The Prime Minister has told the Home Office to contribute up to £20 million towards the costs to business in implementing the Regulation of Investigatory Powers Bill which is presently being debated in the House of Lords.

Tony Blair’s decision follows widespread controversy over the anticipated cost to industry. The figure of £20 million is significantly less than many industry estimates, which are based on fears that ISPs will need to install new equipment to intercept communications on their servers.

However, the Home Office has said, “the Government has no plans whatsoever to require anyone to install any equipment for the provision of communications data.”

One ISP, Poptel, which has been vocal in its attack on the new law, has threatened to move its servers from the UK if the government refuses to amend the Bill from its present form.

Shaun Fensom, the company’s chairman, is reported in Silicon.com as saying, “We are concerned that under the proposed regulatory regime we will not be able to guarantee the integrity of communications for our clients, particularly trade unions, NGOs and others who may legitimately come into conflict with the government.”

He added that if the Bill is not withdrawn, “We will have no alternative but to actively look at moving at least some of our services overseas.”

Draft Codes of Practice on interception, covert surveillance, covert human intelligence services and the use of decryption keys will be published by the Home Office in the next few days.

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