Annual Report 2004-05

Outcome Six: Intelligence

The Intelligence and Security Group provides intelligence collection and analysis to support the planning and conduct of ADF operations, Defence policy making and planning, capability development, and wider Government decision making. It also provides, on a whole-of-government basis, a range of information security capabilities and services.

Performance Summary

The Group maintained an intelligence capability, conducted intelligence operations, and provided analysis, to produce timely and high-quality intelligence products to Defence and to other government departments and agencies.

A wide range of intelligence products informed Government policy and planning, provided support to ADF operations and capability development, and assisted decision makers and advisers. Intelligence operations and capabilities provided real-time and near real-time intelligence analysis and products on a continuous basis, including on a 24 hours per day, seven days per week basis in key intelligence areas and where priorities dictated. Services and products were tailored to specific customer requirements.

Support to ADF operations and counter-terrorism efforts are high priorities for Defence intelligence. The increased tempo of ADF operations requiring sustained support, the ongoing war against terrorism, and increased demand for intelligence and security advice continue to place considerable pressure on Defence intelligence resources. Through specific supplementation and the reallocation of resources, the highest priority intelligence requirements continue to be met.

The recommendations affecting Defence intelligence agencies, which flowed from the Report of the Inquiry into Australian Intelligence Agencies by Mr Philip Flood in 2004, were implemented quickly. A revised mandate has been agreed for the Defence Intelligence Organisation's reporting and has been introduced successfully. Coordination between the Defence Intelligence Organisation and the Office of National Assessments on forward work programs has been improved and institutionalised. Reorganisation has taken place in the Defence Signals Directorate following the appointment of additional senior executive staff, and Defence intelligence system-wide development, resource and coordination personnel have been placed under the direct control of the Deputy Secretary of the Intelligence and Security Group.

The Defence Imagery and Geospatial Organisation has undertaken significant work to develop and finalise its customer engagement strategy. In filling the position of the Director of the Defence Intelligence Organisation, the Secretary and the Chief of the Defence Force followed the preferred selection path set out by the Inquiry, resulting in the appointment of Major General Maurie McNarn to the position. The shortfall of ADF personnel in the Defence intelligence agencies has been addressed by the Chiefs of Service Committee, which has agreed to increase numbers significantly; with phased increases to begin with effect from current posting cycles.

As with the increase in numbers of ADF personnel, some recommendations will take time to finalise. Agreeing the optimal working arrangements between the Defence Intelligence Organisation and the Joint Operations Intelligence Centre will progress in conjunction with a review of ADF command and control, and will not be complete until well into 2005: high operational tempo has also hampered detailed consideration of the many issues involved. Efforts to upgrade the Defence Intelligence Organisation's business and information technology systems require significant resources and will also take time to complete, although two projects have been established and are well under way for completion in early 2006. On the broader intelligence community-wide issues, the Defence Intelligence Group continues to play its part in the successful implementation of new coordination measures and shaping legislation.

On 16 June 2005, the Intelligence Services Legislation Amendment Bill 2005 was introduced into the Senate. The Bill implements several recommendations from Mr Flood's report, from a review of the Intelligence Services Act 2001 coordinated by the Department of the Prime Minister and Cabinet in 2004-05 (initially suggested in the 2002 and 2003 Annual Reports of the Inspector-General of Intelligence and Security), and from the Parliamentary Joint Committee. The Bill was passed through both houses of Parliament in October and is awaiting Royal Assent.

The Bill includes a range of proposed amendments in relation to the Defence Signals Directorate, largely stemming from the experience of operating under the Intelligence Services Act 2001 over the last three years, as well as amendments relating to the Defence Intelligence Organisation. The Bill also provides for the functions and ministerial accountabilities of the Defence Imagery and Geospatial Organisation to be formalised in legislation, and for scrutiny of the organisation by the Inspector-General of Intelligence and Security. As the majority of the amendments in the Bill relate to the Defence intelligence agencies, the Minister for Defence has agreed to sponsor the Bill through the Parliament.