I know this has been done to death on the internet.
However, I find it so amazing that a govt would even consider such legislation, just to placate an industry lobby group.
http://creativefreedom.org.nz/s92.html According to the website, the potential is, that with a single, unsubstantiated accusation, your ISP would be compelled to disconnect your service.
There appears to be no requirement for evidence (RINZ chief comments that this is a ridiculous requirement) or due-process and there appears to be no provision for how/why the suspected activity was detected, and no provision for penalties of false accusation.
There also appears to be no distinction for the type of connection... a company or public connection is fair game if the RI says so.
I thought that this must be a wind-up at first, but it appears to be for real... although getting accurate details is difficult, as both sides of the argument are firmly entrenched in their dogma.