Prime Minister John Key has confirmed a proposed law change would prevent him from phoning prospective candidates to run the country's electronic spy agency.
The new law would enact what is already in the Cabinet Manual, which spells out the State Services Commission's role in managing the appointment process.
John Key. Photo: RNZ
It follows controversy over the appointment of Ian Fletcher, the director of the Government Communications Security Bureau (GCSB).
Mr Key has faced constant questioning over his phone call to Mr Fletcher, who is the brother of an old school friend.
Putting the Cabinet Manual's process into law would make it much clearer that the State Services Commission runs the process, not the Prime Minister.
Mr Key said on Wednesday the law change would keep the Prime Minister out of active involvement in the process, although the final decision would still be his.
The proposed law change would also expand the powers of the Inspector-General to scrutinise activities of the GCSB, he said.
At present, it is illegal for the GCSB to spy on New Zealand citizens or permanent residents.
However, changes to the law governing the agency would place greater privacy obligations on it and are part of a range of amendments that would also enable it to spy on New Zealanders on behalf of police, the Defence Force and the Security Intelligence Service (SIS).
Briefing notes on the legislation make it clear that the GCSB would be able to spy on New Zealanders only when those other agencies have warrants to do so.
In terms of privacy, the agency would have to be much more careful about the collection, storage and accuracy of personal information. It would not be able to retain personal information for any longer than necessary.
The new legislation also included moves to strengthen monitoring of the GCSB.
Labour Party leader David Shearer said on Wednesday a full inquiry into the country's intelligence agencies is a bottom line for its support for any law change governing the GCSB.
"What we want to do is see an independent inquiry leading to legislative change for GCSB, the SIS, right across the intelligence agencies. That would come from an independent review - not trying to do a quick fix band-aid on one part of one agency."
Penalties for telco companies planned
Other proposed law changes would impose a new penalty regime on telecommunications companies if they fail to co-operate with government agencies to carry out interception warrants.
Amy Adams. Photo: NATIONAL PARTY
However, Communications Minister Amy Adams is refusing to say what penalties they might face.
The law would force telco companies to co-operate with the Government Communications Security Bureau and other agencies to help with criminal investigations and matters of national security.
Companies are already required to have interception equipment available to provide technical assistance to police and other security and intelligence agencies.
Ms Adams said on Wednesday that has been more of an informal arrangement and the Government wants to make sure it can call on the companies when necessary.
In order to bolster that, there would be a new penalty regime that can gradually be ratcheted up, if needed.
"What we're looking at is a graduated series of enforcement, so that the steps are proportionate to the issue. So if it's a significant national security issue, we want to ensure that we do have the appropriate powers; if it's a smaller level breach, then we want to have some steps to address that."
The minister said details would be contained in legislation to be introduced to Parliament in coming weeks.
The Green Party says plans to impose the penalty regime on telcos are an attempt to divert attention from problems with the Government's spy agency. MP Steffan Browning is cynical about the timing of the announcement.
"I thought it was something like spywash - you know, whitewash, greeenwash, spywash. It seems to be just something to fudge this issue around the GCSB, the illegal spying and a diversion."
