Director-General’s Address
The American Chamber of Commerce in Australia
‘The Business of National Security’
22 March 2007
Thank you Mr Chairman
I'm very pleased to be able to address the American Chamber of Commerce meeting in Sydney today.
As political leaders on both sides of the Pacific have said on more than one occasion, the relationship between Australia and the United States has never been closer.
It is an important relationship for both sides and spans the spectrum of international engagement – encompassing political, diplomatic, trade and commerce, defence and intelligence elements.
It is a relationship that continues to pay dividends for both sides and which will remain solid well into the future.
I am particularly honoured by the opportunity to meet with this Chamber which represents the senior leaders of a range of large and significant corporations.
I note that the corporations associated with the American Chamber of Commerce in Australia span a wide range of business activities, including the finance, hospitality, transport and legal sectors.
Indeed, if the situation were reversed and this gathering was an Australian Chamber of Commerce that was meeting in a major city in the United States, we would likely see a comparable spread of business activities represented in the room.
At the most basic level, the companies represented here today consist of people, property and other assets, business processes and client interactions and any number of other human relationships that are a key element of a civil society.
One that is based on the rule of law;
One that is characterised by mutual respect and tolerance; and
One where public safety and the right to life are central.
Around the world, systems of government can vary and individual countries' political landscapes will be shaped by their particular socio-economic and cultural milieux.
But in societies that function effectively, generally the broad features I have outlined will underpin the institutions of state and the conduct of commerce and community life.
Unfortunately, there are elements in many countries that reject these general principles, irrespective of how they are applied in local governmental and political arrangements.
We have seen people, driven by a militant ideology, who are intent on using violent means to disrupt or destroy the lives of innocent people who do not share their own distorted beliefs.
At the extreme end of the spectrum, their objective is to cause mass casualties and to spread fear.
In many cases, they are prepared to sacrifice their own lives for their cause.
It is fortunate that in 2006, on more than a dozen occasions, such extremists apparently were prevented from achieving their deadly intentions, including in Egypt (April), India (January and May although there were successful attacks on trains in Mumbai in July and more recently in Delhi), Jordan (March), Switzerland (May), Morocco (July and November), Pakistan (April), Turkey (April), the United States (June), Canada (June), the United Kingdom (June and August), and Denmark (September).
In most cases, such preventative interventions do not attract the same level of enduring attention that goes with actual attacks.
Yet in each of these cases of successful intervention, the lives of innocent people were not lost as a result of an indiscriminate and lethal attack.
Tragically, security and law enforcement authorities around the world have not been able to prevent other attacks – in some cases multiple attacks – from occurring.
There have been attacks in Asia (India as I noted earlier, Pakistan, Bangladesh, Philippines, Indonesia – including Bali);
There have been frequent attacks in the Middle East (Iraq, Saudi Arabia, Egypt, Qatar, Yemen, Israel);
In Africa (Kenya, Tanzania, Tunisia);
In the United Kingdom, Russia, and Turkey;
And of course in the United States.
Targets for attacks have ranged from diplomatic premises, naval and merchant ships, aircraft, public transport systems, commercial buildings, cafes and restaurants.
Terrorist attacks certainly have caused widespread destruction and exacted an enormous financial cost on many countries, quite apart from the human tragedy wrought by every untimely death.
Terrorists have shown themselves to be sophisticated, well-trained and well-funded.
In addition, each successful can attack fuel the zeal of extremists around the world and provide further encouragement for them to pursue their objectives.
Importantly, the terrorists have not had the success they have sought in destroying the underlying parliamentary, commercial or social systems of their targets.
But there is no basis to suspect that they have given up on this objective;
And we continue to see new extremists emerge who share this intent.
Within Australia, we are reliant on our economic infrastructure for the continued efficient functioning and well-being of this country.
We have seen the effect that the loss of critical infrastructure can have on a community in Australia.
For example, in 1998 an industrial accident involving an explosion at the Longford gas plant killed two workers, denied gas supply to homes across the State of Victoria for two weeks and was estimated to have cost business a total of $1.3 billion.
A fundamental aspect of managing any business is ensuring its continuity by preventing harm through accidents, natural disasters or a range of criminal activity.
In the current security environment, planning for business continuity means taking into account the potential harm to the business or its people and operations that could be caused by a terrorist attack.
In 2001 the general alert level for terrorism in this country was increased to MEDIUM following the 11 September attacks in the United States and it has remained at that level since that time.
In plain terms that means that a terrorist attack is feasible and could well occur.
