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Australian Security Intelligence Organization

Report to Parliament 1993-94

Australian Security Intelligence Organization

Report to Parliament 1993-94

Australian Government Publishing Service Canberra

REPORT TO PARLIAMENT 1993-94

© Commonwealth of Australia 1994

ISSN 0815-4562

This work is copyright. Apart from any use permitted under the Copyright Act 1968, no part may be reproduced by any process without prior written permission from the Australian Government Publishing Service. Requests and inquiries concerning reproduction and rights should be addressed to the Manager, Commonwealth Information Services, Australian Government Publishing Service, GPO Box 84, Canberra ACT 2601.

Produced by the Australian Government Publishing Service

A ustralian Security Intelligence Organization GPO Box 2176 Canberra City ACT 2601 Telephone 06 249 6299 Facsimile 06 257 4501

Office of the Director-General 20 September 1994

The Hon. Michael Lavarch, MP Att< >rney-General Parliament House, Canberra

Dear Attorney-General With this letter I submit to you the annual report on the activities of the Australian Security Intelligence Organization (ASIO) for the year ending 30 June 1994, as required under section 94 of the Australian Security Intelligence Organization Act 1979.

Last year's annual report described twelve months of extraordinary change in ASIO. The period 1992-93 was characterised by initiatives taken to respond to a shifting world security environment and to Government expectations for a leaner and more focused service.

By the beginning of the new reporting period ASIO had made good progress, but much remained to be done, notably the completion of a total restructuring exercise involving almost every staff member.

This report continues the story of change I reported last year. The last twelve months brought no easy answers and no quick-fix solutions to the problems of maintaining the essential services demanded by our charter within the constraints of a reduced budget. Rather we continued to review our operations and develop strategies, and step by step made advances. Encouragingly, we saw most of our earlier initiatives bearing fruit. In particular, moves towards developing closer and more interactive relationships with clients produced more reports with greater relevancy and a better all round level of service.

Based on the sound foundation of management reform, this year's annual report concentrates on what the work of ASIO means to Australia. If the theme of last year's report was 'Change', I should like this year's to be 'Developing the business'. In this report we focus squarely on our role and charter by opening with an assessment of Australia's security environment in 1993-94.

What is ASIO's business? It is tempting, when considering the performance indicators of a security service, to look for tangible results—spies or terrorists caught, assassinations prevented, bombs defused in the nick of time. But the true strength of a security service lies in its ability to detect and pre-empt harmful activity long before it becomes a media event. What a security service must do, before ever it can warn or advise or help to prevent, is to

know and understand. The real measure of ASIO's achievement in any year is how much it has increased its knowledge and understanding of who and what threatens Australia's security. And by necessity, this is generally not something we can put into the public domain. On various counts, 1993-94 was a year of substantial achievement. For this I offer my thanks to ASIO staff for their loyalty and commitment, and to you as Minister for your

support and leadership. This classified annual report has a very limited distribution. At the same time I present to you an abridged and unclassified version (containing some 33 per cent less text) which may be tabled in the Parliament.

Yours sincerely

David Sadleir Director-General of Security

FOl WARNING: Exempt document under Freedom ojInformation Act 1982. Refer related FOl requests to Attorney-General's Department. Canberra

REPORT TO PARLIAMENT 1995-94

Australia's security service The Australian Security Intelligence Organization (ASIO) was established in 1949 as Australia's security service. Its functions are set out in the Australian Security Intelligence Organization Act 1979 (the ASIO Act). Its main role is to collect and analyse intelligence so as to:

• forewarn ministers and appropriate agencies and authorities of activities likely to place the security of Australian people, property or interests at risk

• and provide ministers and appropriate agencies and authorities with sound advice on how risks might be managed and harm avoided, countered or reduced.

In addition, ASIO is charged with contributing to foreign intelligence collection in Australia, and contributing to Australia's counter terrorism response capability.

ASIO carries out its functions largely by collecting information and analysing it to produce intelligence assessments of current and likely future situations. Intelligence is produced in the course of investigating people or groups whose activities are relevant to security. Information may be obtained overtly or covertly, according to circumstance. Where authorised by warrant signed by the Attorney- General, ASIO may use special powers such as telephone interception to conduct intrusive investigations.

ASIO is an advisory body, and has no powers to enforce measures for security. It cannot limit the rights of people to engage in lawful advocacy, protest or dissent, which in themselves are not actions that endanger security. It must stay free of any political or sectional bias.

Its intelligence and advice are transmitted to government and to executive agencies of government as a basis for decision-making and action if required to maintain the security of Australia.

ASIO's chief executive is the Director-General of Security, who is responsible to the Attorney-General. The current Director-General is Mr David Sadleir, AO, appointed in April 1992 for a term of five years.

ASIO's gross expenditure in 1993— 94 was $45 888 million.

More information about ASIO is available in the Report to Parliament and the ASIO Corporate Plan, both unclassified documents published annually and available from Commonwealth government bookshops. (No other unclassified documents are published.) Inquiries about ASIO can be addressed to any of the offices listed on page 123, or to the Public Liaison Officer, telephone (06) 249 8381, fax (06) 257 4501.

REPORT TO PARLIAMENT 1993-94

The Hon. Michael Lavarch, MR Attorney-General

(Photograph by AUSPIC, the Government Photographic Service)

Mr David Sadleir, AO Director-General of Security

ASIO provides advice to protect Australia and its people from threats to national security.

ASIO'S MISSION STATEMENT

REPORT T O PARLIAMENT 1995-94

Contents Australia's security service iv

Format of this year’s report viii

Abbreviations used in the report viii

Corporate O verview 1

The security en viron m en t in 1993-94 3

ASIO’s role in Australia's security 3

The international perspective 5

The Australian perspective ASIO’s response 10

Major events and in flu en ces in 1993-94 12

Inquiries into national security 12

Developments in corporate planning 13

Progress in continuous improvement 14

Evaluation outcomes 15

Workplace bargaining outcomes 16

Increased cooperation with law enforcement agencies 17 Internal processes o f ch an ge continue 19

Reshaping the Organization 19

Program management 21

The changing workplace 21

Enhancing industrial democracy 21

Introducing a competency-based staffing system 24

Developing equal employment opportunity 25

Enhancing occupational health and safety 26

Encouraging performance 28

Critical success factors 30

Continuous improvement 30

Effective leadership and people management 32

Client satisfaction 35

Effective communication 36

Effective resource management and optimisation of technology 38 External and internal scrutiny 41

Government and parliamentary oversight 41

Audit and fraud control 43

Tabled reports concerning ASIO 44

Internal avenues for appeal 44

Program reports 47

Structure o f program reporting 48

Security Intelligence Program 49

Outcomes of investigations 51

Counter proliferation 52

Developments in reporting 53

ASIO reports 53

Threat assessments 53

Improving service to clients 55

CONTENTS

Developments in collection 57

Foreign liaison 57

Use of warrants 58

Developments in support activities 60

Refining the subject risk matrix 60

Enhancing technical support 61

Intelligence and operational training 62

Internal security measures 62

Protective Security Program 63

Security assessments 64

Access assessments 64

Non-access assessments 66

Advice on protective security 69

Security plans 69

Ac/ hoc security advice 70

Security awareness briefings 70

Audio counter measure tests 70

Security equipment 70

Security training 71

Cast recovery 72

Foreign In telligen ce Program 73

Counter T errorism Support Program 74

Corporate Support Program Administrative detail 78

F inancial Statem ents si

A p p en d ix es 103

List o f a p p en d ix es 104

A: Staffing information 105

B: Program and notional breakdown of expenditure 110

C: Evaluations 111

D: Determinations signed by the Director-General in 1993-94 115 E: Equal employment opportunity statistics 117

F: Response to archives requests 119

G: Countries approved for liaison purposes at 30 June 1994 122 H: ASIO contact information 123

C om pliance in d e x 124

General in d ex 126

REPORT TO PARLIAMENT 1993-94

Format of this year's report This report has been designed to comply with the current Guidelines fo r the preparation o f departmental annual reports, issued by the Secretary of the Department of the Prime Minister and Cabinet in May 1994. It also follows guidelines

issued in July 1994 by the Secretaries Committee on Intelligence and Security; these guidelines address specific requirements for annual reporting by the Australian intelligence and security agencies. The report is structured into four main sections: a corporate overview, program reporting section, financial statements, and a series of appendixes containing detail.

As well as meeting Government requirements, the report aims at satisfying the needs of a wider readership. ASIO's unclassified annual report is the only published record available to inform the Parliament and the public about the work of Australia's

security service and to document from year to year the trends in global and national security issues that are of concern to ASIO. For this reason the corporate overview begins with a review of the security environment in 1993-94. Although slightly abridged in the unclassified version for reasons of security, this brief account should provide the lay reader with a measure of understanding of current security issues.

Abbreviations used in the report IM IS in te g ra te d m a n a g e m e n t in fo rm a tio n

AAC A SIO A d v is o ry C o m m itte e s y ste m

A CC A SIO C o n s u lta tiv e C o u n c il IT O In fo rm a tio n T e c h n o lo g y O ffic e r

A FP A u stra lia n F e d e ra l P o lic e J IG

J o in t I n te llig e n c e G r o u p

A G E P A u stra lia n G o v e r n m e n t E x e c u tiv e

P ro g ra m

M MLP m id d le m a n a g e m e n t le a d e r s h ip

p ro g ra m

AISA A u stra lia n in te llig e n c e a n d s e c u rity N A TP

N a tio n a l A n ti-T e rro ris t P la n

a g e n c ie s N IG N a tio n a l I n te llig e n c e G r o u p

AM M e m b e r o f th e O r d e r o f A u stra lia N P P n e w p o lic y p r o p o s a l

A M s a s s is ta n t m a n a g e r s N STA

n a tio n a l s e c u r ity th r e a t a s s e s s m e n t

A N A O A u stra lia n N a tio n a l A u d it O ffice O A SY S

o ffice a u to m a tio n s y s te m s

A O O ffice r o f th e O r d e r o f A u stra lia O H & S

o c c u p a tio n a l h e a lth a n d s a f e ty

APS A u stra lia n P u b lic S e rv ic e O N A

O ffice o f N a tio n a l A s s e s s m e n ts

A SO A d m in is tra tiv e S e rv ic e O ffic e r PJC

P a rlia m e n ta ry J o in t C o m m itte e (o n

A S IO A u stra lia n S e c u rity In te llig e n c e

O rg a n iz a tio n

a v e ra g e s ta ffin g le v e l

PSC

A SIO ) P u b lic S e rv ic e C o m m is s io n

ASL RAP

R e q u ire m e n ts , A s s e s s m e n ts a n d

CH RIS C o m p le te H u m a n R e s o u rc e

P r o d u c tio n (B ra n c h )

In fo rm a tio n S y s te m RED R ese rv e F o r c e D e c o r a tio n

C O C O M C o o rd in a tin g C o m m itte e fo r

M u ltilateral E x p o r t C o n tro ls

SA C-PA V S ta n d in g A d v is o ry C o m m itte e o n

C o m m o n w e a lth -S ta te C o o p e r a t io n for

D A B d is c ip lin a ry a p p e a l b o a r d

P r o te c tio n A g a in st V io le n c e

D FA T D e p a r tm e n t o f F o r e ig n A ffairs a n d

T ra d e

SCIS S e c re ta rie s C o m m itte e o n In te llig e n c e

a n d S e c u rity

D IEA D e p a r tm e n t o f Im m ig ra tio n a n d E th n ic

SES S e n io r E x e c u tiv e S e rv ic e

Affairs

S ID C -P A V S p ecial I n te r d e p a r tm e n ta l C o m m itte e

D IR D e p a rtm e n t o f In d u s tria l R e la tio n s

fo r P r o te c tio n A g a in st V io le n c e

E E O e q u a l e m p lo y m e n t o p p o r tu n i ty

S IO S p e c ia list I n te llig e n c e O ffic e r

FSE full-tim e s ta ff e q u iv a le n t

S O G S e n io r O ffic e r G ra d e

G IO G e n e ra list In te llig e n c e O ffic e r

SRM s u b je c t ris k m a trix

H M G h ig h e r m a n a g e m e n t g r o u p

SW IM S e n io r W o m e n in M a n a g e m e n t

IG IS In s p e c to r-G e n e ra l o f I n te llig e n c e a n d

W M D

(P ro g ra m )

S ecu rity

w e a p o n s o f m a s s d e s tr u c t io n

REPORT TO PARLIAMENT 1995-94

Corporate O v erv iew

REPORT TO PARLIAMENT 1993-94

REPORT TO PARLIAMENT 1993-94

nation if intelligence about our aims, relationships, strategies and capabilities falls into the hands of those who do not share our interests or are competitors.

People spying for foreign powers may have other tasks on their agenda. They may have been directed to influence political and other decision-making to the advantage of the foreign power, in the course of which they may seek to co-opt otherwise law-abiding Australians. Their work here often involves m onitoring and reporting on people living in Australia’s ethnic communities; and may include attempts to manipulate these people, sometimes with intimidation, into carrying out activities to suit the other country's political agenda.

A further concern is the possibility of Australia being used as a source or staging post by agents of foreign powers or dealers who are illegally seeking materials for use in nuclear or chemical weapons manufacture. Such activities are part of the worldwide

problem of proliferation of weapons of mass destruction.

These are the ongoing security concerns of the 1990s. Identification and investigation of what they brought forth in Australia in 1993-94 was ASIO’s main task during the year. The results of the investigations were reported to clients, including the executive agencies of government, with the stress being on future implications for Australian security.

Broadly, ASIO’s reports relate to one or other of three time frames. The future may be as imminent as the next day: the advice reported could be an assessment of whether a demonstration is likely to erupt into violence. Or the time frame may be longer and the advice could be that there is a risk of terrorist attack on people or property from a group that espouses violence. In a longer time frame still, the advice may be a more general appreciation of security-related trends and patterns (such as a warning that a particular country may be increasing spying activity here). Longer- term advice is of use to sections of government involved in policy and planning; it may also contain practical advice on measures to counter an identified threat of harm.

ASIO, as an advisory body without executive powers, seeks through its advice to forewarn appropriate agencies of the risk of impending harm so they can take counter action. However, ASIO’s investigative activity can have the side effect of acting as a deterrent. In a significant number of situations, people who judged they were under ASIO scrutiny decided to cease their unlawful activity.

THE SECURITY ENVIRONMENT

The international perspective While geography and history have given Australia a relatively benign security environment, the rapidly changing global security situation is creating greater uncertainty and less predictability in our

strategic outlook. As communications are rapidly enhanced and trade and social contacts increase, Australia is more and more directly linked to global and regional developments.

Australia’s stable political, economic and social systems mean that our domestic security environment is more influenced by external events than domestic developments. It is therefore most important for ASIO to have a sound understanding of the unsettled and at times confusing international security scene.

We face a security environment in transition. Its growing complexity and uncertainty are highlighted by the restructuring of global political, economic and social regimes. The emergence of militant ideologies and the proliferation of weapons of mass destruction will provide fuel for violence. Ideology, nationalism, ethnicity and religion will feed the use of force, and nation States will continue to focus on self-preservation, striving to maximise their power and

influence.

In this competitive and contentious environment a number of key international factors will influence Australia’s domestic security scene:

• Terrorism is a strategy of many radical groups worldwide. Differing techniques and objectives make it impossible to predict with any certainty whether any particular group will resort to it. However, triggers exist in the Balkans, North Africa, some parts of Asia and across the Middle East, where tension and turmoil make terrorism an acceptable vehicle (in the eyes of some governments) to achieve political objectives. Against such a range of unpleasant possibilities, security services need to

maintain a high degree of flexibility and an appropriate response capability. Risks can build much faster than counter capabilities, once foregone, can be regained.

• In the Middle East, the peace process has yet to overcome the historic causes of discord. Moreover, success may improve only one set of relationships; others arguably will become worse. On the other hand, failure could see a rapid reversion to violent and unpredictable terrorism, with repercussions for all nations.

REPORT TO PARLIAMENT 1993-94

• Islamic extremism is a major prospective threat worldwide. The global threat level remains high.

• Traditional espionage, thought to be waning with the end of the Cold War, is now on the upturn.

• Other espionage threats of a substantive nature come from a range of countries. Some are easily identifiable. Other countries, which have harnessed their intelligence machinery to gain commercial advantage, or to acquire science and technology or materials helpful in developing nuclear and chemical weaponry, are less obvious in their activities.

• A range of transnational issues has emerged to challenge the institutions of nation States and blur the traditional boundaries betw een the security and intelligence services and the law enforcement agencies. They include the proliferation of weapons of mass destruction; illegal immigration; the drug trade and organised crime; the theft of technology and intellectual property for commercial exploitation; and threats to democracy stemming from the corruption of politicians, the judiciary and other key officials. These issues cross national borders, frequently involve the same people in several of these fields of activity, and require close coordination between the security and law enforcement agencies.

• Issues such as the conflict in the Balkans, the Kurdish struggle, separatist movements in the Indian subcontinent, political instability in Turkey and Algeria, and the war in the Yemen, have the potential to generate powerful consequences far afield and cause rapid and unsettling migration movements. For Australia, these are potential triggers to an increase in politically motivated or communal violence.

• Internationally there is a general increase in extremist nationalist activity (neo-fascism) but it does not appear coordinated. So far it has been in response to specific stimuli and manifests itself as the exercise of violence with limited political objectives, rather than the pursuit of political power. Its supporters commonly espouse nihilism and anarchism, and the groups generally lack effective organisation and structure.

In this shifting and unpredictable security environment, new security threats and variations of old concerns have emerged to create a more complex situation than in the days of superpower confrontation. For ASIO, such a situation has generated the need to

THE SECURITY ENVIRONMENT

monitor closely developments in the global security environment so as to assess their potential implications for Australia. In addition it has strengthened the need for increased international cooperation between friendly and neighbouring countries, both to enhance

information exchanges and to maximise response capabilities. The task of monitoring security in 1994-95 is a significantly greater challenge than ever before.

The A ustralian perspective As already noted, the increasing ease with which people and ideas can move across political boundaries means that the geographic containment of security problems is a thing of the past. This has

particular relevance to Australia, which in the past was largely quarantined by its physical isolation. In 1993— 94 Australia’s internal security environment continued to be shaped largely by events overseas. As in previous years, the risks that arose stemmed mainly from threats of violence by groups with political and/or nationalist motivations. However, intelligence gathering and other activities

directed by foreign powers also continued to be evident.

In addition some one-off incidents occurred, notably the dramatic attempt by a young man to approach Prince Charles to gain publicity for the plight of Cambodian boat people. This was an illustration of an unpredictable incident, involving an individual not

previously known to be of security concern and engaged in a personal crusade. Another seemingly ad hoc incident was the fire bombing of the Mexican consulate in Sydney, apparently triggered by events in Mexico. While acknowledging the seriousness of these

incidents, ASIO has not (and in a democracy never would have) the resources that would enable it to predict one-off events where no previous indicators known to ASIO exist. Its primary focus is

necessarily on those people, causes or doctrines which are likely to have a continuing potential for causing security harm.

Although the incidence of terrorism in Australia remains low, recent bomb attacks around the world (Buenos Aires in 1992 and 1994, New York in 1993, Bangkok and London in 1994) have dem onstrated that Middle Eastern terrorism can be exported

anywhere. In company with many other countries, Australia takes the threat seriously. During 1993-94, ASIO broadened its traditional focus of coverage to include not only Australian groups with affiliations to Middle East terrorist organisations but individuals or loose groups of people with a propensity and capability for violence as well as an extremist political agenda.

REPORT TO PARLIAMENT 1993-94

The no-boundaries nature o f terrorism w as well illustrated b y the bombing o f the central offices o f the Israeli - Argentine Mutual A id Association in Buenos Aires in July 1994. About 10 0 people were killed a n d nearly 2 0 0 injured. This was the second terrorist attack on Jewish premises in the Argentine capital; in 19 9 2 the Israeli Embassy there w as levelled b y a bombing attributed to the terrorist group Hizballah.

Australia has a substantial population of people either born in, or with family links to, Asian countries. Many who have left their country of birth to start a new life in Australia become the target for interference and espionage. The most usual activity of concern is the monitoring of emigres and the reporting back on people who are now Australian residents.

REPORT TO PARLIAMENT 1993-94

There was strong support for the view that detailed strategies and performance indicators needed to reside in classified ASIO business plans rather than in the corporate plan. This allow ed the development of a single, concise, readily accessible, unclassified corporate plan aimed at establishing an integrated cultural infrastructure of goals and values. Included was a new mission statem ent—also the product of extensive internal staff consultation—which conveyed the corporate sense of purpose of ASIO's officers. The plan also contained, for the first time, a list of

five success factors seen as critical to the achievement of ASIO s goals (see page 30).

