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OPINION:Media freedoms are absolutely essential to the long-term health of any democracy. New Zealand is no exception.

The production order used by the Serious Fraud Office (SFO) against the National Business Review demanded that NBR give up their records, including sources, of the NBR inquiry into the South Canterbury collapse.

That collapse caused hundreds of millions of dollars of cost to tax payers. The huge losses led to allegations of improper behaviour by South Canterbury Finance.

Serious questions were also raised about incompetence of the Government and its Ministry (the Treasury).

They allowed the size of that risk to grow by hundreds of millions after the Crown guarantee was granted, and rejected alternative ways of solving the problem which may have saved tens if not hundreds of millions.

NBR was right to inquire into what had gone wrong. The SFO interference in the NBR proved beyond doubt that the SFO powers are excessive and undermine the important role of a free media.

The SFO issued that order against the NBR with no outside oversight.

The excessive powers of the SFO mean that they do not have to get a warrant from a judge. Records they take are kept by the SFO. Refusal by the media to comply with an order from the SFO put the journalist and the NBR automatically in breach of the law, and at risk of criminal prosecution and fines. Just for protecting their source!

In contrast the similar power proposed for police investigating of even more pernicious organised crime requires the police to get a warrant from a Judge, which may be declined.

For the police any disputed records taken are to be secured and held by the High Court (not the SFO or the police). A High Court judge then decides whether the protection of media freedom provided for in the Evidence Act means the medias records and sources should remain confidential.

Link:
Media freedom and independence under threat