OUTCOME PERFORMANCE

The dedication and innovation of Intelligence and Security Group staff in 2005–06 resulted in consistently high levels of performance in the face of diverse and complex intelligence problems. Our achievements during this period reflect the effort we made to match the large number of ADF operational activities with quality support by our three intelligence agencies, the Defence Security Authority, and the Concepts Capability and Resources Branch.

The timely intelligence and analytical products, expert security advice and management, sustainable intelligence support to ADF operations, first-rate intelligence and security capabilities, and strengthened intelligence alliances provided by the Intelligence and Security Group are a credit to our motivated, skilled and adaptable people.

The three Defence intelligence agencies, the Defence Imagery and Geospatial Organisation, the Defence Intelligence Organisation and the Defence Signals Directorate, contribute in distinct ways to the collection and production of intelligence, its analysis and assessment. In 2005–06, the Intelligence and Security Group maintained its exemplary record by producing quality intelligence for the defence of Australia and its interests, specialised services to help the planning and conduct of ADF operations, and contributing to Defence policy making and planning, strategic analysis, capability development, and wider Government decision making.

In 2005–06, the Intelligence and Security Group provided intelligence support to key operations including in Afghanistan, Iraq and Timor-Leste. Intelligence products and services were tailored to meet specific customer needs and operated on a 24-hour basis when necessary, to provide real and near-time assistance. The Group also contributed substantially to the Force-in-Being and Future Force planning, as well as enhancing its management of the Intelligence, Surveillance and Reconnaissance capability.

The Intelligence and Security Group continued implementing the recommendations from the Report of the Inquiry into Australian Intelligence Agencies (the Flood Report). Defence has only two minor actions to complete, relating to the review of ADF command and control arrangements and the shortfall in ADF staff. The latter being an issue affecting the entire Group.

The development and maintenance of language skills continue to be reviewed, both within Defence and in the wider Australian Intelligence Community, to ensure that our Languages Other than English capability is enhanced by the production and implementation of a comprehensive Capability Development Plan.

Workforce planning, encompassing recruitment, succession management and training, has been a priority and each agency's efforts have been rewarded with a substantial increase in applicants and graduates interested in joining these organisations. Increased funding of technical and professional career development programs for staff has been, and continues to be, a key workforce strategy.

Defence Imagery and Geospatial Organisation

The Defence Imagery and Geospatial Organisation provided significant support to Defence and other organisations by providing relevant and timely geospatial intelligence for a range of activities, including ADF operations and significant security events in Australia, such as the Commonwealth Games. In the same period, the Defence Imagery and Geospatial Organisation was brought within the scope of the Intelligence Services Legislation Amendment Act 2005 effective from 2 December 2005, in keeping with a recommendation from the Flood Report making it more transparently accountable to the Government, as with other intelligence agencies .

Increased investment in the Defence Imagery and Geospatial Organisation workforce, technology and facilities is assisting the organisation to meet its capability targets.

The workforce is the single biggest foundation of the organisation's success and efforts continue to enhance its recruitment, training and career development programs to ensure that its people are skilled professionals. In 2005–06, the organisation put further initiatives in place to build and retain a sustainable workforce. Recruiting profiles have been broadened to accept non-graduates with relevant experience and some graduates with hard sciences qualifications to support specialised technical areas. The Defence Imagery and Geospatial Organisation is developing its existing staff through the introduction of a broad-band across APS 1–6 levels, the establishment of a dedicated tradecraft training and development section, and continued investment in middle management development programs to grow a strong leadership team.

The Defence Imagery and Geospatial Organisation technology edge and expertise contributed to the May 2006 signing of a significant bilateral capability delivery in the form of the Australia and Papua New Guinea Memorandum of Understanding, agreeing that the organisation can make new maps of Papua New Guinea. The nation was originally mapped by the Royal Australian Survey Corps in the 1970s and 1980s and, while produced using that era's very best technology, updated maps are required.

Defence Imagery and Geospatial Organisation facilities continue to be upgraded following the 2004 review of the Geospatial Analysis Centre in Bendigo. While some positions relocated to Canberra, the remaining workforce of some 111 personnel will be rehoused in a purpose-built facility by the end of 2007. The new geospatial traineeship program, introduced to the Bendigo-based staff in 2006, will strengthen the workforce as older members retire.

