Intelligence and Security Committee – Annual Report 2010–2011 Intelligence and Security Committee – Intelligence and Security Committee Annual Report 2010–2011 Chairman: The Rt. Hon. Sir Malcolm Rifkind, MP Intelligence and Security Committee Annual Report 2010–2011 Chairman: The Rt. Hon. Sir Malcolm Rifkind, MP Intelligence Services Act 1994 Chapter 13 Presented to Parliament by the Prime Minister by Command of Her Majesty July 2011 Cm 8114 £20.50 © Crown copyright 2011 You may re-use this information (excluding logos) free of charge in any format or medium, under the terms of the Open Government Licence. To view this licence, visit www.nationalarchives.gov.uk/doc/open-government-licence/ or email: [email protected]. Where we have identified any third party copyright information you will need to obtain permission from the copyright holders concerned. Any enquiries regarding this publication should be sent to us at [email protected] This publication is available for download at www.official- documents.gov.uk. This document is also available from our website at http://isc.independent.gov.uk ISBN: 9780101811422 Printed in the UK for The Stationery Office Limited on behalf of the Controller of Her Majesty’s Stationery Office ID 2441486 07/11 Printed on paper containing 75% recycled fibre content minimum. From: The Chairman, The Rt. Hon. Sir Malcolm Rifkind, MP INTELLIGENCE AND SECURITY COMMITTEE 35 Great Smith Street, London SW1P 3BQ ISC 2010/11/160 7 July 2011 The Rt. Hon. David Cameron, MP Prime Minister 10 Downing Street London SW1A 2AA I enclose the Intelligence and Security Committee’s Annual Report for 2010–2011. This Report details the work and conclusions of the Intelligence and Security Committee for the period from October 2010 to May 2011. The Committee has held 19 formal sessions during this period. The majority of the Committee’s time during the reporting period was spent examining and taking evidence on the work of the three intelligence and security Agencies and the wider intelligence community. We report on these matters here. In addition to this Report, the Committee has submitted proposals separately to the Government on how oversight of the Agencies could be strengthened – in particular through reform of this Committee – in the context of the forthcoming Green Paper on handling of intelligence in judicial proceedings. MALCOLM RIFKIND THE INTELLIGENCE AND SECURITY COMMITTEE The Rt. Hon. Sir Malcolm Rifkind, MP (Chairman) The Rt. Hon. Hazel Blears, MP The Rt. Hon. Paul Goggins, MP The Rt. Hon. Lord Butler KG GCB CVO The Rt. Hon. George Howarth, MP The Rt. Hon. Sir Menzies Campbell CBE QC, MP Dr Julian Lewis, MP Mr Mark Field, MP Lord Lothian QC PC The Intelligence and Security Committee (ISC) is an independent Committee established by the Intelligence Services Act 1994 to examine the policy, administration and expenditure of the three UK intelligence and security Agencies: the Security Service (MI5), the Secret Intelligence Service (MI6) and the Government Communications Headquarters (GCHQ). The Committee also examines the work of the Joint Intelligence Organisation and the National Security Secretariat in the Cabinet Office, Defence Intelligence in the Ministry of Defence and the Office for Security and Counter-Terrorism in the Home Office. The Prime Minister appoints the ISC Members after considering nominations from Parliament and consulting with the Opposition. The Committee reports directly to the Prime Minister and through him to Parliament, by the publication of the Committee’s reports. The Prime Minister may ask us to look into a matter, but most of the time we set our own agenda. The Committee has an independent Secretariat currently hosted by the Cabinet Office. The Committee also has access to a General Investigator to undertake specific investigations covering the administration and policy of the Agencies; a Financial Investigator covering expenditure issues; and a Legal Advisor to provide independent legal advice. The Members of the Committee are subject to Section 1(1)(b) of the Official Secrets Act 1989 and are given access to highly classified material in carrying out their duties. The Committee holds evidence sessions with Government Ministers and senior officials (for example, the Head of the Security Service). It also considers written evidence from the intelligence and security Agencies and relevant government departments. This evidence may be drawn from operational records, source reporting and other sensitive intelligence, or it may be memoranda specifically written for the Committee. The Prime Minister publishes the Committee’s reports: the public versions have sensitive material that would damage national security blanked out (‘redacted’). This is indicated by *** in the text. The intelligence and security Agencies may request the redaction of sensitive material in the Report which would damage their work, for example by revealing their targets, methods, sources or operational capabilities. The Committee considers these requests for redaction in considerable detail. The Agencies have to demonstrate clearly how publication of the material in question would be damaging before the Committee agrees to redact it. The Committee aims to ensure that only the bare minimum of text is redacted from the Report. We also believe that it is important that Parliament and the public should be able to see where we have had to redact information, rather than keeping this secret. This means that the Report that is published is the same as the one sent to the Prime Minister: there is no ‘secret’ report. Under the existing legislation the Prime Minister has the power to redact material without the Committee’s consent, making a statement to that effect when he lays the Report before Parliament. To date, this has never happened. CONTENTS SECTION 1: THE WORK OF THE COMMITTEE ........................................................ 3 SECTION 2: KEY THEMES............................................................................................ 4 SECTION 3: THE NATURE OF THE threat ............................................................. 9 SECTION 4: THE AGENCIES ...................................................................................... 12 The Single Intelligence Account ................................................................................ 12 Government Communications Headquarters ............................................................. 15 The Security Service .................................................................................................. 23 The Secret Intelligence Service .................................................................................. 30 SECTION 5: WIDER INTELLIGENCE MACHINERY ............................................... 36 Central structures, strategies and responsibilities ...................................................... 36 Counter-Terrorism responsibilities and reviews......................................................... 42 Defence Intelligence ................................................................................................... 47 SECTION 6: CROSS-CUTTING ISSUES ..................................................................... 53 Cyber security ............................................................................................................ 53 Detainees .................................................................................................................... 60 7/7 Inquests ................................................................................................................ 66 BBC Monitoring ......................................................................................................... 73 Collaborative working ................................................................................................ 76 Business continuity .................................................................................................... 78 Vetting ........................................................................................................................ 79 SECTION 7: OVERSIGHT ............................................................................................ 81 Reform of the ISC ...................................................................................................... 81 The Investigatory Powers Tribunal and the Commissioners ...................................... 83 SECTION 8: RECOMMENDATIONS AND CONCLUSIONS .................................... 85 SECTION 9: GLOSSARY .............................................................................................. 91 SECTION 10: LIST OF WITNESSES ........................................................................... 93 SECTION 1: THE WORK OF THE COMMITTEE 1. This Report details the work and conclusions of the Intelligence and Security Committee (ISC) for the period from October 2010 to May 2011.1 The Committee has held 19 formal sessions during this period. 2. The majority of the Committee’s time during the reporting period was spent examining and taking evidence on the work of the three intelligence and security Agencies and the wider intelligence community. We report on these matters here. 3. The ISC was established under the Intelligence Services Act 1994 and has now been operating for over 16 years. We consider that it is right to review whether the structure, remit and powers of the Committee are still sufficient in the context of the current intelligence