Barker Rick: Customs and Excise Amendment Bill Immigration Amendment Bill (No 3) — Third Readings 
Barker Rick: Customs and Excise Amendment Bill Immigration Amendment Bill (No 3) — Third Readings 
[Volume:618;Page:13824] 
Hon RICK BARKER (Minister of Customs) 
: 
 I move  
That the Customs and Excise Amendment Bill and the Immigration Amendment Bill (No 3) be now read a third time 
. As I read and hear the headlines from around the world I am thankful that New Zealand is far removed from those many terrorist trouble-spots. However that does not mean that we are immune to the violence and the effects of transnational crime. We are seeing increasing evidence of transnational crimes such as trafficking of drugs and people smuggling and the use of false and fraudulently obtained documents. As travel and trade increases so does the level of risk. These bills we are debating here are part of a comprehensive approach by the New Zealand Government to keep New Zealand secure. The Government is concerned that we do not leave the door open for New Zealand to be used as a safe haven or a bolt hole for terrorists or a platform for launching an attack elsewhere. 
The Customs and Excise Amendment Bill and the Immigration Amendment Bill (No 3) will put our security on the front foot. The bills complement the Maritime Security Act and the Terrorism Suppression Act in strengthening the legislation protecting New Zealanders and New Zealand’s interests. The bills introduce a number of measures to provide greater scrutiny of people goods and craft arriving in and leaving from New Zealand. 
In summary the changes will firstly improve the security of global travel and trading environments; secondly strengthen the gathering and sharing of intelligence; thirdly ensure better use of information to assess risk; fourthly enhance customs enforcement powers at the border; and fifthly strengthen and enhance immigration processes relating to persons intending to travel to New Zealand. 
We have heard a great deal of debate recently about individuals their presence in New Zealand and whether they pose a risk. As the Minister of Customs my goal is to ensure that the Customs Service is able to identify intercept and deal effectively with those people at the border. To be able to do that advance information is essential. 
There are two elements to the travel information provisions provided in this legislation. For immigration purposes the following will apply. Firstly airlines and cruise-ship operators will be required to use electronic means to submit passport details for persons boarding craft for the purpose of travelling to New Zealand in advance of their arrival. The chosen electronic system for Advanced Passenger Processing was launched in August 2003. Many airlines are already using the system on a voluntary basis and it is already being used to assist the identification of passengers who do not meet legal requirements to travel to New Zealand. They include such things as a requirement to hold a valid passport a visa if required and a valid outbound ticket if required. The full implementation of the legislation will mean that the passport and visa details will be checked automatically against electronic records held in New Zealand by the Immigration Service. Any matches will trigger an advisory back to the airline about whether a person should be allowed to embark for New Zealand. That form of screening of data is an important contribution to reducing New Zealand’s exposure to risk from peoples travelling here while at the same time maintaining the high flows of arrivals into New Zealand. 
 The Immigration Amendment Bill (No 3) makes Advance Passenger Processing boarding directives binding on airlines and creates penalties for airlines that fail to comply with the requirements of Advance Passenger Processing. However airlines are already obliged to ensure that passengers are properly documented for travel and they may incur penalties if they do not do so. Therefore the Advance Passenger Processing system backs up the airlines’ existing obligations and ensures that we are better equipped to meet them. 
The second and equally important aspect of travel information gathering and analysis in the legislation is the provision for the Customs Service to access electronically the computerised passenger-booking systems of travel operators and their agents. This will allow access to certain passenger or ticketing information for up to 14 days before or after travel and with a warrant the Customs Service will be able to extend that time frame. 
In summary the Advance Passenger Processing system will check the traveller’s immigration status if he or she checked in overseas to filter out those who do not have permission to arrive in New Zealand. Customs will use the passenger name records analysis to identify travellers who are allowed into New Zealand but who still pose a risk to this country such as the risk of drug smuggling or other transnational crime. Overall these two systems will benefit legitimate travellers by speeding their passage through the border while border authorities focus on the small number of individuals who are of interest. 
In this year’s Budget the Government also provided extra funding of $5 million to Vote: Customs to enable more officers and technology to be deployed to intercept those individuals of interest. The Customs and Excise Amendment Bill also assists the Customs Service to deal with people crossing our borders illegally outside the traditional entry points—the major ports and airports. Right now a person encountered by a Customs Service officer who is unlawfully arriving or leaving New Zealand from a remote location is able to do so without being subjected to the normal level of scrutiny that a person arriving legitimately at a customs-controlled area is subjected to. It is obvious that this translates into a considerable security risk for our immediate neighbours and us so we are toughening controls on this and we are empowering Customs Service officers to deal with those situations. 
Then there is dirty money. Right now our laws have limited provisions to detain cash or tainted property that crosses our border undeclared. That means terrorist-related funds or funds from the proceeds of crime or tainted property can move into New Zealand unimpeded. While funds in the banking system can be monitored and tracked down that is not the case if those funds are moved in hard cash so we are plugging that loophole. The Customs and Excise Amendment Bill also requires the advance electronic supply of information about goods and craft arriving in and leaving from New Zealand. I am pleased that legitimate businesses are already cooperating with the New Zealand Customs Service in providing that information. The legislation ensures that there is no doubt about its obligations. The business community has generally been very supportive of the new security measures being put in place by the New Zealand Customs Service. 
The legislation provides the legislative framework for the customs supply chain security strategy that is designed to keep New Zealand goods moving across international borders in times of heightened security alerts. For example the United States is very clear that when it is operating on heightened security alert it will give border clearance priority to those goods from a secure and trusted source such as a port with a container security initiative agreement with the US or some equivalent to container security initiative effectively putting those goods in the green lane. This Government wants to ensure that New Zealand exports are seen as secure and trusted at all times. The US Commissioner of Customs Robert Bonner said that the initiatives being introduced into New Zealand when fully implemented will help to ensure the low-risk nature of New Zealand goods coming from New Zealand to the US and keep New Zealand goods flowing in international commerce in times of heightened security. 
As I said this approach is supported by the industry but what is in dispute is who should pay for it. The legislation provides for cost recovery from traders to cover the costs of enhancing trade facilitation. Consultation will continue with industry on exactly how the cost will be recovered. To help address exporters’ concerns over these costs the Government has decided to move in two areas. Firstly it will review all charges for the Customs Service goods clearance services. This review will examine the quantum and apportionment of charges for imports exports and trans-shipments and the basis on which Customs Service charges should be levied. The results of this review will be implemented no later than the first half of 2006. 
Secondly we will continue to contribute significantly to the total cost of goods clearance services including a share of the new costs of the trade programme. To help reduce the impact of the new charges on top of the other costs exporters are facing and while the review is taking place the Government will provide an additional $8 million over the next 2 years towards the costs of Customs Service export clearance. This means that 50 percent of new costs for export clearance will be met by the Crown and 50 percent will be met by exporters. 
While the cost-recovery question has occupied a lot of time in the debate on this legislation it is just one part of an overall package designed to provide robust mechanisms to keep New Zealand secure. New Zealand is low risk but that does not mean no risk. We must do whatever is necessary to keep our country secure and contribute to a secure international neighbourhood. The Customs and Excise Amendment Bill and the Immigration Amendment Bill (No 3) are an important contribution to this. I commend these bills to the House.