Electronic Transactions (Victoria) Bill ~ a reflection

This is the speech given by the Hon. Gavin W. JENNINGS on 10 May 2000 in support of passing the Electronic Transactions (Victoria) Bill, now an Act. Today (in 2007) Gavin Jennings is now the Minister for Environment and Climate Change, Minister for Innovation and is a representative in the Upper House / Legislative Council. Most importantly his portfolio oversees the introduction of Electronic Conveyancing in Victoria.

It has been reported by EC Jim Walker, General Manager, Electronic Conveyancing Project, the Victorian Minister for Environment and Climate Change, Gavin Jennings MLC, and the New South Wales Minister for Lands, Tony Kelly MLC, have issued a joint communiqué affirming a number principles for the development of a national electronic conveyancing system.

The text of the speech given by G W Jennings back in 10 May 2000 --

Hon. Gavin W. JENNINGS (Melbourne) -- Mr Katsambanis has given a hypnotic presentation that raised a huge range of issues. It is incumbent on the government to consider those issues in its consideration of the legislation and any other legal remedies it may seek to pursue. Mr Katsambanis said a revolution was taking place in electronic commerce and the use of the Internet. The resultant growth of knowledge and information that is available in the world of cyberspace, as he describes it, led him in his analysis to almost believe cyberspace is the real world and the physical world is the world outside cyberspace.

That is an interesting insight and probably demonstrates the depth of his concern and attention to the important technological advancement of the transmission of information electronically.

However, there needs to be an appropriate balance between the physical world and the legislative environment we create and this important technological and social development. The electronic transmission of information relates not only to commercial transactions but also to the social life and cultural development of many communities around the globe.

It is appropriate for the government to provide the legislative framework in which those transactions can take place, particularly if they relate to the world of commerce and as they may relate to potential litigation about the abuse of that information.

I refer to the current advertising campaign of IBM about the tyranny of distance and the nature of economies such as Australia that rely on commodity prices and export markets. The scene is in the Midwest of the United States of America where two farmers are side by side in their vans. In Australia they would be called utes but in America they are somewhat larger vehicles. One says to the other, 'Hey, Earl, have you thought of using the Internet to sell your feedstock?', The answer is, 'We're not selling books; we sell feedstock to everybody in the district'. The reply is, 'Earl, have you ever left the district?'. That is a measure of the nature of economic activity, be it Midwest America or remote parts of Australia.

That 30-second vignette clearly demonstrates the commercial world we have known in the past as the world that has changed and will change forever. I agree with the central thesis of Mr Katsambanis's argument that the world is changing and will continue to change at an ever-evolving rate.

In his second-reading speech the Minister for State and Regional Development outlined the changing economic activity that is currently taking place on the Internet and through e-commerce arrangements. Currently it is estimated to be $300 billion next year and is expected to increase three or four-fold within the next three years. That is a significant development. The role of the state government in the global phenomenon is to think of the appropriate levels of responsibility of state administration. This is where I divert from the opposition, which tried to confuse the role.

We must amalgamate the various roles the state government may play in this important issue. It goes to the foundation of a legal framework that acknowledges the validity of the transaction and considers electronic communication to be of equal standing to written material in certain circumstances. It defines the limits of how that may apply to electronic administrative practices and commercial transactions and limits the scope of the application, in particular to wills and other documentation that operate within other aspects of the Victorian statutes that require private transmission anomalies.

The opposition rightly points to the fact that the legislation builds on commonwealth legislation enacted last year and international conventions that were determined by the United Nations Committee on International Trade Law in 1996. The Victorian legislative model is consistent with the approach of developing consultation with all jurisdictions throughout the country. It was agreed to by the standing committee of Australian attorneys-general and was designed to enable a degree of flexibility for emerging technological advancement.

The bill has been drafted in a way that does not favour any particular type of technology. It allows an opportunity for emerging technologies to be included within its scope. The Victorian government drafted the bill in such a way to enable it to deal with a degree of flexibility about those emerging technologies and forms of transactions, some of which are able to be envisaged at this time and some may be beyond the imagination of members of the opposition such as Mr Katsambanis.

The important element that he and other honourable members in both houses identified was the importance of data protection. The opposition called for adequate mechanisms to provide for data protection and a degree of certainty. It said sanctions should apply to inappropriate use of electronic transmission or the impact on hacking.

