For one person to start using data encryption for every day stuff is fairly trivial. To make it common practice to do it for an entire government department, much less government, is a bit more drastic. It takes an incredible amount of resources to do efficiently and safely, and it can surprisingly make security worse (not to mention a false sense of security) if done poorly. Especially in cases like this, it is completely necessary.
However, this is irrelevant; it's not about security of the data, it's about the fact that someone was foolish enough to lose the data. Obviously, proper security measures would be greatly beneficial, but one should focus on the issue at hand first.
