StatCan must make the case for getting private banking data

Statistics Canada wants to collect the private electronic banking information of 500,000 Canadians — without their consent or knowledge.

What could possibly go wrong?

Nothing, according to a naïve-sounding Justin Trudeau who has rashly dismissed the legitimate concerns being raised about a proposal that comes in an era of rampant cybercrime.

Rather than fully explaining why Statistics Canada should get its hands on such sensitive, personal data, the prime minister went into attack mode this week, accusing the Opposition Conservatives who questioned the move of running “a war on science and facts.”

That’s an evasion of responsibility, not an acceptance of it.

Trudeau and his government have mishandled this issue from the word go and Canadians deserve so much better. Yet they’ve been left with far more questions than answers.

Starting next year, Statistics Canada intends to ask Canada’s nine biggest banks for the transaction data of a half million, randomly chosen customers. The information would include everything from bill, credit card and mortgage payments to cash withdrawals from ATMs and even account balances.

To be fair, Statistics Canada makes a reasonable case for wanting this data. The information could help governments make better policies, allow businesses to better plan their operations and provide ordinary Canadians with greater insight into the nation’s economy.

It’s getting harder for Statistics Canada to gather financial information, as fewer people respond to traditional telephone surveys. And the agency insists it will protect both the data and individual identities.

Yet many Canadians will be disturbed not only by the prospect of a government agency learning the intimate details of their financial lives but by the possibility outside interests could abuse this vital information.

Those worries are not frivolous. The banking information of Canadians could be a valuable commodity to hackers employed by foreign governments.

And blatant security glitches have already occurred. Last year, the federal government agreed to pay at least $17.5 million to settle a class-action lawsuit that had been launched over a privacy breach involving roughly 583,000 recipients of student loans. Such a costly failure should not be repeated.

If the Liberals had only possessed the foresight to be the first to inform Canadians about the plan and then responded to their concerns, the government would not be in panic mode today. But it took the news media, then the Conservatives, to put the issue on the national agenda.

The Liberals were caught flat-footed, which suggests they’re dangerously out of touch with Canadians less than a year from the next election. In this case there is time, however, for the Liberals to make amends and regain public trust.

The Office of the Privacy Commissioner is now investigating Statistics Canada’s request for this banking information. Good. This probe should be rigorous and comprehensive so the federal government has the information it needs going forward.

Meanwhile, Statistics Canada must explain and justify its need for the banking data. Then it must prove it can protect the confidentiality of the individuals whose records it obtains.

As for Trudeau, he should allow a full airing of these findings in the House of Commons before the government decides if StatCan should be allowed to proceed.

Trudeau owes Canadians more than indignant sputtering in Parliament. He needs to start acting like a leader instead of a prime minister who got caught with his hand in the data jar.