Power Simon: Criminal Proceeds (Recovery) Bill Mutual Assistance in Criminal Matters Amendment Bill Sentencing Amendment Bill — Third Readings 
Power Simon: Criminal Proceeds (Recovery) Bill Mutual Assistance in Criminal Matters Amendment Bill Sentencing Amendment Bill — Third Readings 
[Volume:653;Page:2603] 
Hon SIMON POWER (Minister of Justice) 
: 
 I move 
 That the Criminal Proceeds (Recovery) Bill the Mutual Assistance in Criminal Matters Amendment Bill and the Sentencing Amendment Bill be now read a third time 
. These bills repeal the Proceeds of Crime Act 1991 and introduce a new civil forfeiture regime to complement an enhanced criminal forfeiture regime. This will make it easier to strip organised crime groups of the assets and profits that they have obtained from serious criminal offending. For too long senior organised crime figures have been able to hide behind the people they hire to carry out their dirty work. They have managed to hang on to the wealth they have accumulated by avoiding the conviction required under the current legislation before property can be forfeit. Under this new legislation a conviction is not required to trigger forfeiture proceedings for criminal proceeds. It will be sufficient to prove on the balance of probabilities that a person has unlawfully benefited from significant criminal offending. Conviction will still however be required for the forfeiture of property used to commit serious crimes. 
The legislation empowers police to carry out the new civil forfeiture functions. Police can draw on their existing knowledge expertise and a national operational infrastructure to enforce the new regime cost-effectively. Police will have access to examination and production powers necessary for effective enforcement but these investigative powers are available only by court order which ensures that there are appropriate checks and balances in place. The civil forfeiture provisions will also assist New Zealand to meet its international obligations to fight transnational crime. New Zealand is being evaluated this year for compliance with the Financial Action Task Force’s global standards on countering money laundering and terrorist financing. Civil forfeiture legislation is a key compliance requirement in this regard as are the bill’s international enforcement provisions enabling New Zealand to better assist other countries to recover proceeds of crime that have been moved here. The mutual reciprocity arrangements to which New Zealand is party mean that we can expect the same assistance from other countries. The technological ease with which criminals can transfer and hide funds around the world make it imperative that law enforcement agencies are empowered to move quickly to locate and recover the proceeds of crime. 
We have progressed these bills which were introduced by the previous Labour Government because the threat posed by organised crime to law-abiding New Zealanders is real and unacceptable. It can best be managed by removing the funding necessary for such groups to operate. This is a particularly important tool in the fight against P or methamphetamine given the large amounts of money being made by those who orchestrate the manufacture and supply of this drug. 
I could not finish the third reading of these bills without making some mention of Martin Gallagher. Mr Gallagher who chaired the Law and Order Committee progressed it in a relatively timely manner and acted as a chairperson who was able to guide the legislation through the select committee in a way that could not be described as forceful but that was ultimately effective. Mr Gallagher brought to the deliberations a unique perspective to ensure that all matters were put before the committee in order not to rush it in any way shape or form. On that basis I am confident that the legislation which I hope the House will pass through its third reading today will have met the test of what we are now referring to as the “Gallagher Rigour Test”. 
This Government will not let safety take a back seat and these bills are a key plank in the raft of reforms we are progressing to make New Zealand a safer place. I commend these bills to the House.