The head of cloud storage website Mega says new spy agency law is puzzling because his company already does what the legislation is requiring it to do.
The Telecommunications Interception Capability and Security Bill obliges telcos to ensure that they have the ability to intercept communications.
It passed its third and final reading by 61 to 59 votes on Tuesday with the support of National, ACT and United Future.
Mega chief executive Vikram Kumar told Radio New Zealand's Morning Report his website already provides information on its customers when a warrant is provided requesting that information.
"That's why the powers being expanded under this bill are quite puzzling. No evidence has been put forward that it's actually required.
Mr Kumar says Mega would never allow the Government unsupervised access to its files.
Communications Minister Amy Adams says the legislation does not change the authority of agencies to intercept communications or existing privacy protections.
She says it puts in place a formal framework to keep the country's networks secure.
But the Labour Party says the legislation is a shoddy and undemocratic piece of law and is promising to repeal the legislation.
Labour MP Clare Curran says the bill will allow the spy agency into the networks to control what people send and receive.