The Privacy Commissioner, John Edwards, has published a report highly critical of the Government's plan to make community groups hand over clients' private details if they want state funding.
The plan ran into opposition, particularly from sexual and family violence groups anxious about preserving the privacy of their clients.
They have now won a temporary reprieve from the requirement which takes effect in July for other groups.
But a data breach at the Ministry of Social Development yesterday has raised new fears around the Government's ability to keep this type of data secure.
The Privacy Commissioner, John Edwards, tells Morning Report the Government was wrong to demand that community groups hand over clients' private details if they were to continue receiving state funding.