2006-2007 - The Year in Review

On the first day of the review period, Saturday 1 July 2006, a seventeen minute audio statement attributed to Usama bin Laden was released.

• Bin Laden did not mention Australia by name, and did not point to specific attacks, but he did praise the 'heroic operations' of the Mujahideen in attacking the American forces and their allies in Iraq, which includes Australia.
• Bin Laden also stated that al-Qa'ida reserves 'the right to punish them on their own land and in any available place at any time or in any way which is convenient for us'.

Such statements underline the ongoing and dangerous terrorist threat to Australia and its interests worldwide.

Action by authorities in Australia and around the world in recent years has had an impact on the capabilities of al-Qa'ida and others, but has not eradicated the threat. Extremists have shown themselves to be patient, persistent and innovative, and continue to attract new followers. They represent a threat that will confront us and many other countries for a long time. Any hiatus between attacks, including those directed against Australians, cannot be considered to signal the end of the threat.

The flow of threat-related intelligence to ASIO continued to increase in 2006-07 and resulted in the Organisation issuing
1 982 Threat Assessments.

The volatile security environment in many places around the world means that more Australians are likely to feel the impact of terrorism, either directly or indirectly.

This presents some significant challenges for ASIO. In October 2005, in recognition of this situation, the Government committed additional resources that will see ASIO grow in a planned and systematic way to around 1 860 staff by 2010-11. It was during 2006-07 that this growth in capability and size started to gather momentum.

COUNTER-TERRORISM

Countering the threat of terrorism directed against Australians and Australian interests, both in Australia and abroad, continued to be the major focus for ASIO.

The national counter-terrorism alert level remained unchanged at medium, which means that a terrorist attack could occur. The alert level was raised to medium following the terrorist attacks in the United States in 2001, and is likely to be at least at medium for some time.

For much of 2006-07, ASIO was involved in contributing to the preparations for the Asia-Pacific Economic Cooperation (APEC) forum aimed at delivering a safe and successful event.

ASIO had a role in supporting the litigation process in connection with individuals who were facing terrorism-related charges through the provision of information, witnesses and other support. In 2006-07, ASIO had the greatest litigation-related workload it has ever experienced, comprising security-related criminal proceedings (including terrorism prosecutions), judicial and administrative reviews of security assessments and other civil proceedings.

In recognition of this upward trend in the litigation workload - one that is likely to continue for some time - ASIO now has a new Legal Division and a Terrorism Litigation Advice Branch within the Investigative Analysis and Advice Division. ASIO has enhanced its legal capabilities but demands on this area remain high; the recruitment of further resources will be required.

The National Security Hotline has been a useful source of leads with over 1 990 new leads generated this financial year; some months required over 300 leads to be considered. In addition, ASIO was referred leads from other agencies. As with previous years, ASIO, working with police, must quickly assess which leads require priority investigation.

Counter-terrorism checking continued to be an important element in preventing harm in Australia, and ASIO completed
134 981 checks, with none resulting in an adverse assessment.

ASIO also completed some 20 856 assessments for access to national security information, again with none resulting in the denial of access.

VIOLENT PROTEST

Politically motivated violence in the form of violent protest activity occurred in November 2006 in connection with the G20 Finance Ministers' Meeting in Melbourne.

COUNTER-PROLIFERATION

As part of the 2005-06 Budget, ASIO received funding to boost resources devoted to countering the proliferation of weapons of mass destruction. In the current reporting period, ASIO continued to work with other Australian and international agencies on this important work.

COUNTER-ESPIONAGE AND FOREIGN INTERFERENCE

In 2006-07, ASIO continued to enhance its capabilities directed at countering the threats of espionage and foreign interference in Australia. The creation of a separate division with responsibility for this aspect of ASIO's work has provided a framework for boosting this capability.

INTERNATIONAL FOCUS AND CAPABILITIES

In a world where a range of security threats can originate onshore and offshore, and which inevitably transcend national borders, ASIO's focus and reach must be global.

