Earlier quoted context omitted.
This is pretty important point IMO. Why couldn't they use a local analytics system? Perhaps partner with one of the OS analytics like Piwik? Edit: Um, I just looked, they don't appear to be using GA but a local system already?
Why is it important to use a local system? What is wrong with using the best system for the job wherever in the world it comes from?
If it was a traditional software system that actually ran on the servers owned by the government then that would be fine.
With GA, at the very least Google get to know when I visit the site, and likely which pages I visit, simply through the requests my browser makes.
I'm not familiar enough with GA to be able to judge how much else is transmitted to them.