For its hierarchy of classified business plans, ASIO held to the format of the now-superseded program performance statements. The business plans set out objectives and primary strategies, indicated how performance would be measured, and outlined work programs for the forthcoming financial year. Outcomes were reported against the objectives, strategies and perform ance indicators of the previous corporate plan. A resources section set out the human and financial resources required to implement each business plan. As with developing the corporate plan, ASIO staff were involved with drawing up the respective business plans, which to be fully effective require considerable consensus on

‘objectives’ and strategies’. A review of the 1993-94 business plans showed an increasing commonality in the planning approach, based on a closer focus on the goals highlighted in the corporate plan and on relevant business program objectives.

To provide strategic planning frameworks for addressing the people management goals in the corporate plan, a people management plan and a people development plan were nearing completion by the end of the reporting period. They resulted from extensive consultation with all staff.

Progress in continuous im provem ent It is one of ASIO’s goals that the practice of ‘continuous improvement’ should feed into every aspect of ASIO’s workplace and every officer’s approach to work. It was evident, for instance, in the draw ing up and negotiating of ASIO’s first productivity agreement (see pages 16-17). A continuous improvement matrix was developed during the last reporting period, as a way of encapsulating ASIO’s mission and goals, its governing values, and

MAJOR EVENTS AND INFLUENCES

its view of the future. Progress can be charted against specified milestones for the various elements. These elements are client satisfaction, leadership and management, people involvement, continuous process improvement, m anagem ent by facts, and

continuous improvement linked to corporate objectives.

By the end of the reporting period about 85 per cent of ASIO’s staff had attended courses introducing them to the concept of continuous improvement. Through their evaluative feedback, staff generally indicated their perception of progress in the first three sectors of ASIO’s continuous im provem ent m atrix ( client satisfaction, leadership and management, and people involvement). The first two of these constitute separate critical success factors and are reported on below.

Other sectors of the matrix also saw development. Key processes began to be defined and bases for benchmarking were laid. Steps were taken towards quality accreditation for certain work processes under the AS3900 series of Australian quality standards. A better understanding of the link betw een corporate objectives and improvement activities became evident in the development of business plans and performance agreements at all levels.

Evaluation outcom es Progress was made during the year towards developing a three-year evaluation plan to cover 1994-95 to 1996-97. ASIO consulted with the Department of Finance as to the structure and approach to be

adopted. It was agreed that ASIO evaluations should focus in the main on efficiency and effectiveness rather than ‘appropriateness’, and that evaluation as a concept needed to be clearly differentiated from audit. It was also agreed that the evaluation process needed to make the greatest possible use of all relevant stakeholders and that ASIO would seek to include people from outside the Organization on evaluation steering committees.

At the end of the reporting period, a framework for future evaluation activity was in place. An outline of the proposed evaluation plan is at Appendix C, together with an account of evaluations and reviews conducted during the reporting period.

REPORT TO PARLIAMENT 1993-94

W orkplace bargaining outcomes A major outcome for ASIO in 1993-94 was the introduction of a productivity agreement, with effect from 12 August 1993. The agreement had won support from a majority of staff in a plebiscite and was endorsed by the Department of Industrial Relations. Covering a period of 20 months, its provisions included:

• a flatter organisational structure

• adoption of ‘best practice’ and continuous improvement in work practices

• the promotion of a participative workplace environment

• a review to determine competencies in ASIO as a basis for introducing com petency based training, assessm ent and promotion

• and the introduction of more flexible work hours to reduce the incidence of overtime, remove the need for penalty rates of pay, and enable staff better to adjust their work and family responsibilities.

The agreement provided for pay rises of 5.2 per cent over the period of the agreement (including economic adjustments of 2.9 per cent) to all classifications. In addition to the general increase, productivity increases applied to all classifications below the senior officer equivalent level—1 per cent to apply from 12 August 1993 A further productivity increase to officers below the senior officer level was targeted to occur in October 1994. The quantum of this increase will be determined by measured productivity gains over the first 14 months of the agreement. (Senior officer equivalents and SES officers in ASIO have access to performance pay in lieu of these productivity increases.)

In this context, work agreements were introduced for all staff during the year. The agreements provide staff and their immediate managers (senior officer equivalents) with the opportunity to discuss and agree on objectives and performance indicators, and to review them quarterly. Annual efficiency bonuses will be paid to staff on satisfactory achievement of agreed objectives. As well as their role in performance appraisal, the agreements are seen as a means of devolving responsibility and authority to the line areas and of promoting a feedback process from staff on corporate objectives.

MAJOR EVENTS AND INFLUENCES

The productivity agreement represented a significant milestone for ASIO. It addressed allowance issues that had caused difficulties for many years, and challenged some conventional work practices, including by removing penalty rates of pay. A key feature was the discontinuation of core working hours to be replaced with flexible working hours, which are determined within each functional area

between line managers and staff, taking into account client needs. The agreem ent also laid the groundw ork for a system that recognises that the health and well-being of staff is basic to an

efficient and effective workforce.

Some problems will need to be overcome in the next review period, for instance in regard to on-call requirements imposed on some staff. Some allowance anomalies emerged and will need attention. Overall, however, the outcome of the agreement should be a m ore productive w orkplace and an im proved w ork

environment for staff.

A workplace bargaining workshop facilitated by the Department of Industrial Relations was held to increase the knowledge of and support for productivity improvement in ASIO. New ideas emerging from the wide range of staff and managers participating gave rise to

a revised workplace bargaining framework and greater involvement of staff in productivity work groups. Improved communication and consultation mechanisms will be introduced during 1994-95.

Increased cooperation with law enforcem ent agencies Guidelines were finalised during the reporting period to cover the exchange of information between the Australian intelligence and

security agencies (AISA) and law enforcement bodies. As noted earlier, this decade is seeing a continued blurring of demarcation lines between the efforts of the two sets of agencies—although there is a continuing need to preserve the distinction between the advisory/executive nature of their respective roles. The need to

address transnational issues such as organised crime, money laundering, arms trafficking, and various forms of corruption, calls for a coordinated approach and sharing of resources where appropriate.

Tensions can arise, however, between the need of the intelligence services to protect sources and methods, and the requirement of the law enforcement agencies to disclose information as evidence in a

REPORT TO PARLIAMENT 1993-94

prosecution. Moreover, AISA members are generally exempt from the provisions of current freedom of information legislation. But once sensitive inform ation is passed to a law enforcem ent investigating agency, the issue of public disclosure can arise.

The guidelines do not address all aspects of information exchange, but rather provide a practical framework for ensuring sensitive information is not compromised. Overall, the outcome will be stronger cooperation between advisory and executive agencies, m ade possible by the assurance of protection for sensitive information.

INTERNAL PROCESSES O F CHANGE CONTINUE

Internal processes of change continue

This ch ap ter looks at how ASIO continued to undergo

organisational change and develop its structures and management processes in pursuit of the vision spelled out in the ASIO Corporate Plan 1993-94 to 1995-96. Some minor detail is excluded from the unclassified Report to Parliament 1993-94.

Last year’s annual report focused extensively on the extraordinary processes of internal change which ASIO embraced in 1992-93· The triggers were both external and internal. There was the continuing need to refocus resources in the post-Cold War climate, and Government expectations for this were made clear with a budgetary

reduction of $3.81 million (in 1992-93 dollars) to be spread over the next four years. There were also internal imperatives stemming from a major review of ASIO’s processes, structures and

management practices.

By the beginning of the current reporting period, all management positions had been restructured, and all but a few positions at manager level had been filled from a pool of both internal and external candidates. A new management philosophy had been articulated, with strong commitment to principles of continuous

im provem ent: forem ost being custom er service and staff participation in decision making in all matters concerning their conditions of employment. A new risk-based methodology had been introduced as the basis for ASIO’s security intelligence investigations, and the concept of risk management was becoming better understood and applied in other ways to ASIO’s work practices and advisory services.

The task for 1993-94 was to keep up the impetus, build on the various platforms that were in place, and continue to work on the infrastructure and plan for the future.

Reshaping the O rganization The restructuring of m anagem ent positions continued in August-September 1993 with the placement of the remainder of assistant m anagers (APS SOG C to SOG B equivalents) into

REPORT TO PARLIAMENT 1993-94

positions. These positions were filled by the internal transfer of existing officers at this level.

With the senior and middle management stmcture in place, the way was clear to begin the restructuring of individual work units. This involved clarifying the tasks to be done and defining the staffing needs below senior officer level. Effectively, managers undertook this phase in the context of formulating divisional and branch business plans. There remained the task of actually placing people in positions and dealing with the problems of imbalance in some skills areas and inevitable distress in staff who would have to move from jobs they considered their own. By the end of the reporting period, a placement committee had been formed and was working through the process. It was understood from the outset that there would be no forced redundancies.

It had been decided at the beginning of 1992-93 to accelerate staffing reductions so as to fund redundancy payments. This meant achieving a reduction of 120 staff between 1 July 1992 and 30 June 1994, to a target staff level of 520. However, additional funding received for inquiry-related costs allowed some staff losses to be deferred, revising the target figure to 540 plus the November 1 task force (see pages 68-69).

At 30 June 1994 ASIO had 543 full time equivalent staff, giving an average staffing level for the year of 561.7 compared with 616.7 in 1992-93. Appendix A sets out detailed staffing statistics, including for Senior Executive Service staff.

There was minimal external recruitment of staff in 1993— 94. Eleven new officers were recmited, one to a vacant management position (at APS SOG A equivalent level). The other ten appointments were temporary, to meet short-term specialist requirements. All other vacancies were filled through internal promotions and transfers. Towards the end of the year, action began on a recmitment project to fill several vacant positions for engineering and information technology specialists, linguists and generalist intelligence officers.

The cost of recmitment advertising in 1993-94 was $38 366, paid to Neville Jeffress Sydney Pty Ltd, the Government’s master agency for print advertising for recruitment purposes. (No payments were m ade to the other two m aster agencies for other classes of advertising.)

A minor adjustment to the senior management framework was made during the reporting period, with the creation of an SES

INTERNAL PROCESSES O F CHANGE CONTINUE

Band 1 position of Legal Adviser. The position was advertised internally and in the national press. After a selection process involving external representatives, the position was filled by an internal candidate who was serving as Legal Adviser at a level equivalent to APS SOG A. Figure 1 shows ASIO’s management structure at 30 June 1994.

Program m anagem ent In public service terms, ASIO itself is a subprogram (6.8) of the Attorney-General’s portfolio program stmcture.

No further adjustments were made to ASIO’s internal program structure (see Figure 2). The concept of a m ajor Security Intelligence Program to carry out ASIO’s core business of collecting, analysing and advising government of security-related intelligence held firm. Functionally and for budget purposes, the program cuts across the two Divisions of Collection and Analysis and also draws on functions and budget administered by the Corporate Support Division. Three other programs (Protective Security, Foreign

Intelligence, and Counter Terrorism Support) are defined and reported on separately because of their special nature in servicing specific government requirements as set out in the ASIO Act. These programs also cut across various branches for functions and budget support.

Program expenditure in 1993-94 is shown in Appendix B. The 1993-94 outcomes of these programs are dealt with in the Program Reports section.

The changing w orkplace

Enhancing industrial democracy

Consultation and negotiations between ASIO staff and management on terms and conditions of employment are carried out in the ASIO Consultative Council (ACC). Membership of the ACC comprises equal numbers of management and staff representatives, and meetings are jointly chaired by a senior manager and the president of ASIO’s staff association. The ACC provides a forum for discussion

of employment issues and a means of contributing staff inputs to decision making.

REPORT TO PARLIAMENT 1993-94

Figure 1: ASIO's m anagem ent structure at 3 0 June 1994

Director-General David Sadleir

Deputy

Director-General

First Assistant Director-General Corporate Support

First Assistant Director-General Collection

First Assistant Director-General Analysis

M anager I Systems and

M anager Northern

M anager Requirements, Assessments and Production

M anager Executive Development

M anager Staff Development and Training

M anager Southern

M anager Middle East and Africa

Adviser

M anager Asia

SOGA

M anager Personnel, Finance and Administrative Services

M anager Middle East and Africa

M anager Australia, Pacific, Europe and Americas

M anager Information Services

M anager Asia

M anager Agency Services

M anager Operations Support

INTERNAL PROCESSES O F CHANGE CONTINUE

Figure 2: ASIO's reporting program structure at 3 0 June 1994

Program

Security Intelligence

Protective Security

Foreign Intelligence

Counter Terrorism Support

C orporate Support

Subprogram

Australia Pacific Europe Americas

REPORT T O PARLIAMENT 1993-94

Where appropriate, the ACC may recommend to the Director- General that an amendment to existing terms and conditions of service should be m ade. The Director-General effects such

amendments by issuing a new or revised ‘determination’. (Under guidelines issued by the Attorney-General, the Director-General must consult with the Secretary of the Department of Industrial Relations in exercising this determ inative pow er, to ensure consistency with public sector employment principles.) A list of determinations issued in 1993-94 is at Appendix D.

Progress with industrial democracy continued during the year, with the ACC becoming a sound framework for handling ongoing organisational change against a background of widespread effective consultation. Improved communication and information sharing arrangem ents were evident, encouraged by devolution. The president of ASIO’s staff association accepted standing observer status at meetings of ASIO’s strategic m anagem ent advisory committee. This access by staff to senior level decision-making discussions was valuable in fostering trust and encouraging participative workplace change. Following the introduction of the productivity agreement and the acceptance of workplace bargaining as an ongoing process, the staff association and ASIO management together commenced a review of ASIO’s industrial democracy framework.

Introducing a competency-based staffing system

Following extensive discussions with staff on the nature of employment in ASIO, planning began for the introduction of a competency-based staffing system. A small project team was set up, reporting to a steering committee which represents interests across the Organization, including a staff association representative. The identification of competencies was based on a structural job analysis of a sample group combined with other information on the role and of the w ork of the group. Australian Public Service (APS) competencies were also drawn on where appropriate. A feature of the process was extensive consultation and communication with staff.

By the end of the reporting period, a draft list of competencies had been completed for officers involved in the collection and analysis of intelligence, and a discussion draft had been circulated to informal ‘resource groups’ throughout ASIO. The process will be

INTERNAL PROCESSES OF CHANGE CONTINUE

extended to other job families next financial year. When developed, these competencies will provide a clear and agreed basis for human resource decision making.

Developing equal employment opportunity

The senior executive responsible for equal employment opportunity (EEO) in ASIO is the First Assistant Director-General Corporate Support. As reported last year, a new program for 1993-96 was developed during 1992-93· The new program was endorsed by the ASIO Consultative Council (ACC) in August 1993 and approved by

the Public Service Commissioner in September 1993· It focused on improving staff awareness of EEO issues and on eliminating any discriminatory practices in the management and supervision of staff.

Program strategies include increasing the involvement of regional and divisional EEO contact officers in disseminating information and advice to local managers and staff. This strategy proved effective during the review period in terms of broadcasting EEO issues and

principles. A further step was to include a contact officer representative as a member of the ACC combined subcommittee on equal employment opportunity and occupational health and safety. The subcommittee successfully promoted staff involvement in

International Women’s Week activities and the participation of ASIO contact officers in a national APS conference on EEO.

The subcom m ittee comm enced developm ent of a new EEO program for 1994-95 based on the Public Service Commission’s ‘new model’, which allows for an approach that is more focused on ASIO’s specific needs but is still compatible with service-wide

objectives.

Statistics showing the representation of designated groups in the ASIO w orkforce and within occupational groups appear at Appendix E. The statistics reveal that the career opportunities for women in middle management and non-administrative positions

need to be examined and strategies developed to overcome any cultural factors identified.

One EEO-related grievance was reported during 1993-94. It was able to be resolved by the local manager with support from the officer appointed as EEO Coordinator.

REPORT TO PARLIAMENT 1993-94

Enhancing occupational health and safety

Following last year’s organisational restructure, the number and composition of occupational health and safety (OH&S) designated work groups were reviewed. Additional groups were established and arrangem ents m ade for elected health and safety

representatives to undertake accredited training. The annual review of ASIO’s occupational health and safety agreement resulted in a health and safety officer being appointed to the membership of the ACC combined subcommittee on equal employment opportunity and occupational health and safety.

Statistics of accidents and dangerous occurrences that required the giving of notice under section 68 of the Occupational Health and Safety (Commonwealth Employment) Act 1991 appear in Table 1.

Table 7: Notices given under s.6 8 o f OH&S Act, 1 9 9 3 -9 4

Nature of accident Notifications

Accident resulting in death —

Accident causing serious personal injury —

Accident causing incapacity of 5 or more days 10

Dangerous occurrence not resulting in death, serious personal injury, or incapacity 1

The dangerous occurrence was a needle stick injury, which subsequently proved to have had no ill effects. However, the Organization’s occupational first aid policy was reviewed to identify employment categories where exposure to HIV, hepatitis B and tetanus infection is possible, and preventative measures were put in place, including the provision of vaccinations to staff in the identified employment categories.

The bulk of the accidents resulting in staff being incapacitated for five or more days related to incidences of work-related stress. When this trend became apparent, several strategies were put in place. These included raising the awareness of line managers and staff about the factors that contribute to stress, and informing staff about lifestyle changes that can reduce the risk of stress.

INTERNAL PROCESSES O F CHANGE CONTINUE

Other health and safety initiatives included:

• the appointment of a radiation safety officer

• the promotion of healthy lifestyles during Health Week, when a program of education and physical activities was made available

• and the development and introduction of an electrical equipment safety check program.

During Health Week. 1994, ASIO staff were encouraged to sample something a little different in the w ay o f physical activity, and the techniques o f abseiling proved extremely

popular.

REPORT T O PARLIAMENT 1993-94

Under section 30 of the OH&S Act, ASIO’s health and safety representative initiated a workplace inspection of the designated work group where the most serious incidences of work-related stress had occurred. A report was finalised for consideration by the relevant ACC subcommittee early in the next reporting period. No notices or directions were given under sections 45, 46 or 47 of the Act during the reporting period.

Encouraging performance

The focus on perform ance m anagem ent and accountability throughout the Organization was extended by introducing work agreements for staff at levels below APS senior officer equivalent. Through the work agreements drawn up between staff and their managers (see page 16), staff were able to link their work program to corporate goals and objectives and to determine their own performance indicators.

Last year’s annual report noted that several staff had submitted grievances in relation to the senior officer performance pay process in 1992-93, and that they were to be referred to a Grievance Review Committee for resolution. By the end of August 1993, a total of eight individual grievances, and one collective grievance representing 11 senior officers, were submitted for consideration.

After investigating the complaints of the 19 officers, the Grievance Review Committee found that the moderation process was flawed. The com m ittee recom m ended to the D irector-G eneral that provisional (pre-moderation) performance ratings be restored; that

affected officers have their performance payments varied to reflect revised ratings; and that a review of the processes be undertaken as soon as practical. The Director-General accepted the committee’s recommendations.

In the reporting period, the moderation of 1993-94 senior officer performance ratings was devolved to the divisional level so that each appraisal could be considered against a background of other appraisals coming from a similar work environment. Performance pay funds were split on a per capita basis between Collection Division, Corporate Support Division, and a combined group comprising Analysis Division, Executive Branch, and the Offices of the Director-General and Deputy Director-General. At the end of the reporting period, moderation had not been completed and paym ent of perform ance pay was deferred until July 1994.

INTERNAL PROCESSES O F CHANGE CONTINUE

Appendix A contains details of senior officer performance appraisal and the payments which were due for 1993-94.

SES performance pay details are also listed in Appendix A for the period 1 July 1992 to 30 June 1993. They were not included in last year’s annual report because appraisals had not been finalised when the report was being prepared. SES performance pay data for the period ending 30 June 1994 will be reported next year for the same reason.

REPORT TO PARLIAMENT 1993-94

C r i t i c a l s u c c e s s

f a c t o r s

In its 1993-94 to 1995-96 corporate plan, ASIO defined five broad areas where concentrated effort and incremental achievement would be critical to progress towards corporate goals. The first of these critical success factors is the all-embracing concept of continuous improvement, which then incorporates the other four factors—effective leadership and people management, client satisfaction, effective communication, and effective resource management together with the optimisation of technology.

Progress against each heading is described below. Some minor detail is excluded from the unclassified Report to Parliament 1993-94.

Continuous im provem ent As well as the initiatives described earlier in this report (see pages 14— 15), ASIO managers and staff took part in Australian Quality Council seminars on best practice, benchmarking and continuous improvement activities, and an ASIO manager presided at sessions of two of them. This was one example of a number of links forged between ASIO and external bodies in both the public and private sectors. In another example, two prominent external managers (Alison Crook, State Librarian of NSW, and Bill Godfrey, a former Second Commissioner in the Australian Tax Office) accepted invitations to speak to ASIO’s senior and middle managers in a continuing ‘breakfast seminar’ series. Three other external managers were the key speakers in a marketing seminar organised in-house for ASIO officers involved in liaising with clients and promoting ASIO’s products and services. The experience and shared insights of these guest speakers contributed significantly to ASIO officers’ understanding of best practice and continuous improvement.

In O ctober 1993 an ASIO m anager took part in an annual international conference on counter terrorism . As well as broadening ASIO’s perspectives the conference was a timely reminder of the value of and need for international cooperation on the issue of terrorism. All agencies promised their support and

CRITICAL SUCCESS FACTORS

cooperation to Australia in the lead-up to the Sydney 2000 Olympics.

