Peter Khalil (Wills, Australian Labor Party) | 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. 20 (2020-21)—Australian Intelligence Agencies. Presenting this review is one of the key important functions of the Intelligence and Security Joint Committee set out by section 29 of the Intelligence Services Act 2001, and this work is undertaken on an annual basis by the committee. The act presently requires the committee review the administration and expenditure of six of the 10 agencies that form Australia's national intelligence community: the Australian Security Intelligence Organisation (ASIO), Australian Secret Intelligence Service (ASIS), the Australian Geospatial-Intelligence Organisation, the Defence Intelligence Organisation, the Australian Signals Directorate and the Office of National Intelligence.

To undertake its review, the committee called for submissions in November 2021. Submissions were received from six intelligence agencies, as well as the Inspector-General of Intelligence and Security, the Australian National Audit Office, a civil action group and private citizens. Following the 2022 federal election, the committee resumed its inquiry and held private, classified hearings from November 2022.

Overall, the committee found that these agencies appropriately managed their administration and expenditure over the 2020 to 2021 reporting period. However, with a view to improving the administration and expenditure of the national intelligence community, the committee has made four recommendations in this report.

Firstly, the committee notes that this reporting period occurred during COVID-19 restrictions and lockdowns. The committee received evidence of how misinformation and disinformation, both COVID related and then more broadly, contributed to the rapid change in the security environment during 2020 and 2021. While some public commentary about these issues has already been made by senior national security and intelligence officers, the committee sees an opportunity for Australia's intelligence agencies to take an increasing role in sharing information with the Australian public, where appropriate, on matters relating to misinformation, disinformation and harmful propaganda that pose a threat to Australia's national security. Therefore, the committee has recommended that intelligence agencies, including the Director-General of Security, consider opportunities to continue to speak publicly about this issue.

Secondly, in order to undertake these annual reviews of administration and expenditure, the committee relies on valuable evidence provided by oversight bodies, including the Auditor-General and the Inspector-General of Intelligence and Security, both of whom have a direct and ongoing view of the operation of the agencies under review. The committee noted that, while the Auditor-General is empowered to provide classified reports on Australia's intelligence agencies to the relevant minister, there was not a mechanism for these reports to be provided to the parliament. The committee has recommended, therefore, that relevant legislation be amended to allow the Auditor-General to provide classified reports about intelligence agencies to the Parliamentary Joint Committee on Intelligence and Security in certain circumstances.

The committee also noted the increasing challenges in attracting and retaining staff across the national intelligence community—or the NIC, as it's called—in the course of its review. As such, the committee recommends thirdly that the Office of National Intelligence, as the leading agency within the NIC enterprise, work with intelligence agencies across the entire community to develop consistent collection of data on staff movements and to develop a whole-of-NIC strategy to improve attraction and retention of staff.

Finally, much of the evidence from the six intelligence agencies gathered by the committee for its annual administration and expenditure reviews is already contained in intelligence agencies' annual reports. In the interests of improving efficiency, which we all want, the committee has recommended that the Intelligence Services Act be amended to allow for intelligence agencies that prepare a classified annual report to provide it to the committee to inform its review.

I would also note for the benefit of the House that, in undertaking this review, the committee is prohibited under section 29(3) of the Intelligence Services Act from examining a range of areas, such as ongoing current operational matters or intelligence sources. However, the review of administration and expenditure process remains an invaluable function of the committee to provide the Australian public, through the parliament, with confidence in Australian's intelligence agencies, and it forms a key part of the comprehensive oversight in place for the national intelligence community.

The committee extends its thanks to agencies and individuals who participated in this inquiry in support of the committee's work. I also want to thank the deputy chair for his work and all the members of the committee, and I commend this report to the House.

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

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