Anthony Albanese (Grayndler, Australian Labor Party, Leader of the House) Share this | Link to this | Hansard source

by leave—I rise today to recognise the recent retirement of Mr Michael John Palmer AO, APM from his role as the Inspector of Transport Security, a role he has discharged admirably since his appointment in 2004. I also table the most recent report from Mr Palmer, the Offshore oil and gas resources sector security inquiry, which I received on 7 June 2012.

OFFSHORE OIL AND GAS RESOURCES SECTOR SECURITY INQUIRY

Firstly, I would like to take some time to discuss this important report which I announced in February last year. I have previously updated the House on the importance of this inquiry—the first-ever comprehensive review of the security of the oil and gas sector that employs more than 10,000 Australians, contributes 2.5 per cent of Australia's GDP and generates an impressive $28 billion in revenue.

The reserves in the north-west of Australia, the Bass Strait and the Timor Sea provide employment for our nation, income for our economy and energy to the world. In fact, Australia is the world's ninth largest energy producer.

We need to ensure that we have effective security arrangements in place and the right response capabilities in the event of an incident or attack on offshore oil and gas exploration and production infrastructure. This is all the more important as current and future exploration continues to push out into deeper and more distant waters to satisfy the increasing worldwide demand for oil and gas resources.

The report is thorough—drawing on detailed input and consultation with state and territory governments, industry and peak bodies such as the board of the Australian Petroleum Production and Exploration Association (APPEA). Indeed, industry's input was critical to the development of this report and I would like to thank them for their generous and honest interactions and contributions. Simply put, the report would not be of the quality it is today without the access, aid and assistance they provided.

With the sector's assistance, Mr Palmer and his team undertook extensive Australian and international consultation to better understand, review and assess security planning and preparedness, recruitment, training, government and industry interaction, command and control arrangements, response capacity and clarity, and communication and information-sharing arrangements in the oil and gas resources sector environment.

In preparing the report, the team conducted 31 offshore and onshore visits and over 50 consultations in Australia as well as eight offshore and onshore site visits and 45 consultations internationally. These spanned Western Australia, the Northern Territory, Queensland, the Bass Strait, and the Joint Petroleum Development Area in the Timor Sea through to site visits organised by the United States Coast Guard to facilities in the Gulf of Mexico.

The inquiry also benefited from a legal framework, research and discussion paper prepared by the University of Queensland, which was considered as part of the preparation of this inquiry report, informing the inquiry on the current and relevant international and Australian maritime law. The final result is an impressive depth of inquiry for an important issue—with 10 detailed recommendations spanning issues ranging from onsite security audits and inspections, security access, exercise and exclusion zones through to government and industry interaction and relationships, incident response and, importantly in the current computer age, cybersecurity. In addition to the recommendations, the report details possible options in response to the recommendations raised.

Furthermore, drawing upon the learnings from the offshore and international consultations, the report details a further 10 possible approaches for consideration, based on United States, North Sea and our own experiences as to what has worked successfully and what could be improved. In summary, the report highlights an important point. We can be confident that our security measures are international best practice.

However, it also highlights areas where current security related practices and arrangements could be improved, and it suggests options which will warrant further consideration by government. I thank Mr Palmer for his work on this important issue and for his detailed report, which I table for members and commend members to read in detail.

RETIREMENT OF THE INSPECTOR OF TRANSPORT SECURITY

While thanking Mr Palmer I would also like to acknowledge his wider contribution. For those who may not be aware, Mr Palmer is a 35-year career police professional. He brought to this report and to his role as the Inspector of Transport Security extensive experience in policy leadership and reform in the community, national and international policing sector. It is a difficult role, requiring the investigation of transport security matters, including major transport incidents, or, where necessary, patterns of incidents which may indicate possible weaknesses in our transport security systems. It is also a position that requires significant vision to proactively identify where transport security arrangements could be further improved. And Mr Palmer has done so with distinction.

It has certainly been a busy time during his tenure, during which a number of very important inquiries were undertaken, in addition to the offshore inquiry. His work included the surface transport security assessment, theSydney Airport security screening review, and the ferry security inquiry. Of particular importance was Mr Palmer's international piracy and armed robbery at sea security inquiry, which looked into the worldwide issue of maritime piracy and armed robbery at sea, and considered the effectiveness of security arrangements of Australian ships in light of this threat. This work has directly resulted in Australia making a significant contribution to the United Nations Office of Drugs and Crime Counter-Piracy Program. Indeed, the report has been used by a number of nations when developing their response to piracy and has ensured that Australia has in place an appropriate security framework to deal with maritime threats. Of course, these inquires—past and current—were in addition to his inquires conducted for other portfolios such as the inquiry into the circumstances of the immigration detention of Cornelia Rau and more recently the Risdon Prison Complex inquiry, undertaken for the Tasmanian government.