Defence Intelligence Organisation

In 2005–06, the Defence Intelligence Organisation maintained a high output of intelligence services and products in response to the operational tempo, providing support to ADF operations, to the Defence senior leadership, and broader Australian Government customers. The organisation responded to short-notice tasking from customers, and raised 24-hour analytical teams which produced timely and accurate intelligence material for specific operations.

The demand for intelligence services from customers at all levels remained strong. Defence Intelligence Organisation staff provided advice on a range of issues to both regular and non-regular customers, including assessments and advice on business process architecture, general security awareness and information technology. At the same time, the organisation undertook several high profile projects, including the installation of a new information technology system and completing an organisational restructure. As well, it continued to develop innovative and creative ways to attract, recruit and retain staff.

The Defence Intelligence Organisation benefited from the deployment of its civilian and military liaison officers to various operational theatres during 2005–06. Liaison officers were sent to South East Asia, South Asia and the Middle East where they enhanced the delivery of timely and accurate intelligence assessments to customers and acted as a conduit between ADF deployed forces and the Defence Intelligence Organisation.

Defence Signals Directorate

The Defence Signals Directorate maintained a high tempo in 2005–06. Its flexible and responsive intelligence services provided an increasing level of support to military operations into routine business. The Directorate also continued to provide timely and relevant intelligence to other Australian Government customers.

The Flood Report recommended that a periodic review be conducted into the performance of the Defence Signals Directorate against its top priority targets. In line with this, a review of Defence Signals Directorate capabilities began on 29 May 2006. The classified review is scheduled for completion by the end of October 2006.

The Intelligence Services Legislation Amendment Act 2005 came into effect on 2 December 2005. The Act implemented several recommendations, which resulted from a review of the Intelligence Services Act 2001 coordinated by the Department of the Prime Minister and Cabinet in 2004–05. As most of the amendments in the Act were specific to Defence intelligence agencies, the then Minister for Defence sponsored the Bill through the Parliament. The Defence Signals Directorate facilitated the amendment of the Act on behalf of the Intelligence and Security Group.

Workforce planning, recruitment and training have been a priority for the Defence Signals Directorate in 2005–06. Numerous initiatives began under the Defence Signals Directorate Strategic People Plan 2005–09 to allow the workforce to meet the challenges ahead. The Directorate introduced a new People Capability Framework which defined the required skills in 2006 and beyond, to 2010. Recruitment was revitalised when, in response to the new Altitude@DSD program, a record 791 applications were received. Career development for signals intelligence professionals has been enhanced with the new Signals Intelligence Academy, a dedicated in-house technical training establishment.