The last two decades have seen significant developments in international cooperation between security and intelligence services, aim ed at ensuring the successful staging of major gam es an d the safety o f the athletes competing. Thirty-six countries contributed to the security o f the Seoul Olympics in 19 8 8 , which included the building o f a database listing

16 0 0 0 known terrorists a n d 6 0 0 terrorist organisations.

In the spirit of best practice, ASIO arranged secondments of ASIO officers to other federal organisations, including the Attorney- General’s Department, the Department of Foreign Affairs and Trade, and the Office of National Assessm ents. In a continuing arrangement, ASIO provides the Department of Defence with expertise at a senior level through the secondment of a full-time manager to an SES Band 1 position in Defence. Technical and other specialist staff continued to exchange visits and to maintain their professional skills through a range of liaison activities. ASIO also contributed to other agencies’ training and exchange programs.

REPORT T O PARLIAMENT 1993-94

Effective leadership an d people m anagem ent Effective leadership and people management are crucial to ASIO’s becoming a flexible, relevant and responsive organisation. ASIO managers at all levels must be able to enhance productivity by motivating their teams and inspiring staff to work in partnership to achieve ASIO’s goals. Various initiatives were taken last year as part of the strategic approach to improving leadership and management skills. They included:

• provision of a leadership development strategy for managers

• provision of a middle management leadership program for assistant managers

• development of a leadership plan as part of ASIO’s continuous improvement matrix as a basis for measuring progress

• and development of ASIO leadership critical success factors as a standard for leaders at all levels of the Organization.

The impetus begun last year by ASIO’s managers was continued in 1993-94, with most branches participating in team development sessions. These sessions equipped participants to:

• engage in problem solving within a continuous improvement model

• participate in decision making about workplace issues

• and bring about changes in work practices.

The team developm ent sessions also contributed to a closer alignment of ASIO’s work culture and the new management culture.

Managers and assistant managers (SES and APS senior officer equivalents) took advantage of the Public Service Commission (PSC) programs including AGEP (two managers), SWIM (one assistant manager), and a range of PSC modules for higher and middle managers.

In the past, ASIO middle managers had limited development opportunities. In 1993-94, sixteen assistant managers took part in the first middle management leadership program (MMLP), an in­ house course presented within an ‘action learning’ framework and featuring external presenters from a wide range of disciplines. A key feature of the MMLP was its reliance on experiential learning and project work. At the end of the program, participants presented the results of their project work to managers and other staff, and

CRITICAL SUCCESS FACTORS

received positive comments on the long-term worth of the work undertaken. One project was directly concerned with refining the subject risk matrix and addressing associated resource difficulties. Another encompassed the research work needed to develop a communication strategy for ASIO (see ‘Effective communication’ below).

At the end of the reporting period, plans were advanced for a second middle management leadership program in the first half of 1994-95.

Dr Richard Homes, an expert in the methodology o l focused scenario planning, w as one o f several external presenters who worked with A SIO senior officers on the first middle m anagement leadership program, in 19 9 4 .

Figure 3 shows ASIO’s leadership and management development strategy in schematic form, with progress in 1993-94 illustrated alongside the envisioned completed strategy, to be in place by the end of the forthcoming reporting period. Overall, the aim is a flexible framework, built to be responsive to ASIO’s changing needs and priorities.

REPORT TO PARLIAMENT 1993-94

Figure 3: ASIO's leadership and m anagem ent developm ent strategy

(a) Elements in place a t 30 June 1994 (b) Schema projected for 30 June 1995

HMG Program

Management Seminar

Basic Elements of M anagement

Front Line Manager Development

Work Group Manager Development

HMG: H igher m anagem ent gro u p (SES an d APS SO G A equivalents)

AMs: A ssistant m an a g ers (APS SO G C-B equivalents)

G IO s/S IO s: G e n era list and specialist intelligence officers (APS ASO 1-6 equivalents)

The leadership and management development strategy was initiated in 1992-93 with the extension of an existing in-house 'basic elements of management' program, along with access to some external management development services.

Diagram (a) shows the elements of the strategy in place by the end of the reporting period. Some external and internal services were being delivered to the HMG Program. Diagram (b) shows the full integrated strategy, in schematic form, planned to be in place by the end of the forthcoming review period.

Schematically, the 'horizontal slice' elements represent programs to meet leadership and management development needs shared by staff at broadly similar levels. Hence the development programs for specific groups of managers: higher management group (HMG]; middle management leadership program (MMLP); line management program; and the basic elements of management program. The 'verticle slices' represent development programs addressing developmental needs shared among natural and functional work teams as well as among different manager groupings.

For example:

e The management seminar series provides opportunities for senior and middle managers to meet

and discuss topical and emerging issues.

• The team development program involves tailoring programs to meet the needs of different teams.

• The 'front line network' program provides a forum and network to address development needs associated with continuing to provide high quality service to internal and external clients.

Particular attention has been paid to incorporating effective learning design into the leadership and management development strategy. Effective learning design is characterised by various interactive learning techniques, project work within an 'action learning' framework, work-based action planning, contribution

by mentors, follow-up and review processes, continuing development opportunities, and learning agreements. The aim is to maximise learning outcomes so that participants learn new skills, improve their performance in the workplace, and contribute to corporate outcomes.

CRITICAL SUCCESS FACTORS

The restructuring and downsizing of the Organization remained a central people management issue throughout the reporting period which tended to draw attention away from initiatives aimed at improving people management policies and practices. Nevertheless, the year saw a range of activities and achievements (as described elsewhere in this corporate overview), including:

• the drafting of a strategic people management plan for issue in the new reporting period

• progress in developing the competency-based staffing system

• various EEO and OH&S initiatives

• and the reorientation of industrial democracy through the work of the ASIO Consultative Council and the implementation of workplace bargaining.

Overall at the end of the reporting period there was a greater recognition and application of public sector employment principles in all aspects of ASIO’s people management.

Client satisfaction Over the past two years, client satisfaction has become recognised internally as ASIO’s major yardstick for measuring performance on all fronts. Details of major outcomes are contained in the program

reports in the second section of this report. There is still a need to formalise processes for recording and measuring client satisfaction. However, overall the reporting period saw continued development in the general approach of work units to seeking customer inputs

and feedback. This applied not only to external client liaison (apparent, for instance, in the supply of security intelligence product and protective security services to client authorities), but also to the way in which ASIO work teams dealt with each other.

Through team building program s and improved internal com m unication processes, a new spirit of cooperation and teamwork across the Organization could be perceived emerging. Examples of the new approach are reflected under other ‘critical

success factor’ headings.

A particular achievement stemmed from client liaison work initiated by the ‘public research unit’ set up in the last reporting period to expedite public access to ASIO’s archival records (those from 30 years ago or earlier). A backlog that had developed in the

processing of archives requests was a source of frustration to researchers and other applicants, a few of whom took appeals to the Administrative Appeals Tribunal. During the year officers from

REPORT TO PARLIAMENT 1993-94

the new unit met with selected applicants, explained the process to them and advised them on how best to prepare their applications for material. As a result of this, and the efficiency of the team in streamlining its work practices, the backlog of 543 requests at 30 June 1993 had been halved to 269 at the end of the current reporting period. The resulting client satisfaction caused three appeals to the AAT, held over from the previous year, to be withdrawn. One new appeal made in 1993-94 was also withdrawn. (Full details of ASIO’s performance in servicing archives requests are contained in Appendix F.) Having proved its worth, client liaison will remain as a major element in the work of the public research unit.

D o c u m e n ta r y m a k e r Lewis F itz-G era ld c o n ta c te d A S IO 's p u b lic rese a rc h unit for h e lp w h ile

s c r ip tin g h is film The Gadfly, s h o w n o n A B C te le v is io n in A u g u s t 19 9 4 . The Gadfly

e x a m in e s th e life o f Francis J a m e s , th e A u stra lia n journalist a n d e c c e n tr ic w h o e n c o u r a g e d

s p e c u la tio n th a t h e w a s a s p y — a lth o u g h his c la im s w ere n e v e r s u b sta n tia ted .

Effective com munication The reporting period was characterised by increased stress on the need for good communication, stemming from the corporate acknowledgment of effective communication as a critical success factor. Continuing the impetus of the previous year, the Director- General gave several television and newspaper interviews. These interviews were aimed at dispelling some of the myths around ASIO, promoting a better understanding of the Organization, and

informing the public of the ways in which ASIO is changing.

CRITICAL SUCCESS FACTORS

Feedback from the journalists involved and from public phone-ins following the television programs indicated the interviews had been worthwhile. The expectation is that better communication with the public and the m edia will increase public confidence and

cooperation with ASIO—ultimately to the benefit of Australia’s security.

For the first time, ASIO published an unclassified program performance statement in the Attorney-General’s portfolio for the August 1993 budget. As a result of this, the Director-General appeared at Senate Estimates Committee hearings in August 1993

and May 1994.

The program of ‘ASIO forums’ which began last year continued, with managers and officials from a wide range of government departments and agencies attending one-day presentations aimed at broadening their knowledge of ASIO’s work and capabilities (see

also under ‘Security Intelligence Program’). ASIO managers also made presentations to external seminars and conferences, including a security conference organised by the Federal Justice Office at

which the Director-General spoke.

As in previous years, ASIO responded to numerous inquiries from the public. Although the inquiries were ad hoc and of an individual nature, ASIO’s responses w ere generally aim ed not only at answering the questions but also at furthering an understanding of ASIO’s role and functions. As a continuing contribution to

community understanding, copies of ASIO’s corporate plan were again made available for sale to the public through Commonwealth governm ent bookshops, as was the unclassified Report to Parliament 1992-93-

There was evidence of a grow ing acknow ledgm ent of the importance of clear internal communication. A project to develop a corporate communication plan began, with an immediate aim being to raise awareness of communication needs, both corporate and individual, at all levels. The almost immediate outcome was that a number of policy initiatives produced late in the review period had communication strategies built into them from the drafting stage.

ASIO’s fortnightly staff bulletin continued to play a key role in internal communication, as did the electronic mail system. As well as carrying administrative information, the bulletin reflected staff views on most major issues and policies and, where appropriate,

carried responses from managers. A readership survey during the period showed 65 per cent of respondents believed the bulletin had improved internal communication.

REPORT TO PARLIAMENT 1993-94

Effective resource m anagem ent and optim isation of technology A com prehensive infrastructure plan for ASIO has yet to be developed. Delays stemmed from the need to commit technical

skills and resources to servicing a range of major reviews and investigations (see page 12). However, benefits from the 1992-93 integration of ASIO’s engineering and information technology disciplines into one Systems and Development Branch became apparent in 1993-94. Better communication and coordination between work units enabled a more focused approach to planning and development.

Similarly, there was a restructuring of activities in Information Services Branch, to provide better focused support to ASIO’s core business activities. This included taking over the communications unit (previously part of Systems and Development Branch) to provide more timely and effective electronic messaging and document routing. New software enabled encrypted information from overseas liaison posts to become available to analysts within minutes of its arrival.

The interlinking nature of the critical success factors was apparent when client focus principles were applied to the development of operational technology. Engineering design staff placed more emphasis on extensive consultation with prospective users to reflect their inputs into product design. Client response was positive. In a related development, a small in-house workshop was set up to produce small runs of certain types of equipment or spare parts, which are difficult to obtain from commercial suppliers. Steps were taken towards recruiting casual staff to take up positions in the workshop in the next reporting period, to undertake tasks for which it is not cost-effective to employ full-time staff.

CRITICAL SUCCESS FACTORS

ASIO's engineers and technical specialists design a n d produce customised equipment for

the Organization's own use.

Major efficiency gains resulted from an upgrading of the central computer cluster of minicomputers to speed up data retrieval from the main intelligence databases. One of the processors bought in the 1980s was replaced with another that is seven times faster than

its predecessor. The capital cost will be recovered in three years, through savings in maintenance.

Towards the end of the reporting period, planning began on the OASYS (office automated systems) replacement project. This will result in all staff being equipped with networked PC workstations. An improved electronic mail system will also be introduced. Normal

office activities such as word processing and electronic messaging will be considerably enhanced, and dem and on the heavily overloaded central processing cluster will be lightened. At the same time, consideration was given to the introduction of client server

technology which would pave the way for a system providing ASIO staff with easier access to whatever data they are authorised to use. Anticipating this, the technology was used in a pilot sub-project for Stage 2 of the integrated management information system project.

Stage 1 of the project, commenced in 1992-93, was completed in September 1993. Trials involving users produced positive comments and formed the basis for a follow-on sub-project.

REPORT TO PARLIAMENT 1993-94

Funding of the OASYS replacement was secured through a resource agreement made with the Department of Finance in the 1994-95 Budget context, which increased the Forward Estimates by SO.41 million in 1994-95 and 1995-96, and SO.97 million annually thereafter.

Considerable effort was devoted to ensuring that ASIO’s information technology systems were maintained and enhanced to meet the needs of officers in key areas. Dialogue with customers was greatly increased through a system comprising an oversight and decision making committee, several client requirement groups, and a number of nominated client liaison officers. The consequent understanding of user needs is helping the development of new systems—for example, the new electronic mail system and Stage 2 of the integrated management information system.

Significant development was seen also in the approach to computer training, following last year’s relocation of information technology training staff to a section within the computer support environment. This gave trainers new opportunities to maintain their skills and become involved in project work, which increased the level of training expertise available to users on new equipm ent and software. A ‘walk-in’ centre was established, offering one-to-one training on all available software applications.

Qualitative improvements and efficiency gains were the outcome of an upgrade to the central office building management computer system during the review period. The new system ensures the m aintenance of critical services, such as com puter systems, com m unication links and air conditioning, during pow er breakdowns. Energy savings of 7.3 per cent were also achieved (a further improvement on last year’s saving of 5.26 per cent).

EXTERNAL AND INTERNAL SCRUTINY

E x t e r n a l a n d i n t e r n a l

s c r u t i n y

ASIO is subject to Ministerial oversight and to normal processes of scrutiny, including appearance before Senate Estimates Committees and audit by the Australian National Audit Office (ANAO). In addition, various specific provisions exist for the oversight of ASIO by government and the Parliament. This chapter describes major

outcomes in these areas during the reporting period. Some detail is excluded from the unclassified Report to Parliament 1993-94.

G overnm ent an d parliam entary oversight Major policy issues relating to security are dealt with by the Security Committee of Cabinet, which receives advice from the Secretaries Committee on Intelligence and Security (SCIS). Membership of SCIS

comprises the Secretaries of the Departments of the Prime Minister and Cabinet (Chair), Foreign Affairs and Trade, Defence, Finance, and the Attorney-General’s Department, along with the Chief of the Defence Force, the Director-General of the Office of National Assessments, and the Director-General of Security. Through this

mechanism, ASIO is subject to rigorous review and oversight of policy directions.

Major issues presented to SCIS by ASIO during the review period included:

• ASIO’s annual report for 1992-93

• an assessment of the security environment, together with ASIO’s consequent investigation and analysis priorities and strategies and resulting structural adjustments

• ASIO’s resource requirements to enhance security intelligence capabilities, including to allow for appropriate consideration of the security implications of the Sydney 2000 Olympics

• and guidelines for the exchange of information between AISA and the law enforcement agencies.

The Attorney-General and other relevant Ministers were also kept informed of ASIO’s activities through briefing notes and possible parliamentary questions, the latter usually bearing on matters circulating for a time in the media.

REPORT TO PARLIAMENT 1993-94

Further parliam entary oversight was m aintained through the Parliamentary Joint Committee (PJC) on ASIO, and through the Director-General’s appearances before Senate Estimates Committees in August 1993 and May 1994. ASIO's Report to Parliament 1992-93 was tabled within the required time frame and received positive comment from Government, clients and media representatives.

At 30 June 1994 the membership of the PJC on ASIO was as follows:

Mr Russell Gorman, MP, presiding member, (Greenway, ALP) Senator John Coulter (SA, AD) Senator Olive Zakharov (Vic, ALP) Mr Graeme Campbell, MP (Kalgoorlie, ALP) Mr Peter Dodd, MP (Leichhardt, ALP) Mr Bruce Scott, MP (Maranoa, NP) Senator Nick Minchin (SA, Lib).

During the year Senator Minchin replaced Senator Baden Teague (SA, Lib) as a member of the committee.

The PJC on ASIO completed its second reference during the period and tabled its report, ASIO Security Assessment: A review o f security assessment procedures on 27 June. Its nine recommendations did not all relate to ASIO but the Organization will evaluate them so it can contribute to the Government response (see also Appendix C).

ASIO is not subject to inquiry by the Ombudsman. Instead, the Inspector-General of Intelligence and Security has the powers of a Royal Commissioner to investigate complaints from the public.

Details of inquiries conducted by the Inspector-General of Security and Intelligence during 1993-94, and the Inspector-General’s conclusions, are published in his own annual report for the period.

The Inspector-General visited ASIO in the reporting period to conduct spot checks on warrants for the use of special powers, and found no evidence of impropriety or abuse (see also page 60).

As reported in Appendix F, two appeals to the Administrative Appeals Tribunal were made in 1993-94 over ASIO’s decision to withhold material requested under the Archives Act. One was withdrawn; the other was held over at the end of the review period. Three other appeals, held over from the previous year, were withdrawn.

As foreshadowed in last year’s report, the hearing of a review of an adverse security assessment commenced in 1993-94 before the Security Appeals Tribunal. However, following discussions between the parties, the applicant withdrew the application for review when the matter was part-heard.

EXTERNAL AND INTERNAL SCRUTINY

Audit an d fraud control A three-year audit and evaluation plan was endorsed by ASIO’s audit and evaluation committee in March 1993. The plan, which spans a time period up till the end of the 1994-95 financial year,

provides for a cyclical system of review of ASIO’s major financial, administrative and operational systems. It covers fraud control measures, including regular reviews of ASIO’s risk of fraud.

ASIO’s policy on instances involving loss to the Commonwealth is based on the Audit Act 1901, the Finance Regulations and Finance Directions. On-the-job training covering internal procedures and controls which accord with acceptable accounting practices

continued to be provided to staff. Detailed written procedures for financial administrative functions, circulated to staff as part of the ASIO Procedures Manual, were maintained.

Security considerations require that any instances of fraud within ASIO must first be investigated internally. Depending on the circumstances, such cases are then referred to the Australian Federal Police. Should a case be proved, the Attorney-General would be

informed and details passed to the Department of Finance and the Australian National Audit Office (ANAO) in accordance with relevant Finance Directions. During 1993-94 one case of fraud which occurred during the 1992-93 financial year was investigated

by the AFP. The case was then passed to the Director of Public Prosecutions, and resulted in the conviction of the person concerned. During 1993-94 no action was required regarding cases of suspected fraud.

One report that referred to the operations of ASIO was tabled by the Auditor-General during 1993-94. Audit Report No. 27 of 1993-94 tabled on 18 March 1994 reported on the results of the

audit of ASIO’s 1992-93 financial statements. The classified nature of some of ASIO’s activities and the restrictions on access to some ASIO locations prevented the ANAO from verifying formally the existence and value of all non-current assets disclosed in the

financial statements. The ANAO also was unable to verify formally a material portion of annotated appropriation due to restrictions on access to supporting documentation. The audit report on the 1992-93 financial statements was qualified accordingly.

At 30 June 1994 there were no significant items raised in reports by the Auditor-General in previous years on which remedial action remained outstanding.

REPORT TO PARLIAMENT 1993-94

ASIO’s expenditure is recorded in two ledgers. Expenditure of a general nature is recorded on the Organization’s non-exempt accounts, while the exem pt accounts record only outgoings associated with sensitive intelligence collection activities. Because the disclosure of details might prejudice intelligence-gathering operations, the exempt accounts (which constitute only a small proportion of the whole) are not subject to inspection by the Auditor-General under the Audit Act. However, an officer of the ANAO is seconded to ASIO as internal auditor with responsibility for oversight of all the Organization’s financial administration, including the operation of both the exempt and non-exempt accounts.

ASIO’s No.l Account and supporting records for 1993-94 were examined by officers of the ANAO following the close of the reporting period.

As required by subsection 70d(5) of the Audit Act, a certificate relating to ASIO’s exempt accounts was presented to the Attorney- General by the Director-General after the close of 1993-94. The Attorney-General subsequently furnished a certificate to the Auditor-

General (see Financial Statements’).

Tabled reports concerning ASIO The following two reports concerning ASIO were tabled during the reporting period:

• Audit Report No. 27 of 1993-94 was tabled by the Auditor- General on 18 March 1994.

• ASIO Security Assessment: A review o f security assessment procedures by the Parliamentary Joint Committee on ASIO was tabled on 27 June 1994.

Internal avenues for ap p eal Mr Stuart Magee, a former member of the APS Merit Protection and Review Agency, continued his appointm ent as the external chairperson of the ASIO Promotion and Transfer Appeal Committee. During the reporting period a total of 49 appealable vacancies were advertised. Three appeals were heard by Promotion and Transfer Appeal Committees, of which one appeal was allowed and two were disallowed.

