Intelligence and Security Committee Annual Report 2009–2010 Chairman: The Rt. Hon. Dr Kim Howells, MP 14178 ISC AR Cover 09_10 4th.indd 1 16/03/2010 15:02 14178 ISC AR Cover 09_10 4th.indd 2 16/03/2010 15:02 Intelligence and Security Committee Annual Report 2009–2010 Chairman: The Rt. Hon. Dr Kim Howells, MP Intelligence Services Act 1994 Chapter 13 Presented to Parliament by the Prime Minister by Command of Her Majesty March 2010 Cm 7844 £14.35 14178 ISC Annual Rep 09_10 4th.indd 1 16/03/2010 15:01 © Crown copyright 2010 The text in this document (excluding the Royal Arms and other departmental or agency logos) may be reproduced free of charge in any format or medium providing it is reproduced accurately and not used in a misleading context. The material must be acknowledged as Crown copyright and the title of the document specified. Where we have identified any third party copyright material you will need to obtain permission from the copyright holders concerned. For any other use of this material please contact the Office of Public Sector Information, Information Policy Team, Kew, Richmond, Surrey TW9 4DU or e-mail: [email protected]. ISBN: 9780101784429 Printed in the UK by The Stationery Office Limited on behalf of the Controller of Her Majesty’s Stationery Office ID 2354911 03/10 Printed on paper containing 75% recycled fibre content minimum. 14178 ISC Annual Rep 09_10 4th.indd 2 16/03/2010 15:01 From: The Chairman, The Rt. Hon. Dr Kim Howells, MP INTELLIGENCE AND SECURITY COMMITTEE 35 Great Smith Street, London SW1P 3BQ ISC 2009/10/078 05 March 2010 Rt. Hon. Gordon Brown, MP Prime Minister 10 Downing Street London SW1A 2AA I enclose the Intelligence and Security Committee’s Annual Report for 2009–2010. This covers our work between August 2009 and March 2010. The Committee has met on a total of 29 occasions during this time, taking oral and written evidence on the administration, policy and expenditure of the three intelligence and security Agencies. In addition, I enclose our Review of the Government’s draft ‘Guidance to Intelligence Officers and Service Personnel on the Detention and Interviewing of Detainees Overseas, and on the Passing and Receipt of Intelligence Relating to Detainees’. I am grateful that you have agreed to publish both Reports before the House of Commons debate on our work on 18 March. KIM HOWELLS 14178 ISC Annual Rep 09_10 4th.indd 3 16/03/2010 15:01 THE INTELLIGENCE AND SECURITY COMMITTEE The Rt. Hon. Dr Kim Howells, MP (Chairman) The Rt. Hon. Michael Ancram QC, MP The Rt. Hon. George Howarth, MP The Rt. Hon. Sir Menzies Campbell CBE QC, MP The Rt. Hon. Michael Mates, MP Mr Ben Chapman, MP Mr Richard Ottaway, MP The Rt. Hon. Lord Foulkes of Cumnock Ms Dari Taylor, MP 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 Agencies: the Security Service, the Secret Intelligence Service (SIS) and the Government Communications Headquarters (GCHQ). The Committee also examines the work of the Joint Intelligence Committee (JIC), the Assessments Staff and the Intelligence and Security Secretariat in the Cabinet Office, and the Defence Intelligence Staff (DIS) in the Ministry of Defence. The Prime Minister appoints the ISC Members after considering nominations from Parliament and consulting with the leaders of the two main opposition parties. The Committee reports directly to the Prime Minister and through him to Parliament, by the publication of the Committee’s reports. Sometimes we are asked to look into a matter, but most of the time we set our own agenda. We determine how and when we conduct and conclude our programme of work – this gives the Committee the freedom to pursue every avenue of inquiry to its satisfaction. Often this means that the Committee’s inquiries are very detailed or wide-ranging. The Committee has an independent Secretariat currently hosted by the Cabinet Office. The Committee also has a panel of three investigators: 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 the Committee with independent legal advice. The Members of the Committee are notified under 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 (including original records when relevant), or it may be memoranda specifically written. 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 Committee agrees what material will be blanked out with the Government, and to date no material has been excluded without our consent. 1 14178 ISC Annual Rep 09_10 4th.indd 4 16/03/2010 15:01 CONTENTS INTRODUCTION ............................................................................................................ 3 THE COMMITTEE’S INDEPENDENCE ....................................................................... 4 Background .................................................................................................................. 4 Our proposals for the future ......................................................................................... 4 Host department ...................................................................................................... 5 Budget...................................................................................................................... 5 THE AGENCIES .............................................................................................................. 6 The threat ..................................................................................................................... 6 The Single Intelligence Account .................................................................................. 6 Government Communications Headquarters ............................................................... 7 Expenditure.............................................................................................................. 7 Policy ....................................................................................................................... 8 International Counter-Terrorism ......................................................................... 8 Non-ICT work ..................................................................................................... 9 Information Assurance and Communications-Electronics Security Group (CESG) ...................................................................................... 9 Administration ......................................................................................................... 9 The Security Service .................................................................................................. 10 Expenditure............................................................................................................ 10 Policy ..................................................................................................................... 11 International Counter-Terrorism ....................................................................... 11 Non-ICT work ................................................................................................... 11 Administration ....................................................................................................... 11 The Secret Intelligence Service .................................................................................. 12 Expenditure............................................................................................................ 12 Policy ..................................................................................................................... 13 International Counter-Terrorism ....................................................................... 13 Non-ICT work ................................................................................................... 13 Administration ....................................................................................................... 14 CROSS-CUTTING ISSUES ........................................................................................... 15 Business continuity .................................................................................................... 15 Electronic attack and cyber security ........................................................................... 16 The threat ............................................................................................................... 16 Machinery .............................................................................................................. 16 The exchange of intelligence ...................................................................................... 17 Intercept as evidence .................................................................................................. 19 SCOPE