INTERNATIONAL LIAISON

ASIO has close and long-standing liaison relationships with many security, intelligence and law enforcement agencies overseas. In 2006-07, that liaison network grew to encompass 306 agencies in 120 countries. While some of this reflected organisational change in a number of countries, it also was driven by the need to engage in areas where ASIO has not previously needed to focus. In a dynamic global security environment, it is likely that ASIO will need to extend its international liaison network further.

In 2006-07, ASIO's network of liaison officers increased.

ASIO continued to enhance its electronic communication links.

We strengthened relationships with visits by the Director-General to international partners, visits by members of the senior management team, and by working-level visits spanning analytical exchange and training and technical activities.

ASIO also hosted visits to Australia by foreign services.

Such visits, at all levels, serve to give prominence to Australian interests in the minds of our partners, enhance capabilities of all agencies, and nurture the personal links between agencies that are so important in times of crisis.

While much of ASIO's intelligence work requires quite specific and tailored training, we continued to identify and leverage off the capabilities of Australian agencies and some of our international partners. In addition, ASIO continued to work with key regional and international partners for mutual benefit, including through the Counter-Terrorism Intelligence Training Program.

BORDER SECURITY

ASIO's global focus and reach means it has a key role to play in Australia's border security arrangements. The prevention of harm to Australian interests relies, in part, on preventing entry to Australia by people assessed to be a threat to security.

ASIO has been building its capability to contribute to Australia's border security effort. In late 2005, ASIO implemented a 24x7 border security unit which continued to grow over the reporting period. In addition, ASIO has worked closely with the other Australian border security agencies, particularly the Department of Immigration and Citizenship and the Australian Customs Service, to improve visa security assessment processing times and to ensure that people of security interest are not able to enter Australia. That task continues to increase in complexity as people of security interest become more adept at concealing their identities, activities or intentions.

The volume of this important work continued to increase steadily from previous years.

In 2006-07, ASIO completed 53 387 visa security assessments and issued adverse assessments in relation to seven individuals seeking entry to Australia. This advice was based on rigorous assessments of the potential threat to Australia's security of allowing these individuals entry.

The other side of the security equation is the denial of the opportunity for Australian citizens to travel to other countries with a view to engaging in activities that would be inimical to the security of Australia or to any other country. In the last year, ASIO issued security assessments on a very small number of Australians that resulted in action by the Department of Foreign Affairs and Trade to cancel or deny them issue of a new or replacement Australian passport.

CAPABILITY ENHANCEMENTS

ASIO's growth during 2006-07 continued in a planned and strategic manner. Capabilities were boosted across all of the Organisation's functions.

ASIO's budget increased to $234.8m in 2006-07, up from $181.1m in 2005-06, and is expected to grow to $423.9m by 2010-11.

STRENGTHENING ENGAGEMENT

Over the course of the year, ASIO introduced a range of new analytical products tailored to the needs of particular clients.

Previous client surveys clearly indicate that our customers value the perspective ASIO provides, and the product that flows from our international liaison network. With growth, ASIO has been better placed to meet client demand.

ASIO refined and strengthened its engagement with key Australian partners. One of the aims of this engagement is to build the level of knowledge and understanding by key partners about ASIO's business and the unique security intelligence aspects of our work within the Australian Intelligence Community.

ASIO also continued to build and enhance its engagement with the private sector, including with the owners and operators of critical infrastructure. In 2006-07, ASIO released 33 Threat Assessments on vital infrastructure. The Business Liaison Unit website grew and now has over 200 subscribers. The Director-General also addressed four leading business fora, further underpinning ASIO's commitment to this developing aspect of our work.

TECHNOLOGY AND SUPPORT TO OPERATIONS

In recognition of the important role of technology and technical capabilities, refinements to the organisational structure boosted the senior management arrangements in the Technical Capabilities Division and created a new Information Division.

ASIO continued to perform its 'lead-house' role in telecommunications interception to ensure that ASIO's capabilities, and those of other Australian agencies, remain effective.

