26 August 2010

Privacy Commissioner, Marie Shroff, today welcomed the passage of the Privacy (Cross-border Information) Amendment Bill through all Parliamentary stages.

'This amendment is important for two principal reasons: first, for international trade, and second, for effective consumer protection in a global digital economy,' Marie Shroff said.

'For trading reasons the amendment is needed to satisfy the expectations of a major trading bloc, the European Union, so that European businesses can freely send data to New Zealand for processing. This can give New Zealand businesses a competitive edge internationally. An EU adequacy finding is also likely to satisfy data export requirements of other countries. I believe New Zealand businesses are already losing some trading opportunities through a gap in our privacy laws. This change will allow New Zealand to compete on a secure basis for international data business.

'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,' Marie Shroff said. E-commerce and the Internet have brought many advantages for consumers. But companies that hold New Zealanders' personal information are as likely to be based in Sydney, Texas or Singapore as in New Zealand.

'This new law will allow us to work with privacy enforcement authorities in other countries to help New Zealanders protect their information wherever it is held' Marie Shroff said. The amendment will also ensure that New Zealand can take full advantage of the recent establishment of the APEC Cross-border Privacy Enforcement Arrangement (CPEA) and the Global Privacy Enforcement Network (GPEN).

'We want to encourage global commerce by providing a framework within which data can flow freely. But we also want to provide legal protection and enable consumers to get effective redress where harm is caused or their data is misused. This is good both for business and for consumers,' said Ms Shroff.

ENDS

Note: The NZ application for a finding for adequacy has yet to be determined but is working its way through the EU processes.

Contact: Cathy Henry on 021 509 735.