Australian Government requiring covert surveillance of all Australian citizens?

Asher Moses reported in the Sydney Morning Herald on 17 June 2010 that:

The federal government is hiding controversial plans to force ISPs to store internet activity of all Australian internet users - regardless of whether they have been suspected of wrongdoing - for law-enforcement agencies to access.

Yesterday, a spokesman for Attorney-General Robert McClelland denied web browsing histories would be stored, saying the government was only seeking to identify "parties to a communication", such as senders and receivers of emails and VoIP calls.

The most laughable part about the Australian Labor Government's approach to this is this statement on behalf of the Attorny-General, Robert McClelland. He hasn't been noted for the same amount of stupidity leaving his mouth as his colleague, Communications Minister Stephen Conroy. However, this is what was reported:

McClelland's spokesman defended the lack of transparency, saying the government had consulted broadly with industry about the plan but "it would not be appropriate to disclose policy discussions which are the subject of consultations with the industry".

What kind of clownish statement is this? I think you should be having policy discussions with the people of Australia (whom you allegedly represent), rather than hiding behind this statement, which is both meaningless and lacking in substance.