The annual report of the Intelligence and Security Committee 2006-2007 examines the policy, administration and expenditure of the three intelligence and security agencies, the work of the wider intelligence community, and the ban on the use of intercept as evidence in court. The Committee also conducted a detailed investigation into rendition (its report published as Cm. 7171, ISBN 9780101717120). The serious and sustained threat from international terrorism has, understandably, remained the main focus of the agencies. But the Committee is concerned that aspects of key intelligence and security work - including counter-espionage, serious crime work - are suffering as a consequence of the concentration on counter-terrorism. On the use of intercept, the Committee recognises its crucial importance to the capability of the agencies to protect the UK, its citizens and its interests overseas. Any move to permit the use of intercept evidence in court proceedings must be on a basis that does not jeopardise that capability. The Committee welcomes the Government's announcement that the Committee might be strengthened to maximise the effectiveness of its scrutiny role, and the proposal to publish a National Security Strategy. Finally, the Committee points to the one case where it has been refused access to documents. The Government's response to this report is issued alongside it (Cm. 7300, ISBN 9780101730020).