Borrows Chester: Electronic Identity Verification Bill Identity Information Confirmation Bill — Third Readings 
Text is incorporated into the Bound Volume 
Borrows Chester: Electronic Identity Verification Bill Identity Information Confirmation Bill — Third Readings 
[Sitting date: 11 December 2012. Volume:686;Page:7385. Text is incorporated into the Bound Volume.] 
Hon CHESTER BORROWS (Minister for Courts) 
 on behalf of the Minister of Internal Affairs: I move  
That the Electronic Identity Verification Bill and the Identity Information Confirmation Bill be now read a third time 
. These two bills represent a shift in how New Zealanders’ identity information can be used for proving who they are. Both bills shift away from heavily paper-based models and allow identity services to be brought into the 21st century. The bills achieve this in different and complementary ways. The Electronic Identity Verification Bill governs the operation of the igovt Electronic Identity Verification Service. The bill will enable New Zealanders to verify their identity once the Department of Internal Affairs—sorry to the Department of Internal Affairs—and then to be able to use the igovt services to prove their identity online. 
Hon Trevor Mallard 
: Do you want me to read it for you? 
Hon CHESTER BORROWS 
: No I think I will be OK. The bill itself is rather mechanical in nature specifically setting out how individuals apply to use the service and what the legal effect of the service is. The Electronic Identity Verification Bill opens up the potential of the internet. It is hard to know who someone is online even if they want you to know. The bill changes that. It allows individuals to prove who they are online when they want to do so. This opens up the internet to allow Government and business to offer more online services particularly services that involve risks such as the handling of sensitive personal information. The service will become an essential piece of infrastructure for New Zealand. 
The igovt log-on service has existed in a limited form for 3 years. This bill will enable it to be used much more widely and will encourage the uptake of online Government services. 
The second bill the Identity Information Confirmation Bill governs a service for agencies to confirm that individuals’ identity information is correct. Identity fraud is a serious issue and this is another tool to help us combat it. 
Hon Trevor Mallard 
: How many cases a day? 
Hon CHESTER BORROWS 
: Heaps. The department holds the authoritative source of identity information for many New Zealanders through its Citizenship Office Passports and Births Deaths and Marriages registry functions. Agencies must gain the consent of the individual before using the service. Again the bill is largely mechanical in nature to support the service. The Identity Information Confirmation Bill supports agencies when dealing with customers through both online and off-line channels. The bill allows Government agencies and businesses to be more confident that they are not dealing with false identity information. This combats the increasingly sophisticated fake documents being generated and passed off by fraudsters. 
It is important that employers are able to use the confirmation service during employment processes to identify fraudsters wrongly applying for jobs especially in sensitive roles such as in the education sector. The service also enables employers to comply with the Immigration Act’s requirements that they not hire people who are not entitled to work in New Zealand. It also means that individuals do not need to show as much identification to prove who they are. Again the service will be an essential piece of infrastructure for New Zealand. 
These bills and the services they govern have a number of similar policy foundations. Both of the bills deal with the sharing of personal information that is central to verifying an individual’s identity. Privacy considerations have been at the forefront of policy decisions on these bills. In particular both bills require the consent of the individual concerned before any information is shared. Both bills also enable the Privacy Commissioner to ask for reports on the services being regulated so that the Privacy Commissioner can proactively monitor these services rather than waiting for complaints before being able to act. 
The bills also have other safeguards to ensure personal information is used responsibly by agencies. These safeguards are in line with the information privacy principles of the Privacy Act 1993. Both bills enable people to opt out of using the services and require participating agencies to maintain alternative ways of dealing with people. The digital divide is an important policy consideration and we have to accept that some people are not comfortable or able to use new technologies. A person should not be penalised for opting out of using either of these services. 
These bills aim to reduce identity crime in our society. Identity crime has been an increasing problem whether it is through the creation of a false identity or worse still stealing someone else’s identity. There are numerous high-profile examples such as the convicted sex offender who committed identity theft in order to— 
Hon Trevor Mallard 
: David Garrett. 
Hon CHESTER BORROWS 
: —I agree with the member—obtain employment in the education sector or the fraudster who created 100 false identities in order to obtain millions of dollars in superannuation benefits. Sadly these cases are the tip of the iceberg. These bills offer new tools for Government agencies and businesses to prevent identity crimes. In doing so they also reduce the chances of innocent members of the public having their identity stolen. 
I anticipate that both bills will be important for helping New Zealand businesses to meet their obligations under the Anti-Money Laundering and Countering Financing of Terrorism Act 2009. When that Act comes into force in July 2013 banks and other financial institutions will be required to undertake greater checks to verify the identity of their customers and thus prevent identity crimes. These bills will help those businesses to do this. Importantly the bills do this in a way that reduces compliance costs. 
I would like to thank the Government Administration Committee for its rigorous consideration of these bills and the 12 submitters to the committee. I appreciate the multipartisan approach that has been taken towards the bills and the constructive chairmanship by the Hon Ruth Dyson. I would also like to thank my ministerial colleagues the Hon Nathan Guy and the Hon Amy Adams for the work that they undertook to progress these bills during their times as Minister of Internal Affairs. I commend these bills to the House.