Australian Business Limited Luncheon
Director-General's Address
'National Security: Working with Industry'
22 September 2006
Thank you for the invitation to speak today at the Australian Business Limited luncheon.
As defence industry professionals, many of you work closely with the Australian Government and may already have an understanding of the security environment in which we operate.
Nonetheless, gatherings such as this provide a valuable opportunity for us to come to consider the impact of the security environment on business.
I would like to start with a few general comments about the security environment and the implications for those in the business community, specifically the defence industry.
I will then outline initiatives undertaken by ASIO to help the business community better understand the security threats they face.
The Australian Security Environment
Following the fifth anniversary of September 11, it is perhaps appropriate to reflect on the terrorist threat which was brought into focus by the world trade centre attacks, and the impact it has had on the way we live our lives.
Five years on, it is clear that the terrorist threat is an enduring one.
We have seen major terrorist attacks throughout Europe, the Middle East, Africa and Asia - almost every member of the global community has been affected to some degree.
These events demonstrate how easy it can be for a small group of committed people to plan and conduct coordinated attacks without drawing the attention of security and law enforcement agencies.
They have highlighted how inherently vulnerable our open society and systems are to those wishing to inflict harm upon others.
And also the importance of law enforcement and intelligence agencies in preventing terrorists from carrying out their plans.
Finally, in implementing protective security measures to prevent further attacks, we have experienced how hard it can be to achieve a proportionate response that does not make our lives unduly difficult or unduly restrict the normal features of everyday life.
We have been fortunate so far that there have been no recent terrorist attacks in Australia.
However many Australians have been injured or killed in terrorist attacks overseas since September 11, some directly targeting Australian interests.
Twenty people, including four Australians, were killed in the October 2005 Bali bombing.
The 2002 Bali bombing killed over 200 people, including 88 Australians.
And the Australian embassies in Jakarta and Iraq were attacked in September 2004 and January 2005 respectively.
A number of people have been convicted, or are due to face charges for terrorism-related offences in Australia.
Most recently, in June 2006, Faheem Khalid Lodhi, a dual Australian / Pakistani national, was found guilty of planning a terrorist attack in Australia.
Australian Muslim convert Jack Roche is currently serving a prison term after he was convicted on charges related to planning a terrorist attack against Israeli diplomatic premises in Sydney and Canberra.
And Willy Brigitte remains in French custody and a number of his Australian associates are subject to legal proceedings on terrorism-related charges.
So it is clear that the threat of terrorism is as real in Australia as it is elsewhere.
we cannot afford to lapse into a false sense of security or become complacent.
While counter terrorism has been our main focus since September 11, we should bear in mind that Australia's security environment consists of other elements that pose a threat to our interests.
I'm referring to some of the more 'traditional' security threats faced by intelligence agencies - and those described in the ASIO Act - such as the protection of Australians from espionage, sabotage, the promotion of communal violence, attacks on Australia's defence system and acts of foreign interference.
In terms of espionage, governments will always seek information that will advance their own interests or allow them to gain advantage over others.
And it is especially relevant to note that the threat from espionage affects not just governments but also businesses, particularly those linked to the national interest.
Defence industry businesses working with the Australian Government in the defence sector will likely be developing, or have access to, sensitive technology and information.
In addition to being of commercial value, this information may be vital to Australia's defence and national security interests.
There is little doubt that given the opportunity, some governments would seek to obtain this information or technology for their own benefit.
In fact, some governments may view Australia's defence industry as a potential 'soft target' to obtain such material.
ASIO's Partnership with Business
It is fair to say that there has been a significant increase in the complexity of the security environment since September 11.
While these security threats affect the entire Australian community, they have particular implications for the business sector.
Businesses have always had to manage risks such as natural disasters, criminal damage, operational malfunctions or industrial accidents.
However, they now need to factor in the possibility of their business or assets being the target of, or affected by, a terrorist attack that is intended to have large scale disruptive effects.
And as I have touched on earlier, the defence industry is unique in that it has always had to consider the threat of espionage.
The Government has recently committed additional resources to ASIO that will allow us to strengthen our capabilities across a range of areas, including our engagement with the private sector.
We are working to expand our existing relationship with business by assisting private sector decision makers to better understand and respond to security threats in an effective way.
Central to this role is ASIO's contribution to developing and maintaining an understanding of the threat, which, in turn, contributes to informed risk management and continuity planning within key elements of the private sector.
At this point, I would like to say that ASIO has, for many years, had a constructive relationship with the Australian business community.
It is inevitable that those intent on doing harm to Australia are either business customers or have had contact with businesses.
Information that businesses legally provide to ASIO on these individuals can - and has - contributed to the prevention of a terrorist act.
In the past, businesses have always responded positively and responsibly when ASIO has sought assistance to progress our investigations.
And this assistance has in turn, made a significant contribution to the security of our country.
ASIO has two work units that are directly engaged with business: the Critical Infrastructure Protection Unit and the Business Liaison Unit.
The Critical Infrastructure Protection Unit is responsible for producing threat assessments for industry sectors, information from which is subsequently disseminated to a range of stakeholders, including the private sector.
In formulating these threat assessments, the Critical Infrastructure Protection Unit works with relevant private sector organisations to gain a detailed understanding of their business context and operating procedures.
It should be noted that these assessments drive policy decisions and security investments in both the public and private sector - so we need to get it right.
The ASIO Business Liaison Unit was established in late 2005 to strengthen ASIO's relations with business, following a request by business leaders for more regular and direct liaison with ASIO and the Australian Intelligence Community.
The primary function of the Business Liaison Unit is to produce and disseminate unclassified Business Security Reports that are specifically designed to inform businesses about the security threat that they face.
Businesses can then use this information to prepare a proportionate risk management response to this threat.
These Business Security Reports are disseminated to the private sector via a secure Business Liaison Unit website.
The website also contains other reporting with a national security focus, including information about upcoming events relevant to the private sector, such as APEC 2007.
The Business Liaison Unit also has a role in building awareness throughout the business community on national security matters, along with acting as a point of contact for business representatives to ask questions and access other services offered by the Australian Intelligence Community.
The Business Liaison Unit is designed to be a resource for business security personnel. Its activities will evolve over time, particularly via feedback and suggestions from our business clients.
ASIO sees the establishment of closer ties with the business community as providing mutual benefits for both business and intelligence agencies.
While business will benefit from the closer ties and more regular information from ASIO, it also provides greater opportunity for the business sector to communicate information that is relevant to ASIO's functions.
Concluding Remarks
In conclusion, let me leave you with a few points.
The terrorist threat to Australian interests is real and enduring. While the focus since September 11 has been on terrorism, those in the defence industry in particular must remain cognisant of other security threats, such as that of espionage.
The challenge for the Australian government and the community at large, including the business sector, is to ensure our understanding of the threat remains current and that we shape our response to the threat in ways that are proportionate to the actual risks.
ASIO is committed to working closely with businesses to achieve this objective.