Brokering (Weapons and Related Items) Controls Bill

I move, That the Brokering (Weapons and Related Items) Controls Bill be now read a first time. I nominate the Foreign Affairs, Defence and Trade Committee to consider the bill. The bill establishes a regime to regulate the brokering of arms and military equipment by New Zealanders and New Zealand - based entities. Brokering is where arms are transferred from one foreign country to another. This bill regulates the brokering of arms and military equipment in order to help prevent arms ending up in the wrong hands. New Zealand is firmly committed to addressing the devastating impacts that illegal arms trading and transfers have on regional and international security and development.

New Zealand was a strong supporter of the Arms Trade Treaty. This is a landmark global instrument that regulates the international trade in conventional arms, from small arms and light weapons, such as machine-guns, to tanks, warships, and combat aircraft. It is widely recognised that the brokering of conventional arms can assist the movement of arms and military equipment to illegitimate users or undesirable locations, and in today’s world it is not hard to think where those places might be. This includes transferring arms to countries under United Nations’ arms embargoes or into conflict zones. The Arms Trade Treaty, therefore, requires States parties to take measures to regulate the brokering of conventional arms that takes place within their jurisdiction. New Zealand currently has an interim voluntary registration scheme for New Zealand - based brokers, but we have no legislative controls on brokering.

Regulating brokering will support compliance with New Zealand’s obligations under the Arms Trade Treaty, which we joined in 2014. The bill reflects the international best practice. It will introduce more comprehensive controls on arms brokering and will prevent New Zealanders and New Zealand - based entities from engaging in brokering contrary to our international obligations. For the purposes of this bill, brokering involves negotiating, arranging, or facilitating the international transfer of arms and military equipment from one foreign country to another foreign country. It does not include imports, exports, or internal movements of arms and military equipment within New Zealand. These are already regulated by the Arms Act 1983 and by the export controls regime under the Customs and Excise Act 1996.

The weapons and related items that this bill covers are arms, military equipment, and civilian goods that may have a military end use. The bill requires New Zealanders and New Zealand - based entities wishing to engage in brokering, firstly, to register with the Government, and, secondly, to obtain a permit for each brokering activity. It will enable conditions to be placed on a brokering registration permit. Such conditions may, for example, ensure that the transaction is consistent with New Zealand’s security, defence, and international relations or international obligations.

Given the global economy and the cross-border nature of brokering, the brokering regime will apply extraterritorially to New Zealanders and New Zealand entities operating abroad. Given the extraterritorial nature of the brokering regime, the Attorney-General’s consent is required for any proceedings. The bill creates offences for engaging in conduct that breaches its requirements, including engaging in brokering without being registered as a broker and having a permit, breaching the conditions of the registration or permit, failing to keep or produce records to answer questions, and providing false or misleading information in connection with a registration or permit. It includes appropriate criminal offences in line with comparable legislation in New Zealand and in other countries such as Australia. It also enables civil penalties such as formal warnings, enforceable undertakings, and injunctions to be imposed in appropriate cases by decisions of the Attorney-General.

While the scale of brokering taking place in New Zealand is limited, without legislative controls we risk facilitating the illegitimate movement of arms and military equipment. We also seek to avoid having illicit arms brokers shift their activities to New Zealand. This bill will ensure that there are appropriate controls on New Zealanders and New Zealand - based entities that engage in brokering and will contribute to the establishment of an effective international regime governing brokering. New Zealand is a strong supporter of disarmament, arms control, and counter-proliferation. Advancing this bill is consistent with the leadership role we have played in the negotiation and implementation of the Arms Trade Treaty.

The notes I have just read are to make sure that any record that might be referred to by the bench at any time in the future contains all that we wish to say about this bill in an official sense. But the common-sense aspect of it is that the prospect of New Zealanders engaging in the transfer of illegal arms legally in this country is intolerable, and for that reason the bill will close that prospect to New Zealanders or New Zealand entities and ensure that where they do legitimately want to get involved in those activities, there is a legal process for them to be able to do so, and to do so in a way that will mean that we have oversight of where those arms or armaments or any other aspects of this military equipment mentioned in this bill are tracking to.

I commend the Brokering (Weapons and Related Items) Controls Bill to the House and look forward to the select committee’s consideration when the bill is returned to the House later in the year.

I seek leave of the House to adjourn early.

Is anyone going to be foolish enough to object to that? No. It is so agreed.

Debate interrupted.

The House adjourned at 5.56 p.m.