PM not taking responsibility for illegal spying in Kim Dotcom case

The Prime Minister says he takes absolutely no responsibility for a debacle that's seen one of our spy agencies illegally spy on people involved in the Kim Dotcom Megaupload case.

An inquiry has been launched into why the Government Communications Security Bureau spied on Kiwis, when its mandate is only to intercept the communications of foreigners.

John Key says it's the only case he knows of where the bureau has acted unlawfully.

Despite being the minister in charge of the GCSB, he says none of it is his fault.

"Simply because I wasn't aware of the fact that the operation was taking place. It didn't require ministerial sign-off. The first I heard about it was Monday. Obviously at that point, I immediately gave an indication of my displeasure."

John Key says the American authorities have not contacted him about the incident.

LISTEN: Strategic analyst Paul Buchanan talks to Mike Hosking about the GCSB using illegal spying

It appears Parliament's security and intelligence committee's been left in the dark over illegal spying conducted by the Government Communications Security Bureau.

Green co-leader Russell Norman sits on Parliament's security and intelligence committee.

But he says yesterday's development was news to him.

"I certainly have been surprised, I think it is an extraordinary turn of events."

And Labour Leader David Shearer, who's also on the committee, says the same.

"Well I don't talk about what happens in those committees, but this is the first time I have heard about this particular case."

Internet NZ says the Kim Dotcom spying allegation is a signal to Government agencies that they don't have a licence to break the law.

Chief executive Vikram Kumar says if it was an isolated incident one could have shrugged it off, but the courts have also ruled the arrest warrant was issued illegally and the raid on his house was unlawful.

"But it's part of systemic errors that are going, and it shows to some extent the callous disregard that the government has for individual liberties."

Vikram Kumar says it's ironic that our Government agencies are breaking the law to pursue people alleged to have broken the law.

There's suspicion that the investigation is more about the actions of police.

Strategic analyst Paul Buchanan says the GCSB wouldn't act on its own accord - but at the request of some other agency.

"The agency involved clearly is the police, so this may be directed more at the police than the intelligence services themselves."

Photo: Annabel Reid