Sydney
THE Australian government鈥檚 decision to loosen its data protection laws
could trigger a 鈥渄ata boycott鈥� by the European Union. Experts predict that a
flare-up between the EU and Australia could be followed by a clash between
Europe and the US.
Australian Prime Minister John Howard last month abandoned an election
promise to extend to businesses the privacy laws that now apply to government
agencies. And the finance minister, John Fahey, now says that controls on the
use of personal data held by the government will be relaxed so that some work
done by civil servants can be contracted out to the private sector. Companies
will sign guarantees restricting the use of data and ensuring privacy.
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The problem is that the EU passed a privacy directive last year, which will
come into force in July next year. It requires that member nations 鈥渢ake the
measures necessary to prevent any transfer of data鈥� to a third country that does
not have 鈥渁n adequate level of protection鈥�.
鈥淚f the directive is invoked, we could find ourselves in a bit of trouble,鈥�
says John Taggart, a lecturer in computers and the law at the University of
Technology in Sydney. 鈥淚t cuts off the right for [EU countries] to trade
information with Australia.鈥�
This could affect transfers of electronic data, including credit card
details, bank Personal Identification Numbers and health records. It could even
prevent scientists from transferring data to Australian colleagues, if the
information would allow people living in the EU to be identified.
The London-based group Privacy International, which raises awareness of
surveillance by governments and corporations, has started lobbying European
governments to restrict the trade of data with Australia until the Australian
government tightens its legislation.
If the blockade of Australia goes ahead, the US could be the next target.
Roger Clarke of the Australian National University in Canberra, an expert on
privacy law, says that US data protection laws also fall short of the standards
laid down in the European directive.