EXTERNAL AND INTERNAL SCRUTINY

As reported on page 28, an internal Grievance Review Committee (GRC) was formed to investigate the claims of 19 senior officers in respect of the performance pay process. The committee found in favour of the claimants. The GRC was reconstituted to consider one other case, in connection with an officer’s entitlements under excess staffing guidelines. On this occasion, the GRC did not find in favour of the claimant.

ASIO D eterm ination No. 4/85 and No. 1/93 provide for the appointment of a Disciplinary Appeal Board (DAB) chaired by an independent (external) chairperson to hear any appeal by an officer of the O rganization against disciplinary action taken or

recommended. In January 1994 the Director-General appointed Mr John Dainer, AM, RFD, a former and now Special Magistrate of the ACT Magistrates Court, to convene and chair a DAB to hear an

appeal lodged by an officer under clause 27 of ASIO Determination No. 4/85 against a recommendation made by an Inquiry Officer authorised to inquire into a charge of misconduct. The Director- General accepted a majority recommendation that the appeal be upheld.

REPORT TO PARLIAMENT 1993-94

REPORT TO PARLIAMENT 1993-94

Program R eports

REPORT TO PARLIAMENT 1993-94

S t r u c t u r e o f p r o g r a m

r e p o r t i n g

ASIO constitutes a subprogram (Subprogram 6.8) within the Attorney-General’s portfolio structure. On a portfolio level ASIO’s ‘programs’ are thus components. However, it is convenient and meaningful for ASIO to report on its objectives, activities and outcomes in conventional program reporting format.

On this basis, ASIO has five programs:

• Security Intelligence

• Protective Security

• Foreign Intelligence

• Counter Terrorism Support

• Corporate Support.

SECURITY INTELLIGENCE PROGRAM

S e c u r i t y I n t e l l i g e n c e

P r o g r a m

ASIO’s role as both the national assessing agency and the collecting agency for security intelligence is carried out through the Security Intelligence Program. The program’s objective is to ensure that Ministers and appropriate agencies and authorities are forewarned of acts likely to place the security of Australian people, property or

interests at risk, and are provided with sound advice on how risks might be managed and harm avoided, countered or reduced.

As the security intelligence assessing agency, ASIO maintains coverage of developm ents around the w orld, draw ing on information from many sources including its own collectors, publicly available material, other Australian agencies and foreign liaison services. As an intelligence collector ASIO is uniquely placed, by virtue of its special powers, to obtain information on security developments within Australia. At the same time, ASIO has an interest in any activities which may affect Australia’s security, whether or not these activities are directed from or committed within Australia.

The Security Intelligence Program operates with three geographic subprograms (geographic divisions are now in general use among the agencies with which ASIO has most communication). The subprograms are:

• Middle East and Africa

• Asia

• Australia, Pacific, Europe and Americas.

The Security Intelligence Program is conducted by Analysis Division, which analyses security intelligence, prepares assessments, and reports to government and client authorities on matters relating to security; and by Collection Division, which gathers intelligence

relevant to national security. Support within the program is provided by Corporate Support Division. Table 2 (excluded from the unclassified Report to Parliament 1993-94) shows resourcing of the program in 1992-93 and 1993-94.

During the reporting period ASIO gave particular attention to ensuring that collection activities accurately matched reporting requirements. The risk based approach towards sources of potential

REPORT TO PARLIAMENT 1993-94

security harm introduced in 1992— 93 was further developed in 1993-94. Subject risk matrix entries (see Corporate Overview) were continuously reviewed and refined, with changes in assessed intent and capability being reflected in updated assessments of threat, and input from clients on likely harm being factored into the assessment of risk. The assessed level of risk, and other factors such as the degree of client interest and the immediacy of the likely harm, were then used to rank subjects in priority order.

Subject risk matrix ranking was then used to help allocate available resources against the spectrum of security threats, and to balance the distribution of resources between assessment and collection tasks. The matrix helps to determine the assessing resources needed for different subjects, some of which require greater resources because of their complexity. It also helps in assigning collection resources. In general, investigations of higher ranked subjects have first call on collection resources, but allocation of collection resources also depends on the difficulty of obtaining the necessary information, and the various options, both within and outside ASIO, that are available for obtaining that information. Finally, the subject risk matrix ranking influences the type of investigation used, with more intrusive methods (which can only be used under warrant) being reserved for higher risk subjects.

A major source of performance information applied to the Security Intelligence Program was client feedback—indicating not only the degree of satisfaction with reports received, but the extent of further demand for product. Other indicators were whether ASIO was able to provide forewarning of violence or otherwise help prevent it, and whether it was able to identify foreign intelligence functionaries and their activities. ASIO also estimated its performance by means of its own assessment of the amount and quality of reporting it was able to produce for clients during the period. And—since to report to clients ASIO must first have the necessary information—a complementary performance indicator was whether ASIO was able to maintain or enhance its knowledge and understanding of the subjects it was investigating.

ASIO reports to clients on security concerns in the three geographic subprogram areas, and also on global proliferation issues. A variety of reporting vehicles are used to convey the information, ranging from fortnightly summaries of major developments to in-depth reports on single issues.

To enhance its collection of inform ation, ASIO liaises with cooperating overseas security intelligence services. Within Australia,

SECURITY INTELLIGENCE PROGRAM

some investigations are conducted under warrant, using ASIO’s special powers to investigate matters of serious concern (see pages 58-60).

In recent years, ASIO has developed community contact programs. These programs are based on informing emigre community leaders about ASIO and its responsibilities and encouraging them to talk

about their concerns and about matters relevant to security which could affect their comm unity and the nation. In line with Government directives, the interviews are handled with sensitivity and a full regard for the civil liberties of those involved. During the

reporting period, ASIO developed and extended the programs, making contact with leaders and prominent figures in the following communities (this list is excluded from the unclassified Report to Parliament 1993-94)

The contacts were judged successful in enhancing community understanding of ASIO and were well accepted by community leaders, most of whom valued the opportunity to air their concerns and discuss appropriate responses. In some cases, the contact

provided forewarning of potentially violent demonstrations.

Outcom es of investigations The outcomes of ASIO’s investigations are described below, grouped under the three geographic subprogram headings and under an additional heading of ‘Counter proliferation’. Subjects of

security concern in each geographic subprogram are listed in order of priority as detailed in ASIO’s subject risk matrix at 30 June 1994. Because the subject risk matrix is frequently revised, the priority ordering of subjects fluctuated during the review period.

Table 3 below (excluded from the unclassified Report to Parliament 1993-94) shows subjects in the priority order in which they appeared in the subject risk matrix as at 30 June 1994. As the table indicates, the correlation between the priority ranking and the

assessed level of long term risk of each subject is not direct. High priority subjects include not only high risk subjects but also some medium risk subjects which have been elevated in priority by events such as a court case, a visiting dignitary, client interest or changes warranting a reassessment of the threat and risk levels.

The majority of this outcomes section is excluded from the unclassified Report to Parliament 1993-94. General readers will find an overview of Australia’s security environment in the Corporate Overview section of this report.

REPORT TO PARLIAMENT 1993-94

Counter proliferation

The increasing proliferation of weapons of mass destruction (WMD) throughout the world is a growing threat to global security. The demise of the Soviet Union, the relaxation of frontier controls in Europe, the increasing aspirations of proliferating countries to acquire WMD materials and technology, and the willingness of business people from technologically advanced countries to capitalise on these markets, have contributed to the traffic. As a result, countries dedicated to controlling the traffic are more aware of the problem.

In support of Australia’s commitment to controlling WMD, ASIO m aintains a section dedicated to investigating attem pts by proliferating countries to acquire Australian materials or technology through the conscious or unwitting assistance of Australian companies or business people.

Up to the end of the reporting period, there had been no identified cases where WMD material or technology had been knowingly supplied to anyone suspected of involvement in proliferant activities. Of the 14 cases investigated in 1993-94, there were several where, as a result of ASIO activity, Australian businesses severed connections with customers representing proliferation programs or stopped shipments. The remaining cases involved less sensitive material or technology which did not warrant controls being im posed, but they provided useful insights into the techniques and networks being used by proliferating countries to fulfil their WMD program requirements.

In April 1994, ASIO participated in an Australia-wide Defence Export Control seminar which was sponsored by the Department of Defence. The seminar program comprised briefings for industry and government departments likely to be affected by the revised export regulations following changes to the Customs prohibited exports regulations and the demise of COCOM (the Coordinating Committee for Multilateral Export Controls, which during the Cold War prevented the export of sensitive military technology to communist countries). ASIO’s briefings, all unclassified, highlighted the O rganization’s counter proliferation role and w arned of the possibility of the illicit acquisition of science and technology by foreign powers.

SECURITY INTELLIGENCE PROGRAM

Developm ents in reporting ASIO reports

Published reports are a major vehicle for the transmission of ASIO advice and information to clients. In the review period further steps were taken towards improving the content, quantity and timeliness

of reporting. As well as the regular Fortnightly Digest bulletin, a total of 75 general security intelligence reports were issued to clients (compared to 56 in 1992— 93). In addition, reporting formats were refined to match the product better to the needs of various

client groups. (The following detailed information on ASIO’s reporting is excluded from the unclassified Report to Parliament 1993-94.)

Threat assessments

A key ASIO function is the provision of threat assessments to Commonwealth and State agencies responsible for protective security activities. ASIO has sole responsibility for threat assessments on terrorism and politically motivated violence, and

other Com m onw ealth agencies m ust forw ard all relevant intelligence direct to ASIO. Threat assessments provide advice of an immediate and often tactical nature to agencies responsible for the protection of government ministers, VIPs, Australian interests here

or overseas, or foreign interests in Australia. They enable agencies responsible for protective security to implement appropriate protective measures. The range of categories and the number of threat assessments issued in each over the last two reporting

periods are shown in Table 7.

Table 7: Threat assessments issued, 1 9 9 2 -9 3 and 1 9 9 3 -9 4

Threat assessments 1992-93 1993-94

Visiting dignitaries 107 236

Australian dignitaries 179 223

National security (NSTAs] 25 28

Demonstration notifications 135 229

Diplomatic premises 69 90

Other threat assessments 125 143

Total 640 949

REPORT TO PARLIAMENT 1993-94

The increase in the number of threat assessments produced is in part due to an increase in the number of foreign dignitaries visiting Australia and visits by Australian dignitaries overseas, particularly to and from the Asia-Pacific region. This trend is likely to continue. Assessments relating to the securing of diplomatic premises also rose, reflecting the concurrent growth of risks to these premises. There was also a marked rise in the number of demonstration notifications—which are provided by ASIO where the groups involved are of security concern or where a demonstration is directed against Commonwealth facilities or against people or other interests which the Commonwealth has an obligation to protect. This rise points to an increase in the number of groups of possible concern and their propensity to demonstrate.

A s part o f the preparations for the Prime Minister and Mrs Keating's trip to South-East Asia in April 19 9 4 , A SIO p ro v id ed a threat assessm ent on w hether know n groups and individuals might b e interested in causing harm or impeding official proceedings. Such assessments are used by DFAT a n d other government agencies to gau g e what levels o f protective security should be applied at the various stages o f official visits.

(Photograph by AUSP1C, the Government Photographic Service)

To improve the quality and usefulness of threat assessments, ASIO reviewed the threat assessment process, in consultation with regular clients. Threat assessments involve grading situations in terms of six different levels of threat. These levels were reworked to make them more meaningful by describing each level of threat in terms of the intent and capability of the source of harm. ASIO continued to issue

SECURITY INTELLIGENCE PROGRAM

ready reference guides, such as the Threat to international interests in Australia, Terrorist group profiles, and the Biannual aviation threat assessment, which provide tactical information on sources of security harm, including information on past activities. Clients rated this information (along with specific threat assessments) as useful for planning their security arrangements.

ASIO continued to produce biannual threat assessments for the Standing Advisory Committee on Commonwealth-State Cooperation for Protection Against Violence (SAC-PAV). These assessments also contributed to the Counter Terrorism Support Program (see pages 74-77). They focused specifically on risks of politically motivated violence and communal violence. SAC-PAV agencies commented positively on the assessments. The 1993 SAC-PAV Review (see page 77) recommended a closer linking of the activities of SAC-PAV and the Special Interdepartmental Committee for Protection Against Violence (SIDC-PAV). To help achieve this, the biannual SAC-PAV threat assessment has also been presented to SIDC-PAV since November 1993 so that the member agencies of both committees have the same perception of the threat and can work more effectively together. ASIO is a member of both SAC-PAV and SIDC- PAV, and provides a substantial contribution to these committees in the form of strategic and tactical threat assessments.

Improving service to clients

If ASIO is to report to clients effectively, their requirements must be known. The Requirements, Assessments and Production (RAP) Branch in Analysis Division was established in 1992-93 to make reporting correspond more closely to client needs (reflecting a Government directive in 1992 for ASIO’s intelligence collection to be more customer-driven). The branch asks clients about their security intelligence reporting requirements and passes these on to appropriate analyst desks. In this way ASIO’s intelligence reporting, threat assessments (for dignitaries, foreign missions and aviation

interests), security assessments (for entry to Australia or change of status) and reporting of foreign intelligence are all linked to client needs—which thus influence ASIO’s collection and analytical

priorities.

Various client focus initiatives were used during the reporting period to identify and expand ASIO’s range of clients and ensure their requirements were being met more effectively. Four ‘ASIO Forums’ were held to inform clients about ASIO’s role, functions,

REPORT TO PARLIAMENT 1993-94

and capabilities within the framework of its legislation. Clients acquired a better understanding of what they could expect from ASIO, resulting in more pragmatic requests which ASIO was better able to satisfy. The forums were attended by senior managers of ASIO’s principal client departments and agencies.

ASIO also began contacting officials in client agencies to pinpoint their specific interests in ASIO products and services. Reports were tailored correspondingly and distributed to a wider range of

relevant clients. The contact program increased the number of clients completing the evaluation sheets attached to ASIO reports, providing a greater volume of feedback and in some cases specific requests for ASIO information. Some clients asked for further detailed reporting on traditional subjects of investigation, while others asked ASIO to cover new areas. In addition, by identifying related areas of specialisation between ASIO and some clients, the liaison increased cooperation with other agencies, improved ASIO’s knowledge base, and led to higher quality reporting.

This closer contact with clients enabled ASIO more readily to assess the usefulness of its reports. Feedback was encouraging, with the great majority of clients describing the reports as being ‘of value’ or ‘of considerable value’.

Contact with clients led to a wider distribution of ASIO reports (the list more than doubling during the year to a total of 40 regular recipients in Australia and a much wider distribution to overseas services).

Strategic assessments and reports on specific concerns produced over the review period included an assessment of the potential overall threat to Australia’s science and technology, and a report produced especially for SIDC-PAV on ASIO’s likely role in providing security for the Sydney Olympics. ASIO moved towards producing more strategic assessments on changing or emerging threats to Australia’s security, to help clients responsible for planning and

implementing protective security measures.

At a regional level, ASIO’s State and territory offices in Melbourne, Adelaide, Perth and Darwin began the process of developing service agreements with their major clients. The agreements aim at ensuring that:

• the needs of other agencies are recognised and, where possible, met

• ASIO’s requirements are known and explained

SECURITY INTELLIGENCE PROGRAM

• the service provided by the Organization can be appraised

• and the resources used in servicing external clients can be measured.

Work on developing a client database continued. The database will list all clients for security intelligence products, along with their specific interests noted against a set of specified criteria. It will enable ASIO to provide clients with material sharply focused on their requirements, and improve the effectiveness and efficiency of distribution arrangements. Information was loaded throughout the year, in preparation for the setting up of the necessary software

(planned for the next reporting period).

Developm ents in collection ASIO’s collection of intelligence employs a range of methods and tactics. Two significant dimensions are foreign liaison and warrant operations, both providing intelligence w hich w ould be

unobtainable in any other way.

Foreign liaison

ASIO is empowered by its legislation to cooperate with approved foreign intelligence services where such cooperation is necessary for, or helpful to, the discharge of its functions. Just as ASIO relies heavily on the cooperation of approved overseas agencies in supplying information to assist investigations, the Organization responds to legitimate requests for support and information from these agencies. Reciprocity is the keystone of these relationships.

Such cooperation is given only when the intelligence communicated is relevant to the security of the country of the requesting agency, and does not involve communicating potentially detrimental information about Australian citizens, perm anent residents or

corporations. In the case of non-Australians, information which is potentially detrimental to their interests is communicated only to those countries with which ASIO has approved cooperative arrangements and which are judged to be similar to Australia in their regard for democratic and human rights (as evidenced by the existence of similar laws, institutions and practices aimed at protecting the rights of the individual).

During the reporting period a substantial amount of ASIO’s information continued to come from liaison with approved foreign

REPORT TO PARLIAMENT 1993-94

intelligence services. This liaison was conducted by ASIO officers posted to selected Australian missions and by regular contact with representatives of certain foreign services posted to Australia.

Throughout the reporting period, information from foreign liaison helped ASIO assess whether groups or individuals were likely to harm Australia. Some of the more significant contributions are detailed in the reported outcomes of the geographic subprograms.

Liaison was also supported by visits from senior officers of cooperating services, and corresponding visits by ASIO managers. ASIO also participated in various international conferences.

A list of foreign authorities with which ASIO may cooperate is approved by the Attorney-General and amended as required. At 30 June 1994 the list comprised authorities from the countries listed

in Appendix G (excluded from the unclassified Report to Parliament 1993-94).

A review of the efficiency and effectiveness of ASIO’s foreign liaison program began during the reporting period, leading to several initiatives. A liaison officers’ conference in October 1993, the first such conference in ten years, gave added impetus to the review process. Issues under review at the end of the reporting period included the location of ASIO liaison posts; reporting formats; communication systems and strategy; language training; and accountability programs for ASIO’s overseas posts.

Initial work was completed on a faster secure communications link between ASIO’s central office and its own liaison officers overseas. As well as speeding up interoffice communication, it will enable much faster response to requests from cooperating authorities. The work program will be phased over three years.

Use of warrants

Although ASIO derives much of its intelligence by overt means (from interviews and publicly available material), other information can only come from specific intelligence operations mounted against various subjects of investigation. Techniques include physical and technical surveillance. Included in surveillance are techniques which are intmsive into the privacy of individuals and can only be carried out under warrant from the Attorney-General under the provisions of the ASIO Act and the Telecommunications (Interception) Act relating to the use of special powers.

SECURITY INTELLIGENCE PROGRAM

Such methods are employed only when it is reasonably suspected that a person is engaged or likely to engage in activities prejudicial to security. These means of collection are:

• entry and search of premises

• use of listening devices to listen to and/or record words, images, sounds and signals

• inspection and copying of postal articles

• and listening to or recording communications passing over a telecommunications system.

ASIO may employ its special powers only under warrant. A warrant is a written authorisation by the Attorney-General, provided in response to a warrant request from the Director-General setting out the facts of the case, the grounds for collecting information under special powers, and the objectives ASIO hopes to meet by doing so. The Attorney-General may sign the warrant only if he or she is

satisfied as to matters specified in relevant legislation.

All warrants specify the period for which they remain in force. These periods may not exceed:

• 7 days for entry and search

• 90 days for inspections of postal articles

• and 6 months for the use of listening devices or interception of telecommunications.

If during the currency of the warrant the facts and grounds on which the warrant was requested cease to exist, the legislation requires the Director-General to inform the Attorney-General immediately and take the necessary steps to ensure that action

under the warrant is discontinued. While the warrant is current, the intelligence collected is reviewed to determine whether it has met the objectives set out in the warrant request or has provided other intelligence not anticipated at the time the request was made.

Near the expiry date of the warrant a decision is made, based on the value of the intelligence collected and resource availability, to allow the warrant to lapse at its expiry date or to request a further warrant to commence on expiry of the current warrant. If the Director-General considers there would be value in continuing to collect information under special powers, he or she may apply to the Attorney-General for a further warrant. If, on the other hand, there is no justification for renewal, operations under the warrant

cease when the warrant expires. The Attorney-General may revoke a warrant at any time before expiration.

REPORT TO PARLIAMENT 1993-94

There may be multiple warrants in operation against one particular subject of investigation. During the course of the year warrants against some subjects are renewed and others are not. Table 8 (excluded from the unclassified Report to Parliament 1993-94) shows the number of people or premises against which warrants were in operation in the reporting period compared with the previous 12 months. These warrants were for security intelligence collection only. Warrants used for foreign intelligence collection are reported separately under that program.

During the reporting period the writing of warrant requests was devolved to ASIO’s State collection offices. This required a complete revision of the process and a significant program devoted to staff training. A small core of officers in ASIO’s central office now coordinates the process.

