KEY POINTS:
Internet "black boxes" will be used to collect every email and web visit in Britain under the Government's plans for a giant "big brother" database.
British Home Office officials have told senior figures from the internet and telecommunications industries that the "black box" technology could automatically retain and store raw data from the web before transferring it to a central database controlled by the Government.
Information Commissioner Richard Thomas described it as a "step too far" and the Government's own terrorism watchdog said that as a "raw idea" it was "awful".
Nevertheless, ministers have said they are committed to consulting on the new Communications Data Bill early in the new year.
News that the Government is already preparing the ground by trying to allay the concerns of the internet industry is bound to raise suspicions about ministers' true intentions.
Further details emerged on Tuesday at a meeting of internet service providers (ISPs) in London where representatives from BT, AOL Europe, O2 and BSkyB were given a PowerPoint presentation of the issues and technology surrounding the Government's Interception Modernisation Programme (IMP), the name given by the Home Office to the database proposal.
Whitehall experts working on the IMP unit told the meeting the security and intelligence agencies wanted to use the stored data to help fight serious crime and terrorism, and said the technology would allow them to create greater "capacity" to monitor all communication traffic on the internet.
The "black boxes" are an attractive option for the internet industry because they would be secure and not require any direct input from the ISPs.
During the meeting, Whitehall officials also tried to reassure the industry by suggesting that many smaller ISPs would be unaffected by the "black boxes" as these would be installed upstream on the network and hinted that all costs would be met by the Government.
"What isn't clear is what the Home Secretary, GCHQ and the security services intend to do with all this information in the future," said a source close to the meeting.
"They said they only wanted to return to a position they were in before the emergence of internet communication, when they were able to monitor all correspondence with a police suspect.
"The difference here is they will be in a much better position to spy on many more people on the basis of their internet behaviour."
- INDEPENDENT