What will Jacqui Smith do next, chip us like dogs?

I am almost convinced that the next thing Home Secretary Jacqui Smith will propose is that we will all have to be implanted with computer chips like house hold pets so that we can be tracked wherever we are. Surely we have allowed things to go too far. We need to step back or all of the freedom we think we enjoy will be gone before we even know it...if it hasn't already.