Mark RonBROKERING (WEAPONS AND RELATED ITEMS) CONTROLS BILLThird ReadingHon RON MARK (Minister of Defence) on behalf of the Minister of Foreign Affairs: I move That the Brokering (Weapons and Related Items) Controls Bill be now read a third time.This bill demonstrates New Zealand's continuing commitment to the fight against illegal arms trafficking and trading and to address the devastating impacts this activity has on regional and international security and development. The bill introduces comprehensive controls to regulate the brokering of arms and military equipment by New Zealanders and New Zealand - based entities. Brokering involves the transfer of arms from one foreign country to another. The brokering regime in many respects will complement the controls for the import export or internal movement of these items under existing legislation. This bill has been put together by the previous Government in response to a massive problem that they identified. It has been before the Foreign Affairs Defence and Trade Committee and it has had thorough examination from the Opposition who actually brought the bill to the House. I note their recommendations to the House—myself personally—that this bill proceed and that is what the Government is doing.The bill was introduced to the House on 27 June 2017 by the former Government. It was considered by the Foreign Affairs Defence and Trade Committee which reported to the House on 29 March 2018. The committee recommended unanimously that the bill proceed and I personally defer to the wisdom of that committee. With a number of amendments aimed at increasing clarity and addressing submitters' concerns the bill was read a second time on 1 May. I do note that it proceeded through the committee stage and every recommendation that the Foreign Affairs Defence and Trade Committee made was accepted by this Government who acknowledged that those recommendations improved the bill.This bill requires individuals physically in New Zealand all New Zealand citizens ordinary residents of New Zealand and New Zealand entities operating offshore that wish to engage in brokering to (a) register as a broker with the Secretary of Foreign Affairs and Trade and (b) obtain a permit for each brokering activity. Hon Mark Mitchell: That's it yep.Hon RON MARK: Brokering permits will be granted if the proposed brokering activity is consistent with New Zealand's international obligations Mr Mitchell and would not prejudice the security defence or international relations of New Zealand.The bill creates offences for engaging in conduct that contravenes its requirements including engaging in brokering without being registered as a broker and having a permit—that was discussed at length in the committee phase—breaching the conditions of a registration or permit—that was also discussed in depth at the committee stage—and providing false and misleading information in connection with a registration or permit and I note again that was also discussed at length at the committee phase with ironically the Opposition proposing further amendments that it never proposed during the actual hearing of submissions on the bill but never mind.Given the cross-border nature of brokering the regime will have extraterritorial effect and will apply to New Zealanders ordinary residents of New Zealand and New Zealand - based entities operating offshore. In the same vein as brokering covered by the bill will always involve the transfer of arms between two foreign countries the consent of the Attorney-General is required for any prosecution under the bill. This requirement provides a safeguard to ensure that only appropriate cases proceed to prosecution taking into account among other things the need to work with overseas law enforcement authorities to gather evidence.The Attorney-General may also impose civil penalties such as formal warnings enforceable undertakings and injunctions in appropriate cases. This bill does not prohibit brokering in weapons or military equipment outright which is a good thing given our fledgling defence industry but regulates such activity to ensure appropriate controls are in place to prevent these items from ending up in the wrong hands or place.All too many communities in our region and around the world have felt the impacts of weapons falling into the wrong hands in terms of lives lost crime and conflict and the crippling effect on development and prosperity. Regulating brokering supports compliance with New Zealand's obligations under the Arms Trade Treaty—that's a very important factor. It also supports our commitments as a participant in the four international export control regimes for conventional weapons and weapons of mass destruction - related goods and technologies—other aspects that were considered in depth also in the committee phase and prosecuted by the Opposition despite the fact that it wasn't necessarily prosecuted as deeply in the select committee hearing phase. Never mind.New Zealand remains a strong advocate of the Arms Trade Treaty and other disarmament arms control and counter-proliferation efforts. I'm pleased that New Zealand's able to play its part in the international framework to prevent and deter illicit arms brokering through this legislation. I'd like to conclude by thanking all of those who've contributed to this bill—in particular I'd like to thank the Foreign Affairs Defence and Trade Committee for its careful consideration of the bill as well as officials from the Ministry of Foreign Affairs and Trade and the Parliamentary Counsel Office. I commend the bill to the House.