Steve Hutchins (NSW, Australian Labor Party) Share this | Link to this | Hansard source

I present the report of the Parliamentary Joint Committee on Law Enforcement, Adequacy of aviation and maritime security measures to combat serious and organised crime, together with the Hansard record of proceedings and documents presented to the committee.

Ordered that the report be printed.

I move:

That the Senate take note of the report.

Since 2009, the Parliamentary Joint Committee on Law Enforcement has been examining the security of Australia's aviation and maritime sectors. Specifically, the committee has been inquiring into the exploitation of these sectors, including our airports and seaports, by serious and organised criminal networks and whether our current security arrangements are adequate in the face of this threat. On behalf of the committee, I would like to thank all those who contributed to the inquiry. We were fortunate to be able to consult with a wide body of experts, including senior law enforcement officials, private operators, union groups, industry associations and security consultants. I would particularly like to thank the secretariat—Dr John Bell, Mr Bill Bannear and Ms Rosalind McMahon—and previous secretariat staff who also contributed to the inquiry: Mr Tim Watling, Dr Shona Batge, Dr Jacqueline Dewar, Dr Tim Kendall, Dr Robyn Clough, Ms Nina Boughey, Ms Danielle Oldfield and Ms Victoria Robinson-Conlon.

The committee received a large amount of evidence pointing to ongoing penetration of our airports and seaports by organised crime. In addition to evidence provided by Australia's law enforcement community, particularly the Australian Crime Com­mission, the committee also had the opportunity to discuss the state of affairs with industry insiders during airport and seaport site visits in six states and territories. As a result of this comprehensive inves­tigation, the committee is deeply concerned by the level of organised criminal activity occurring in the aviation and maritime sectors.

A key driver for this criminal activity continues to be the lucrative profits made by the importation of illicit drugs. The committee heard that a kilogram of cocaine that might cost a few thousand dollars in a source country such as Colombia might have a wholesale price of around $300,000 in Australia and a street-level price approaching $1 million. As the majority of illicit drugs, either in their final form or as precursor chemicals, are sourced overseas, this lucrative trade corrupts the same air and sea routes used by legitimate commerce.

In addition to the drug trade, the committee heard that the range of serious criminal activity includes, amongst other things, money laundering, tobacco smuggling, counterfeiting and the illegal trade in flora and fauna. This corruption of the industry is facilitated in part by trusted insiders within it—a small minority of individuals working within the aviation and maritime sectors, either recruited or placed by criminal networks, who have a disproportionately large impact. Current efforts to ensure the integrity of the workforce in these sectors are not adequate. The prevailing security regime in the aviation and maritime sectors was introduced in the post-September 11 climate and focuses narrowly on the threat of terrorist attack within these sectors. While the committee agrees that such security measures are vital for the safety of the community, it makes recommendations in this report that would see the security regime extended to defend against the threat of organised crime. This is in line with this government's policy since the inaugural National Security Statement in which serious and organised crime was identified as a threat to national security. A key recommendation, in line with this statement, is the strengthening of the Aviation and Maritime Security Identifi­cation Card schemes. During the course of the inquiry, the committee became aware that a number of individuals known to be closely involved with criminal activity continue to hold these cards allowing them to freely access sensitive areas. For this reason, the committee has recommended a mechanism by which such individuals could have their card revoked on the basis of compelling criminal intelligence. Further changes to the ASIC and MSIC schemes recommended by the committee include its expansion to cover important elements of the supply chain outside of the airport or seaport environment and the introduction of biometric information to simplify and strengthen the management of the system.

The committee also spent considerable time examining the law enforcement res­ponse to organised crime in the aviation and maritime sectors. The committee identified the key role that intelligence played in ensuring an informed response. Intelligence, including from overseas partners, has a dual purpose. On the one hand, it informs successful operations such as the seizure of 460 kilograms of cocaine from a yacht in Brisbane in October last year. This successful operation required the timely sharing of information and coordination of action at an operational level between key agencies. On the other hand, intelligence can be used at a strategic level to build a picture of criminality that allows not just reactive intervention but proactive prevention. The committee is therefore keen to see an enhanced analytical use of intelligence from all sources and supports ongoing efforts that allow such 'fusion' to take place.

