NEW ZEALAND Law and Practice Contributed by: Liz Blythe, Troy Pilkington, Emma Peterson and Craig Shrive, Russell McVeagh
Other Regulated Sectors Many businesses in New Zealand that conduct opera - tions in regulated industries are subject to licensing, approval and certification requirements, and other ongoing price, governance and quality obligations set out in statutes, rules and regulations. While outsourc - ing in these industries is not specifically regulated or prohibited, there are other considerations that those looking to outsource should take into account – for example, the following sectors are subject to industry- specific regulation in New Zealand. • Aviation is governed by the Civil Aviation Act 2023 and the Airport Authorities Act 1966 (to be pro - gressively replaced by the Civil Aviation Act 2023 by 2028), and the Civil Aviation Rules. The Civil Aviation Authority and the Commerce Commission monitor compliance with regulations. • Electricity is governed by the Electricity Industry Act 2010 and Electricity Industry Participation Code. It is regulated by the Electricity Authority and the Commerce Commission. • Food is governed by a number of acts and codes, in addition to being regulated by the Australia New Zealand Food Standards Authority and the Ministry of Health. • Medicines and medical devices are governed by the Medicines Act 1981 and are monitored by the Ministry of Health. • Road transport is governed by the Land Transport Act 1998, the Land Transport Management Act 2003, and associated rules and regulations. The New Zealand Transport Authority, local authorities and the Ministry of Transport regulate this industry. • Telecommunications, gas and dairy are regulated under industry-specific legislation and are subject to the oversight of the Commerce Commission. • Drinking water and water infrastructure is regulated under a range of legislation, including the recently enacted Local Government (Water Services) Act 2025, which set up a new enduring water services delivery framework. Under this framework, Tau - mata Arowai regulates drinking water suppliers, and the Commerce Commission is responsible for economic regulation.
ment would continue to be provided in the event of failure of the arrangement. The RBNZ maintains an extensive “exempt list” of outsourcing arrangements that are exempt from the outsourcing policy. Public Sector All public service departments, including the New Zealand Defence Force, New Zealand Police, New Zealand Security Intelligence Service and Parliamen - tary Counsel Office (collectively, “the Agencies”) are directed by the New Zealand government to imple - ment the Protective Security Requirements (PSRs). The PSRs are a set of mandatory requirements – a number of which are focused on information security, which is the government’s primary concern when out - sourcing the Agencies’ responsibilities. The PSRs include guidelines and policies for manag - ing protected information when outsourcing and off - shoring – in particular, the following. • Agencies considering using cloud services must contact the government chief digital officer for advice and guidance and follow that advice and guidance. • Agencies planning to use cloud services must perform a formal risk assessment, which includes identifying the controls needed to manage the information security and privacy risks associated with their use of the service. • Agencies must verify that they have put effective controls in place to manage security and privacy risks before certifying and accrediting the service for use. More broadly, the Government Procurement Rules are mandatory for all government departments, the New Zealand Police and Defence Force, and most Crown entities when the procurement is worth more than NZD100,000 (or NZD9 million for new construction works). These rules focus on promoting public value and include explicit requirements for agencies to con - sider in their procurement arrangements – for exam - ple, increasing the domestic workforce and support - ing the transition to a net-zero emissions economy.
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