Mr Palmer's contribution to Australia goes beyond his most recent work inquiring into matters of national importance. I mentioned he has had 35 years as a police professional; a career which started as a member of the Northern Territory Police in 1963 where he served Territorians for 16 years. In 1983, after having acted as barrister at law in Queensland, he returned to the Territory as a commissioned officer, before being promoted to Commissioner of the Northern Territory Police, Fire and Emergency Services in 1988. It was also at this time that he received the Australian Police Medal.

In 1997, he was selected as the member for Asia to the Interpol Executive Committee where he served for three years. Here he worked as part of the executive committee to supervise the delivery of the decisions of the Interpol General Assembly and prepare the agenda and program of work for the general assembly's consideration. It was also during this period that he was rightly recognised for his work in introducing far-reaching anticorruption processes in the Australian Federal Police, receiving the Officer of the Order of Australia in 1998. It was of no surprise that upon his return he was promoted, this time to commissioner in the Australian Federal Police, where he served for a further seven years.

Finally, before taking up the role as Inspector of Transport Security, he worked for a number of years as a private consultant and as an associate professor at Charles Sturt University's Australian Graduate School of Policing, providing a valuable opportunity to pass on his wealth of knowledge and insight into both the law and law enforcement to the next generation of leaders. Indeed, his academic pursuits have been notable, from being conferred a Doctor of Letters for his advancement of policing to his extensive writing on modern police practices, including as the co-editor of the authoritative law enforcement text, Police Leadership in Australasia.

In closing, it is always very sad to lose from this position such a wealth of experience and judgment. However, I am pleased to note that he will continue to contribute to public life through his ongoing work in the human rights and not-for-profit sector, and through future engagements in the public and private sectors.

I sincerely thank Mick Palmer for his many decades of service to the safety of the nation and wish him all the very best in his future endeavours.

I ask leave of the House to move a motion to enable the member for Wide Bay to speak for 9½ minutes.

Leave granted.

I move:

That so much of the standing and sessional orders be suspended as would prevent the member for Wide Bay speaking in reply to the minister's statement for a period not exceeding 9½ minutes.

Question agreed to.

Warren Truss (Wide Bay, National Party, Leader of the Nationals) Share this | Link to this | Hansard source

Protecting Australia's $28-billion-a-year oil and gas industry is vital for Australia's future energy security. As the minister notes, the industry employs some 10,000 Australians across the country and accounts for 2.5 per cent of Australia's GDP. Offshore oil and gas production provides a major input into our economy and its infrastructure is of critical national importance. There are around 170 oil and gas production platforms in operation around the Australian coast from the Timor Sea, the North West Shelf to the Bass Strait.

Australia's gas production for domestic and export markets continues to increase every year. However, petroleum liquids production is still falling. In 2000-01 Australia produced 272.4 million barrels of petroleum liquids. By 2009-10, this had fallen to 186.9 million barrels. There is further scope for exploration and appraisal drilling to address the growing demand for petroleum liquids. While Australia accounts for approximately 0.6 per cent of world oil supply and 1.5 per cent of worldwide demand, oil and natural gas accounts for nearly 56 per cent of primary energy consumed in Australia. In fact, Australia is the ninth largest energy producer in the world.

With the rise in international piracy and the threat of terrorism, it is certainly timely to revisit the security requirements in place to protect our offshore oil and gas assets. I note from the minister's summary of the report being tabled today that he said we can be confident that our security measures are international best practice. However, I am alarmed to read in the report:

… it is understood no on-site offshore facility security assessments have been conducted since 2007.

That is indeed an alarming gap. It suggests the gaping security assessment gap is indeed real. Indeed, the report highlights and recommends:

In the opinion of the Inquiry, the current Australian situation is unsatisfactory and arrangements should be implemented which provide the capacity for an effective offshore security audit program to be introduced and maintained.

What in fact is happening—to use the minister's words—is best practice in the world is indeed at risk. That is hardly world's best practice. If asylum seeker boats can turn up every day, often unobserved, it is clear that our security is as open as a sieve.

