Canada Moves To Counter US Privacy Threat

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Canada Moves To Counter US Privacy Threat
Jim Bronskill
January 30, 2005

OTTAWA (CP) - The government will revamp the wording of future federal contracts with the aim of countering US powers, granted under anti-terrorism laws, to tap into personal information about Canadians.

The move is intended to prevent the US Federal Bureau of Investigation from seeing sensitive Canadian data the government supplies to American firms doing business with federal departments in Ottawa.

The government has also asked all agencies and departments to conduct a "comprehensive assessment of risks" to Canadian information they release to US companies carrying out work under contract.

The USA Patriot Act, passed following the Sept. 11, 2001 terrorist attacks, gave the FBI broader access to records held by firms in the United States.

The FBI can apply to a US court to have a company disclose records, including information about Canadians, to assist with investigations involving prevention of terrorism or espionage.

Privacy Commissioner Jennifer Stoddart says that if a federal institution hires a US company to process personal information about Canadians, then American laws apply to the data if the work is being done south of the border.

The federal Treasury Board leads a working group that is now busy finalizing special clauses to be used in future business proposal requests and contracts.

The group is consulting with Stoddart’s office on clauses "that we believe to be fundamental" to include in future request proposals and contracts, says a federal notice recently circulated to departments.

Treasury Board spokesman Robert Makichuk said the changes would "further enhance and clarify existing protection" for such things as establishing custody and control of data, ensuring confidentiality of information and setting conditions related to use and disclosure.

Trade experts at Foreign Affairs, International Trade and Justice must review the wording before the clauses receive final approval.

Makichuk said the overall goal is to try to ward off any concerns about how sensitive Canadian information will be used when contracts are contemplated.

"We’re starting at the planning stages now, as opposed to looking at it at the back end," he said. "Call it a culture shift if you wish, or just more awareness."

The clauses are expected to be ready for use by federal agencies some time in February.

New Democrat MP Brian Masse said the government has been too slow in recognizing the problem.

"They’ve gone from denial of this being a problem to now doing a full, complete audit, because it really is a gaping hole," he said. "We know that we have no control when they outsource that information beyond our borders."

Makichuk insisted federal officials are addressing the issues.

"We’re confident that we have the tools we need to ensure that the right of privacy and security of Canadian citizens can be respected and achieved."

Last October, departments were asked to examine their contracting practices as they relate to the handling of personal data, commercial secrets and information concerning national security.

The Treasury Board wants each agency to devise a strategy for dealing with possible risks the Patriot Act might pose to the privacy of Canadian information.

Monday is the deadline for submitting those assessments to Treasury Board.

The notice circulated to departments lists several contracting scenarios, suggesting the solution in one hypothetical case might be to "have part or all of the work completed within Canadian government facilities, especially when dealing with information of national security interest."