Oversight of ASIO’s warrant processes was undertaken from time to time during the year by the Inspector-General of Intelligence and Security (see page 42), who wrote in his 1992-93 Annual Report:

A g a in th is y e a r I f o u n d n o e v id e n c e o f illeg ality o r im p r o p rie ty in th e c o n d u c t b y

A S IO o f its w a r r a n t o p e r a t i o n s , th a t is, o p e r a tio n s s a n c t i o n e d b y t h e A tto rn e y -

G e n e r a l a n d in v o lv in g th e ta p p in g o f s o m e o n e ’s t e le p h o n e , th e in te r c e p tio n o f m ail

a n d / o r te le x m e s s a g e s , th e p la c in g o f e a v e s d r o p p in g d e v ic e s , a n d th e e n try a n d

s e a r c h in g o f a p re m is e s o r c o m b in a tio n s o f s o m e o r all o f th e s e . . . T h e w a rra n t

o p e r a t i o n s c o n t i n u e t o b e s tr ic tly in a c c o r d a n c e w ith a p p r o v a l s g iv e n b y th e

A tto rn e y -G e n e ra l . . .

Developments in support activities ASIO’s front-end security intelligence activities are the collection and analysis of information. These activities are supported by a range of activities and functions, including the development and enhancement of the subject/risk methodology; technical support; training for analysts, collectors and specialist support staff; and ongoing provisions for ensuring ASIO’s internal security.

Refining the subject risk matrix

In a practical application of continuous improvement, ASIO put considerable effort into refining the subject risk matrix (the conceptual tool introduced last year for m anaging security intelligence program activity) and associated work practices. Analysts w orked on refining and clarifying the respective contributions to be made by themselves, case officers and liaison

SECURITY INTELLIGENCE PROGRAM

officers. As a result, information gaps were made clearer, the ability to monitor progress was enhanced, and it became easier to sharpen the focus of collection activities. Also, the development work

helped managers balance competing priority needs (as identified in the matrix) with down-sizing resources.

The work also encompassed better definition of moderation factors to be applied in determining priority rankings within the matrix. These factors include:

• the degree to which a subject is involved in potentially life- threatening activities

• the immediacy of the threat

• the pace of change or volatility of the threat

• the degree of client, particularly Government interest

• and the current state of ASIO knowledge of the subject.

Enhancing technical support

Advances were made across a range of technical functions which support ASIO’s security intelligence work. The exchange of technical information and expertise between ASIO and other services played an important part in this.

ASIO was invited to take part as an observer in an ongoing technical exchange program between the internal security services of a group of other countries. This will enable ASIO to share in research and development outcomes.

ASIO also took part in technical exchange between the Australian security and intelligence agencies through an interagency forum. As well as sponsoring workshops to promote the exchange of technical information between agencies, the forum met regularly to discuss

technical development initiatives and evaluate commercial security products.

ASIO examined its method of routing information obtained from Australia’s overseas missions. During the reporting period, the method was improved. New software meant information from the missions was available to ASIO’s analysts within minutes of its

arrival in ASIO. This initiative ensured analysts were aware at the earliest possible time of international events which could impact on Australia.

REPORT TO PARLIAMENT 1993-94

Intelligence and operational training

Training for staff employed under the Security Intelligence Program has increasingly been giving greater emphasis to work-related and competency-based learning exercises. In 1993-94, courses were offered in analysis, aggression management, accountability and

ethics, operational techniques and intelligence support skills. ASIO also provided assistance to training courses conducted by the National Crime Authority, the Australian Defence Force and a range of other Commonwealth departments and agencies. Statistics on staff training and participation are shown in Appendix A.

During the reporting period, ASIO undertook a complete review of all intelligence and operations training, to achieve better alignment with the subject risk matrix approach and resulting changes in work practices. The result, which will take effect in the forthcoming period, was a new approach based on four main subject areas: operational work, analyst work, ethics and accountability awareness, and specialist intelligence support work. In 1994-95, new advanced training modules in all four areas will be introduced to provide opportunities to experienced and senior intelligence staff. To support the planned intake of recmits, there will also be a completely revised traineeship program for graduate-entry ASIO officers, encompassing operational, analytical and ethical modules and supervised work experience over a 12 month period. For the first time programs have been developed for staff who provide vital support as linguists and monitors.

Infernal security measures

To m aintain its own security, ASIO develops and maintains procedures and counter measures to combat possible threats; and also provides education and support to staff to foster the required standards of personal security and professional conduct. A counselling service is also offered to help staff resolve personal and professional problems if these could have implications for security. The counselling aims to resolve problems before harm to security can result.

During 1993-94, 124 staff underwent security revalidation—a process whereby the security status of all staff is regularly reviewed.

PROTECTIVE SECURITY PROGRAM

Protective Security Program

The objective of ASIO’s Protective Security Program is to provide Government and its agencies with advice on how Commonwealth assets, including people, property and information, may be protected against security risks.

The Protective Security Program is administered by two divisions (Corporate Support and Analysis) within ASIO. The security access assessments and the protective security advice sections of this program are administered by the Agency Services Branch within the Corporate Support Division. The non-access security assessments section is administered by Analysis Division.

In the case of the security assessment function, ASIO aims at providing client departments with accurate and timely security assessments to help clients decide on appropriate administrative action. ASIO is sensitive to the intrusive nature of security assessments and the impact they may have, and strives to balance the interests of the individual being assessed with those of national security. ASIO revises its security checking procedures frequently in order to streamline them and minimise unnecessary checking.

The other key function of the Protective Security Program is to provide ASIO and its external clients with accurate, timely and cost- effective protective security advice on matters such as risk assessment, security education, security planning and security equipment evaluation. ASIO continues to use risk management principles in providing protective security advice to clients, with a

strong emphasis on reducing security costs. The challenge to ASIO during the reporting period was to devise security plans which reduced dependence on protective measures and systems with high maintenance cost. It did this by developing a more quantifiable appreciation of the risks, and balancing security strategies accordingly.

The main gauge of performance by the protective security advice and the security assessments sections was client comment. ASIO also judged its performance in processing security assessments in

term s of the accuracy, ap p ro p riaten ess and tim eliness of assessments made.

REPORT TO PARLIAMENT 1993-94

In the case of protective security advice, demand is a useful measure of performance. After ASIO introduced user-charging for its protective security advice service in January 1993, most clients reassessed whether they wished to use ASIO as a provider. In the event, the number of requests for service has not diminished. In its protective security advisory work ASIO actively seeks specific comment from clients. The current practice is to establish terms of reference at the start of each protective security advice task, to ensure the client’s needs are understood and met. Thereafter ASIO seeks to work in partnership with the client to maintain the focus of the task on these requirements. Another measure of performance is the am ount of new business ASIO receives because of

recommendations from existing clients.

Security assessm ents The clients for ASIO’s security checking service are Australian government authorities, but assessments are provided for two distinct client purposes. Those termed ‘access’ assessments are required for people to whom the requesting authority proposes to grant access to classified material or premises. The other class of

assessment is termed ‘non-access’; these are required for non- Australians seeking entry visas, permanent residence or change of status from temporary to permanent residence, and for applicants for Australian passports. Non-access assessments are generally requested by DIEA or DFAT. In each case, the role of approving the person’s access or application lies with the requesting department or agency—ASIO’s role is simply to advise whether there is security- related information which should or might influence the decision.

Access assessments

As in previous years, the aim in 1993-94 was to complete 80 per cent of access security assessments within ten working days, and for no more than 1 per cent to be outstanding after twelve weeks (such

delays can occur in complex cases requiring overseas checking). Both these aims were achieved, with 92.7 per cent of access cases completed in ten days or less, and only 0.8 per cent taking longer than twelve weeks to resolve.

Table 10 and Figure 4 show the number of requests for access security assessments in 1993-94 and the preceding three reporting periods. The downward trend in requests is due both to economic

PROTECTIVE SECURITY PROGRAM

trends and to continued budget tightening in governm ent departments. These factors have led to lower staff turnover and less recruiting, and a downward trend which is expected to continue.

Table 10: Requests for access security assessments, 1 9 8 9 -9 0 to 1 9 9 3 -9 4

Level o f a ccess so u g h t 1989-90 1990-91 1991-92 1992-93 1993-94

Confidential 4 954 3 662 3 734 3 180 1 905

Secret 9 116 8 570 6 803 4 955 5 363

Top secret 3 571 3 812 3 528 3 237 3 361

Totals 17 641 16 044 14 065 1 1 372 10 629

Figure 4: Requests for access security assessments, 1 9 8 9 -9 0 to

1993-94

18000

16000

14000

12000

10000

8000

6 0 0 0

4 0 0 0

2000

0

1989-90 1990-91 1991-92 1992-93 1993-94

■ T o p S e c r e t ■ S e c r e t C o n f i d e n t i a l

REPORT TO PARLIAMENT 1993-94

One qualified access security assessment was issued in 1993-94. No adverse access assessments were issued. A review of one adverse access assessment from the previous financial year, which went to the Security Appeals Tribunal (established under the ASIO Act as an independent body to review security assessments) was withdrawn. A total of 66 security interviews were conducted with people applying for access clearances (compared with 96 last year). These helped to resolve ASIO’s questions and concerns and increased the personal security awareness of the interviewees.

ASIO also serviced 1659 requests from cooperating foreign authorities (see page 57) for security background checks on people claim ing periods of Australian residence, and arranged for com plem entary checking of criminal records by appropriate Australian police forces. This was a decrease of 2 per cent compared to last year.

The Parliamentary Joint Committee on ASIO (see page 42) was reconstituted after the 1993 federal election and continued a review of security assessment procedures, calling for submissions. ASIO’s

submission was substantially the same as that given to the previous committee (see last year’s annual report). The committee’s final report was tabled in Parliament on 27 June 1994 and concluded,

among other things, that the national interest required restricted access to certain places and information, and that an effective security screening process was necessary. (See also Appendix C.)

Non-access assessments

ASIO security assessments on people applying to enter Australia or to become permanent residents enable DIEA and DFAT to make informed decisions about whether to allow the applications, in the knowledge of security considerations. One of the best means of preventing security harm occurring in Australia is to deny entry to persons who pose a security risk.

During the reporting period, ASIO processed more than 10 000 applications for temporary entry and more than 7500 for permanent entry. These figures do not include applicants processed by the November 1 taskforce (see page 68), who are dealt with separately. There is an agreed time frame for security checking each type of application. ASIO processed 94.7 per cent of applications within the specified time frames. The trend in requests is shown in Table 11 and Figure 5.

PROTECTIVE SECURITY PROGRAM

Table 11: Requests for tem porary an d perm anent entry security

assessments, 1 9 8 9 -9 0 to 1993-94

Level o f access s o u g h t 1989-90 1990-91 1991-92 1992-93 1993-94

Temporary entry 14 048 1 1 786 7 5 1 7 8 203 10 044

Permanent entry 15 628 16 585 21 772 7 705 7 588

Total 29 676 28 371 29 289 15 908 17 632

Figure 5: Requests for tem porary and perm anent entry security

assessments, 1 9 8 9 -9 0 to 1993-94

30000

25000

20000

15000

10000

5 0 0 0

0

1989-90 1990-91 1991-92 1992-93 1993-94

■ T e m p o r a r y ■ P e r m a n e n t

The drop in applications for permanent entry which began in 1992-93 can be attributed to procedures introduced that year to minimise unnecessary checking. The 25 per cent increase in requests for temporary entry this year may reflect the changed

circumstances affecting the nationals of central and eastern Europe and of the former republics of Yugoslavia. It may also reflect Australia’s success in trade and commercial promotion abroad.

Thirteen qualified and nine adverse assessments were issued during the period. Eight adverse assessments were accepted by the requesting departments, resulting in refusals of the applications. The

REPORT TO PARLIAMENT 1993-94

ninth application was subsequently withdrawn. As is their nature, none of the thirteen qualified assessm ents issued by ASIO recommended refusing the applicants’ requests. However, two qualified assessments were contributing factors in decisions to deny right of entry or stay in Australia. The trend in adverse and qualified assessments is shown in Figure 6.

Figure 6: A dverse a n d qualified assessments issued for tem porary

a n d perm anent entry applicants, 1989-90 to 1993-94

During the reporting period changes were made to the security checking procedures, including streamlining procedures and revising the Security Checking Handbook, w ith the aim of minimising unnecessary checking. Revision of the Handbook is a continuous process, to reflect changes in the security environment. In conjunction with DIEA, ASIO tightened security checking procedures aimed at preventing the entry of terrorists to Australia.

ASIO’s security checking workload increased after a Government decision on 1 November 1993 to allow holders of certain visa categories to apply for perm anent residence. Up to 40 000 applications will be processed, over and above the normal immigration intake. About 23 000 of these applications will come from Chinese students and their dependents who were issued with visas after the Tiananmen Square massacre, with another 15 000

PROTECTIVE SECURITY PROGRAM

applications expected from other applicants for refugee status. The security checking is being funded by DIEA, which is recovering costs from the applicants. The applications are due to be fully processed by October 1995. At 30 June 1994, approximately 11 000

applications had been processed. A task force was established of staff employed on short term contracts to handle this additional checking, and extra staff were hired towards the end of the reporting period to meet a temporary increase in applications referred to ASIO by DIEA.

Advice on protective security

Security plans

ASIO continued to provide protective security advice for government agencies during the period by preparing security plans for them. A total of 35 security plans were prepared, using rigorous risk assessment and security planning methods to identify cost effective ways to secure assets and reduce outlays on security expenditure. Major external clients included the Attorney-General’s Departm ent, Australian Customs Service, Australian Defence

Industries, Australian Tax Office, Australian War Memorial, Department of Defence, Department of Foreign Affairs and Trade, Department of Primary Industry and Energy, Federal Airports Corporation and the National Crime Authority.

ASIO was increasingly called upon to advise on security matters affecting the occupational safety of government agency employees and clients. Security strategies were identified that could meet the needs of all parties at minimal cost and inconvenience.

Two particularly challenging protective security advice reports were completed for clients who needed a high degree of security to maintain the integrity of highly classified information.

Five security advice projects involved reviewing existing security precautions specifically to reduce operating costs. In one case, $0.25 million or more will be saved each year as a result of the revised security plan.

REPORT TO PARLIAMENT 1993-94

Ad hoc security advice

ASIO continued to provide ad hoc advice to agencies who were able to do most of the security assessment and planning work themselves. This fast and economical form of advice is popular with more experienced security advisers and officers, and was provided on over two thousand occasions, making it a significant part of ASIO’s protective security commitment.

Security awareness briefings

ASIO gave security aw areness briefings to a w ide range of government agencies and personnel. The briefings included seven security awareness presentations to groups of up to one hundred, and 33 personal briefings for people travelling overseas on behalf of the Australian Government.

The presentations to groups were used mainly to help transfer ownership of security to the working level in government so that less reliance is placed on expensive technical security equipment and agency security teams. The individual briefings are designed to protect the people travelling, especially in countries where circum stances may pose a danger to them personally or to Australia’s interests.

Audio counter measure tests

As in previous years, there was a strong demand for audio counter measure testing to minimise the possibility that covert listening devices had been placed in areas used for sensitive meetings. ASIO’s audio counter measure testing program was effective, with no reports of compromised meetings where tests were conducted before the meeting.

Security equipment

A large amount of equipm ent is marketed to Commonwealth agencies on the claim that it improves physical security. ASIO tests such equipment to validate this claim. The testing program sets minimum standards for the quality of security products. Its results are set out in ASIO’s Security Equipment Catalogue (which is published annually) or are passed to manufacturers and clients via training and on-site briefings and advice. As well as its role in quality control, ASIO’s test and evaluation resources help the

PROTECTIVE SECURITY PROGRAM

development of Australia-made security products and services, both nationally and internationally.

A n A SIO officer plays the part o f an intruder in a promotional video commissioned by

manufacturers H oneyw ell a n d W orm ald. The video is to prom ote a n e w Australian- designed security alarm panel, produced to A SIO specifications. The manufacturers are hoping for sales to North American a n d European markets.

During the reporting period, ASIO began providing the results of its equipment testing program to agencies which are not primarily responsible for national security: for example, to appropriate State and local government authorities. By releasing such information, ASIO can help agencies select the most appropriate and cost-

effective equipment for their particular needs.

Work began on an updated Security Equipment Catalogue during the period. The new edition contains further improvements aimed at satisfying the need of government agencies for more information on identifying and using security systems and equipment.

Security training

ASIO provided special training on topics such as using and operating security equipment to meet the demands of small groups of government clients. The Organization also gave formal lectures

within security training courses (mostly run by the Attorney- General’s Department) for government security officers. The training provides a basis for them to deal with many security issues without seeking further advice from ASIO.

REPORT TO PARLIAMENT 1993-94

ASIO’s risk assessment courses for government agencies proved popular (eight were conducted during the period), providing a logic model for agencies to apply when assessing risks within their

agencies. As a result of these courses, clients have begun adopting the ASIO model. Two have adopted it for managing not just security risks but all normal business risks within their agencies, a strategy which should provide significant savings.

ASIO provided work experience training in security engineering for tw o engineering undergraduates during 1993-94, and has established an arrangement for further training in the next reporting

period.

One aspect of training is setting and maintaining standards. ASIO officers are represented on six working committees of Standards Australia. Via this m em bership and through w orking with educational institutions on designing security training courses, ASIO passes on its security experience and standards to the broader community.

A significant achievement during the reporting period was the acceptance by the Federal Justice Office of ASIO’s role in the accreditation of approved security consultants with respect to

national security. This new aspect of ASIO’s work fills a void in standard setting for the security industry. The aim of the accreditation is to ensure that a pool of appropriately qualified and experienced consultants is maintained, so that government agencies can get competent assistance when they are installing high security equipm ent. Security consultants seeking accreditation will be required to present their credentials and demonstrate their ability to design and supervise the installation of high security alarm systems.

ASIO produced several security publications during the reporting period, including the popular Get Smarter magazine for use by government security officers.

Cost recovery

ASIO continued to apply cost recovery to some of its protective security advice functions, and in June 1994 became able to accept credit card paym ents, an initiative designed to improve the convenience of services to clients.

FOREIGN INTELLIGENCE COLLECTION PROGRAM

Foreign Intelligence Program

The Foreign Intelligence Program’s objective is to collect foreign intelligence in Australia on behalf of client agencies.

The Foreign Intelligence Program is adm inistered by ASIO’s Collection Division. In carrying out foreign intelligence collection, cooperation with other Australian intelligence services is of chief importance.

The main performance indicator in the Foreign Intelligence Program is feedback from clients.

ASIO’s function of collecting foreign intelligence within Australia is exercised only when specifically requested by the Minister for Defence or the Minister for Foreign Affairs. The special powers involved are explained in more detail on pages 58-60. (Most of the

outcomes of this program have been deleted from the unclassified Report to Parliament 1993-94).

A presentation package was developed during the reporting period to provide m ore structured briefings for clients on the

telecom m unications interception w arrant process. Various presentations are planned for the next reporting period.

REPORT TO PARLIAMENT 1993-94

Counter Terrorism Support Program

The objective of the Counter Terrorism Support Program is to contribute to Australia’s counter terrorism response capability.

The Counter Terrorism Support Program is adm inistered by Collection Division but draws on resources from throughout ASIO. The principal components of the program are prevention and crisis response. Prevention embraces the collection of information and provision of reports and advice to government and clients. It also includes a range of activities directed towards minimising the chances of entry into Australia of those with the capability or intent of committing acts of terrorism. The program’s crisis response activities include crisis contingency planning; maintaining a technical support unit; and maintaining an intelligence collection, reporting and advice structure which could operate during a national crisis.

During the report period ASIO continued to ensure its contribution met the needs of and was coordinated with contributions of other National Anti-Terrorist Plan (NATP) participants. This involved a strong focus on client needs and client feedback. It also involved a high level of commitment to national exercises designed to test and validate the NATP and its supporting plans.

The major performance indicators applied to the Counter Terrorism Support Program are feedback from clients and performance on national exercises. Client feedback is provided formally through the national counter terrorism coordinating committees and is also acquired through regular contact with other NATP participants. Performance on national exercises is evaluated by the use of exercise debriefs and the preparation of post-exercise reports.

ASIO is involved in the two major counter terrorism coordinating committees: it is a m em ber of the Special Interdepartm ental Committee for Protection Against Violence (SIDC-PAV), which coordinates federal agencies with responsibilities for countering politically motivated violence; and it is also a member of the Standing Advisory Committee on Commonwealth-State Cooperation for Protection Against Violence (SAC-PAV), which coordinates the

COUNTER TERRORISM SUPPORT PROGRAM

work of federal agencies with their State counterparts. In particular, SAC-PAV is responsible for coordinating Australia’s counter terrorism measures under the NATP.

The NATP sets out standing liaison arrangements between federal and State departments and agencies, national crisis management response arrangements and post-incident cooperative arrangements. ASIO’s responsibilities under the NATP include:

• contributing to policy development, preventive arrangements and crisis contingency planning through liaison with other federal and State agencies

• providing threat assessments and security intelligence and protective security advice to agencies through SIDC-PAV and SAC-PAV (the arrangements for this are described under the Security Intelligence Program)

• maintaining infrastructure for, and coordinating and contributing staff to the National Intelligence Group (NIG), which is part of the national counter terrorism intelligence support structure

• contributing staff support to the Joint Intelligence Group (JIG), which is established at or near the scene of a terrorist incident

• maintaining a national technical support unit which can be deployed to the scene of a terrorist incident

• contributing to the NATP exercise program through participation in the planning, writing and control of exercises conducted under the auspices of SAC-PAV

• and contributing staff resources to national counter terrorism training programs conducted under the auspices of SAC-PAV.