In recent years, pirates have been involved in unsuccessful attempts to attack and take over an oil rig off the coast of Nigeria with a firefight erupting between the Nigerian Navy and the pirates. As the minister has noted before, while there is no suggestion of a particular threat against any specific oil and gas platform, vigilance is essential.

It is clear that any potential security threat would be extremely damaging to our national economy and affect our energy security. I refer the minister to today's report finding:

While within Victoria and Western Australia relevant state police engage on a regular basis in joint exercises with industry on near-shore offshore facilities, it is understood that no Commonwealth agency has participated in such exercises since about 2004.

There are other unsatisfactory findings. The report stipulates:

Industry has emphasised the constructive relationship it generally enjoys with government agencies. There is, however, common agreement that increased engagement between industry and government security agencies, aimed at enhancing mutual levels of understanding—industries' knowledge of the intelligence gathering, analysis and dissemination processes of government and government's knowledge and expertise of industry—in the security space, is necessary.

Moreover:

While this initiative will make a positive contribution to the improvement of the nature and quality of intelligence sharing and the interaction between government and industry, the broader current levels of engagement and communication would benefit from further and ongoing improvement …

The Australian Security Intelligence Organisation (ASIO), which were already playing a constructive role in government and industry relationships through the publications of the Business Liaison Unit (BLU), have been quick to recognise and react to these industry concerns and an industry roundtable was convened by them in Canberra during March 2012 to specifically address the primary matters of concern.

In terms of security shortfalls relating to recruitment, the report finds:

The vetting of Australian employees as part of the application process for a MSIC generally comprises a criminal-record check, as well as internal company checks deemed appropriate. Industry sees the MSIC process as providing an additional layer of security vetting above the level they can provide themselves.

However, although the MISC vetting process provides a security assessment and a photographic record of an individual employee, the process is limited. Currently, the requirement for a MSIC does not apply to foreign nationals or to Australian and other workers engaged on non-regulated vessels operating under subcontract arrangements.

Clearly, as the report finds, much more needs to be done.

The coalition will always support sensible moves to enhance our maritime security regime. The coalition has a history of proposing and supporting sensible measures to enhance our maritime security regime and, in this case, the security of our offshore oil and gas assets. For example, in 2005 it was a coalition amendment to the Maritime Transport Security Act 2003 that required operators to write and follow security plans, including security risk assessments and preventative strategies to manage risk.

The coalition notes the report and is extremely concerned about the gaping holes in Australia's offshore oil and gas resources security. The coalition has a record of securing Australia's borders and strengthening security requirements across the maritime industry including our offshore oil and gas assets. There appears, from this report, to have been serious lapses since 2007. It is not satisfactory at all—let alone, the world's best practice.

Finally, like the minister, I would like to pay tribute to the outgoing Inspector of Transport Security, Mr Michael Palmer as he completed his term on 7 June this year. He has served with distinction not only in his most recent role but in an outstanding, career of service and dedication. He served in his current position as Inspector of Transport Security during the whole time I was transport minister, and I admired his dedication and commitment.

As the minister noted, Mr Palmer is a decorated policeman of 35 years service, winning the Australian Police Medal in 1988. He started out with the Northern Territory police in 1963 where he served for 16 years. Then, after a stint as barrister-at-law in Queensland, he went back to the Territory in 1983, this time as a commissioned officer. He was duly promoted to the rank of Commissioner of the Northern Territory Police, Fire and Emergency Services in 1988. He became the Member for Asia, as the minister said, in the Interpol Executive Committee in 1997.

It was during this time that Mr Palmer was one of the architects of the Australian Federal Police's anti-corruption provisions. This earned him an Officer of the Order of Australia award in 1998. I could go on, but let me thank him for his exemplary service and, in particular, the last seven in his role as Inspector of Transport Security. He leaves with the best wishes and respect of all who have served and worked with him, and the coalition wishes him well for the future. His extensive career background gave great authority to his reports.

Finally, I also take the opportunity to welcome Mr Andy Hughes, who took up the post of Inspector of Transport Security from 8 June. Mr Hughes is also an experienced police officer. He has served in the AFP, including in the senior executive service, and was the Chief Police Officer for the ACT, as well as being in charge of national operations and international operations for the AFP. He was the commissioner of the Fiji Police Force and spent two years with the United Nations as the police adviser on peacekeeping internationally. As Mr Palmer has observed, Mr Hughes comes ideally equipped for the position, and I wish him well in the new role.