Labour demands Govt inquiry over Huawei handling

The Government must launch a full independent inquiry into Huawei’s share of the $1.35 billion ultrafast broadband rollout after reports the United States Congress accused the company of bribery and spying.

That is the view of the Labour Party, who question why after Australia banned the Chinese firm from the National Broadband Network contracts, New Zealand did not follow suit.

Labour's stance comes after American companies were advised against doing business with the firm, as U.S. officials claim such dealings could encourage government spying.

Head of the U.S. House of Representatives’ Intelligence Committee Mike Rogers issued a statement discouraging companies from any vendor deals, with the panel expected to release a year-long enquiry into alleged security risks from Huawei and ZTE Corp, also a Chinese company.

“Neither we nor the public can judge at this point the nature of the issues surrounding the company and it is important not to prejudge these," says David Cunlifee, Labour’s acting Communications and IT spokesperson.

“However US media reports surrounding the congressional inquiry being released today contain allegations of spying and corruption.

"If substantiated these claims would be of the most serious nature.

“What is critical for New Zealand is for the public to have confidence that our Government is fully on top of the issues and managing any risks.

"Labour has been raising concerns over this since March but the Government has brushed them aside.

“Labour has asked questions for months. These allegations on such a sensitive contract raise potential national security concerns.

"Kiwis have lost confidence in our intelligence agencies since the Dotcom saga so an independent investigation is needed.

“The United States is now urging potential Huawei customers to look elsewhere and the Australians are also limiting the company’s involvement.

"Kiwis need to know why we are taking a different approach. What do they know that we don’t?”

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