The technical support unit is staffed and equipped to collect information at the scene of an incident by technical means. It operates in support of the police incident com m ander and supplements police technical unit capabilities.

The NATP intelligence structure has now been in place for two years. It was adopted with the aim of improving the accuracy and timeliness of the intelligence flow, and it gave ASIO a more central role in coordination of the intelligence effort, through sponsorship

of the National Intelligence Group (NIG). This body is convened when the NATP is invoked, with the tasks of providing strategic intelligence to ministers and other decision makers during a terrorist incident and supporting the intelligence requirements of the State

REPORT TO PARLIAMENT 1993-94

agencies through the Joint Intelligence Group (JIG). Last year’s report noted that some problem s were experienced with the intelligence structure: the NIG was under-resourced and there were some procedural and training difficulties. In response, various recommendations from post-exercise debriefings were implemented during the reporting period. These led to some improvement but a further series of initiatives are planned for the coming period, to address outstanding problem s w ith com m unications,

accommodation, staffing and procedural aspects.

The National Intelligence Group (NIGI is established in ASIO to coordinate intelligence collection a n d prepare strategic assessments when the NATP is invoked. It is staffed by officers from A SIO and other law enforcement and intelligence agencies. The NIG is convened several times each year as part o f national anti-terrorist exercises.

During the reporting period, ASIO had a role in five counter terrorism exercises:

• National Exercise (NATEX) Far H orizon in Darwin in August- September 1993

• Police Exercise (POLEX) C ountry Ro a d in Brisbane and surrounds in October 1993

• Operational Response Exercise (OPREX) W estern P rincess in Perth in March 1994

• National Exercise (NATEX) T ouch Stone in Sydney in April 1994

• Police Exercise (POLEX) Autumn Leaf in Melbourne in May 1994.

COUNTER TERRORISM SUPPORT PROGRAM

ASIO assisted in the planning, writing and control of all the exercises and participated as a player. The NIG was activated for Far Horizon and T ouch Stone. ASIO staff participated in the JIG for all exercises. The technical support unit was deployed on Far H orizon, W estern P rincess and T ouch Stone. The exercise series confirmed the effectiveness of ASIO’s crisis response capability but highlighted the problems with the national intelligence structure which are referred to above.

During the period the Government commissioned a review of SAC- PAV. The SAC-PAV review’s report was released in December 1993- It confirmed the effectiveness of SAC-PAV but made a number of recommendations designed to enhance Australia's counter terrorism capability. In summary, those which directly impact on ASIO

recommended that:

• SAC-PAV place greater emphasis on preventive measures as opposed to crisis response; that is, measures aimed at preventing entry into Australia of suspected terrorists and measures aimed at reducing the incidence of politically motivated violence within Australia

• there be substantial effort to incorporate more realism into the intelligence element of national exercises

• the new intelligence arrangements involving the NIG and the JIG be thoroughly tested by a series of ‘command post’ exercises

• SAC-PAV carry out an analysis of the options for creating an intelligence data base to support counter terrorism exercises

• and ASIO’s status within SAC-PAV change from adviser to full member (this change was carried out in May 1994).

In the reporting period, ASIO put considerable effort into building upon its already good relationship with its principal counter terrorism clients. Client focus initiatives are reported under the Security Intelligence Program.

ASIO also endeavoured to make presentations on threats more meaningful to State and federal clients. Risk methodology was applied, and intent and capability were better reflected in threat assessments produced (see also page 53).

During the coming period, ASIO will review its contribution to the national intelligence structure to address the deficiencies revealed during the 1993-94 exercise series. To prepare for the Sydney Olympics, during the coming period ASIO will establish a dedicated

Olympics management and reporting structure to ensure its capacity to anticipate and respond to client needs.

REPORT TO PARLIAMENT 1993-94

Corporate Support x Program

The Corporate Support Program encompasses executive functions including strategic and corporate planning, budget management, liaison with government, and corporate communication. These functions reside in Executive Branch and the Office of the Director- General. In budget terms the program allocation is small, because

the cost of most of the day-to-day support functions is dispersed between the business programs making use of the functions.

Information on outcomes within various support function areas is included under the four other program headings. However, a range of important activities and outcomes that are part of the general concept of corporate support still require to be reported on separately (even though for working purposes they are funded diversely under the other programs). These include various people management and infrastructure issues and corporate executive functions. Indeed, the importance of this material is such that it warrants prominent treatment. It has therefore been dealt with in the corporate overview section of this report, under various headings.

A dm inistrative detail Since ASIO began four years ago conforming with government guidelines for annual reporting by departments, its annual report has contained detail about a range of administrative activities and functions generally classed as corporate support. In line with new government guidelines, this year’s report is omitting a proportion of this administrative detail. Instead, unclassified information will be made available to Members of Parliament, Senators and members of the public within five days on request. Requests can be made in writing to the Director-General of Security, GPO Box 2176, Canberra City, ACT 2601; or by telephoning the Public Liaison Officer on (06) 249 8381.

CORPORATE SUPPORT PROGRAM

Material is available on request on the following topics:

• ASIO’s employment and appointment of people from equal employment opportunity target groups (see also Appendix E);

• training, including expenditure in relation to the Training Guarantee Act and on the number of people and person days involved (see also Appendix A)

• insurable or manageable claims and losses which individually resulted in net costs to the Commonwealth of $50 000 or more, as well as aggregate claims of more than $10 000

• compliance with Government information technology purchasing arrangements

• payment of accounts

• consultancy services used (with the exception of some details excluded for security reasons)

• environmental matters (including details of energy usage, energy savings targets, use of energy efficient features in buildings; consumption of energy by ASIO’s administrative vehicle fleet and reviews of vehicle usage; purchase of appliances with not less

than a four-star energy rating; and the use of opportunities to improve energy efficiency in regard to equipm ent which consumes a significant amount of energy)

• property usage (showing overall usage in terms of both rental charges and square metres of office space, non-office space and dead rent attributed to each program , and valuations for properties which are exempt from a rent or capital use charge).

A full list of annual reporting requirements can be found in the Compliance Index at the end of this report.

REPORT TO PARLIAMENT 1993-94

REPORT TO PARLIAMENT 1993-94

Financial S tatem en ts

FINANCIAL STATEMENTS

Audit Report on the Financial S tatem ents of the A ustralian Security Intelligence O rganization

AUSTRALIAN NATIONAL AUDIT OFFICE

Centenary House 19 National Crt Barton ACT 2600

AUSTRALIAN SECURITY INTELLIGENCE ORGANIZATION INDEPENDENT AUDIT REPORT

Scope

I have audited the financial statement of the Australian Security Intelligence Organization for the year ended 30 June 1994.

The statement comprises:

. Certificate by the Director-General of Security

. Aggregate Statement of Transactions by Fund

. Detailed Statement o f Transactions by Fund

. Statement o f Supplementary Financial Information, and

. Notes to and forming part of the Financial Statement.

The Director-General is responsible for the preparation and presentation o f the financial statement and the information contained therein. I have conducted an independent audit o f the financial statement in order to express an opinion on it.

The Organization employs the accounting policies described in Note 1 to the financial statement.

The audit has been conducted in accordance with the Australian National Audit Office Auditing Standards, which incorporate the Australian Auditing Standards, to provide reasonable assurance as to whether the financial statement is free of material

misstatement. Audit procedures included examination, on a test basis, o f evidence supporting the amounts and other disclosures in the financial statement, and the evaluation of accounting policies and significant accounting estimates. These procedures have been undertaken to form an opinion whether, in all material respects, the financial statement is presented fairly in accordance with Australian accounting concepts and standards applicable to public sector reporting entities employing a cash basis of accounting, and

statutory requirements, so as to present a view which is consistent with my understanding of the Organization’s operations and certain assets and liabilities.

The audit opinion expressed in this report has been formed on the above basis.

GPO Box 707 Canberra Australian Capital Territory 2601 Telephone (06) 203 7300 Facsimile (06) 203 7777

Page 1

REPORT TO PARLIAMENT 1993-94

The audit report on the financial statement for the year ended 30 June 1993 was qualified on the basis o f a limitation on the scope of the audit in respect o f non-current assets. That limitation has since been removed and the qualification in relation to this limitation for non-current assets as at 30 June 1993 is no longer required.

Qualification

The Attorney-General has issued a declaration under sub-section 70D(1) o f the Audit Act 1901 that particular parts of the accounts be treated as exempt accounts, as referred to in Note l(b)(ii). They are not subject to audit by the Auditor-General. I am therefore unable to form an opinion on receipts to and expenditure from those exempt

accounts under sub-section 70D(7) o f the Audit Act and on assets and liabilities related to those exempt accounts. A certificate will be sought from the Attorney-General under sub-section 70D(5) o f the Audit Act that monies allocated to those exempt accounts were properly expended.

Qualified Audit Opinion

In accordance with sub-section 51(1) o f the Audit Act 1901, I now report that, subject to the limitation o f scope on my work as described in the qualification section, and the effects o f such adjustments, if any, as might have been determined as necessary had the limitation not existed, the financial statement in my opinion:

• is in agreement with the accounts and records kept in accordance with section 40 of the Act

• is in accordance with the financial statements guidelines made by the Minister for Finance, and

• presents fairly, in accordance with Statements of Accounting Concepts and

applicable Accounting Standards and with the Guidelines, the transactions o f the Organization for the year ended 30 June 1994 and certain assets and liabilities as at that date.

B. A. Kaufmann Acting Executive Director

CANBERRA

9 September 1994

Rage 2

FINANCIAL STATEMENTS

Commonwealth of Australia Audit Act 1901

Certificate under sub-section 70d(5)

I, Michael Lavarch, the Attorney-General of the Commonwealth, being, for the purpose of sub-section 7 0 d(5) of the A u d it A c t 1 9 0 1 , the responsible Minister in respect of the Australian Security Intelligence Organization and having received from the Auditor-

General a notification, under that sub-section, of the total of the amounts that, according to the accounts of, or relating to, that Organization audited by him, were, during the financial year that commenced on 1 July 1993, allocated for crediting to exempt accounts of that Organization, hereby certify:

a that the moneys shown in those exempt accounts as having been expended for a purpose or service specified in those exempt accounts during that financial year were properly expended in respect of that service or purpose and in the public interest;

b that the amount standing to the credit of those exempt accounts at the end of the financial year:

(i) was held partly in cash and partly on deposit with a bank;

(ii) did not equal the amount ascertained by aggregating the amount standing to the credit of those exempt accounts at the commencement of that financial year and the total specified in the above-mentioned notification and subtracting from that aggregate the total of the moneys referred to in

paragraph (a); and

(iii) differed from the amount ascertained by the aggregation referred to in paragraph (b)(ii) above by reason of the transfer of funds from the exempt accounts to the Organization's non-exempt accounts and also by reason of miscellaneous receipts credited to the exempt accounts, in addition to

the amounts allocated for crediting to the exempt accounts referred to above;

c that the exempt accounts were inspected and audited; and

d that no irregularities or deficiencies in the exempt accounts were disclosed during the financial year.

Dated this 21 st day of September 1994.

Signed

Michael Lavarch AttorneyOeneral

REPORT TO PARLIAMENT 1993-94

S tatem ent by th e Director-General of Security

I certify that the attached financial statements for the year ended 30 June 1994 are in agreement with the Organization's accounts and records and, in my opinion, the statements have been prepared in accordance with the F in a n c ia l S ta te m e n ts G u id e lin e s for D e p a rtm e n ta l S e c re ta rie s

I'M o d ifie d C a s h R eporting! as amended by the Minister for Finance in

January 1994.

C E R T IF IC A T IO N

David Sadleir Director-General of Security 2 September 1994

FINANCIAL STATEMENTS

A ggregate Statem ent of Transactions by Fund for the y e a r en d ed 30 June 1994

This statement shows a g g re g a te cash transactions, for which the O rganization is responsible, for each of the three funds comprising the Commonwealth Public Account.

1992-93 Actual $

Notes

1993-94 Budget

1993-94 Actual $

6 1 4 87 4

C O N S O U D A T E D REV E N U E F U N D

Receipts (2) 411 00 0 7 6 7 9 7 9

NIL

Expenditure from special appropriation NIL NIL

4 9 190 361

Expenditure from annual appropriation 4 6 6 4 3 000)

Amounts deemed to be appropriated

) )

411 000)

45 882 98 9

4 9 190 361 Expenditure (1,2) 4 7 0 5 4 00 0 45 882 98 9

NIL L O A N F U N D NIL NIL

NIL TRUST F U N D NIL NIL

T h e a t t a c h e d n o t e s fo rm a n i n t e g r a l p a r t o f th is s t a t e m e n t .

REPORT TO PARLIAMENT 1993-94

Detailed S tatem ent of Transactions by Fund for the y ear en d ed 30 June 1994

This statement shows aggregate cash transactions, for which the O rganization i s responsible, for the Consolidated Revenue Fund; the Organization is not responsible for any transactions of the Loan Fund and Trust Fund.

CONSOUDATED REVENUE FUND (CRF)

Receipts to CRF

1992-93 1993-94 1993-94

Actual Notes Budget Actual

_____________ $______________________________________________________$___________________ 1

61 4 874 Receipts (2) 4 1 1 0 0 0 7 6 7 97 9

Division 140

Expenditure from CRF

1992-93 Actual $

Notes

1993-94

Appropriation

1993-94 Actual $

48 575 4 8 7

Annual Appropriations:

Appropriation Act No 1 Division 140 46 643 000)

6 1 4 874

Amounts deemed to be appropriated (2)

) )

7 6 7 979)

45 882 989

4 9 190 361 TOTAL EXPENDITURE (1,2) 4 7 4 1 0 97 9 45 882 989

T h e a t t a c h e d n o t e s fo r m a n i n t e g r a l p a r t o f th is s t a t e m e n t .

FINANCIAL STATEMENTS

S tatem ent of S upplem entary Financial Inform ation a s at 30 June 1994

1992-93 $'000 Notes

1993-94 $'000

C U R R E N T A S S E T S

2 2 6 4 Cash 11,3) 2 515

35 Trade debtors 11,4) 10

2 1 0 Other debtors 11.5) 234

4 0 3 Prepayments 11.7) 238

2 9 1 2 Total 2 9 9 7

N O N - C U R R E N T A S S E T S

25 Other debtors (1.6) NIL

13 0 7 0

Property, plant and equipment 11.8) 18 401

13 09 5 Total 18 401

C U R R E N T LIABILITIES

4 2 9 Creditors (1.9) 643

*na Provisions (1.10) 3 664

4 2 9 Total 4 307

N O N - C U R R E N T LIABILITIES

*na Provisions (1.11) 5 713

* na: not applicable The attached notes form an integral part of this statement.

REPORT TO PARLIAMENT 1993-94

N otes to the Financial Statem ents for the y e a r ended 30 June 1994

NOTE 1: Statement of significant accounting policies

a The financial statements have been prepared in acco rd an ce with the F inancial S ta te m e n ts G u id e lin e s for D epartm ental S ecreta rie s [M o d ifie d C a sh

R eporting] as amended by the Minister for Finance in January 1994.

b (i) The financial statements have been prepared on a cash basis with the exception of the Statement of Supplementary Financial Information which includes certain accrual-type information.

(ii) The Attorney-General has issued a declaration under subsection 7 0 d( 1) of the A u d it A c t 1 9 0 1 , (the Act] that particular parts of the accounts be treated as exempt accounts. Subsection 7 0 d(5) of the Act establishes an alternative mechanism for reporting to Parliament those accounts declared as exempt accounts. Pursuant to subsection 7 0 d(5) of the Act, the Attorney-General certifies that moneys allocated to the exempt accounts were properly expended and that those accounts have been

inspected and audited. Accordingly, the amounts disclosed in the Aggregate and Detailed Statements of Transactions by Fund and in the Statement of Supplementary Financial Information reflect only those transactions relating to the non-exempt accounts.

(iii) The financial statements have been prepared in accordance with the historical cost convention and do not take account of changing money values or, except where stated, current values of non-current assets.

c Amounts shown in the Aggregate Statement of Transactions by Fund and the Detailed Statement of Transactions by Fund and related notes have been rounded to the nearest $ 1.

d In the Statement of Supplementary Financial Information, the amount shown under non-current assets representing property, plant and equipment includes only those items w hose individual value exceeds $ 2 0 0 0 . Values for computing software and building and leasehold improvements have been disclosed in this year's statements for the first time.

e All depreciable non-current assets are written off over their estimated useful lives. Depreciation is calculated using the straight line method which is consistent with the pattern of u sage and rate of loss of value of the Organization's non-current assets.

f All vesting employee entitlements (including annual leave and long service leave but excluding superannuation) are recognised as liabilities. Long service leave is calculated having regard to the probability that long service leave

FINANCIAL STATEMENTS

will in the future either be taken or have to be paid. Based on an assessment of past service records, it has been determined that staff with a minimum of 5 years service will remain with the Organization until they meet the qualifying period and pro rata calculations have been made accordingly.

g Amounts payable to and by the Organization in foreign currencies have been translated to Australian currency at rates of exchange prevailing at 30 June, or, where forward exchange cover has been obtained, at settlement date.

(i) Monetary assets and liabilities held overseas which have been disclosed in the statements have been translated to Australian currency at rates of exchange prevailing at 30 June.

(ii) Transactions occurring during the year have been converted at the rate of exchange prevailing at the date of each transaction.

NOTE 2: Annotated appropriation

This appropriation was annotated pursuant to section 35 of the A u d it A c t 1 9 0 1 to allow the crediting of certain receipts. By agreement with the Minister for Finance, certain recoveries and miscellaneous revenue are credited to ASIO's appropriation. For the financial year 1 9 9 3 - 9 4 these receipts am ounted to $ 7 6 7 9 7 9 . The annotated

appropriation operated as follows:

Annotated appropriation Division 140 Receipts

Total

appropriation Expenditure

$ $ $ $

46 643 000 767 979 47 410 979 45 882 989

NOTE 3: Cash

As at 30 June 1994, ASIO's cash holdings amounted to $2 5 1 5 232. The dissection of these holdings for 1 9 9 2 -9 3 and 1 9 9 3 -9 4 is shown below:

1992-93 1993-94

$ $

Cash at bank 2 191 824 2 221 495

Cash on hand 72 658 293 737

2 264 482 2 515 232

REPORT TO PARLIAMENT 1993-94

NOTE 4: Trade debtors

Current

As at 3 0 June 1 9 9 4 , unpaid invoices arising from the Protective Security Program amounted to $ 1 0 0 0 5 . No provision for doubtful debts has been made.

Government departments and agencies

Others

1992-93 1993-94

$ $

Current 24 4 4 7 4 2 5 0

Overdue Less than 30 days 20 6 1 5

30 to 6 0 days 4 1 9 5 4 8 0

6 0 to 9 0 days 145 180

over 9 0 days NIL 20 0

28 8 0 7 5 7 2 5

1992-93 1993-94

$ $

Current 1061 3 0 8 0

Overdue Less than 30 days 32 6 150

30 to 6 0 days 4 6 8 8 1050

60 to 9 0 days 160 NIL

6 2 3 5 4 2 8 0

FINANCIAL STATEMENTS

NOTE 5: Other debtors

Current

As at 3 0 June 1994, amounts owing to the Organization totalled $ 2 3 3 7 5 1 . No provision for doubtful debts has been made.

Government departments and agencies

1992-93 1993-94

$ $

Current 159 0 9 2 202 742

Others

1 9 9 2 - 9 3 1 9 9 3 - 9 4

$ $

Current 5 0 7 0 6 31 0 0 9

NOTE 6: Other debtors

Non-current

Non-current debtors as at 30 June 1993 comprised that portion of interest-free loans to staff repayable, under term arrangements, beyond 30 June 1994. Interest-free loans were made available to staff in accordance with a government decision relating to the

relocation of ASIO's headquarters from Melbourne to Canberra in 1986. The current balance of these loans is expected to be repaid during 1 9 9 4 -9 5 .

NOTE 7: Prepayments

As at 3 0 June 1 9 9 4 prepayments amounted to $ 2 3 7 9 4 0 . The major classes of prepayments are shown below.

1992-93 1993-94

$ $

Rent on properties 288 288 108 6 9 4

Telecom line rentals 3 7 246 2 28 9

Computer hardware and software maintenance fees 28 003 3 0 236

Protective security NIL 35 25 9

Other 4 9 765 61 46 2

4 0 3 302 2 3 7 9 4 0

REPORT TO PARLIAMENT 1993-94

NOTE 8: Property, plant and equipment

The dissection of ASIO's properly, plant and equipment base is shown below. Computing software is recorded at current replacement cost; no values are included for in-house developed software because reliable measurements are not yet in place. The value of land and buildings is based on 1992-93 market valuations which were provided by DAS and other commercial bodies and represents only those properties from which rental was

being received at 30 June. Building and leasehold improvements are valued at original cost with the exception of those items incorporated in the Canberra Central Office building. During 1 9 9 3 -9 4 , the Organization engaged the Australian Valuation Office to determine the depreciated replacement cost of fitout in its Central Office building and those valuations are included in the overall value of building and leasehold improvements shown below. All other classes of assets are valued at original cost.

