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Public Finance (Prohibition on Providing Public Funds to Gangs) Amendment Bill

Introduced

Last checked
July 15, 2026 15:48
Source captured
July 15, 2026 15:48
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View on Parliament.nz

What this bill does

The bill passed its first reading 101–21; the vote was not unanimous. According to the bill’s explanatory material, organisations run by or associated with gangs can currently receive Crown funding, including indirectly through public funds. The bill aims to stop public money reaching gangs. The bill would bar the Crown from paying money directly or indirectly to a gang, unless another Act expressly allows it, and require reasonable precautions and due diligence. It would also make knowingly making money available to a gang without reasonable excuse an offence.

AI-assisted summary based on the bill text and linked Hansard debates.

Latest voting result

May 20, 2026
First reading: Passed Party vote

Ayes 101 · Noes 21

  • National Party Aye · 48 votes
  • Labour Party Aye · 34 votes
  • ACT Party Aye · 11 votes
  • NZ First Party Aye · 8 votes
  • Green Party No · 15 votes
  • Te Pāti Māori No · 4 votes
  • Ferris, Tākuta No
  • Kapa-Kingi, Mariameno No

View the vote in Hansard

Arguments raised in Parliament

AI-assisted summary of the linked Hansard debates. Each point is grounded in the cited transcript.

Arguments for

Preventing seized criminal proceeds from returning to the offenders through later programmes would stop gangs from receiving effectively laundered public funding.

The prohibition would stop Crown agencies funding groups run by or strongly affiliated with gangs, which proponents say would close the loophole exposed by the Mongrel Mob-linked funding.

Arguments against

The bill’s ban on direct or indirect payments is drafted broadly enough that it could deny student support or welfare payments to gang members or their family members, including people trying to pursue education.

A sweeping indirect-funding prohibition could obstruct Government-funded addiction treatment and programmes that divert people from gang membership, weakening efforts to reduce gang harm.

Nuance and qualifications

Labour’s stated position was that the prohibition should be narrowed to direct Crown grants to organisations meaningfully connected to gangs, rather than broadly affecting associated individuals or families.

Bill text

Public Finance (Prohibition on Providing Public Funds to Gangs) Amendment Bill

Version published April 02, 2026 00:00.

Public Finance (Prohibition on Providing Public Funds to Gangs) Amendment Bill EXPLANATORY NOTE GENERAL POLICY STATEMENT This Bill would prohibit the Crown and its agencies from providing funds directly and indirectly to organisations that are run, administered or associated to gangs. The need for this Bill arises out of a concern that public funds could directly or indirectly end up in the hands of gangs by way of entities that are run by, or associated with, gangs being able to legitimately access funds through the Proceeds of Crime Fund. The law does not prohibit currently an organisation that is run, administered or associated with a gang from receiving funds from the Crown. The decision to grant funds to an organisation that has the involvement of a gang or gangs is unconscionable, the absence of a prohibition in the law on this matter has meant funding can be given to gangs to run programmes through organisations. The Bill will require the Crown to take all reasonable precautions and will require the Crown to undertake due diligence to ensure public funds do not end up in the hands of gangs. By making it an offence to make funds available to gangs, without a reasonable excus…
Read full bill text
Public Finance (Prohibition on Providing Public Funds to Gangs) Amendment Bill EXPLANATORY NOTE GENERAL POLICY STATEMENT This Bill would prohibit the Crown and its agencies from providing funds directly and indirectly to organisations that are run, administered or associated to gangs. The need for this Bill arises out of a concern that public funds could directly or indirectly end up in the hands of gangs by way of entities that are run by, or associated with, gangs being able to legitimately access funds through the Proceeds of Crime Fund. The law does not prohibit currently an organisation that is run, administered or associated with a gang from receiving funds from the Crown. The decision to grant funds to an organisation that has the involvement of a gang or gangs is unconscionable, the absence of a prohibition in the law on this matter has meant funding can be given to gangs to run programmes through organisations. The Bill will require the Crown to take all reasonable precautions and will require the Crown to undertake due diligence to ensure public funds do not end up in the hands of gangs. By making it an offence to make funds available to gangs, without a reasonable excuse, the Bill will achieve the policy intent of ensuring the flow of public funds does not end up in the hands of gangs. CLAUSE BY CLAUSE ANALYSIS Clause 1 is the Title clause. Clause 2 is the commencement clause and provides for this Bill to come into force on the day after Royal assent. Clause 3 identifies the Public Finance Act 1989 (the Act ) as the Act being amended by the Bill. Clause 4 inserts new section 73A into the Act to prohibit the payment of public money to a gang. Clause 5 amends section 76 of the Act to provide for an additional offence of paying, directly or indirectly, without reasonable excuse, any money, either to, or for the benefit of, an entity, knowing that the entity is a gang. That offence is subject to the penalty provision in section 77 so that a person who committed the offence would be liable on conviction, in the case of an individual, to imprisonment for a term not exceeding 12 months, or to a fine not exceeding $5,000; or in the case of a person or organisation other than an individual, to a fine not exceeding $15,000. The Parliament of New Zealand enacts as follows: 1 Title This Act is the Public Finance (Prohibition on Providing Public Funds to Gangs) Amendment Act 2026 . 2 Commencement This Act comes into force on the day after Royal assent. 3 Principal Act This Act amends the Public Finance Act 1989. 4 New section 73A inserted (Payments to gangs prohibited) After section 73, insert: 73A Payments to gangs prohibited 1 Except as expressly authorised by any Act, the Crown must not pay money (directly or indirectly) to a gang. 2 The Crown must take all reasonable precautions, and exercise due diligence, to avoid acting contrary to subsection (1) . 3 In this section, gang has the meaning given in section 4 of the Gangs Act 2024. 5 Section 76 amended (Offences) After section 76(2)(b), insert: ba pays or makes available, or causes to be paid or made available, directly or indirectly, without reasonable excuse, any money, either to, or for the benefit of, an entity, knowing that the entity is a gang; or

Hansard

May 20, 2026

Public Finance (Prohibition on Providing Public Funds to Gangs) Amendment Bill — Referral to Select Committee · Full day report

Referral to Select Committee ASSISTANT SPEAKER (Greg O'Connor) (19:57): The question is, That the Public Finance (Prohibition on Providing Public Funds to Gangs) Amendment Bill be considered by the Justice Committee. Motion agreed to. Bill referred to the Justice Committee.
Read full Hansard debate
Referral to Select Committee ASSISTANT SPEAKER (Greg O'Connor) (19:57): The question is, That the Public Finance (Prohibition on Providing Public Funds to Gangs) Amendment Bill be considered by the Justice Committee. Motion agreed to. Bill referred to the Justice Committee.

Documents and supporting material