Home Secretary David Blunkett should consider stripping the Special Fraud Office (SFO) of its powers to engage in electronic eavesdropping, according to the Chief Surveillance Commissioner.

The proposals are contained in the annual report to the Prime Minister from the Commissioner, Sir Andrew Leggatt, who is responsible for overseeing the controversial Regulation of Investigatory Powers Act (RIPA).

He says the SFO reported a policy decision that it would be an unjustifiable use of resources to train and maintain its own personnel on RIPA.

Leggatt says it is 'contrary to principle' that any public body should have a statutory power which its officers are not trained to use - because as long as they have the powers there is nothing in law to stop the SFO using them.

He says it is for Blunkett to decide whether to exercise his power to take the SFO off the RIPA list.

Leggatt also voices concern at the mixed performance of some government departments and local authorities, many of whom make little or no use of the RIPA legislation, which lists a number of public bodies allowed to make use of communications data.

Leggatt says there has been considerable improvement in local authority compliance with RIPA but 'there are indications that some public authorities are failing to maintain the required standards' and inspections over the past year had 'revealed many examples of bad practice and quite basic errors.'

A large proportion of local authorities have policies, procedures or training arrangements that are below the required standard on first inspection, as a result of which Leggatt expects improvements. Further inspections have been ordered for five police forces and five local councils.

The report also says it is not satisfactory that many NHS bodies with little interest in using their powers should retain them.

The report will add to the concerns of ISPs and others taking part in voluntary arrangements that require them to retain data for access under RIPA.