There has not been a single action or communication from government that indicates that they are preventing the ID system from ending up under USA jurisdiction.

Parliament has asked government with near unanimity to prevent this from happening. Government has not even acknowledged that this should be prevented.

Right, which I agree, sucks, they should be upfront about what they want to do, regardless of what that is. And ideally their plan should be to try to stop it, I'm with you on this.

But the lack of action is not proof that "their plan is to do nothing" nor "the government plans to hand authentication data over to US", those stronger claims require stronger proof, something you seem to be unable to provide.