At present no one, including retailers and security guards, were protected from civil or criminal liability if they arrest and detain a person stealing goods valued at less than $1000 during the day, he said.
The reforms announced today include:
- Changing the Crimes Act so citizens can intervene to stop any Crimes Act offence at any time of the day.
- Requiring a person making an arrest contact the police and follow their instructions.
- Clarifying restraints can be used, when reasonable, when making an arrest.
- Changing the defence of property provisions to the Crimes Act so it is clear that reasonable force may be used.
Under current legislation, anyone can make an arrest at night where there are reasonable grounds for believing a person is committing an offence.
A warrantless arrest can be made if the offender is committing a crime for which the maximum punishment is at least three years imprisonment.
However, a person risks civil or criminal liability in the event of detaining a person stealing goods valued at less than $1000.
"The operation of the Crimes Act 1961 hinders people from stopping offending as it occurs right in front of them," Goldsmith said.
"This initial package of reforms ... will give Kiwi businesses additional tools to deal with those that are robbing them of their livelihood and economic growth."
Over the past year, New Zealand retailers have expressed frustration on the slow progress in tackling crime impacting their businesses.
In response, an advisory group on retail crime was created with an operating budget of $1.8 million per annum for at least two years, led by former Crime Prevention Group president Sunny Kaushal.
Other members included Dairy and Business Owners Group vice-chair Himanshu Parmar, Michael Hill national retail manager Michael Bell, Foodstuffs North Island retail and property general manager Lindsay Rowles and Retail NZ chief executive Carolyn Young.
"The economic cost of retail crime in New Zealand is in the billions, and retailers and security guards face abuse and assault that no New Zealander should be subjected to," Goldsmith said.
"This government will ensure that people working in the retail sector are being effectively protected, are empowered to stop offending, and that offenders are caught and deterred from future offending."
Goldsmith said while people may be concerned this will encourage an uptick in violence and vigilantism, it was not compulsory, and people needed to consider their own safety first.
People will not be able to use unreasonable force or excessive force, he said.
"Stopping someone from moving, restraining them is fundamentally what we're on about...and then the role is to call for the police and to hold them until such time."
Associate Justice Minister Nicole McKee said it was important to protect about 230,000 Kiwis working in the retail sector.
"Increasingly, they are experiencing the personal and economic trauma of violent and theft-related crimes," McKee said. "The impact of crime on this group can have flow-on effects for their families and wider communities."
Earlier, Young told RNZ's Morning Report programme she was concerned about an escalation of violence and threats to staff.
Frontline retail workers were often young and in their first job and "don't go to work to do law enforcement".
"We have grave concerns about proposals to empower people to physically restrain or physically engage with people to stop them doing a crime, and the fact that could create more violence and people will get hurt.
"We know that in the past where people have chased after alleged offenders there have been deaths."
There may be an increase in weapons people bring as a result of knowing the could be challenged, she said.
Young, a member of the ministerial advisory group, said chair Sunny Kaushal supported an expansion of citizen's arrest powers, and some smaller retailers also backed the move.
However, most Retail NZ members have said they wouldn't use the powers because they were concerned about staff safety, she said. They wanted to be able to approach someone who has allegedly offended, get goods back without any violent interaction, have them removed, and use trespass laws and facial recognition so the person doesn't return.
Like opening Pandora's box: Hipkins
Labour leader Chris Hipkins said he is alarmed at the idea of new citizen's arrest powers.
"The power to detain someone against their will is a very, very big power and at the moment it's largely restricted. The police and Corrections are the only people who can do that, it's a law and order issue.
"I think the idea that fellow citizens could be detaining other citizens without any real legal training, law enforcement power or anything like that - it's a massive step."
If the government were to announce changes it would raise international headlines - but not for the right reasons, Hipkins believed.
"I think this is just opening a Pandora's box and it's pretty dangerous territory."
Labour police spokesperson Ginny Andersen has criticised the government for paying Kaushal $920 a day for his work.
