Select committee recommends Modern Slavery Bill be passed into law

The Education and Workforce Select Committee has recommended that the Modern Slavery Bill be passed into law, marking a significant step in combating modern slavery in New Zealand. Sponsored by National MP Greg Fleming and Labour MP Camilla Belich, the Bill would require companies with annual revenues exceeding $100 million to report on their supply chains and operations.

All parties supported the Bill except for ACT, making it the first to be introduced under Standing Order 288, which allows a member's bill to bypass the usual scrutiny. World Vision New Zealand's head of advocacy and justice, Rebekah Armstrong, praised the Bill's progression to second reading, stating it's a great start for New Zealand to build upon and emphasizing the country's need to catch up with other nations.

The Bill mandates firms to report on their efforts to assess, prevent, address, mitigate, and remediate the risk of modern slavery in their supply chains, though due diligence is not mandatory. It imposes civil penalties of up to $600,000 for entity non-compliance and potentially holds directors and senior managers accountable for material breaches or failure to take reasonable steps to prevent slavery.

Armstrong expects the Bill to be strengthened over time, noting that New Zealand companies inevitably face modern slavery in their supply chains but hopes legislation will foster a cultural shift, with businesses disclosing high-risk products and consumers rewarding companies for transparency and actions. Armstrong hopes New Zealand will transition from a name and shame culture to one of name and fame, encouraging businesses to publicly disclose their modern slavery risks and address the issues they uncover.