10. Question No.10—Commerce and Consumer AffairsDr VANESSA WEENINK (National—Banks Peninsula) to the Minister of Commerce and Consumer AffairsQuestion No.10—Commerce and Consumer Affairs10. Dr VANESSA WEENINK (National—Banks Peninsula) to the Minister of Commerce and Consumer Affairs: What recent steps has the Government taken to establish a consumer data right in New Zealand?Hon ANDREW BAYLY (Minister of Commerce and Consumer Affairs): I'm thrilled that the Customer and Product Data Bill passed with unanimous support yesterday at its first reading. The introduction of this bill allows for controlled and secure access to data which will inevitably lead to greater competition in the banking and electricity sectors. This will occur by allowing innovative start-ups to more easily offer competing products and services using data that you have allowed them to access. Choice and competition are good things as they ultimately lead to lower prices and greater choice.Dr Vanessa Weenink: Why is this bill needed?Hon ANDREW BAYLY: We are behind the eight ball. Recently the OECD ranked New Zealand dead last when it came to digital regulation. This bill will pave the way for greater competition in turn boosting productivity. It will also support existing fintechs and provide an environment for new start-ups to enter the market. We also know that there are approximately 300 companies willing and able to offer products in New Zealand right now and ultimately this change will create jobs and lift living standards for all New Zealanders.Dr Vanessa Weenink: What assurances can the Minister make about the security of data sharing?Hon ANDREW BAYLY: I think it's important to acknowledge that currently there is no mandatory data standard. At present many businesses often have to rely on a practice called screen scraping to get your data which is highly risky for you as the consumer. The Government is making changes to make sure that data exchange is entirely opt-in. You have to give your express permission to access the data. Second businesses that you authorise to use the data will need to be accredited. Third there will be also a customer verification process which will require the entity that holds the data such as a bank or telco to verify that it is you making the request and not a scammer. Finally it's worth noting that the Privacy Commissioner supports this bill.Dr Vanessa Weenink: Can the Minister provide some examples for how establishing a consumer data right will help New Zealanders?Hon ANDREW BAYLY: Great question. I want to give you two examples. One of the reasons why banks support these proposals is for instance in Australia you can change your mortgage provider within 10 minutes by completing an online application. This reduced processing time is a result of the new bank being able to access your existing bank data through open banking provisions. Another example is the ability to switch seamlessly between electricity providers. This will allow consumers to make better informed choices and also get the best bang for your buck. In time the consumer data framework will likely be extended to other industries such as the telecommunications and insurance sectors.SPEAKER: The next question I've been notified has a longer than might ordinarily be anticipated answer from the Minister.