Senator Chris Evans asked the Minister for Defence, upon notice, on 2 September 2003:

(1) Are individuals and organisations with which the department does business required to obtain a security clearance.

(2) What is the process for obtaining these clearances, for example, when can the individual or organisation apply, what does it cost, who bears the cost etc.

(3) How long does it take for security clearance applications submitted by individuals or organisations to be processed.

(4) What is the current backlog of security clearance applications submitted by individuals or organisations seeking to do business with the department.

(5) (a) Why has this backlog developed; and (b) when is it expected that the backlog will be cleared.

(6) Are there any appeal or dispute resolution procedures for individuals or organisations who do not receive a security clearance which would enable them to do business with the department; if so, can an outline be provided of the nature of any appeal or dispute resolution procedures; if not, why not.

Senator Hill (Minister for Defence) —The answer to the honourable senator's question is as follows:

(1) Unless urgent operational requirements apply, an individual or organisation does not require a security clearance as a prerequisite to apply for Defence business. Where a security clearance is required for individuals or organisations to view classified tender documentation, the Defence Security Authority can work with the relevant Defence Group to ensure that security clearances are processed within an appropriate timeframe.

(2) Defence will only process a security clearance when requested to do so by a Defence Group, either because the individual or company will be viewing classified tender documentation or they have been selected to conduct business with Defence. At that time, relevant security clearance forms are provided to the individuals for completion and returned to Defence for the vetting process to begin. Defence meets the direct costs associated with processing a clearance.

(3) Defence aims to complete security clearances within the following benchmark timelines: three weeks for Restricted and Confidential level clearances; six weeks for Secret level clearances; eight weeks for Top Secret (Negative Vet) clearances; and three months for Top Secret (Positive Vet) clearances. While benchmarks are currently not being met in every instance, there has been a steady improvement in productivity over the past four months. This has been achieved against a backdrop of a high operational tempo and the associated need to process significant numbers of clearances on short notice. The benchmarks may also not be met where issues of background checkability or other matters requiring further investigation arise.

(4) 997 initial and upgrade security clearance requests, which are outside the benchmark timeframes, are currently in progress for individuals in the private sector sponsored to do business with Defence and who require access to national security classified material. These are employees of companies already, or about to be, in contract with Defence. In relation to those tendering for work, security clearances, if necessary, can usually be provided within the tender period.

(5) (a) Since at least the late 1990s, the demand for security clearances has outstripped Defence's capacity to process them by some 10-12% each year. A number of improvements - including the engagement of additional vetting staff; taking a `national' approach to the backlog (ie transferring files from `high backlog' offices to others with a low or no backlog); and partial outsourcing to external providers - and have been made to help reduce the backlog. (b) The backlog of initial and upgrade security clearances for individuals and companies sponsored to conduct business with Defence is being addressed in the context of the overall backlog; that is, they are being processed along with clearances for Defence civilian and military personnel. The current estimate for the length of time to eliminate the backlog of initial and upgrade clearances is January 2005.

(6) Government policy, as detailed in the Commonwealth Protective Security Manual 2000, Part D, Chapter 2, paragraph 2.3 clearly requires Government agencies, including Defence, to only conduct a security clearance process for those individuals and organisations who are required to access national security classified material. A security clearance is not, in most instances, a prerequisite for applying for Defence business. Where urgent operational requirements apply, possession of a clearance may be a prerequisite. If an individual or company has been selected to conduct business with Defence, the clearance will be allocated a priority in accordance with Defence business and operational requirements. Individuals or companies unhappy with the priority awarded to their clearance may discuss with Defence the circumstances that might warrant it being awarded a higher priority. There are no formal appeal or dispute resolution procedures.