You are completely misguided then:
1. You consider the government as a singular entity. It's a group of people. In that circumstance, it's as secure as the lowest denominator of person, which in a government is low.
2. You're find for them retaining your data, then implementing a law, then using it against you?
3. There are plenty of cases where the government have abused data that has been entrusted to them. There is no commercial motivation via competition for them to do a good job. You are effectively contracting out to a monopoly.
4. There is no absolute security either and it should be in your own hands. The moment you contract it out, you're morally responsible for the competence of who you contracted it out to, yet the government isn't an entity you can easily take to court nor seek compensation from.
5. Keys are complicated to distribute. Do you expect this to be 100% effective?
Consider these a little further then check your opinion against the facts on the table.