Mahuta Nanaia: Customs and Excise Amendment Bill (No 2) — Third Reading 
Mahuta Nanaia: Customs and Excise Amendment Bill (No 2) — Third Reading 
[Volume:637;Page:7799] 
Hon NANAIA MAHUTA (Minister of Customs) 
: 
 I move  
That the Customs and Excise Amendment Bill (No 2) be now read a third time 
. I would like to thank the members of the Foreign Affairs Defence and Trade Committee for their thorough and thoughtful consideration of the bill. The fact that there continues to be cross-party support for the bill further highlights the recognition given to the New Zealand Customs Service and the high regard that is held for the way its important work is carried out as it continues to protect our country and facilitate the safe transition of goods craft and people across our borders. I would also like to thank the clerk of the committee staff and officials for providing the support and advice necessary to progress the bill. 
This bill strengthens New Zealand’s border security measures and it provides for more effective and integrated border management. I made the point during the second reading of this bill that it recognises the fact that New Zealand’s trade and travel landscape is continuing to change and that we must change in order to keep pace with it. Increasing threats to our communities through terrorism international organised crime drugs identity fraud and other issues mean our legislation must provide clarity and it must be effective and flexible enough to respond to increased demand and ensure that our activities at the border can be conducted effectively in a rapidly changing environment. That also includes continuing to meet our international obligations as part of the wider border control community in order to improve safety and security for travellers goods and craft when crossing our borders. 
The bill has been drafted to take account of both Government and community interests in effective border management and of the right of people to travel and conduct legitimate trade across our border. The fact that the select committee generally agreed with the provisions in the bill as drafted and that only amendments of a technical nature were made is a positive indication albeit a rare one that the right balance was struck in its drafting. It is important that I also acknowledge the support of all parties in backing this bill. It is worth noting—to use the words of my colleague Dianne Yates—that this bill is not about party politics but about “New Zealand Ltd” and about keeping our borders secure. The support of all political parties in being able to look at the bigger picture is welcomed in that regard. 
To reiterate the key principles of the bill are to contribute to the Government’s commitment to protecting our communities and our country from threats such as drugs and transnational crime; to recognise that the Customs Service is the first point of contact at the border for people goods and craft and that it needs to have the legislative ability to refer to other agencies such as the police and the Ministry of Agriculture and Forestry people and goods that are of interest to them; and to address current limitations in border powers to provide more effective integration and stronger links between the agencies that work at the border to ensure that people or goods that pose a threat do not slip through the gaps. This bill also consolidates border security - related amendments made to the Customs and Excise Act 1996 in 2004 through the Border Security Bill which was designed to help counter continuing and increasing border-related threats. 
The particular aspects of this bill will allow the Customs Service to strengthen its activities across three key areas which I would like to highlight. The first of those relates to the limitations on the use of electronic communications devices—for example cellphones palm pilots and other handheld electronic devices—in designated border control areas such as the primary processing area at the airport. Many people will be aware that the use of cellphones and other modern technology devices can thwart law enforcement activity at the border. For example drug couriers who are stopped for questioning or people who are engaged in smuggling activity may attempt to use their phone to alert associates at or beyond the arrival gates. The potential to do that has now been removed by the bill. 
Secondly there is also a provision to detain persons arriving at or departing from New Zealand for up to 4 hours in cases requiring investigation for public health or law enforcement purposes. That addresses the practical reality that the Customs Service on occasion needs to refer a person to another agency or for further processing. The provision clarifies the law in that regard while allowing for the more effective assessment and management of potential risks. 
Finally the bill contains a section relating to prohibited exports and the ability to impose export controls in respect of catch-all goods. That provision keeps us apace with the relevant international obligations that New Zealand has signed up to. It also reinforces best-practice standards which continue to build confidence in New Zealand as a trading partner as we move to implement those controls. The provision in the bill provides the ability to impose controls on the export of catch-all goods that could be used in an everyday context for civilian purposes but that when combined with other products or compounds could be used for an undesirable strategic purpose—for example in the manufacture of weapons of mass destruction or in a chemical weapons programme. 
Briefly in response to issues raised by the Opposition spokesperson on customs matters Shane Ardern I say that the only change this bill imposes regarding the indexation of the excise duty on alcohol relates to the date on which it occurs. That was done in response to submissions to the select committee from the industries affected and in fact it will make it easier for them to manage those adjustments while also reducing compliance costs. The member should note that those minor annual adjustments have been occurring since the 1990s when a National Government was last in power. So they are by no means a new tax as was wrongly implied in his speech. 
In conclusion the Customs and Excise Amendment Bill (No 2) is important legislation that supports a whole-of-Government approach to better border management and affirms this Government’s commitment to a vibrant economy to strong and safe communities and to protection of our national identity and way of life. I commend the bill to the House.