Smartcard chief quits PS in disgust Author: Geoffrey Barker Date: 08/05/2006, Page: 1
The head of the government's smartcard technology taskforce has quit the public service, warning Human Services Minister Joe Hockey against financial management and privacy protection plans for the $1 billion identity card project.
Senior bureaucrat James Kelaher has urged Mr Hockey not to hold the project funding inside the Department of Human Services, and not to scrap a proposed external expert advisory board designed to provide an independent check on privacy and security issues.
Four-year funding for the project - the government's biggest spending proposal outside Defence - is expected to be announced in the budget tomorrow.
Mr Kelaher is understood to have written to Mr Hockey last week expressing concerns over decisions taken within the department while both were overseas recently.
He warned Mr Hockey the decisions could be contrary to the smartcard cabinet decision announced by Prime Minister John Howard on April 26.
In justifying the decision to proceed with the voluntary smartcard, which will replace 17 cards now used to access services at federal agencies, Mr Howard said the new card would have enhanced security features and would not be a "Trojan Horse" for a compulsory national ID card.
Mr Kelaher's concerns reportedly centre on moves apparently initiated by Mr Hockey and the secretary of the Department of Human Services, Patricia Scott, to run the project inside DHS and to put the money inside Centrelink and Medicare.
Consultant teams led by KPMG and Mr Kelaher advised against these steps. Mr Hockey was reportedly told it would be preferable to hold the project management and money in a separate authority.
Mr Kelaher is also reportedly concerned over their decision not to establish a privacy and security advisory board of external experts and stakeholders that would report directly to Mr Hockey.
Observers see the decisions to alter plans for the funding and the advisory board as a push by a fledgling department and its secretary to increase their financial and security control over the Smartcard project.
A former deputy managing director of Medicare, Mr Kelaher is said to have warned Mr Hockey that a lack of skills inside the department, Centrelink and Medicare would pose a major risk to the project.
His letter also reportedly warned that a backflip on the advisory board would be contrary to discussions and agreements with ministers, departments and stakeholders.
The Smartcard will contain a biometric photograph and a chip with the holder's address and birth date. Other information could be stored, including information nominated by the holder.
The proposal for an external advisory board was central to advice provided to the government by KPMG which reported to cabinet on the business case for introducing the card. A sanitised version of the KPMG report is expected to be released soon.
The advisory board was seen as a way to help overcome public fears, acknowledged by Mr Howard, of "Orwellian dimensions" to the Smartcard proposal in terms of personal privacy and security. It was also seen as central in balancing against the possible gradual inclusion of information desired by groups other than health and welfare agencies.
Mr Kelaher reportedly advised Mr Hockey that he applauded the balance in cabinet's Smartcard decision and that the setting up of separate financial and administrative systems were key aspects in ensuring public trust and confidence in the project.
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