Despite the lower price tag the compulsory ID cards carrying fingerprint, iris and face-recognition technology, still face much criticism from opponents who say the cards will infringe civil rights and could be a costly flop.

In a report to Parliament today, Liam Byrne, the Home Office Minister, tried to defuse suggestions that problems with technology could jeopardise the entire project by saying that the scheme was on track and that the cards would be rolled out as planned from 2008.

"ID cards will give us a powerful tool to combat identity fraud which underpins organised crime, terrorism and abuse of the immigration system," Mr Byrne said.

He revealed that the total cost of the scheme, including its set-up and operational charges, was estimated to be £5.4 billion for the 10 years to 2016.

Under the plans, Britons applying for or renewing passports after 2008 would be given an ID card and their biometric details would be put on a national register. ID cards are used in about a dozen European Union countries but are not always compulsory and do not carry as much data as those planned for Britain.

The two main opposition parties fear that the Government's past track record on implementing large-scale IT systems will mean that costs could spiral and run into figures quoted by the London School of Economics in a report earlier this year that put the price tag at between £10.6 billion and £19.2 billion.

David Davis, the Shadow Home Secretary, said the cost of introducing compulsory ID cards could be better spent on a prison building programme.

"The Home Office has an absolutely appalling record for delivering IT based projects on time and on budget. Some of this money could be spent on a much needed prison building program.

"What the Government should be doing is answering our calls to establish a UK border police, putting more police on the streets and appointing a dedicated minister to co-ordinate our security efforts."

United in opposition over the ID cards scheme, Nick Clegg, the Liberal Democrat home affairs spokesman, said: "Given the Government's abysmal record on IT projects, such as the massive cost overruns on the NHS computer system, the public has every right to maintain a healthy scepticism about this figure. Identity cards will be expensive and unworkable."

Today's report also revealed that the ID card scheme could remove the need to carry out a full Census.

The 13-page document said that ID cards would provide more accurate statistical analysis and, by creating a population register, would remove the need for a full Census. The 2001 Census cost £207 million.

Speaking after the announcement, Shami Chakrabarti, director of civil rights group Liberty, said: "Excuses for ID cards are like a many-headed Hydra - shoot one down and another one pops up. Including everything from illegal immigration to anti-terrorism, no doubt at some point ID cards will be the cure to obesity and global warming as well.

"At a low estimate of £5.4 billion, this white elephant is as dangerous to our privacy as our purses."

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