with the minimum disruption to trade flow the Customs Service needs cargo X-ray technology and more staff. The Government has already provided capital funding of $22 million to purchase equipment and set-up costs of $9 million in the current financial year. 
In recognition of the benefit to business of the facilitation of the movement of cargoes across international borders the Government will be looking to industry for a contribution towards the new costs of the trade security programme. Those new costs are approximately $20 million per annum for import export and trans-shipment clearance services. However partly as a result of representations made by exporters and others the Government has decided to take several significant steps to meet some of the concerns raised by the export sector over the level of contribution it might be expected to make both now and in the longer term. 
First the Government believes that given the rapid pace of change in international security requirements and given the significant changes in the international trading environment that have occurred since 11 September 2001 there should be a review of all Customs Service goods clearance charging. The review will examine the quantum and apportionment of charges for imports exports and trans-shipments and the basis on which Customs Service charges should be levied. The review will start after promulgation of regulations enabled by this bill with the results of the review being implemented no later than the first half of 2006. 
Second the Government will continue to contribute significantly to the total cost of goods clearance including a share of the new costs of the trade security programme. To help reduce the impact of the new charges on top of the other costs that exporters are facing and while the review is taking place the Government will provide an additional $8 million over the next 2 years towards the costs of Customs Service export clearance. That represents 50 percent of the new costs for export clearance being met by the Crown and 50 percent by exporters. The Crown will as a result be contributing 60 percent of the total funding requirement for export clearance in that period. The detail of how these charges will be collected is currently being discussed between business interests and the Customs Service. Once this bill is enacted the Act will require further consultation to be undertaken before the new charges are finally set. 
Let me turn now to other aspects of border security. International crime and terrorism involve the transnational movements of people goods such as explosives and money to facilitate criminal and terrorist activities. New Zealand needs to be sure it is adequately equipped to manage all of those threats at the border. We have seen a great deal of debate recently about individuals their presence in New Zealand and whether they pose a risk. As Minister of Customs my goal is that the Customs Service be able to identify intercept and effectively deal with those people at the border. For the service to be able to do that advance passenger information is essential. 
There are two elements to the travel information provisions provided for in the legislation. For immigration purposes the following will apply. Firstly airlines and cruise ship operators will be required to use electronic means to submit passport details for persons boarding craft for the purposes of travelling to New Zealand in advance of their arrival. The full implementation of the legislation will mean that passport and visa details will be checked automatically against electronic records held by the New Zealand Immigration Service. Any matches will trigger an advisory back to the airline about whether that person should be allowed to embark for New Zealand. As well as checking that passengers have met the legal requirements to enable them to travel to New Zealand this pre-boarding screening will assist in the direct detection of forged visas and passports so that fraudulent passengers do not get to New Zealand. While the Advance Passenger Processing system improves the likelihood of identifying fraudulent passengers or those who have not met requirements for travel to New Zealand the bill does not change any of the existing requirements regarding who is permitted to enter New Zealand. This form of screening of data is the best way to reduce New Zealand’s exposure to risk from people travelling here while at the same time maintaining a high flow of arrivals to New Zealand at any one time. There will be no refusal of holders of valid New Zealand passports or returning residents visas. 
The second equally important aspect of travel information gathering and analysis in this legislation is the provision for the Customs Service to access electronically the computerised passenger booking systems of travel operators and their agents. This will allow access to certain passenger or ticketing information. The Customs Service will access this information for the purpose of identifying persons who may present a risk to the New Zealand border. These provisions have been carefully developed to enable New Zealand authorities to have access to information without jeopardising the privacy of legitimate travellers. Again I am aware of the very detailed consideration that the Government Administration Committee gave to balancing the rights freedoms and privacy of individuals with the rights of the State to protect its citizens and its interests. 
Airlines around the world are responding to similar legislation from other countries. Here Air New Zealand has voluntarily led the compliance and all airlines are now providing the information voluntarily. 
The Border Security Bill also strengthens the Customs Service’s powers and controls over people crossing our borders illegally. Right now if a customs officer encounters a person who is unlawfully arriving from or leaving for a remote location and is not currently on a craft such a person is not subject to the normal level of scrutiny that a person arriving legitimately in a Customs Service - controlled area is subjected to. It is obvious that this translates to a considerable security risk for us and for our immediate neighbours so we are toughening up on the controls and we are empowering customs officers to deal with those situations. We are particularly targeting those suspected of being involved in transnational organised crime—terrorists people-smugglers etc. 
I commend the bill to the House.