1992-93 1993-94

$'000 $'000 $'000 $'000

Computing and communications equipment 18 301 18 7 5 2

less: accumulated depreciation 10 24 9 8 052 10 9 7 4 7 778

Technical and electronic equipment 5 117 5 40 8

less: accumulated depreciation 3 8 2 0 1 297 4 130 1 278

Office furniture 263 252

less: accumulated depreciation 140 123 163 89

Office equipment 1 4 9 6 1 581

less: accumulated depreciation 812 684 751 830

Motor vehicles 2 7 0 6 2 7 1 6

less: accumulated depreciation 195 2 5 1 1 234 2 482

Computing software 3 5 5 7

less: accumulated depreciation *na 1 223 2 334

Land and buildings 5 0 0 3 1 0

less: accumulated amortisation 9 7 403 28 282

Building and leasehold improvements 4 40 2

less: accumulated amortisation *na 1 0 7 4 3 328

13 07 0 18 401

* no: not applicable

FINANCIAL STATEMENTS

NOTE 9: Creditors

As at 3 0 June 1994, creditors were owed $ 6 4 2 9 1 2 . An age analysis of amounts owing for both 1 9 9 2 -9 3 and 1 9 9 3 -9 4 follows:

Government departments and agencies

1992-93 1993-94

$ $

Current Overdue Less than 30 days

Others

Current

126 6 8 7

NIL

126 6 8 7

275 5 8 7

6 9 1 3

28 2 5 0 0

1992-93 $

1993-94 $

302 0 4 6 3 6 0 4 1 2

NOTE 10: Provisions

Current

Employee entitlements

Long service leave (current) represents that portion of accrued long service leave which is expected to be utilised during the 1 9 9 4 -9 5 financial year.

Long service leave Recreation leave (incl bonus) Performance pay

1993-94 $

1 31 000 3 150 551 3 8 2 055

3 66 3 60 6

REPORT TO PARLIAMENT 1993-94

NOTE 11: Provisions

Non-current

Employee entitlements

1993-94 $

Long service leave 5 71 2 768

NOTE 12: Act of Grace payments

No payments were made during the financial year 1993-94 pursuant to authorisations given under section 34 a of the A udit A c t 1 9 0 1 .

NOTE 13: Waiver of rights to payment of moneys

No payments were waived during the financial year 1993-94 under subsection 70c(2) of the A u d it A c t 1 9 0 1 .

NOTE 14: Commitments

As at 30 June 1994, commitments expected to give rise to a sacrifice of service potential or economic benefit during 1994-95 and beyond amounted to $25 8 6 6 206.

The estimated amounts are payable as follows:

(i) not later than one year - $6 0 8 7 7 5 6

(ii) later than one year but not later than two years - $3 4 7 7 9 5 0

(iii) later than two years but not later than five years - $ 10 335 6 0 0

(iv) later than five years - $5 9 6 4 900.

NOTE 15: Contracted expenditure

As at 30 June 1994, the unperformed portion of a major capital contract amounted to $3 5 1 6 000. It is anticipated that this contract will be completed during 199 4 -9 5 .

FINANCIAL STATEMENTS

NOTE 16: Amounts written off

The following details are furnished in relation to amounts written off during the financial year 1 9 9 3 -9 4 under subsection 70c( 1) of the A u d it A c t 1 9 0 1 .

UP TO $1000 OVER $1000

Number Amount $ Number Amount $

(i) Losses or deficiencies of public monies NIL NIL NIL NIL

(ii) Irrecoverable amounts of revenue NIL NIL NIL NIL

(iii) Irrecoverable debts and overpayments NIL NIL NIL NIL

(iv| Amounts of revenue, or debts or overpayments, the recovery of which would, in the opinion of the Minister,

be uneconomical NIL NIL NIL NIL

M Lost, deficient, condemned, unserviceable or obsolete stores 655 4 2 5 7 9 7 4 5 7 2 388 525

NOTE 17: Losses and deficiencies etc in public m oneys and other property

No action was taken during the financial year 1 9 9 3 -9 4 under Part XIIa of the A u d it A c t 1 9 0 1 .

NOTE 18: Unacquitted advances

As at 3 0 June 1994, unacquitted advances from the Organization s Running Costs appropriation amounted to $3 0 5 11.

1 9 9 2 -9 3 1 9 9 3 -9 4

$ $

Less than 30 days NIL 21 179

30 to 60 days 1 1 678 8 324

More than 90 days NIL 1 008

1 1 678 30 511

REPORT TO PARLIAMENT 1993-94

NOTE 19: Services received free of charge

During the 1 9 9 3 -9 4 financial year, a number of Commonwealth departments and agencies provided services to the Organization without charge. Expenditure for the services were met from those departments' appropriations.

The major services received include the following:

Attorney-General's Department

Provision of accounting services not able to be provided within the Organization.

Australian Archives

Provision of ongoing archival services.

The estimated cost of these services for financial year 1 9 9 3 -9 4 was $25 488 (1992-93: $25 488).

Department of Defence

Provision of air transport services and training not able to be provided within the Organization.

The estimated cost of these services for financial year 1 9 9 3 -9 4 was $ 147 4 0 0 (1992-93: $ 1 8 5 000).

Department of Foreign Affairs and Trade

Provision of a diplomatic communications network facility.

Payment of salary and support costs for ASIO staff stationed at overseas liaison posts.

The estimated cost of these services for financial year 1 9 9 3 -9 4 was $ 1 5 0 0 0 0 0 (1992-93: $1 5 0 0 000).

Department of Industrial Relations

Provision of advice in respect of conditions of service for ASIO staff.

FINANCIAL STATEMENTS

GLOSSARY OF TERMS

Act of Grace payments: Section 34 a of the A u d it A c t 1 9 0 1 provides that, in special circumstances, the Commonwealth may pay an amount to a person notwithstanding that the Commonwealth is not under any legal liability to do so.

Annual appropriations: Acts which appropriate moneys for expenditure in relation to the Government's activities during the financial year. Such appropriations lapse on 30 June.

Appropriation: Authorisation by Parliament to expend public moneys from the Consolidated Revenue Fund or Loan Fund for a particular purpose, or the amounts so authorised. All expenditure (i.e. outflows of moneys) from the Commonwealth Public Account must be appropriated

(i.e. authorised by the Parliament). The authority for expenditure from individual trust accounts is provided under the A u d it A c t 1 9 0 1 or an Act establishing the trust account and specifying its purposes. See also 'Annual appropriations'.

Appropriation Act (No 1): An act to appropriate moneys from the C onsolidated Revenue Fund for the ordinary annual services of Government.

Appropriation Acts (Nos 3, 4 and 5): Where an amount provided in Appropriation Act No 1 is insufficient to meet approved obligations falling due in a financial year, additional appropriation may be provided in a further Appropriation Act (No 3, N o 4 or No 5). Appropriations may also be provided in these Acts for new expenditure

proposals.

Audit Act 1901: The principal legislation governing the collection, payment and reporting of public moneys, the audit of the Public Accounts and the protection and recovery of public property. Finance Regulations and Directions are made pursuant to the Act.

Commitments: A commitment relates to a future obligation. It represents, as at 30 June, an intention to incur an obligation which will give rise to a future sacrifice of service potential or economic benefit.

Commonwealth Public Account (CPA): The main bank account of the Commonwealth, maintained at the Reserve Bank in which are held the moneys of the Consolidated Revenue Fund, Loan Fund and Trust Fund (other than the National Debt Sinking Fund).

Consolidated Revenue Fund (CRF); Loan Fund; Trust Fund: The three Funds com prise the C om m onw ealth Public Account (CPA).

REPORT TO PARLIAMENT 1993-94

CRF-

Loan Fund-

Trust Fund-

The principal working fund of the Commonwealth mainly financed by taxation, fees and other current receipts. The Constitution requires an appropriation of

moneys by the Parliament before any expenditure can be made from the CRF. These follow two forms:

(i) annual appropriations consisting of Supply Acts (Nos 1 an d 2), the Supply (Parliam entary Departments) Act, the Appropriations Acts (Nos 1 to 5) and the A ppropriation (Parliamentary

Departments) Acts (Nos 1 and 2) (the Supply Acts relate to the first five months of the financial year and are subsumed by the corresponding

Appropriation Acts); and

(ii) special or standing appropriations.

Authority for its establishment comes from the A u d it A c t 1 9 0 1 . All moneys raised by loan on the public credit of

the Commonwealth are credited to the Loan Fund. Expenditures from the Loan Fund require an

appropriation by Parliament and are limited to the purpose(s) for which moneys were originally raised as specified.

Essentially comprises trustee funds (termed 'Heads of Trust') established under s.60 of the A u d it A c t 1 9 0 1 (i.e. moneys held in trust for the benefit of persons or bodies other than the Commonwealth); trust accounts established under s.62a of the A u d it A c t 1 9 0 1 (i.e. w orking accounts covering certain G overnm ent agencies and certain other accounts in the nature of

'suspense accounts'); and trust accounts established under other Acts to meet future expenditure.

Payments into the Trust Fund may be by w ay of appropriation from the CRF or Loan Fund or direct credit of private moneys. Expenditure from the Trust Fund is appropriated for (and limited to) the specific purposes of each trust account, or head of trust, by the A u d it A c t

1 9 0 1 or the Act establishing the trust account or head

of trust. Unlike the unused portion of annual

appropriations, trust account balan ces - as with 'special' or 'standing' appropriations - do not lapse at the end of the financial year.

FINANCIAL STATEMENTS

Exempt Accounts: These accounts record expenditure directly associated with intelligence collection. Under s. 7 0 d( 1) of the A u d it A ct 1 9 0 1 , these accounts have been declared exempt by the Attorney-

General and as such are not subject to inspection by the Auditor- General. A certificate is issued by the Attorney-General attesting to the regularity of the transactions allocated to the exempt accounts.

Expenditure: The total or gross am ount of money spent by the Government on any or all of its activities (i.e. the total outflow of moneys from the Commonwealth Public Account) (cf. Outlays'). All expenditure must be appropriated (i.e. authorised by the Parliament - see also 'Appropriations').

Loan Fund: See 'Consolidated Revenue Fund'.

Non-exempt Accounts: These accounts record all expenditure which is not directly associated with the collection of intelligence, and are subject to inspection by the Auditor-General.

Outlays: An economic concept which shows the net extent to which resources are directed through the Budget to other sectors of the economy after offsetting recoveries and repayments against relevant expenditure items (i.e. outlays consist of expenditure net of associated

receipt items). The difference between outlays and revenue determines the Budget balance (i.e. surplus or deficit). See also 'Appropriations'.

Receipts: The total or gross am ount of moneys received by the Commonwealth (i.e. the Commonwealth Public Account). Every receipt item is classified to one of the economic concepts of revenue or outlays (i.e. offset within outlays).

Revenue: Items classified as revenue are receipts which have not been offset within outlays and exclude amounts received from the sale of Government services or assets (these are offset within outlays). See also 'Receipts'.

Trust Fund: See 'Consolidated Revenue'.

REPORT TO PARLIAMENT 1993-94

REPORT TO PARLIAMENT 1993-94

A p p en d ix es

REPORT TO PARLIAMENT 1993-94

List of appendixes

A Staffing information

B Program and notional breakdown of expenditure

C Evaluations

D Determinations signed by the Director-General in 1993-94

E Equal employment opportunity statistics

F Response to archives requests

G Countries approved for liaison purposes at 30 June 1994

H ASIO contact information

APPENDIXES

A ppendix A: Staffing inform ation ASIO's notional ASL in 1993-94 (to pay 24/26) was 561.7 (compared to 616.7 in 1992-93). At 30 June 1994 the work force (including non-operative staff) comprised 596 staff of whom 545 were permanent full-time, 8 part-time, 9 temporary full-time, 4 temporary part-time, 6 casual and 24 non-operational (including unattached and on compensation). Table 16 shows a breakdown of full-time staff equivalent (FSE) by classification and location (excluding officers on secondment or on leave without pay).

Table 16: Permanent staff (FSE) b y classification a n d location at

30 June 1993 an d 3 0 June 1994

Classification Central Office States and territories Total 1993 1994 1993 1994 1993 1994

SES 9 10 3 2 12 12

SOS 88 66 24 24 112 90

Other 276 260 188 180.8 464 441

Total 373 336 215 206.8 588 543

The number of officers on permanent part-time work increased from 10 at 30 June 1993 to 12 (including temporary staff) at 30 June 1994.

SES staffing

ASIO’s Senior Executive Service (SES) equivalent structure operates on the Australian Public Service three-banded structure. The SES equivalent staffing at 30 June 1994 is shown at Table 17. There were two SES separations and one appointment during 1993-94.

REPORT TO PARLIAMENT 1993-94

Table 17: SES equivalent staff b y classification an d location at

3 0 June 1994

Classification level Band 1 Band 2 Band 3 Total

Central Office 7 2 1 10

State/Territory Offices 2 0 0 2

Total 9 2 1 12

Performance pay

Table 18 shows aggregated performance payments due to senior officer equivalents for the reporting period. (Because moderation of performance ratings had not been completed at 30 June, payments were deferred until July 1994.)

Table 18: A ggregate perform ance p a y expenditure b y ASIO for

senior officer equivalents, 1 9 9 3 -9 4

Classification Staffing equivalent Aggregate expenditure

SOG A equivalents 10.167 $39 323.97

SOG B equivalents 82.249* $330 340.03

SOG C equivalents 8.834 $ 13 251.00

Total 101.250 $382 915.00

* A S IO 's apparently large p e rc e n ta g e o f S O G B equivalents is m a d e up o f two

classification levels, the lower extending from the S O G C salary range up to salary point zero o f the SO G B range.

Figures 8 and 9 show the distribution of ratings and the

disbursem ent of paym ents for Senior Officer equivalents for 1993-94.

APPENDIXES

Figure 8: Distribution o f ratings for Senior Officer equivalents

perform ance pay, 1 9 9 3 -1 9 9 4

1 2 3 4 5

Ratings received

Figure 9: Disbursement o f paym ents for Senior Officer equivalents

perform ance p a y , 19 9 3 -1 9 9 4

100 T

80 --

S 60

40 --

2 0 - -

9 3 . 1 6 6

+

0 - < 2 0 2 0 - < 4 0 4 0 - < 6 0 6 0 - < 8 0 8 0 - < 1 0 0

Payments expressed as percentage of maximum payable

REPORT TO PARLIAMENT 1993-94

SES officers performance pay

There was a total of 11.83 FSE in ASIO’s SES during the reporting period, of which 7.41 were Band 1, 3.42 were Band 2, and 1 was Band 3. Total expenditure on SES performance pay was $65 925.

Figures 10 and 11 show the distribution of ratings and the disbursement of payments for SES officers for 1992-93 (the nature of the payment cycle means that the previous year’s figures are reported each year).

Figure 1 0: Distribution o f ratings for SES perform ance pay,

1 9 9 2 -9 3

5 .9 6

1 2 3 4 5

Ratings received

Figure 11: Disbursement o f paym ents for SES perform ance pay,

1 9 9 2 -9 3

5 .9 6

0 - 2 0 % 2 1 - 4 0 % 4 1 - 6 0 % 6 1 - 8 0 % 8 1 - 1 0 0 %

Payments expressed as percentage of maximum payable

REPORT TO PARLIAMENT 1993-94

A ppendix B: Program an d notional b reakdow n of expenditure Tables 21 and 22 are excluded from the unclassified Report to Parliament 1993-94.

Table 23: ASIO staffing summary, 7 9 9 2 -9 3 and 1 9 9 3 -9 4

1992-93 1993-94

T o t a l a v e r a g e s t a f f in g le v e l 6 1 7 5 6 2

APPENDIXES

A ppendix C: Evaluations This appendix contains summarised accounts of evaluations and reviews conducted during the reporting period (comprehensive details of which are contained in separate, mainly classified,

documents. The summarised evaluations are followed by a table setting out a three-year evaluation program for the period 1994-95 to 1996-97. The majority of this appendix is excluded from the unclassified Report to Parliament 1993-94.

The evaluations and reviews summarised here deal with the following subjects:

Reviews completed in 1993-94

• Security assessment procedures.

Outlines o f certain proposed evaluations

• OASYS replacement program

Review of security assessment procedures—May 1993 to June 1994

B ackgrou n d

In July 1992 the then Parliamentary Joint Committee (PJC) on ASIO (see page 42) began an inquiry into the security assessment process as it applies to ‘access’ (or ‘security vetting’) requests. These are

requests from agencies for ASIO to provide them with security advice on people to whom the agency proposes to grant access to information or areas to which access is controlled or limited on security grounds. The review was not completed in the 36th Parliament, but was continued by the reconstituted PJC in 1993-94 (having been re-referred by the present Attorney-General in May

1993). The report of the review was tabled in the Parliament on 27 June 1994.

P urpose o f evalu ation

To review the operation of Part IV of the ASIO Act and to report on the manner in which ASIO performs its function of giving security assessm ents under that legislation, the effectiveness of the procedures employed, and the usefulness of the assessments produced.

REPORT TO PARLIAMENT 1993-94

K e y issues

Key issues examined by the PJC included:

• the requirement for security vetting

• the nature of material requiring protection

• ASIO’s security assessment process, and its efficiency

• procedures employed by the requesting agencies

• the extent and intrusiveness of security checking by agencies

• and the provisions and procedures for reviewing agency decisions.

M e th o d o lo g y

The review was advertised nationally in August 1992 and again in June 1993- In addition, subm issions w ere invited from

Commonwealth agencies. Twenty-nine submissions were received. Public hearings were held in Canberra on five occasions.

R ecom m en dation s

1 To overcome the problem of delays in completing the security clearance process, submitting authorities should be able to issue provisional clearances after a specified period without ASIO advice.

2 Commonwealth agencies should be required to include the following information in their annual reports:

- the number of designated security assessment positions

- the number of positions of trust

- the number of security assessments completed

- the num ber of assessments involving denial of access, including reasons, for both designated security' assessment positions (based on a Part IV assessment) and positions of trust (not based on a Part IV assessment).

3 There should continue to be no charge levied by ASIO for conducting Part IV assessments.

4 The Attorney-General’s Department, in consultation with the Privacy Commissioner and relevant unions, should review the value and content of the security questionnaire to ensure that the required information is necessary and relevant.

APPENDIXES

5 All security interviews within agencies should be conducted by appropriately qualified, trained and experienced officers.

6 The A ttorney-G eneral’s D epartm ent should consider introducing a work- based assessment process as proposed by the Privacy Commissioner.

7 The Privacy Commissioner should continue to undertake privacy audits of Commonwealth agencies.

8 In general all parties to a Security Appeals Tribunal hearing should be present throughout the hearing, subject to the Tribunal having the discretion to exclude one party or to use masking technology in the presentation of evidence where it

considers that such a course is warranted in the national interest.

9 The process of establishing a new security division of the Administrative Appeals Tribunal should be accelerated and provision should be made for an appeal to the Tribunal by any person aggrieved by an access decision of an agency head.

Three-year evaluation program

Table 24 (excluded from the unclassified report) sets out ASIO’s three-year internal evaluation program for the period 1994-95 to 1996— 97. As a general principle the Organization will seek to include an SES officer from outside ASIO on the steering committee.

At the end of the reporting period, outlines of several proposed major evaluations had been prepared, and are included below.

Proposed evaluation of the OASYS replacement program

B ackground

The replacement program for ASIO’s office automation system (OASYS) has been split into two stages over a five year period. Phase 1 will operate from the start of the 1994-1995 Financial Year and finish at the end of 1995-1996. Phase 2 will then commence

and is scheduled to be completed early in the 1998-1999 financial year. Phase 1 involves:

• replacement of all ‘dumb’ terminals and 286 personal computers (PCs) with 386/486 work stations

REPORT TO PARLIAMENT 1993-94

• replacement of the existing, separate and insupportable character based electronic mail system

• standardisation of the various application-to-user interfaces into a common graphical interface for all new applications developed and most of those currently existing

• and the introduction of client/server and associated object- oriented technologies.

Phase 2 involves replacement of the VAX cluster, upgrading of the network to handle high image transmission loads and full re­ engineering of the existing applications where such upgrading is shown to be economically viable.

P urpose o f evaluation

To test the extent to which the outcomes specified above are achieved.

K ey issues

The key issues to be addressed are identified in the statement of outcomes and their evaluation could be phased as follows:

• Introduction of PC w orkstations and replacem ent of the electronic mail system—4th quarter of 1995.

• Standardisation of user interface—3rd quarter 1996.

• Introduction of client/server and object oriented technologies— 3rd quarter 1997.

S teerin g com m ittee

The steering committee will be chaired by the ASIO SES Band 1 officer responsible for engineering development and will comprise another SES Band 1 officer (chairing a comm ittee of client managers) together with an SES level officer from outside the Organization.

