Andrew Hastie (Canning, Liberal Party) Share this | Link to this | Hansard source

On behalf of the Parliamentary Joint Committee on Intelligence and Security, I present the committee's report entitled Review of administration and expenditure No. 15 (2015-16)—Australian intelligence agencies.

Report made a parliamentary paper in accordance with standing order 39(e).

by leave—Before I start I would like to acknowledge students from Canning, from Byford Secondary College. Good morning to you. It's great to have you in the chamber.

This report fulfils the committee's statutory oversight responsibility to review the administration and expenditure of the six Australian intelligence agencies, including the Australian Security Intelligence Organisation (ASIO), the Australian Secret Intelligence Service (ASIS), the Office of National Assessments (ONA), and the three defence intelligence agencies.

Through its review, the committee received comprehensive submissions and conducted private hearings with each of the agencies. The committee also took evidence from the Australian National Audit Office and the Inspector-General of Intelligence and Security. The committee is satisfied that agencies are overseeing their administrative functions effectively.

The committee was provided with an update on the security environment in the reporting period and an outlook for the years ahead. Security challenges included terrorism, communal violence, border integrity, espionage and foreign interference. Agencies have continued to respond to the changing security environment. With the support of funding, agencies have also invested in a range of new programs and capital projects to enhance their future capacity. Workforce management continues to be a key focus of agencies. Agencies discussed the strategies they had taken to recruit and retain staff and to finalise security clearances as efficiently as possible. It was clear, however, that lengthy delays and the provision of positive vetting clearances continued to have an effect on agency recruitment. The committee will closely monitor progress on this issue.

Turning now to expenditure: the committee carefully scrutinised each agency's financial management arrangements, including their internal controls. On the basis of the evidence provided, the committee was satisfied that agencies appropriately managed their expenditure in 2015-16. During that period, agencies benefitted from additional funding under a range of new funding measures. The committee has previously noted its concerns about the constant resourcing pressure on agencies as they carry out their work to secure the Australian people and our interests. As the committee notes in its report, both organisations were provided with additional funding by the Turnbull government to support their operations and strengthen their capacity to meet strategic priorities. These measures are welcomed by the committee as they will offset some of the resourcing pressures on the agencies. The committee will continue to monitor the resourcing of both agencies in future reviews.

The committee's review this year took place in parallel to the 2017 Independent Intelligence Review conducted by Mr Michael L’Estrange and Mr Stephen Merchant. The report on that review had not yet been finalised at the time the committee's report was finalised. However, the committee recognised that the outcomes of the independent review could have significant implications for the administration and operation of intelligence agencies. This has proven to be the case. The independent review has recommended, among other things, the establishment of an office of national intelligence incorporating an expanded Office of National Assessments and the elevation of the Australian Signals Directorate into a statutory authority within the Defence portfolio. The review's recommendations, if implemented, will also have significant implications for the oversight role of the committee, including by expanding the committee's remit to additional agencies and enabling the committee to undertake own-motion inquiries into the administration and expenditure of those agencies. Additionally, the independent review's recommendations would strengthen the committee's relationship with the Inspector-General of Intelligence and Security, who has a key oversight role in ensuring that each intelligence agency acts legally and with propriety, complies with ministerial guidelines and directives and acts consistently with human rights. The committee's position is that it is essential for the inspector-general's office to be sufficiently resourced to perform its role, and the independent review makes strong recommendations in this regard.

The committee looks forward to continuing to engage closely with the intelligence agencies as the administrative arrangements within which they operate are revised. I commend the report to the House.