Friends of al Qaeda in NZ, warns SIS

Al Qaeda sympathisers with links to overseas extremists are living in New Zealand and increased vigilance is needed to keep the country free from terrorism, the Security Intelligence Service warns.

The spy agency says there are also people in New Zealand who have participated in jihad - holy war - in countries such as Bosnia.

And it has investigated links in New Zealand to technology used to support weapons of mass destruction programmes in other countries and has checked out people trying to raise funds for terrorist organisations.

The information was revealed in the SIS's annual report, tabled in Parliament yesterday.

But one security analyst suggested it was alarmist and self-serving.

Political studies senior lecturer Dr Paul Buchanan said the number of dangerous extremists could be "counted on one hand".

SIS head Richard Woods said New Zealand could not afford to be complacent, even though the agency was not aware of a specific terrorist threat against the country.

He said last year's London bombings - carried out by British citizens - showed that the threat now lies within countries.

"Whereas terrorist acts were previously directed by the al Qaeda core, that core has now been largely disrupted and its role has become more inspirational rather than managerial. Local groups now act independently, but still with devastating results."

Mr Woods said increased vigilance was needed to make sure New Zealand was neither a victim nor the source of an act of terrorism.

The SIS refused to elaborate yesterday on what form the increase in vigilance would take.

Mr Woods did say that support and information from the public were vital.

"But no one can guarantee that that goal [preventing terrorism in New Zealand] will always be achieved."

The report warns that al Qaeda's new "inspirational approach" meant the threat could come from individuals already living in New Zealand.

"Overseas experience has shown that terrorist threats in any country can develop quickly."

The report notes that the vast majority of Muslims in New Zealand are "law-abiding members of the community who are of no security concern" and said the Islamic community had kept a check on the activities of radical Muslims.

The report said the agency has 144 staff and a budget of $20 million. In the year to June 30, 19 domestic interception warrants - to obtain all forms of communication - were in force.

Dr Buchanan, from the University of Auckland, said the SIS report was an exercise in "bureaucratic self-justification".

"Within it there are certainly some nuggets of truth about individuals who may be dangerous given their ideological disposition. But I think we could count the number of those people on one hand."

He said New Zealand had no history of conflict with any Islamic country or group and could not be compared to Britain, which had taken part in the invasion of Iraq.

"I think it is outrageously alarmist," Dr Buchanan said. "If we continue to scapegoat native-born Muslim men, particularly Arab men, sooner or later some youth will become enraged and do something."

Green MP Keith Locke said there was no visible evidence in New Zealand to support the SIS's claims.

"I think he [Richard Woods] is crying wolf and scaring the New Zealand population unnecessarily. It seems to be more of a job justification exercise."

What the SIS has monitored:

* Activities in New Zealand of a foreign national assessed to be a close associate of Islamic extremists in a foreign country.

* Apparent links between New Zealanders and international terrorist activities.

* Activities of individuals thought to be Islamic extremists.

* People trying to raise funds for terrorist organisations.

* Links to technology used to support weapons of mass destruction.

* Covert work by foreign intelligence organisations in NZ.