Metadata retention: Joint Intelligence and Security Committee recommends laws pass, but with changes to strengthen oversight

A parliamentary committee has called for the Government's laws to keep phone and internet records for two years be passed, but with a number of changes to increase oversight of the system.

The Joint Intelligence and Security Committee investigated the Government's plan to force telecommunications companies to keep certain data for two years.

Under the recommended changes, the types of data that must be retained would be included in legislation to make it more difficult for the government of the day to make changes.

The enforcement agencies that can access the data would also be enshrined in law with the committee recommending ASIC and ACCC be included with national security agencies.

Committee chair, Liberal MP Dan Tehan, said the report makes 38 recommendations to improve oversight and safeguards.

"These recommendations, which are all bipartisan, will ensure that those mechanisms there operate efficiently and effectively and the public can be confident the regime is being used appropriately," he said.

As a new safeguard, the parliamentary committee would for the first time have oversight of the operational use of metadata by the Australian Federal Police and ASIO.

Opposition Leader Bill Shorten said Labor had not finalised its position but suggested it would back the laws with changes.

"I certainly would hope and I have reason to believe that the Government will accept Labor's propositions and will amend their initial legislation so we can get the balance right," Mr Shorten said.

Attorney-General George Brandis welcomed the report and said the Government would consider the recommendations carefully over the coming days with a response expected next week.

"This is urgent legislation which will support the security and safety of the Australian public," Senator Brandis said in a statement.

"Metadata is used in virtually all serious criminal investigations, including murder, sexual assault, child exploitation and kidnapping investigations.

"It is also central to almost every organised crime, counter-espionage, cyber-security and counter-terrorism investigation."

Greens Senator Scott Ludlam said the proposed changes to the bill were mostly cosmetic.

"We're really concerned that the Labor Party instead of treating this proposal with the scepticism that it deserves appears to have thrown the Prime Minister Tony Abbott some kind of mass surveillance lifeline," Senator Ludlam said.

Labor previously raised concerns about press freedom but the bipartisan report has recommended a separate three-month review of safeguards relating to the telecommunications data for the purpose of determining journalists' sources.

It does however say that when agencies access metadata to identify a journalist's source they should give a copy to the Commonwealth Ombudsman or the Inspector-General of Intelligence and Security who would then brief the committee.

The joint committee has called for a "substantial" contribution from the Government to the cost of the data retention scheme which it estimates to be between $200 million and $400 million.

But it has not put a figure on how much that contribution should be.

Law Council supports new metadata measures

Law Council of Australia president-elect Stuart Clark said the council supports many of the planned security measures.

"The report also includes important suggestions for minimum standards for protecting the security of the data, including encryption obligations and clarity surrounding the de-identification or destruction of data once the two year retention period has expired," Mr Clark said in a statement.

However, Mr Clark said there was a need for more specific protections for privileged information in the bill.

"While the PJCIS has made recommendations to enhance the protection of journalists' sources, communications between a client and their lawyer also require safeguarding," he said.

"The confidentiality of client/lawyer communications is in the public interest and is a basic principle of the administration of justice."