The ID in and of itself is not a bad thing. However, there needs to be a full and thorough discussion of the issues such as privacy, duplication, theft etc.
From what I can see, this scheme seems similar to SSN's in the US, and using them as an example, you can easily see how the aforementioned issues can come into play.
IMO, there needs to be a rigorous debate in the media about this scheme and also a detailed explanation from the government on how they plan to address these concerns.