IRD data also vulnerable: MP

David Clark
David Clark
Labour revenue spokesman David Clark has continued his campaign to try to force the Government to upgrade the country's IT services, warning that a breach of IRD data could happen soon.

Dr Clark, the Dunedin North MP, has accused Prime Minister John Key of breaking his Valentine's Day promise this year to upgrade government department IT systems.

"Eight months on, privacy breaches at Winz, IRD and ACC show it's time to make good on his pledges."

Dr Clark's comments come as the Ministry of Justice is reported to have shut down its computer kiosks just days after security issues were uncovered on the Ministry of Social Development's public computers.

Freelance data journalist Keith Ng last week revealed he was able to download thousands of invoices and call-logs containing personal details from public kiosks at Work and Income branches in Wellington.

The ministry last Monday secured its servers and shut down the kiosks, which were meant to be used by jobseekers.

The revelation also prompted the Government to undertake an urgent stocktake of all of its public computer systems.

The Otago Daily Times understands it would take about $1 billion to upgrade the IRD system, a large amount of money as the Government undertakes austerity measures in the public service.

The IRD system has been operating for about 20 yearsbut has had many sign-ficant programmes added to it, such as student loans andWorking for Families.

Dr Clark said that on February 14, Mr Key promised he would set out a plan to upgrade the computer systems. He even talked of bringing in Google to fix the problems.

Mr Key had called the Government's computer systems "clunky" and "outdated".

"That's cold comfort for clients of ACC, IRD and Winz whose privacy has been breached due to the pressure on those organisations from archaic systems.

"Just what would it take for this to become a priority for Mr Key?

" Dr Clark asked.

Polson Higgs tax partner Michael Turner said that in the tax world, security of taxpayer information was paramount and stringent secrecy provisions were included in the Tax Administration Act.

Last week, Revenue Minister Peter Dunne congratulated IRD on improvements it had made to online GST filing, being a more cost-effective channel and allowing taxpayers to self-manage their tax matters online.

"At the same time, we are seeing much in the media about the security of information in government organisations such as the Ministry of Social Development. It does highlight the need for these organisations, and all businesses, to be absolutely confident in their security systems."

Having IRD continue to move into online services was appropriate and many businesses would say not before time, Mr Turner said.

"We can only hope the IRD online security is significantly ahead of the Ministry of Social Development."

It would be a tragedy if those security glitches meant organisations stepped back from online interactions with their customers. But that was a real risk if such breaches continued, he said.

Taxpayers could take some assurance from the stringent secrecy provisions in the Tax Administration Act in that should a security breach occur, there would be significant consequences, Mr Turner said.

Staff had to sign a declaration to keep information private.

Failure to do so left staff liable to imprisonment for up to six months and/or a fine of $15,000.

"There is a bit of teeth to the security provisions in IRD," Mr Turner said.

 

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