Data protection legislation could help Bermuda's international business get new contracts abroad, E-commerce guru Nigel Hickson said yesterday.

Government is seeking feedback about new data protection laws which could be enacted this summer.

The Government consultant told Hamilton Rotarians one of the reasons new laws were proposed was in "response from concerns from international business, the insurance community and banking community that they may be losing out in their inability to handle large European data processing projects because they cannot get hold of the data from Europe".

Mr. Hickson said EC regulations stopping the transfer of information out of its borders affected Bermuda's business.

"We have excellent international companies in Bermuda with excellent IT processing facilities. From time to time a bank or insurance company wants to process customer information originating in Europe.

"To do that they have to go through all sorts of hoops and obstacles of all sorts of model contracts and legal jargon before they can do that.

"If we had data protection legislation in Bermuda that was recognised as compatible by the European Union then transfer of that data could take place on a much easier basis.

"It also means if we enacted legislation in Bermuda companies who wanted to export their customer data bases or employee records to be processed elsewhere would be restricted where they could export them. There would have to be some sort of controls in place in that country."

The new laws propose citizens should have right of access to data held on them with rights to change it if it is inaccurate and even to delete it.

He cited bank and Government records as possible examples. "That comes about because of the abuses some businesses and governments whatever have committed, I suppose, in the past."

He said a bank turning down a loan or mortgage could be challenged on the reasons why.

A customer could look at the files to make sure they weren't being falsely accused of being a bad debtor.

Such instances had occurred in Bermuda, said Mr. Hickson.

Work permits refusals might also be challenged by workers wanting to know what had led to the decision, suggested Mr. Hickson.

He suggested citizens could appeal to a commissioner or ombudsman over data corrections.

"There would also need to be some form, probably, of legal sanctions to make sure people couldn't routinely abuse the rights of individuals."

However, he said rights to see information would have to be regulated, perhaps with a small fee, to make sure it didn't cause chaos.

Data must be kept secure, said Mr. Hickson, and not be open to hackers.

"It's a real issue for small businesses. Data protection affects banks, building societies and insurance companies and small organisations as well. They have to make sure information is secure."

Government has released a consultation document on the new laws which will affect companies, Government and charities.

Government is seeking comments by November 14 while there will be a public meeting to discuss the document at the Hamilton Princess on November 10 between 5.30 p.m. and 7.30 p.m.