MI5 and City of London Development of Al Qaida(sic) Threat?

Posted on the 26 June 2012 by Freeplanet @CUST0D1AN
this is interesting...
Address at the Lord Mayor’s Annual Defence and Security Lecture by the Director General of the Security Service, Jonathan Evans.
Mansion House, City of London, 25 June 2012
It's a 31 paragraph transcript titled The Olympics and Beyond.
First off, why are they 'now' calling it Al Qaida, with an I?
Secondly, I hope he got the start of this paragraph wrong...
4. The close co-operation between my Service and the City of London Police dates from the 1990s and has stood us in good stead with the development of the Al Qaida threat in the last dozen years...

...maybe I'm just READING IT WRONG, but that can potentially be read as 'Al Qaeda(sic) was a product of MI5 and City since 1990s'? Can't it? The way it's worded? Grammatically speaking?
On SKY NEWS this morning, they're blasting Joe and Jane Public with news that 'English proto-terrorists are taking part in Arab Spring rebellions to come home and do the same here'.
Nation of Fear, surely.