The committee has been encouraged by the development of joint-agency task forces in a number of states, and has recommended this be emulated in all jurisdictions. State based task forces would be supplemented by a national flying squad that would direct a joint-agency response to trouble spots on an as-needs basis.

In chapter 4 of the report, the committee recommends a number of measures that would reduce the vulnerability of ports and airports, referred to as 'target hardening'. These measures include an enhanced role for CCTV, drug and currency sniffer dogs, and the development of a confidential means for container examination. Importantly, the committee has recommended a number of enhancements to the air passenger environ­ment. Organised crime figures are currently able to travel under false identities with impunity, facilitating criminal activity. In response, the committee has recommended that travelling under a false identity be made an offence. In addition, the committee has recommended that the provision of photo identification by passengers be made mandatory prior to boarding a plane.

In conclusion, I note that serious and organised crime continues to threaten Australia's community and is estimated to cost the national economy more than $15 billion each year. The government will need to continually adapt to this evolving threat. I therefore commend the committee's report and recommendations to the Senate. I note that the Australian government is serious about defending the community from the threat of organised crime, and I therefore commend these recommendations to the government as essential to that effort.

Stephen Parry (Tasmania, Liberal Party) Share this | Link to this | Hansard source

I also rise to speak on this report on aviation and maritime security measures to combat serious and organised crime, being a member of the committee and being involved with the inquiry for its duration. I recommend the report to all senators and members to read. It has some revealing information. The committee, in taking a lot of in camera evidence, was given information that really assisted in the compilation of this report, which obviously cannot be discussed. However, the evidence that is in the report is compelling. The evidence given by agencies certainly led us to the 21 recommendations and I whole­heartedly support the recommendations.

Senator Hutchins touched on one of the recommendations I wish to highlight, and that is recommendation No. 4. The com­mittee recommended the formation of a maritime crime task force that would be a national flying squad led by the Australian Federal Police. The intent and the purpose of this flying squad is to randomly check and go to any areas that they are required to go to in the light of information or intelligence that comes before that flying squad. I believe this would be a great deterrent to illicit activity in the maritime sector in particular. To have a flying squad that could arrive unannounced at any time to investigate issues, be they intelligence based or random, would be a great deterrent.

Senator Hutchins also touched upon the prices of illicit drugs on the international and domestic market. This is a cornerstone aspect of why crime activity and the importation of illicit material, in particular drugs, are prevalent in our maritime and aviation sectors. I will go through some detail because the main rationale for organised crime is simply to drive profit. The profit is enormous.

Senator Hutchins touched upon cocaine. I will go to heroin. Heroin, when it leaves its source in Afghanistan—and this is shown in a table in appendix 4 of our report—can have a top price of about $2,500 for a typical kilogram. When it comes to Australia 700 grams, so just under a kilogram, can wholesale for $210,000. That is an enormous mark-up from $2,500 a kilogram to $210,000 for less than a kilogram when it arrives in Australia.

Ecstasy—a tablet of choice, sadly—can leave the Netherlands at a wholesale price for the top range of about $4,700 per 1,000 tablets. It will then wholesale in Australia at the top price of around of about $20,000 per 1,000 tablets. A lot of tablets can come through our airports and our ports. Methyl­amphetamine can leave Canada with the top-range price of $23,000 for a kilogram—I am quoting the top range; the wholesale price can be a lot less in the source country—and be wholesaled in Australia for $210,000 a kilogram.

Australia is the most lucrative country for organised crime because we seem to have the ability to pay and we pay higher prices. If you look at the average prices in other countries, in the United States methyl­amphetamine is about $70,000 per kilogram. Likewise, if we go back to cocaine, it is about $43,000 per kilogram for cocaine in the United States compared to $250,000 per kilogram here for the top-range wholesale price Senator Hutchins also quoted. So we seem to have the ability to pay. The end-users here want to pay and that is why the crime syndicates are lucrative options for organised crime. They are certainly picking a market and that is why we need to be tougher on our borders in Australia. This report goes to address how we can harden our borders and how we can detect crime operations on our waterfront and in the aviation sector, and I commend the report to the Senate. I seek leave to continue my remarks.

Leave granted; debate adjourned.