APPENDIXES

A ppendix D: D eterm inations signed by the Director-General in 1993-94

No. Section of Subject

ASIO Act

1 85

2 86

3 85

4 86

5 85

6 86

7 86

8 85

9 86

10 86

11 86

12 86

13 85

Designation of the new office of Assistant Manager (Grade 2) and the salary for that office. Abolition of certain other offices in accordance with the new structure of the Organization.

Amendments to Det 1/93 required as a result of the preceding Determination.

Designation of the new office of Assistant Manager (Grade 1) and the salary range for that office.

Amendments to Det 1/93 required as a result of the preceding Determination.

Provided for salary increases which were agreed under the ASIO Productivity Agreement.

Amended Det 1/93 by reducing the incremental steps for Generalist Intelligence Officers Grade 1, by varying the arrangements for payment of restriction, extra duty and non-reduction allowances and by clarifying entitlements to reimbursement of incidental expenditure.

Provided for Performance Appraisal and Pay for ASIO’s SES- equivalent officers.

Designation of the new Office of Legal Adviser (Band 1) and the salary for that office.

Amendments to Det 1/93 required as a result of the preceding Determination.

Provided for introduction of a Flexible Work Cycle in accordance with the ASIO Productivity Agreement.

Provided for reim bursem ent of Senior Officer Work Related Expenses.

Varied arrangements for accelerated incremental advancement, amended eligibility for payment of restriction allowance and provided for officers to elect betw een restriction and on-call allowances, in accordance with the ASIO Productivity Agreement.

Adjusted the salary of the Legal Adviser.

REPORT TO PARLIAMENT 1993-94

14 86

15 86

16 86

Provided for certain Generalist Intelligence Officers Grade 1 to receive Accelerated Incremental Advancement in accordance with a decision of the Director-General.

Provided for the introduction of an Efficiency Bonus Scheme in accordance with the ASIO Productivity Agreement.

Varied the formula for calculation of SES Performance Pay.

APPENDIXES

A ppendix E: Equal em ploym ent opportunity statistics Key to abbreviations: NESB1 = N on-E nglish-speaking b a ckground — fir s t generation; N E SB 2 = N o n - E n g lis h -s p e a k in g b a c k g r o u n d - s e c o n d g e n e r a t i o n , A 7 5 / =

Aboriginal/Torres Strait Islander;■ PW D = People w ith a disability

Table 25: Percentage representation o f designated groups in ASIO, 1991 to 1994

Group June 1991 June 1992 June 1993 June 1994

% % % %

Women 34.8 33.6 33.5 34.5

NESB1 4.5 4.7 3.0 4.3

NESB2 3.1 3.2 4.1 2.2

ATSI 0.1 0.1 0.1 0.2

PWD 3.5 3.6 4.7 4.7

Source: CHRIS: C om plete Human Resource Information System (ASIO's computerised personnel system) .

Percentages for women bosed on total staff; percentages for other groups b ased on staff for whom EEO data w as available.

REPORT TO PARLIAMENT 1993-94

Table 26: Representation o f designated groups within ASIO

occupational groups, at 3 0 June 1994

Occupational Total Staff with

group staff’ Women2 NESB NESB ATSI PWD EEO data

SES equivalent 133 3 11

[23%] (85%)

M a n a g e r -A 7 1 6

(17% ) (86%)

A sst M a n a g e rs4 72 6 z 1 _ 4 6 5

I9%l 12%) 12%) (6%) (92%)

G I O l Z12 18 1 1 1 9 7

116%} 11%) 11%) (1%) (87%)

S O I - 4 $

3 6 0 1 7 3 18 9 ? 1 7 2 9 7

148%} 16%} 13%) 10.3%) 16%) (83%)

ITO I I 2 1 11

118%) 19%} (100% )

Engineer 7 6

(86%)

O ther 3 - - - - - 0

Total 5 8 5 2 0 2 2 1 11 1 2 3 4 9 3

135%} 14%} 12%} 10.2%} 15%) (85%)

Source: CHRIS: Com plete Human Resource Information System [ASIO 's computerised personnel system!.

' Excluding former officers on compensation.

2 Percentages for women loosed on total staff; percentages for other groups based on

staff for whom EEO data was available.

3 Including one SES officer on secondment, not represented in Tables 16 and 17.

4 Asst M anager salaries span the S O G C - S O G B salary range.

5 S / 0 1 - 4 / G I O 1 salaries span the A S O I - A S 0 6 salary range.

APPENDIXES

A ppendix F: Response to archives requests Access to ASIO records is possible under the Archives Act 1983 which requires that all working Commonwealth records—except those which are exempt—be available for public access after 30 years. In general terms, ASIO only seeks exemption for information that might:

• reveal the Organization’s modus operand!

• prejudice current operations

• identify past or current sources, agents and ASIO officers

• endanger foreign liaison

• or unduly affect the privacy of anyone identified in the records.

Although a work unit was established in 1984 to deal with archives requests, ASIO experienced increasing difficulty in satisfying public applications for its archival material because of the time-consuming nature of the scrutinising process needed to decide whether exem ption applied. In 1990-91, G overnm ent endorsed a

recommendation of the Parliamentary Joint Committee on ASIO that ASIO should allocate additional resources to the processing of requests. A similar view had been expressed by the Inspector-

General of Intelligence and Security in relation to complaints made by researchers against ASIO about delays in servicing requests. ASIO responded in the last review period by establishing a new public research’ work unit to process requests, with a threefold

increase in staff.

During the reporting period the new unit achieved significant results. Initiatives aimed at improving the archives request service included:

• maintaining communication with regular researchers (with the consent of Australian Archives), to help them define their specific interests and gain an understanding of their publishing schedules

• continuing to explore the use of imaging technology to assist processing, and arranging for its introduction early in the next reporting period

• isolating the ‘backlog’ of requests and placing primary focus on new requests to ensure that all new minor research requests were serviced within a 90-day time limit, and that the majority of large requests were similarly serviced

REPORT TO PARLIAMENT 1993-94

• and putting in place administrative arrangements to identify accurately the direct salary, administrative and capital costs of maintaining the unit.

Table 27 shows the pattern of requests for archival material over the last five reporting periods.

Table 27: Trends in requests for ASIO records under the Archives

Act, 1 9 8 9 -9 0 to 1 9 9 3 -9 4

89-90 90-91 91-92 92-93 93-94

Requests 137 275 403 317 241

% completed in 90-day time frame 31.4 38.2 15.4 26.8 82.5*

Sixteen requests (6.6%j were not completed in the 9 0 day time frame, because the volume o f material involved in some o f these requests was so large that the process o f file identification, assembly, assessment, checking and dispatch involved more than three months continuous resource commitment. The remaining 2 6 requests 110 .9%j were still within the 9 0 day time frame at 3 0 June 1994.

Overall, the steep upward trend in the backlog of requests was contained and significantly reduced. The backlog of 543 requests that existed at 30 June 1993 was more than halved to 269 at 30 June 1994.

Figure 12 illustrates the sourcing of the backlog of requests.

The figure illustrates that the backlog of 269 requests outstanding at 30 June 1994 was made up by requests from five researchers. Of these, the requests from one researcher accounted for 54 per cent

of the backlog. At any given time throughout the year, one officer (with a direct annual salary cost in excess of $47 000) was solely devoted to the processing of requests made by this researcher, either direct to ASIO or to other government departments holding ASIO information. Despite the additional resourcing, at the end of

the reporting period the aim of clearing the backlog of requests by August 1994 was considered unachievable.

APPENDIXES

Figure 12: S o u r c e s o f outstanding archival item requests at 3 0 June 1994

7%

13%

■ R e s e a r c h e r 5

O R e s e a r c h e r 4

S3 R e s e a r c h e r 3

0 R e s e a r c h e r 1

□ R e s e a r c h e r 2

During the review period, four appeals to the Administrative Appeals Tribunal (AAT) against ASIO decisions to withhold archival material were withdrawn. Three of these appeals had been held over from 1992-93· The other one was made (and withdrawn)

during 1993-94. Each of these withdrawals was a consequence of ASIO’s direct communication with the appellants to identify their needs and establish tim etables for the release of specific

information. A second appeal to the AAT was made during the year and was held over at the end of the review period.

REPORT TO PARLIAMENT 1993-94

A ppendix G: Countries approved for liaison purposes a t 30 June 1994 This list is excluded from the unclassified Report to Parliament 1993-94.

APPENDIXES

A ppendix H: ASIO contact inform ation

Written inquiries

The Director-General Central Office GPO Box 2176 CANBERRA ACT 2601

General inquiries

Central Office switchboard (toll-free number) (008) 02 0648

Media inquiries

Media Liaison Officer (06) 249 8381

Collection office inquiries

Australian Capital Territory (06) 249 7415

Victoria (03) 654 8985

New South Wales (02) 281 0016

Queensland (07) 221 7157

South Australia (08) 223 2727

Western Australia (09) 221 5066

Northern Territory (089) 81 2374

Tasmanian residents may call Victoria Regional Office toll-free (008)13 6802

REPORT TO PARLIAMENT 1993-94

C o m p l i a n c e

i n d e x

This index is a guide to the report’s compliance with the Guidelines fo r the preparation of departmental annual reports, issued by the Secretary of the Department of the Prime Minister and Cabinet in May 1994. Items are marked ‘n/a’ when the requirement does not

apply to ASIO because of the nature of the Organization’s statutory functions, certain legislative provisions, or its status within the portfolio.

Annual report requirement See page/appendix

Letter o f transm ission iii

Aids to access Table of contents vi-vii

Index Compliance index Glossary of acronyms and abbreviations Other major documents Structure of report Contact officer Corporate overview

126-128 124-125 viii iv

viii, 48 iv, 123 1 ^ 6

Portfolio and corporate overview

Corporate overview Social justice and equity Internal and external scrutiny Industrial democracy Occupational health and safety Freedom of information Advertising and market research

Portfolio overview

Program performance reporting

n/a 1-46 25 41-45

16-17, 21, 24 26-28 n/a 20 47-80

Staffing overview Appendix A

Financial statements Financial and staffing resources summary 81-102 Appendix B

GENERAL INDEX

Information available on request See page/appendix

Portfolio bodies n/a

Social justice and equity EEO in appointments Access and equity

78-79, Appendix E n/a

Staffing matters Performance pay Training Interchange program

Appendix A

78-79, Appendix A n/a

Financial matters Claims and losses 78-79

Purchasing n/a

Information technology purchasing arrangements 78-79 Payment of accounts 78-79

Consultancy services 78-79, Appendix A

Capital works management Nil

Internal and external scrutiny Fraud control 43

Reports by the Auditor-General 43-44

Inquiries by Parliamentary Committees 42, 44, 66, Appendix C

Comments by the Ombudsman (see Inspector-General of Intelligence and Security) 42, 60

Decisions of courts and tribunals Nil

Privacy n/a

Environm ental matters 40, 78-79

Other matters Property usage 78-79

Business regulations n/a

REPORT TO PARLIAMENT 1993-94

G e n e r a l

i n d e x

a a b b r e v ia tio n s viii

a c c o u n ta b ility 4 1 —45, 60

a d d itio n a l in fo r m a tio n iv, 7 8 - 7 9

A d m in is tra tiv e A p p e a ls T r ib u n a l 3 5 , 42, 121

a d m in is tra tiv e d e ta il 7 8 - 7 9

a d v e r tis in g c o s t 20

a d v ic e to c lie n ts 5 3 - 5 7

a n n u a l re p o rt v iii, 4 8

c la ss ifie d iii

u n c la s s ifie d iii, 42

a p p e a l s 4 4 -4 5

a r c h iv e s re q u e s ts 3 5 -3 6 , 4 2 , 1 1 9 -1 2 1

a r r e s t o f a n A SIO o ff ic e r 12

A S IO 's r e s p o n s e 1 0 -1 1

A S IO ’s ro le iv, 4

A tto rn e y -G e n e ra l's a p p r o v a l to c o o p e r a t e

w ith fo re ig n a u th o r itie s 58

A tto rn e y -G e n e ra l’s a u th o r is a tio n o f w a rra n ts 59

a u d it 4 3 -4 4

A u d ito r- G e n e ra l's r e p o r t 43

a u th o r is a tio n o f w a r r a n ts 59

b b u d g e t 19

b u ild in g m a n a g e m e n t 40

b u s in e s s p la n s 14

c c la im s a n d lo s s e s 7 8 - 7 9

c lie n t f e e d b a c k 50, 5 6

c lie n t s a tis fa c tio n 35— 36 , 3 8

c lie n ts , c o m m u n ic a tio n w ith 3 5 -3 6 , 53, 5 5 -5 7 , 77

c o lle c ti o n o f in te llig e n c e 57

c o m m u n ic a tio n

w ith c lie n ts 3 5 -3 6 , 53 , 5 5 -5 7 , 7 7

w ith th e p u b lic 3 6 - 3 7

w ith th e s ta ff 3 7

c o m m u n ity c o n ta c t p r o g r a m s 51

c o m p e te n c y - b a s e d s ta ffin g s y s te m 24

c o m p lia n c e in d e x 1 2 4 -1 2 5

c o m p u t e r s 3 9 -4 0

c o n s u lt a n ts 7 8 -7 9 , 109

c o n ta c t in fo r m a tio n 123

c o n tin u o u s im p r o v e m e n t 15, 30

c o n tr o ls o v e r A S IO 4 1 -4 5 , 5 9 -6 0

C o o k in q u iry , see in q u ir ie s in to n a tio n a l s e c u rity

c o o p e r a t io n w ith fo r e ig n a u th o r itie s 57

c o o p e r a t io n w ith la w e n f o r c e m e n t a g e n c ie s 1 7 -1 8

c o r p o r a te o v e rv ie w 1 -4 5

c o r p o r a te p la n n in g 13

c o r p o r a te s tru c tu re 1 9 -2 1

C o r p o r a te S u p p o r t P r o g ra m 7 8

c o u n t e r p ro life ra tio n 52

c o u n t e r te rro ris m 3 0 , 74— 7 7

c o u n t e r te rro ris m e x e r c is e s 7 6 - 7 7

C o u n te r T e rro ris m S u p p o r t P r o g r a m 7 4 -7 7

c ritic a l s u c c e s s fa c to rs 3 0 - 4 0

d D ire c to r-G e n e ra l iv

D ire c to r-G e n e ra l's D e te r m in a tio n s 115

d o c u m e n ts , p u b lis h e d iv

d o w n s i z in g 1 9 -2 0 , 35

e E E O 25 , 7 8 -7 9 , 1 1 7 -1 1 8

e n e r g y s a v in g s 4 0

e n v ir o n m e n ta l m a tte rs 7 8 -7 9

e q u a l e m p lo y m e n t o p p o r tu n i ty , see EE O

e v a l u a tio n p ro g r a m 113

e v a l u a tio n s 15. 1 1 1 -1 1 4

e v a lu a tio n s , p r o p o s e d 1 1 3 -1 1 4

e x c h a n g e p ro g r a m s 31

e x p e n d i tu r e iv. 110

e x p e n d i t u r e o n c o n s u lta n ts 109

e x p e n d i t u r e o n tra in in g 109

e x te r n a l a n d in te rn a l s c r u tin y 4 1 -4 5

f fin a n c ia l a n d s ta ffin g r e s o u r c e s s u m m a r y 110

F in a n c ia l S ta te m e n ts 8 1 -1 0 2

fo r e ig n a u th o ritie s

a p p r o v a l to c o o p e r a t e w ith 58

c o o p e r a t io n w ith 57

F o r e ig n In te llig e n c e P ro g ra m 73

f o r e ig n lia is o n 57—58, 122

fo r m a t o f re p o rt v iii, 4 8

fr a u d 4 3

f u r th e r in fo m ia tio n iv, 7 8 -7 9

9g r ie v a n c e s 28, 45

GENERAL INDEX

/

in d u s tria l d e m o c r a c y 21 , 24

in f o r m a tio n a v a ila b le o n r e q u e s t 7 8 - 7 9

in f o r m a tio n t e c h n o lo g y p u rc h a s in g

a r r a n g e m e n t s 7 8 -7 9

in q u ir ie s i n to n a tio n a l s e c u r ity 1 3 -1 4

In s p e c to r - G e n e r a l 42, 6 0

in te r n a l a n d e x te rn a l s c r u tin y 41—45

in te rn a l s e c u r ity 62

in te r n a tio n a l s e c u rity c o n c e r n s 5—7

/ la w e n f o r c e m e n t a g e n c ie s , c o o p e r a t io n w ith 18

l e a d e r s h ip 3 2 -3 4

le tte r o f tr a n s m is s io n iii

m m a n a g e m e n t s tru c tu re 1 9 -2 2

m a n a g e m e n t tra in in g 3 2 -3 4

m a s t e r a g e n c ie s fo r a d v e r tis in g 20

n N a tio n a l A n ti-T e rro ris t P la n , see N A TP

N A T P 7 4 - 7 5

N o v e m b e r 1 ta s k f o rc e 6 8 - 6 9

o O A SY S r e p la c e m e n t p r o g r a m

p r o p o s e d r e v ie w o f 113

o c c u p a tio n a l h e a lth a n d s a fe ty 2 6 - 2 8

O ly m p ic s 3 1 , 41 , 56, 7 7

o r g a n is a tio n a l c h a n g e 19

o u tc o m e s o f in v e s tig a tio n s 11, 5 1 -5 2

o v e r s e a s in fo r m a tio n , ro u ti n g o f 61

PP a r lia m e n ta r y J o in t C o m m itte e 4 2 , 111 p a y m e n t o f a c c o u n ts 7 8 - 7 9 p e o p l e m a n a g e m e n t 1 4 -1 7 , 1 9 -3 5 p e r f o r m a n c e m a n a g e m e n t 28 p e r f o r m a n c e p a y 2 8 - 2 9 , 45 , 1 0 6 -1 0 8 p r o d u c tiv ity a g r e e m e n t 1 6 -1 7 p r o g r a m r e p o r ts 47— 79 p r o g r a m s tru c tu re 21, 23 , 48 p r o lif e r a tio n 52 p r o p e r t y u s a g e 7 8 -7 9 p r o p o s e d e v a lu a tio n s 114 P r o te c tiv e S e c u rity P r o g r a m 6 3 - 7 2 p u b l i s h e d d o c u m e n ts iv

r re c r u itm e n t 20

re c r u itm e n t a d v e r tis in g 20

r e p o r t, a n n u a l

fo r m a t o f viii

s tr u c tu r e o f viii, 48

re p o r ti n g 5 3 - 5 7

re p o r ts

b y t h e A u d ito r- G e n e ra l 43, 4 4

b y t h e P a rlia m e n ta ry J o in t C o m m itte e 42, 44,

66 , 111, 113

r e s o u r c e m a n a g e m e n t 38 , 4 0

r e s tr u c tu r in g 1 9 -2 1 , 35

r e v ie w

o f SA C -PA V 77

o f s e c u r it y a s s e s s m e n t p r o c e d u r e s 4 2 , 44, 66,

111, 113

r e v ie w s 15, 1 1 1 -1 1 4

r e v o c a t io n o f w a rra n ts 59

ro le ,

o f A S IO iv, 4

s SA C-PA V 5 5 , 7 5 , 7 7

SA C-PA V , r e v ie w o f 7 7

S a d il 12

SCIS 41

S e c re ta rie s C o m m itte e o n In te llig e n c e a n d

S e c u rity , se e SCIS

S e c u rity A p p e a ls T r ib u n a l 42

s e c u rity a s s e s s m e n t p r o c e d u r e s

r e v ie w o f 42, 44, 6 6 , 111, 113

s e c u rity c o n c e r n s 3 -1 1

S e c u rity I n te llig e n c e P r o g ra m 4 8 - 6 2

s e c u rity re v a lid a tio n 6 2

S e n io r E x e c u tiv e S e rv ic e 105

S ID C -P A V 5 5 ,7 4 - 7 5

s p e c ia l p o w e r s 58

s ta ffin g 20, 105, 110

s ta ffin g is s u e s 24

S ta n d in g A d v is o ry C o m m itte e o n

C o m m o n w e a lth - S ta te C o o p e r a t io n fo r

P r o te c tio n A g a in st V io le n c e see SAC-PAV

s tr u c tu r e o f r e p o r t v iii, 48

s u b je c t ris k m a trix 10, 50, 60

t ta c tic a l th r e a t a s s e s s m e n ts 55

te c h n ic a l e x c h a n g e 6 l

te c h n ic a l s u p p o r t 6 l

REPORT TO PARLIAMENT 1993-94

te c h n ic a l s u p p o r t u n it 75

t e c h n o lo g y 3 8 -4 0

th r e a t a s s e s s m e n ts 5 3 - 5 4

t h r e a t a s s e s s m e n ts , 54

tr a in in g 6 2 , 7 8 -7 9 , 109

c o m p u te r s 40

in te llig e n c e a n d o p e r a tio n a l 62

m a n a g e m e n t 32—33

W w a r r a n ts 5 8 -6 0

w e a p o n s o f m a ss d e s tr u c t io n 52

w o r k p l a c e b a rg a in in g 1 6 -1 7