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It would extend the powers of RIPA (the Regulation of Investigatory Powers Act) which currently allows hundreds of government agencies access to communications data.
Some believe such legislation, which requires government authorities to request information from communication providers, is more than adequate for law enforcement purposes.
"The fight against terrorism doesn't require a centralised database," said Chris Mayers, chief security architect at Citrix Systems, an applications delivery firm.
"Such a database would face threats from both outside and inside. The more people who have access to it the more risks there would be," he said