Contents

Terms of reference
Foreword
Membership of the Committee
List of abbreviations
List of recommendations
Chapter 1 The fourth review of administration and expenditure
Chapter 2 Recruitment
Chapter 3 Training
Appendix A – List of Submissions
Appendix B – Witnesses appearing at Private Hearings
Appendix C – Recommendations made in the 2004-2005 review

Terms of reference

This review is conducted under paragraph 29(1)(a) of the Intelligence Services Act 2005:

to review the administration and expenditure of ASIO, ASIS, DIGO, DIO, DSD and ONA, including the annual financial statements (of) ASIO, ASIS, DIGO, DIO, DSD and ONA.

Foreword

It is with pleasure that I present the fourth review of the administration and expenditure of the Australian Intelligence Community by the Parliamentary Joint Committee on Intelligence and Security.

This is the first review of administration and expenditure of all six intelligence agencies since the Committee was expanded in December 2005 following amendments to the Intelligence Services Act 2001 which added DIGO, ONA and DIO to the Committee’s oversight responsibilities.

In the Committee’s third review on administration and expenditure, I commented in the Foreword that there was no clear indication as to how much expansion would take place within Australia’s intelligence community to deal with the evolving threat of extremist terrorism. Since that report, all the AIC agencies have been caught up in what one described as a “war for talent” as they try significantly to increase staff numbers from a limited pool of suitable applicants.

In the third review, the Committee expressed concern that rapid expansion could bring with it unavoidable stresses and strains in organisations at a time when they could least afford growing pains. During hearings for this review, the AIC agency Heads outlined to the Committee the strategies and procedures which agencies have implemented in order to address those unavoidable stresses and strains.

The Committee thanks the Heads of the AIC agencies and all those who have contributed to this review.

The Hon David Jull, MP

Chairman

Membership of the Committee

Committee Secretariat

List of abbreviations

List of recommendations

1 The fourth review of administration and expenditure

Recommendation 1

That the Government provide the Committee with separate financial statements for DSD, DIGO and DIO to enable the Committee to fulfil its statutory obligations regarding oversight of the administration and expenditure of the intelligence and security agencies.

2 Recruitment

Recommendation 2

The Committee recommends:

• that the Government identify methods to address the security clearance backlog of the agencies; and
• that the agencies be required to report every year on the backlog and the methods being used to address it in their Annual Reports.

3 Training

Recommendation 3

The Committee recommends that the Government enquire into the feasibility of establishing a combined facility for basic training in intelligence either in an existing academic institution or as a separate college.

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