Identity Cards Bill

One of the curious things is that the LSE report did not provide any background information on how the figures were calculated. Indeed, the LSE has acknowledged that some of them were wrong and that some of the assumptions were guesses. That is surprising given that it is a major study. Professor Angel indicated that the matter was taken into account. I, of course, accept that in its entirety. However, the fact that it was taken into account was not reflected in the report, which is unusual and surprising. Those issues remain. How will other government departments react? The costs will be incurred only to generate a net benefit to a particular department, for example, increased efficiency, better customer service or reduced fraud. It would not be right to regard these future costs as part of the planned cost of issuing identity cards, any more than the cost of providing passport readers at ports should be seen as part of the cost of issuing passports. Decisions on the passport readers are a matter for the Immigration Service, looking at its own business case justification for spending the money set against the benefits that speedier passage of passengers would achieve. Exactly the same cost-benefit judgment will need to be made in relation to ID card readers. The legislation before us today is enabling legislation to allow a system of identity cards to be introduced. The Bill will not be the final word and the Government will need to be reassured at every stage that the scheme has sound financial viability. Of course, expenditure on the ID card programme is subject to the normal audit procedures of departmental expenditure exercised through the National Audit Office. I entirely accept that we should be discussing costs as part of the process of passing the Bill. However, we must also recognise that, constitutionally, estimates to be agreed by Parliament for the development and running of the ID card scheme remains a matter for the elected House and not your Lordships’ House. We feel that the figures we have to date are sound and have been interrogated with propriety. As my noble friend indicated, the Government are sure that we will implement this measure only if we are confident that these figures are going to be within the realms of what is reasonable. We believe that they are.