The apparatus of state security being turned against its people is not a fact to just be brushed aside. So no, our feelings about the individual subject or subjects of illegal spying in some specific case or other is not 'the real question'. We have plenty of opportunity to air that discussion, separately.

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Having just read the PM's statement[1], I can't see any signs of actual corruption in the procedure that was followed. It seems reasonably likely that this was just a mistake.

[1] http://beehive.govt.nz/release/inspector-general%E2%80%99s-r...