Govt looks at repelling hackers

By FRANCESCA MOLD political reporter

The Government is exploring setting up a special unit to help protect the country's critical infrastructure from cyber crime, such as computer hacking and viruses.

State Services Minister Trevor Mallard revealed yesterday that officials were investigating developing a unit which would daily monitor information technology security and risks.

The announcement came in response to a State Services Commission report which identified potential threats to computer systems critical to the country, like those of banking, telecommunications, power, transport and emergency services.

Mr Mallard said that the overall picture painted by the report was encouraging.

"The most important thing is that New Zealand takes steps to anticipate risks in this area and joins the international community in cooperative efforts that will enhance protection of infrastructure and make enforcement easier wherever cyber crimes are committed."

In the report, banking practices were identified as an area of concern.

The Reserve Bank of New Zealand is planning to move computer systems which deal with some retail banking to Sydney.

The report said that this exposed the industry to risks such as New Zealand becoming disconnected from its banking system if transtasman telecommunications failed.

But Mr Mallard said he had received a letter from the Reserve Bank since the report that had reassured him.

He had no undue anxiety about the move.

The Reserve Bank letter, dated January 31, said that in the unlikely event of all transtasman communication links failing, the public would not be deprived of banking facilities because everyday services, like credit cards, deposits and lending, were not dependent on the links.

The computer systems had already operated successfully from Sydney between 1990 and 1995.

The letter said that the decision to return to Sydney took into account costs and risks, including access to backup facilities.