Photo Source: Lucas Andrade
A new bill introduced on 16 November 2024 by Hon. Paul Goldsmith aims to safeguard New Zealand from rising threats of covert foreign interference. The proposed legislation targets vulnerabilities in existing laws, specifically addressing covert foreign influence that could harm communities, academia, media, businesses, and government.
This move reflects a growing recognition of the risks foreign interference poses to New Zealand’s national interests.
Recognising the Threat
The bill’s main objective is to criminalise covert, deceptive, corrupting, or coercive actions carried out by foreign powers with the deliberate or reckless intent to cause harm to New Zealand.
New Zealand, along with Canada, Australia, the US, and the UK in the “Five Eyes” alliance, is growing more concerned about the threat of foreign interference.
Although Goldsmith did not specify any particular country, the bill comes amid growing apprehension about China’s actions in the Pacific region.
A report published in September by the New Zealand Security Intelligence Service (NZSIS), described China as a “complex intelligence concern” and noted that New Zealand was being targeted by a small group of authoritarian foreign states.
The NZSIS highlighted a marked increase in foreign interference, with a particular focus on China. The agency warned of a shift toward “grey zone” tactics—covert operations that occur beneath the threshold of open warfare, exploiting legal and institutional loopholes.
These tactics, however, fall outside the scope of existing laws, prompting concerns about New Zealand’s ability to respond effectively.
As a result, the proposed bill seeks to fill this legal gap and reinforce national security.
Key Features of the Legislation
The legislation focuses on enhancing deterrence against foreign interference while ensuring that it does not inadvertently criminalise legitimate activities.
According to the Justice Ministry, “This combination of stronger sanctions and increased likelihood of detection and prosecution will protect New Zealand and our communities from foreign interference and deter future malign activity.”
The bill introduces new offences to distinguish between “legitimate influence” and actions that cross the line into harmful interference.
Impacts and Areas of Concern
While the government argues that the bill is necessary to protect New Zealand from foreign interference, it has raised concerns among some observers.
One key concern raised by regulatory analysts, however, is that the bill might misinterpret activities like dual-use technology sharing as espionage, an issue the legislation seeks to address with greater precision.
Another area of concern is the absence of a beneficial ownership register, which would provide transparency about foreign control of local businesses. The government has avoided this initiative, citing the potential costs involved in establishing such a registry.
Context on the Global Stage
New Zealand’s proposed legislation is part of a broader global trend to address the threat of foreign interference, with similar laws already in place in other countries.
Australia introduced a comprehensive foreign interference framework in 2018 and has recently allocated $78 million to combat foreign interference, while New Zealand’s latest budget saw a reduction in funding for its intelligence services.