In the absence of specific and credible information about a likely or imminent attack, the general alert level will remain unchanged although the alert level for specific events or entities may vary according to their particular circumstances.
But there is no basis for lowering the general level of alert.
A lot of work has been done in recent years across government and the corporate world to protect people and property from the threat of terrorism.
There is still more work to be done in terms of implementing and refining systems and processes and building further capability across a range of agencies.
The absence of a recent terrorist attack in Australia does not mean that we have reached a position where we can afford to become complacent.
Terrorists continue to learn and to adapt to the counter measures directed against them.
So we cannot afford to remain static in terms of our views or approach to the problem.
One of the lessons of the last several years has been the fundamental importance of collaborative effort across national and state boundaries, across government and with key parts of the business community.
Effectively countering terrorism is not something that any one organisation or sector can do on its own.
Those with responsibility for managing the people and assets of large corporations have an important role to play in the wider effort to counter the terrorist threat.
There should be a sense of shared purpose when it comes to security and public safety.
This may require the appropriate sharing of security-related information or experience across the commercial sector and across government agencies.
So it is important that collaborative approaches to a common threat are underpinned by high levels of trust, and well-informed by reliable and relevant advice about the threat.
ASIO, and other government agencies involved in countering the terrorist threat, are conscious of the commercial imperatives on business.
The financial and resource costs of implementing and maintaining appropriate security measures need to be compatible with broader corporate strategies and the effective functioning of the business.
For its part, ASIO is committed to ensuring that it provides a regular flow of contemporary and well-considered advice and information, including to relevant businesses, which can inform sensible and appropriate security measures.
The question of ‘what works' within each organisation, however, is ultimately a matter for individual businesses to determine.
The business culture, organisational interdependencies, operational vulnerabilities, redundancy and recovery arrangements are all unique corporate considerations that can only be determined by experienced commercial and security practitioners within the business.
With that in mind, ASIO will continue to work with relevant businesses to ensure that it tailors its advice to real world circumstances.
In many cases, simply raising awareness about the threat and encouraging people to think sensibly about the potential vulnerabilities of their business activity may be enough to make them sensitive to unusual activity or behaviours in their environment.
This could include being alert to such things as unusual requests for information, inappropriate access to sensitive areas, unusual or incongruous purchases and so on, including by employees, customers or other people.
Reporting such matters to ASIO, police or the National Security Hotline could help prevent a terrorist attack.
In the current security environment, the importance of businesses lawfully passing to the relevant agencies any threat-related information that may contribute to the prevention of terrorist acts cannot be over-stated.
ASIO sees the building of closer ties to the business community as a priority, specifically to assist in building awareness of the security environment where it relates to terrorism.
This is not the start of ASIO's engagement with the business world.
In performing its functions, ASIO has worked for many years with a range of businesses and has received the highest level of cooperation and assistance.
In particular, ASIO's commitment to delivering information to business security personnel in a timely manner is aimed at achieving a number of benefits for business, including:
Risk management, business continuity planning and resource allocations with respect to counter-terrorism measures can be more soundly based on current and reliable information.
ASIO continues to prepare threat assessments for specific industry sectors and the most critical assets that underpin Australia's infrastructure.
Briefings about the assessments are provided to a range of stakeholders, including many in the private sector.
ASIO works closely with operators to better understand contextual and business process implications, including key interdependencies, to form an accurate picture of the threat environment.
It also should be noted that in many instances, these assessments drive policy decisions and security investments in both the public and private sector – so we need to get it right.
Since late 2005, ASIO and the wider Australian Intelligence Community's engagement with business have been facilitated through a new Business Liaison Unit that operates from ASIO's headquarters in Canberra.
In addition to individual engagement with corporations, the Business Liaison Unit seeks to reach broad sections of the business community, including through industry conferences and journals that target corporate security practitioners;
I should comment that the willingness of key industry associations to assist in this regard has been a valuable aspect of our wider strategy.
Since July 2006 the Business Liaison Unit has made information available to businesses through a password-protected website.
Over time the volume of information available on the site will grow with the focus continuing to be on providing material that is relevant and useful for corporate security managers.
In conclusion, let me underline what I see as the main national security issues for the business sector.
As with the United States, Australia and Australians will continue to face the threat of terrorism for some years.
We should not allow complacency to undermine our resolve to protect those things we value.
We need to be responsive to changes in the security environment and to evaluate regularly the effectiveness of our policies and practices directed towards the protection of our people and assets; and
Countering the threat in Australia requires an intelligent and well-informed cooperative approach across all levels of government and relevant agencies, the business world and the wider community.
Thank you.