A proposed law imposing fines on telecommunications companies that fail to co-operate with spy agencies has been called unnecessary by an industry lobby group.
The Telecommunications Users Association (TUANZ) says companies are already obliged to assist the police and intelligence agencies carry out interception warrants.
Communications Minister Amy Adams says the law change will clarify network operators' current obligation to work with the Government on security and criminal matters.
But the association's chief executive, Paul Brislen, says there's no question among telcos about their obligations under existing legislation.
He says they can't be expected to decipher encrypted communications they carry on their networks from multinationals like Google and Microsoft.