Taxpayer cash to help e-spies

By EUGENE BINGHAM political reporter

The Government is planning to pay telephone and internet companies to make their systems open to interception by spy services.

The move is part of plans to bolster surveillance capabilities.

A proposal dealing with the powers of intelligence agencies would force communications companies to adapt their systems so customers' e-mail and internet dealings could be snooped upon.

Associate Justice Minister Paul Swain said yesterday that the Government was debating the issue of who would pay to make systems penetrable.

"The proposal is that existing telecommunications companies who have to adapt their systems might be able to get a refund from the Government, but that any new provider would be required to introduce an interception-capable system at their own expense," he said.

Mr Swain said the changes would be made through amendments to the Telecommunications Act, possibly next year.

Two other planned law changes affecting spy agencies are also under consideration.

The Crimes Amendment Bill will be adapted to give police, the Security Intelligence Service and the Government Communications Security Bureau the power to intercept electronic communications and hack into computers to retrieve files.

* The GCSB's powers will be written into the Crimes Act. The bureau, the most powerful of all New Zealand's spy services, is not now covered by any legislation.

Peace researcher Nicky Hager says the changes, revealed by the Weekend Herald in June, are a United States-driven bid to synchronise international spy capabilities.

He said they matched laws introduced in the US and Europe.

He traced the changes to a 1993 meeting at the FBI headquarters in Washington, which was attended by New Zealand officials.

Mr Swain admitted there had been international involvement in formulation of the New Zealand laws but denied this indicated anything sinister.

"There have been discussions at international forums and international papers written about what to do about cyber-terrorists, and it's right that governments and officials talk about this problem."

The Crimes Amendment Bill will outlaw computer hacking with the exception of the agencies, which will have to apply for court warrants to tune into people's cyber-business.

The changes will go to Parliament within the next few weeks and will be sent to the law and order select committee for public submissions.