1 July 2009

Privacy Commissioner, Marie Shroff, today released a report on the Privacy (Cross-border Information) Amendment Bill. The Commissioner welcomed the Bill and urged its enactment at the earliest opportunity.

'This Bill is important for two principal reasons relating, first, to international trade, and second, to effective consumer protection in a global economy,' the Commissioner told the Select Committee.

'The importance to trade is that this amendment is needed to satisfy the expectations of a major trading bloc, the European Union, so that European businesses may more freely send data to New Zealand for processing. Obtaining a formal finding from the EU that our laws meet their data protection requirements may give New Zealand businesses a competitive edge over businesses based in other countries. Furthermore, an EU finding will likely satisfy data export requirements of any other trading bloc or country.

'New Zealand would be the first country in the South Pacific region to secure an adequacy finding. Australian law, for instance, does not currently meet the EU standard,' Ms Shroff noted.

'The second benefit is consumer protection and redress in a global economy. E-commerce and the Internet have brought many advantages for consumers but they have meant that the companies that hold New Zealanders' personal information are as likely to in be based in Sydney, Texas or Singapore as in New Zealand. This Bill will facilitate cooperation with privacy enforcement authorities in other countries where a matter affecting a New Zealand consumer has cross-border aspects.

'The objective should be to encourage global commerce by providing a framework within which data can flow freely while providing similar legal protections and enabling consumers to obtain effective redress where they're harmed by a breach of the law. This is good both for business and for consumers', said Ms Shroff.

ENDS

Note for Editors

View the Privacy Commissioner's report on the Bill, which is available on www.privacy.org.nz.

The Privacy (Cross-border Information) Amendment Bill was introduced to Parliament in July 2008. The Bill had its first reading and was referred to the Justice and Electoral Select Committee in April 2009. The Privacy Commissioner reported to the Minister of Justice on 12 May 2009. On 25 June 2009 the Commissioner appeared before the Justice and Electoral Committee of Parliament.

For further information contact: Annabel Fordham 021 509 735 or 04 474 7598