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50 <strong>SENATE</strong> Thursday, 13 October 2016 aware of the reputational aspect of anything that might cause them to be considered as having done the wrong thing. I think we will find they are extremely focused on that, and we think that is appropriate. In terms of data breaching—and I assume you are talking about the mandatory notification for data breaching moved by the Labor Party—certainly the bill, as amended by the government yesterday, already imposes a legal obligation on a contracted service provider. The contracted service provider and the secretary are to notify the Information Commissioner when they become aware of a data breach, or a possible data breach, in the handling of personal information on the register. The government amendment also includes a requirement for certain actions to be taken in response to the data breach, including containing and evaluating the risks associated with the breach and prevention of future breaches. Other steps include the Department of Health working with the Information Commissioner about notifying affected individuals. Any data breaches will be handled using established protocols for personal information breaches. As you referred to before, the amendments are in line with the provisions in the My Health Records Act 2012. It ensures a very systematic and measured response. At the same time I think we need to note that any mandatory requirement may well not give us the outcome we are looking for. Senator DI NATALE: In regard to the haste with which we are proceeding with this legislation, what are the financial implications for the contract with Telstra if this legislation were not to pass during this sitting period? Senator NASH (New South Wales—Deputy Leader of The Nationals, Minister for Regional Development, Minister for Local Government and Territories and Minister for Regional Communications) (13:37): My advice is that there are delay penalties, but the bigger impact—and I think everybody would be well aware of this—is actually not getting it up and running at the date that is targeted. Senator DI NATALE (Victoria—Leader of the Australian Greens) (13:37): Could you provide me with some advice about the quantum of those delay penalties? Senator NASH (New South Wales—Deputy Leader of The Nationals, Minister for Regional Development, Minister for Local Government and Territories and Minister for Regional Communications) (13:37): I will have to take that on notice for you, Senator, but I will endeavour to come back to you very quickly with it. Senator DI NATALE (Victoria—Leader of the Australian Greens) (13:37): I have just one further question about the recommendations made by the Information Commissioner. I note that many of those have been adopted by the government and I think they are sensible changes. I am interested as to why the government initially was of a persuasion not to have an inquiry into the legislation, not to take that evidence, because without those changes the legislation that was proposed to the Senate would have been inconsistent with My Health Record and many of the changes that the Information Commissioner has suggested. Senator NASH (New South Wales—Deputy Leader of The Nationals, Minister for Regional Development, Minister for Local Government and Territories and Minister for Regional Communications) (13:38): My understanding is that it was simply a matter of time. The TEMPORARY CHAIR: The question is that amendments (1) to (3) on sheet 7945 be agreed to. The committee divided. [13:42] (The Temporary Chair—Senator Ketter) Bilyk, CL (teller) Carr, KJ Collins, JMA Di Natale, R Farrell, D Gallagher, KR Ketter, CR Ludlam, S McAllister, J Moore, CM Polley, H Rhiannon, L Siewert, R Urquhart, AE Whish-Wilson, PS Ayes ...................... 29 Noes ...................... 33 Majority ................. 4 AYES Cameron, DN Chisholm, A Dastyari, S Dodson, P Gallacher, AM Hanson-Young, SC Lines, S Marshall, GM McKim, NJ O'Neill, DM Pratt, LC Rice, J Sterle, G Watt, M CHAMBER
Thursday, 13 October 2016 <strong>SENATE</strong> 51 Abetz, E Birmingham, SJ Canavan, MJ Duniam, J Fierravanti-Wells, C Griff, S Hume, J Lambie, J Macdonald, ID McKenzie, B O'Sullivan, B Paterson, J Reynolds, L Ruston, A Scullion, NG Smith, D Xenophon, N NOES Back, CJ Bushby, DC Cash, MC Fawcett, DJ Fifield, MP Hinch, D Kakoschke-Moore, S Leyonhjelm, DE McGrath, J Nash, F Parry, S Payne, MA Roberts, M Ryan, SM Sinodinos, A Williams, JR (teller) Brown, CL McCarthy, M Singh, LM Waters, LJ Wong, P PAIRS Seselja, Z Cormann, M Bernardi, C Day, RJ Brandis, GH Question negatived. Senator POLLEY (Tasmania) (13:45): by leave—I move amendments (1) through to (8) on sheet 7946 together: (1) Clause 4, page 3 (lines 21 and 22), omit the definition of contracted service provider. (2) Clause 4, page 6 (line 10), definition of protected information, 'after "personal information ", insert ", key information ". (3) Clause 18, page 19 (line 13), omit "120 penalty units ", substitute "600 penalty units ". (4) Clause 22A, page 20 (line 24) to page 23 (line 31), omit the clause, substitute: 22A Data breaches (1) This section applies to an entity if: (a) the entity is: (i) the Commonwealth, the Minister or the Commonwealth Chief Medical Officer, performing functions under this Act; or (ii) engaged by the Minister, on behalf of the Commonwealth, to perform services for or on behalf of the Commonwealth in connection with functions of the Commonwealth, the Minister or the Commonwealth Chief Medical Officer under this Act; or (iii) any other person performing work relating to the purposes of the register; and (b) the entity becomes aware that: (i) a person has, or may have, contravened this Act in a manner involving an unauthorised collection, recording, disclosure or other use of information about an individual; or (ii) an event has, or may have, occurred (whether or not involving a contravention of this Act) that compromises, may compromise, has compromised or may have compromised, the security or integrity of the register; or (iii) circumstances have, or may have, arisen (whether or not involving a contravention of this Act) that compromise, may compromise, have compromised or may have compromised, the security or integrity of the register; and (c) the contravention, event or circumstances directly involved, may have involved or may involve the entity. Note: This section applies to an entity when the entity becomes aware of a matter referred to in paragraph (b) regardless of when that matter arose or occurred or if the matter is ongoing at the time the entity became aware of the matter. Notifying the Information Commissioner (2) The entity must, as soon as practicable after becoming aware of the contravention, event or circumstances, notify the Information Commissioner of the contravention, event or circumstances. Civil penalty: 600 penalty units. CHAMBER
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COMMONWEALTH OF AUSTRALIA SENATE Ha
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Title Minister Minister for Health
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Title Shadow Minister Deputy Manage
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