PM proposes law change to let GCSB spy on locals

Prime Minister John Key has proposed law changes to allow the GCSB to spy on NZ citizens and residents.

The agency faces a lawsuit from Kim Dotcom after admitting illegal surveillance of the NZ resident, plus the report by Secretary to the Cabinet Rebecca Kitteridge that says 88 people may have been illegally spied on between April 2003 and September last year.

The Kitteridge report was supposed to be published after Mr Key returned from China this week but was leaked to the Dominion Post.

Today, the Prime Minister also announced an inquiry into how the tightly circulated report was leaked. The investigation will be headed by ex-IRD commissioner and Pike River inquiry head David Henry, who will report back by the end of May, and involve audits of photocopier and email logs.

Widening the pool
Mr Key also proposed removing the requirement that the Inspector-General of Intelligence and Security be a retired High Court judge, and that a deputy IG be appointed.

It was also announced that Paul Neazor, who has been Inspector-General of Intelligence and Security for nearly eight years,  would step down when his current term expires in two months. Mr Neazor, who authored the first major report into the Megaupload investigation, said publicly in September 2012 that the illegal surveillance of Kim Dotcom was "an isolated case."

Weapons of mass destruction
At his post-cabinet press conference today, the Prime Minister focused on other threats.

"There have been covert attempts to acquire New Zealand science and technology for programmes relating to weapons of mass destruction or weapons delivery systems ... I can't detail the success or otherwise of those incursions," Mr Key said.

There was also a low-level terrorism threat, and people in NZ with links to international terrorist groups.

Describing the pending law changes, Mr Key said the GCSB has three main functions:

GCSB Act proposed changes

At a high level, GCSB will retain its three main functions. These are:

• Information assurance and cyber security
• Foreign intelligence; and
• Cooperation assistance to other agencies.

The legislation controlling the GCSB will be clarified and updated so that:

• Information assurance and cyber security will include cooperation, advice and help to both public and private sector organisations;
• Foreign intelligence will remain broadly as is; and
• Cooperation to assist other entities such as the NZSIS, NZ Defence Force and Police will be clarified to include help in the performance of their lawful duties.

However, until the law is updated, the GCSB will not assit other agencies.

“We intend to make it clear the GCSB can undertake activities on behalf of other named agencieswhere those agencies can lawfully undertake those activities.

“This includes the other agencies’ lawful investigations of New Zealanders.

“Section 14, which prohibits activities involving New Zealanders, will be retained but will apply only to the foreign intelligence function of the GCSB, and not to the other two functions.

“This will allow the GCSB to provide essential support to specified agencies and to undertake important work with both public and private sector New Zealanders in the area of information assurance and cyber security.

Earlier, international affairs and security analyst Paul Buchanan said spy agencies around the world had a record of pushing the legislaiton that controlled them to its limits.

Such legislation was typically not well defined. It needed to be have tight controls and transparency, the 36th Parallel Assessments co-founder said. For example, the GCSB should have to name the 88 people who were possibly illegally spied on according to the Kitteridge report - even if the disclosure was limited to a closed committee of MPs.

Labour says it won't support the legislation unless there is a full investigation into the GCSB.