PA38, you're missing the point. The Bill will require any UK ISP, at the Government's request, to install and maintain the necessary hardware to log details of all sites visited and the recipients of all emails.
THEY, as you put it, may well be reading our data anyway. The European Union recently accused the US of using intercepts of electronic communications to help American industry win contracts against rival European companies, and accused the UK of actively assisting them. Interesting that one of the provisions of the Bill is regarding encryption keys (basically if you encrypt any information, DO NOT forget the password or you could be looking at a two-year stretch!)