Capability Performance Information

Table 2.48 Intelligence

Performance Targets	Performance
Provide quality intelligence products and services.	Achieved. The Intelligence and Security Group adjusted resource allocations in response to changes in Australia's security environment, and continued to provide high-level support to satisfy the bulk of high priority intelligence requirements. There was a particular focus on the challenges presented by support to military operations and regional terrorist organisations. Work on military and policing operational support has provided significant force protection, and work on regional terrorist groups has led to some success in reducing the threat they pose to Australian and allied interests.The Defence Intelligence Organisation increased its product and intelligence output as a result of both the high tempo of ADF operations and an increase in its customer base across the Government.The Defence Imagery and Geospatial Organisation and Defence Signals Directorate continued to provide relevant and timely geospatial and signals intelligence in support of Defence operations and priorities.The Defence Signals Directorate also maintained its important role in protecting official Australian communications and information systems, providing information security advice and services, in particular to the Australian National Audit Office by contributing to audit report No. 45, Internet Security in Australian Government Agencies.
Ensure effective and sustainable intelligence support for the planning and conduct of ADF operations and for decision makers.	Achieved. The Group provided high-level support to the planning and conduct of ADF operations during the year in South Asia, South East Asia and the Pacific. The Defence intelligence agencies continue to build their capacity to respond to the high operational tempo of military operations.The Defence Imagery and Geospatial Organisation provided deployed and Canberra-based geospatial intelligence for theatres of operation around the world.The Defence Intelligence Organisation provided 24-hour support to all ADF operations and decision-makers as needed.
Maintain and develop first rate defence intelligence and geospatial information capabilities.	Achieved. The Defence Imagery and Geospatial Organisation facilitated the signing of a Memorandum of Understanding allowing Australia to remap Papua New Guinea.Through a number of new technical projects, the Defence Intelligence Organisation extended its reach into a variety of intelligence systems to further support the intelligence services and analytical functions of the organisation. These capabilities are expected to be refined throughout 2006–07.The Defence Signals Directorate deployed new capabilities developed under a number of Defence major capital equipment projects, further increasing its ability to meet high priority intelligence requirements. These projects will deliver further capability enhancements in the future.
Maintain the knowledge edge by exploiting new technology.	Achieved. The Intelligence and Security Group continued to develop and acquire new technologies to maintain its collection, processing and dissemination capabilities in support of intelligence customers.The Defence Intelligence Organisation incorporated new technologies to better assist its intelligence services delivery.
Strengthen the intelligence contribution to the United States alliance and to relationships with other intelligence partners.	Achieved. The Intelligence and Security Group is successfully building on its relationships with the United States and other traditional partners including the United Kingdom, New Zealand and Canada. These relationships are developing on a number of fronts in response to challenges such as counter-terrorism, counter-proliferation and support to military operations. The Group is also building effective relationships with new partners; in particular, the Netherlands and the North Atlantic Treaty Organisation.
Improve investment and capability planning, accountability and resource and security management.	Achieved. The Group further refined its business and strategic planning, and developed its human resource management capability to better plan for future staffing needs. The Group continued to improve security training for new and current staff.
Develop motivated, adaptable and skilled teams of highly competent professionals.	Achieved. Recruiting focused on graduates with general and hard sciences degrees and also non-university graduates who had relevant workplace experience. In a very competitive labour market, the Group remained an employer of choice. It participated in the Australian Intelligence Communicate Graduate Recruitment Roadshow and supported the Defence Graduate Development Program. The Defence Signals Directorate and Defence Imagery and Geospatial Organisation attracted recruits with their own programs.In-house training across the Group provided the intelligence professionals with specialised skills complementing ongoing leadership and business education.

Cost to Government

Table 2.49 Outcome Six—Intelligence for the Defence of Australia and its Interests

	Budget Estimate(1)	Additional Estimate(2)	Actual Result	Variation(3)	Variation(3)
	2005–06	2005–06	2005–06	2005–06	2005–06
	$'000	$'000	$'000	$'000	%
INCOME
Revenue
Goods and services	1,532	2,784	5,140	2,356	84.6
Interest	–	–	–1	–1	–
Other revenue	4,546	5,937	3,413	–2,523	–42.5
Total Revenue	6,079	8,721	8,552	–169	–1.9
Gains
Net foreign exchange gains	–	–	–	–	–
Assets now recognised	8	35	9,959	9,924	28,118.6
Net gains from sale of assets	–	–	–	–	–
Other gains	–	–	402	402	–
Total Gains	8	35	10,361	10,325	29,256.7
Total Income	6,087	8,756	18,913	10,157	116.0
Operating Expenses
Employees	215,629	205,407	217,343	11,936	5.8
Suppliers	201,420	203,844	217,036	13,193	6.5
Grants	18	155	156	1	0.9
Finance Cost	433	683	1,153	470	68.7
Depreciation and amortisation	55,961	92,114	69,965	–22,149	–24.0
Write down and impairment of assets	9	226	9,921	9,695	4,290.4
Net foreign exchange losses	–	–	17	17	–
Net losses from sale of assets	–	142	11,514	11,372	8,022.0
Other expenses	–	477	63	–414	–86.8
Total Expenses	473,471	503,047	527,168	24,121	4.8
Price to Government for Outcome Six	467,384	494,291	508,255	13,964	2.8

Table 2.50 Breakdown of Outcome Six by Output

	Budget Estimate(1)	Additional Estimate(2)	Actual Result	Variation(3)	Variation(3)
	2005–06	2005–06	2005–06	2005–06	2005–06
	$'000	$'000	$'000	$'000	%
Output 6.1—Intelligence	467,384	494,291	508,225	13,964	2.8
Price to Government for Outcome Six	467,384	494,291	508,225	13,964	2.8

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