The good news is: watch this space! Keep an eye on the cursor.

The government intends to address those important issues. The bill is a foundation that must be built upon to provide the legislative mechanisms to provide security and confidence to Victorians who wish to operate on the Internet for their commercial activities. The government recognises the need to provide protection and certainty. The government intends to underpin the growth in the software and hardware sectors and develop proper practices and processes that relate to those transactions. The bill provides a range of the measures that will assist Victorian industry to develop.

The government will consider what is the appropriate role for the state administration to play as a user of emerging technologies. An emphasis of the former government was its visionary approach to emerging technologies. I am a member of a party that spent some time criticising the then government for some of the failures of those emerging technologies.

However, it is worth erring on the side of caution when it comes to being part of a visionary approach to the use of emerging technologies. The government's concern will be to make proper assessments of the viability and demonstrable capacity of emerging technologies as we take them up.

As a member of the government I would be disappointed if the government did not play a role as a supporter and user of emerging technologies. The government faces a challenge in considering how it might play that role effectively while underpinning the development of software and other capacities within Victorian industry and the emerging services sector. Even without getting into the realm of backing winners or providing an inappropriate level of direct public subsidy to private enterprise, an appropriate balance needs to be struck. That is a challenge for the government in dealing with the issue.

Perhaps that is why the opposition has said that the public announcements the government has made about programs such as Connecting Victoria fall short, lack of vision and do not show a preparedness to underpin private sector activity. It is a difficult balance for any administration to strike and it is appropriate to get the concepts right before the government embarks upon that field of endeavour.

That is not to say that the government has not been prepared to fund a number of support programs. They have been supported and promoted by my parliamentary colleague the Minister for State and Regional Development and include Connecting Victoria and the Victorian E-Commerce Early Movers scheme. The Go for IT program will provide 125 traineeships in the Victorian public service to support the emergence in Victoria of a better skilled work force to deal with information technology issues.

A task force has been convened by my ministerial colleagues the Minister for State and Regional Development and the Minister for Post Compulsory Education, Training and Employment to consider Victoria's emerging skills requirements and the training opportunities that may be available to ensure that Victoria has a vibrant information, communication and technology sector in the state.

The Bracks government has successfully looked at making use of the Victorian government web site more efficient by creating Multi-server Express. Victorian citizens can access 92 services online with the touch of a single button. Prior to that initiative a search was required, which demanded some knowledge of the name of the service the Victorian citizen may have wanted to access. The clear design of the web site enables easier access to information for all Victorians.

A point of contention in debate has been the appropriateness of establishing Internet access at town halls versus libraries versus schools and other such locations. It would be disappointing if that issue were to divide the house. I have no doubt that our united position would be to try to achieve effective, efficient access for all Victorians at whatever is the most appropriate location. Regardless of locality and circumstances, Victorians should be able to effectively use the Internet for commercial and social activities and to augment and enhance our education system. Maximum coverage and easy access for all Victorians would ensure no opportunity is lost.

In no way, shape or form should the interface with the technical world -- that world enabling all sorts of human activity -- become an exercise for technonerds or those who pursue information technology in an esoteric fashion. Some use their knowledge in an intimidatory way to add to the insecurity of people who may wish to take up that technology. It is appropriate that people employing such intimidatory tactics feel the wrath of the government. The government has a role in demystifying technology, maximising its potential and facilitating ease of use. That is one of the underlying theoretical themes of the legislation.

Hon. R. M. Hallam -- It might include satellite phones!

Hon. G. W. JENNINGS -- The bill is without prejudice towards any form of technology. Technologies will come and go. One of the strengths of the bill is that it has been drafted in a flexible way to enable it to cover technologies not envisaged.

It is a theoretical framework establishing a baseline in an emerging field; ensuring equity before the law of electronic material transacted that in the past was not recognised as equal to physical documentation.

There has been no pretence that the legislation provides a framework to deal with data protection or sanctions. Such legislation will be required and, when put in place, will supplement the baseline established by the legislation before the house. Debate on the bill has allowed a dialogue between the government and the opposition, the latter expressing concern about the government's intention to address such issues. The message from the opposition that such legislation must be introduced has been heard, and that will be achieved. I commend the bill to the house.