European directive on data protection could see Australia blacklisted

European directive on Data Protection could see AustraHa blacklisted According to a major Australian law fum, Clayton Utz, the European Directive prohibiting transfers of data to countries with inadequate levels of protection could see Australia blacklisted. Mr Matthew Kennedy, a Senior Associate of the firm, says it is likely that Australia will be considered a third-world country with an inadequate level of protection in some or all areas.

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with which it is costly and time-consuming to comply. At the other end, trade opportunities can evaporate because some data protection laws restrict or even prohibit data flows from one country to another.”

tion laws will need to achieve a high level of global harmony if they are to encourage and facilitate - rather than hinder - international trade. This is particularly so in the delivery of broadcasting and tele-

Mr Kennedy says that the need for new data protection laws is becoming more urgent as new technologies allow organizations to collect, use and store unprecedented volumes of personal data and more organizations begin operating globally in what has become an “information rich” environment. However, data protec-

communications from one country to another. He concludes that the world’s governments will soon have to come to grips with the fact that the emerging generation of privacy laws have the potential to restrict free trade.

He warns that the emerging generation of privacy laws could unduly restrict free trade.

Mr Kennedy continues: “International trade requires the transfer of personal data for myriad reasons. Many of these reasons are legitimate and are ones which most countries would permit. However, differences between the privacy laws of different countries can hinder trade by creating barriers which were not intended. At one end of the scale, trade can be discouraged by suppliers being confronted with different privacy laws ___-.--_.-. _) _ _“~ .. I I- . __I__-_-.

He comments: “This is because our data protection laws currently apply only to the public sector, tax file numbers and credit reporting. Indeed Australia could face bans as soon as the Member States introduce laws implementing the Directive. This will occur at any time between now and 1998. A similar risk arises in relation to Australia receiving information from Hong Kong, Taiwan and some other countries.” ,_ __

However, Australia’s status may change in the not too distant future, now that the Federal and New South Wales governments have put privacy laws on the agenda - with a scheme to protect the privacy of information which the private sector holds about individuals.

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Frank Rees -.--

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Storage hardware failure accounts for nearly half of lost data

Computer

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Audit Update l August 1996 0 1996, Elsevier Science Ltd. I