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UK Loves Big Brother


For Your Internet Connection, Dial MI5


Supermarket records checked against tax returns.



by Simon Davies

THIS week, the House of Lords will vote on a Bill designed to create a regime
of surveillance for the entire internet. Fuelled by fears of rampant anarchy,
pornography and a digital black economy, the Government is pressing ahead
with measures of intrusion into cyberspace without parallel anywhere outside
Russia.

The legislation, known as the Regulation of Investigatory Powers (RIP) Bill,
authorises government agencies to snoop, often without warrant, on the e-mail
and internet activities of everyone with an internet connection. "Black
boxes" will connect internet service providers directly to the HQ of MI5.

The security services will be provided with new powers to use this machinery
to monitor British domestic internet activities. People are up in arms. True,
the internet can be a scary place - particularly for those who can't remember
when the telephone and the printing press induced similar anxieties. Some
people in government are also scared of the internet.

They believe criminality and tax evasion will flourish in cyberspace. Having
spent much of the past decade trying unsuccessfully to figure out ways of
controlling the medium, government has struck upon a novel idea: make sure
everyone using the internet knows they are being watched.
But although Britain already has the highest level of conventional mail and
phone interception, per capita, than anywhere in the Western world, at least
those intrusions are regarded as extraordinary. The real problem with the RIP
Bill is that it builds surveillance into the core of the internet, and thus
destabilises the very foundation of the medium.

An unprecedented alliance has formed an ad-hoc coalition of opposition to the
Bill. Yesterday, more than 50 organisations ranging from the Countryside
Alliance to Unison signed an open letter demanding the withdrawal of the
Bill. They warn that the measures are heavy-handed and ill-considered, and
will lead to loss of confidence in e-commerce, unacceptable costs to business
and to the British economy, confusion and uncertainty at numerous levels of
business activity, and an onerous imposition on the rights of individuals.

The Bill permits surveillance of the internet "for the purpose of assessing
or collecting any tax, duty, levy or other imposition, contribution or charge
payable to a government department". Would the authorities ever use these
powers? On the basis of the past record of the Inland Revenue, it is likely
that they will.

It was recently revealed that they have approached supermarkets to obtain
loyalty card files. They say the information is useful to determine whether a
person's spending pattern matches the way of life implied by his tax return.
Consider, also, the requirement in the Bill for computer users and companies
to hand over on demand their "decryption" keys to the Government.

It sounds mundane, but this simple requirement in the legislation is likely
to drive businesses off-shore. Encryption (the mathematics of scrambling data
so it is unintelligible to business rivals) sits at the heart of the
functioning of modern business, and it forms the core of the trust in the
e-commerce and banking industries.

Enter government, with its size 12 boots, demanding that businesses hand over
these priceless items. Bemused investors and venture capital leaders have
warned that the requirement compromises the core security of business. And
that means investment in new British projects in e-commerce will fall off
sharply.

Sensing a potential economic disaster, the British Chambers of Commerce
recently commissioned some academic colleagues and me to conduct an
assessment of the economic impact of the Bill. We concluded that it would
create an economic Chernobyl amounting to a cost to the British economy of
£46 billion over five years.

Instead of causing an uproar, business groups have been quiet, choosing to
pursue discreet meetings with ministers rather than dropping depth charges.
The reason, perhaps, can be traced to a civil servant from the DTI, Nigel
Hickson. In a scene worthy of Yes, Minister, the Government placed Hickson
"on loan" to the CBI, from where he started to co-ordinate the business
response to the Bill. Scary stuff.

In the face of increased opposition from non-business groups, Jack Straw
entered the fray. He talked up the potential for the Bill to tackle crime on
the internet, and launched a spirited attack on our economic report. Mr
Straw's intervention is significant. It indicates that the driving force
behind the Bill is substantial, and the air of desperation within sections of
government to get the legislation through has blinded the Home Office to
commercial and human rights sensitivities.

It is already clear that the Government is starting to split on RIP, with
Stephen Byers publicly lobbying Straw to reconsider. This is one of the few
Bills in recent memory that threaten the interests of commerce and human
rights. The Lords should act in everyone's interest, and throw it out.

------------------------------------------------------------------------
Simon Davies is director of Privacy International and visiting fellow in the
Department of Information Systems at the London School of Economics
Electronic Telegraph, July 12, 2000
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