ASIO's other technical capabilities continued to be directed at enhancing technologies for the collection of intelligence through special powers operations or surveillance, as well as the processing of increasing volumes of intelligence.

LEADERSHIP AND MANAGEMENT

ASIO continued to refine its organisational structure to provide a framework for the Organisation's growth out to 2010-11. In addition, ASIO strengthened its corporate governance arrangements including its corporate committee structure, membership and reporting framework.

Developing a strong and effective leadership cadre remained a priority in 2006-07. In addition to requiring all Senior Officers to undertake formal leadership and management training, ASIO conducted four Senior Executive Service (SES) retreats to consider strategic issues and two combined SES and Senior Officer seminars. The need for active management and leadership at all levels was a recurrent theme.

PEOPLE

ASIO bolstered its recruitment area, streamlined processes and adopted a range of innovative advertising methods to attract high calibre applicants across the range of organisational job families and functions. This approach generally has resulted in strong fields of applicants although for some job categories, it remains challenging to meet recruitment targets.

Over the reporting period, ASIO recruited 349 people, which after losses from resignation and retirement resulted in a net growth from 1 110 to 1 356. In a tight employment market this represents an outstanding achievement given that standards have not been compromised.

One unavoidable consequence of taking on so many new people is that average experience levels fall in the short term. Recognising this, ASIO continued to invest heavily in training and induction programs for new starters, a comprehensive program of training across intelligence and enabling functions, and regularly reinforced the need for managers and leaders at all levels to develop our people quickly and appropriately.

ACCOMMODATION

The increase in the number of ASIO officers has continued to put pressure on the Organisation's accommodation. Work continued to reconfigure ASIO's Central Office to accommodate staff increases in ASIO and the Office of National Assessments (ONA).

In the 2007-08 Budget, the Government provided additional funding to the Department of Finance and Administration, ASIO and ONA for the construction of a new building in the Russell precinct to house ASIO's Central Office and ONA. The total project budget is $460m.

ACCOUNTABILITY AND OVERSIGHT

National security remained an issue of public interest throughout the reporting period. ASIO continued to operate under a rigorous oversight regime and remained accountable to the Government and the Parliament.

The Director-General appeared before two Senate Committees on three occasions in relation to the Human Services (Enhanced Service Delivery) Bill 2007 and Senate Estimates hearings.

The Director-General also appeared before the Parliamentary Joint Committee on Intelligence and Security in connection with its Review of Administration and Expenditure No. 5 and the re-listing of terrorist organisations under the Criminal Code Act 1995 (Cth). The Deputy Director-General also appeared before the Committee on the Director-General's behalf on two occasions. ASIO sought to enhance its engagement with the Committee and provided a detailed classified submission as well as an unclassified version as part of its Review of Administration and Expenditure No. 5. The unclassified submission is available on both the Committee and ASIO websites and adds another dimension to ASIO's accountability and transparency mechanisms.

The program of inspections by the Inspector-General of Intelligence and Security included visits to ASIO's State and Territory offices and some of ASIO's overseas liaison posts. In 2006-07, the Inspector-General reported that ASIO had been committed to acting legally and with propriety and respect for human rights and, apart from a small number of genuine errors, had complied with all of its obligations.

In addition, the Director-General addressed business fora, government agencies, conferences, international partners, institutions and ASIO staff - 18 of these addresses are available on ASIO's website.

THE CHALLENGE AHEAD

ASIO's focus must remain firmly fixed on the prevention of harm to Australians and Australian interests, wherever threats emerge, while effectively managing the continued growth of the Organisation to meet current and future challenges.

The security of APEC, the forthcoming Federal Election, and next year's World Youth Day and Beijing Olympics, will require attention from ASIO over the next reporting period.

Achieving these goals in a volatile and demanding security environment will not be easy. In its Corporate Plan 2007-2011 (PDF File 2.27Mb), ASIO has identified critical success factors that recognise the importance of managing growth, building and enhancing the Organisation's capability and developing strategic partnerships.