Madam Speaker, I move that the Organised Crime (Penalties and Sentencing) Bill be now read for a first time.  I intend to move that the Bill be considered by the Justice and Electoral Select Committee, and that the Committee report finally to the House on or before 1 September 2008.

 In summary, this Bill increases the maximum penalty for participation in an organised criminal group from five years to ten years imprisonment. It also makes participation in such groups an aggravating factor when sentencing an individual for offences committed as part of the offender’s involvement in organised crime. 

 Organised criminal activity in New Zealand ranges from sophisticated transnational operations involving many millions of dollars to small-time street gatherings of patched gang members.

 It is these criminal groups, both large and small, who plague our communities with intimidation, extortion, illegal drugs, identity fraud, serious property crimes and violence.  The tools needed to combat these diverse organised criminal gangs must therefore be comprehensive, flexible and effective.

 This Government is dedicated to combating organised crime at all levels and has previously announced key initiatives such as the Organised Crime Strategy and the intended establishment of the Organised and Financial Crime Agency of New Zealand (“OFCANZ”).

  However, the success of the Government’s strategy and OFCANZ will depend on a strong statutory framework that provides an effective platform to launch our law enforcement interventions.  Thus, this Bill is the third of four major legislative initiatives to tackle serious and organised crime in New Zealand. Namely:

·         The Criminal Proceeds (Recovery) Bill;

·         The Serious Fraud Office (Abolition and Transitional Provisions) Bill;

·         The Organised Crime (Penalties & Sentencing) Bill; and

·         The Search and Surveillance Powers Bill.

 The new powers, penalties and law enforcement improvements provided in these four bills will enhance investigations, facilitate prosecutions and provide tougher action against organised crime and gangs. 

 The first amendment provided in this Bill increases the penalty under section 98A of the Crimes Act 1961.  Section 98A was originally enacted to meet New Zealand’s international obligations under Article 5 of the United Nations Convention against Transnational Organised Crime.

 The section extends criminal liability beyond traditional parameters of aiding and abetting or conspiracy, by enabling the prosecution of those who direct criminal organisations without otherwise engaging in criminal acts. 

Section 98A enables the prosecution of leaders and members of organised criminal groups who plan and organise these criminal businesses without “getting their hands dirty”.

These “gang chiefs” or “kingpins” are often the real controllers of criminal activity; the ones who direct others and make the big decisions; the ones prospects look up to and want to emulate.  Therefore, the formulation of section 98A is broad enough to capture recruiting of gang prospects, and the financing and strategic planning of gang activities.

 This Bill will increase the maximum penalty for these activities from 5 years to 10 years imprisonment.  I do not believe that the current penalty level adequately reflects the range of culpability caught by section 98A offending.  In particular, it does not reflect the potential application of the section to deal with crime bosses who organise criminal activity without directly committing crime themselves.

 Increasing the maximum penalty for the offences covered by section 98A will not only send a strong message to gang leaders that their behaviour will not be tolerated; it will also greatly increase the ability of the Police to combat these socially corrosive activities.

 Section 98A of the Crimes Act requires proof of the existence of an organised criminal group and of the gang members’ participation in this group. In the absence of proof of a completed crime, communications interception is critical.

 However, because section 98A does not carry a penalty of 10 years’ imprisonment or more, its investigation does not qualify for the issuance of an interception warrant.  This also means that intelligence gathered using an interception warrant obtained on other grounds cannot be used in a section 98A prosecution. These are critical deficiencies and they have resulted in the Police being hamstrung when they have attempted to enforce the law.

 Increasing the maximum penalty for breaches of section 98A from 5 years to 10 years will ensure that interception warrants will be available to the Police when they investigate offending by crime bosses and will thus significantly increase the ability of the Police to obtain a conviction.

 While the availability of interception powers is not the substantive justification for increasing the maximum penalty, it is an important consequence of the amendment.

 This Bill will not only make it easier for the Police to detect and prosecute gang leaders, it will also ensure that when crime bosses are held to account for their offending, the penalties imposed will reflect the seriousness of their actions. 

 The second amendment in this Bill adds gang or organised crime participation as an aggravating factor for sentencing under section 9 of the Sentencing Act 2002.  The list of aggravating factors in section 9 already targets elements of violence, premeditation, and severity that are inherent in gang-related offending.  But once again, this amendment sends an important message to those organised crime leaders who try so hard to avoid direct responsibility for their actions.

 The Court of Appeal has acknowledged that gangs or other groups within the community who are responsible for major organised crime must expect that those who represent them in committing crime to have the connection recognised as increasing the seriousness of offending. Similarly the courts have long recognised gang leadership as an aggravating feature.

 This Bill will extend section 9 in recognition that offending is more serious when it is committed for the benefit of, at the direction of, or in association with, an organised criminal gang. The purpose of this is to provide Parliamentary support for this judicial observation and is aimed at deterring and undermining ongoing participation in entrenched gangs.

 The Bill is an omnibus Bill --- that is, a Bill which amends more than one principal Act. As such, it is intended that this Bill be divided into the following two separate Bills at the committee of the whole House stage: a Crimes amendment Bill and a Sentencing Amendment Bill.

 Madam speaker, this Bill will enhance the capabilities of law enforcement agencies and ensure that organised criminal gang leaders who organise and plan crimes are able to be brought to justice.

 Madam Speaker, I move that the Organised Crime (Penalties and Sentencing) Bill be considered by the Justice and Electoral Committee and that it be directed to report finally to the House on or before 1 September 2008.

 I commend this Bill to the House