Senate debates

Tuesday, 27 November 2012

Bills

Privacy Amendment (Enhancing Privacy Protection) Bill 2012; In Committee

4:29 pm

Photo of George BrandisGeorge Brandis (Queensland, Liberal Party, Shadow Attorney-General) Share this | Hansard source

I just want to say a few words on behalf of the opposition in relation to the government's amendments. The bill, in its exposure and first reading considerations, attracted a great number of representations and submissions from affected stakeholders, including from the telecommunications, utilities, banking, insurance and direct marketing sectors.

Fifty-nine submissions were received by the Senate Legal and Constitutional Affairs Legislation Committee, which reported on 25 September.

I want to take the opportunity to thank the committee for the comprehensive nature of its hearings and its report. I want in particular to thank my colleague and, indeed, my parliamentary secretary, Senator Gary Humphries, for his tremendous industry in the work of the committee. The majority of the committee made 21 recommendations including substantive amendments, new transitional provisions and a comprehensive review within 12 months of the passage of the bill. The coalition members of the committee made an additional four recommendations.

I will speak momentarily to amendment (17) among the government amendments. That amendment is to substantially the same effect as an amendment jointly circulated in my name and the names of Senators Xenophon, Williams and Wright. Given that government amendment (17) is to substantially the same effect, I just indicate to the minister that we are happy for it to be considered among the government amendments. But let me speak briefly to it.

That amendment, government amendment (17), raises an issue specifically identified in the hearings by coalition members of the committee. In their report, the coalition members of the committee said:

Proposed new subsection 20E(1) (item 72 of Schedule 2) of the Privacy Act prohibits a 'credit reporting body' which holds 'credit reporting information' about an prohibits a 'credit reporting body' which holds 'credit reporting information' about an individual from using or disclosing that information. There are a number of exceptions to this general prohibition (proposed new subsections 20E(2)-(3)); however, under proposed new subsection 20E(4) a 'credit reporting body' cannot disclose 'credit reporting information' derived from 'repayment history information' to recipients who are not 'licensees' under the National Consumer Credit Protection Act 2009, including, for example, lenders mortgage insurers (LMIs), … which are regulated by the Australian Prudential Regulation Authority.

The Insurance Council of Australia highlighted that LMIs assume the same risk as lenders:

[I]mpeding their ability to assess this risk by denying direct access to the full range of credit information is likely to significantly affect the LMI providers' ability to actually provide [lenders mortgage insurance]. This will impact on the availability and accessibility of borrowers (particularly first home buyers).

Coalition Senators note that such an outcome would be contrary to some of the benefits of privacy reform identified by the Attorney-General in her second reading speech and, in particular, the enhanced ability of the finance and credit industry to make more accurate risk assessments. Consistent with the introduction of more comprehensive credit reporting, Coalition Senators consider that, with the appropriate safeguards, there is no sound justification for disallowing LMIs from receiving 'credit reporting information' from a 'credit reporting body'.

And that is the effect of the amendment, government amendment No. (17).

I acknowledged Senator Gary Humphries a moment ago, but I should also acknowledge Senator John Williams, who was a participant in the hearings of the committee and who, I think, had a particular interest in this amendment. As to the rest of the government amendments, as I have indicated, the opposition supports them. They are in each case a reflection of the recommendations of the Legal and Constitutional Affairs Legislation Committee and their adoption is the result of a very productive discussion that took place between the Attorney-General, myself and Senator Humphries last Tuesday afternoon. So the government amendments have the support of the coalition.

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