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Gordon Brown today announced that evidence gained from the bugging of suspects should be used in court cases for the first time.
In a statement to the House of Commons, the Prime Minister said he agreed with the findings of a cross-party review which recommended the use of intercept evidence so long as strict conditions were met.
The review, by a group of four Privy Counsellors led by the Whitehall mandarin Sir John Chilcot, concluded that evidence should be released only where it did not disclose details of secret eavesdropping techniques, or place too heavy an administrative burden on the security services.
Mr Brown said that the cross-party committee will now help a Government implementation team to draw up a regime where intercept evidence can be used.
The move represents a victory for Sir Ken Macdonald, the Director of Public Prosecutions, who has argued that intercept evidence will help to secure convictions in terrorist trials.
Previous prime ministers have turned down its use after the security services and the police said they were worried that it risked tipping criminals off about their methods, and would create a new paperwork burden.
But, announcing publication of the report, Mr Brown said: "It concludes that it should be possible to find a way to use some intercept material as evidence provided - and only provided - that certain key conditions can be met.
"These conditions relate to the most vital imperative of all, that of safeguarding our national security. The Government accepts this recommendation, and takes the accompanying conditions very seriously."
Mr Brown outlined the conditions set down in the Chilcot report:
* Giving intercepting agencies final say over whether their material was used in prosecutions
* Ensuring that material cannot be disclosed against the wishes of the agency originating it
* Protecting the close co-operation between intelligence and law enforcement agencies
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