Identity Cards Bill

My passport, which I carry with me for about 40 weeks of the year, says at the top ““European Union”” and then it says, ““United Kingdom of Great Britain and Northern Ireland””. Other members of the European Union—most of the Schengen states—have the right to have an identity card. If foreign citizens or European Union citizens who are not United Kingdom nationals come to this country, they surrender their national identity cards within a certain period. It runs out of date. Does that mean they would have the right to replace that national identity card with a British national identity card, which would give them rights of travel, or have I been misled? My passport mentions ““Secretary of State””, does that mean Secretary of State for the Home Office? I always used to presume it was the Secretary of State for foreign affairs.