Reviewing the intelligence reviews (so far)
With the report of the recent intelligence review by Heather Smith and Richard Maude finally released, critics could look on and wonder: why all the fuss? After all, while the list of recommendations is substantial, the review overall recommends only incremental change. To understand what’s happened here, it helps to reflect on the historical context. This article provides a review of previous intelligence reviews that predated this one and what they mean for today.
Two things to note upfront. First is the incremental and spasmodic shift for intelligence organisations from operating under often secretive prime ministerial executive edicts last century to operating today under formalised and publicly available legislation that can be scrutinised by practitioners, pundits and critics alike.
Second is the expansion in the number of intelligence organisations and the number and consequence of the various oversight mechanisms that have accrued over the years. These mechanisms include a range of parliamentary, executive and independent accountability oversight mechanisms as captured in the below diagram of the NIC Structure and Accountability Arrangements (compiled by the author). The end result is a range of government instrumentalities intended to provide accurate reliable and timely intelligence support to government decision makers coupled with parliamentary, executive and independent accountability mechanisms that are unmatched internationally. But first, let’s review how we got there.
World War II Legacy
The intelligence organisations that emerged following World War II were different from their wartime antecedents. Back then, the combined arrangements working with the United States under General Douglas MacArthur had spawned collaborative agencies in 1942 in which Americans and Australians worked hand in hand. The Central Bureau (for signals intelligence) and the Allied Intelligence Bureau (for espionage, or human intelligence, sabotage and special operations), as well as the Allied Translator and Interpreter Services and Allied Geographical Section are the better known entities. When the Americans left at the end of the war, though, they took with them much of the organisational apparatus, people and equipment behind these organisations.
Source: author.
Early Cold War Arrangements
The Australian remnants of these once combined US-Australian entities were gathered at Victoria Barracks in Melbourne until a post-war plan was formulated. By 1947 a national signals-intelligence agency, the Defence Signals Bureau had emerged; this was the precursor to the Australian Signals Directorate (ASD). Also by 1947 there was an analytical arm, the Joint Intelligence Bureau, precursor to today’s Defence Intelligence Organisation (DIO). By 1949 the wartime domestic security service was seen as unreliable and compromised. It was replaced by prime ministerial edict with the Australian Security Intelligence Organisation (ASIO). By 1952 Alfred Brookes was commissioned to establish a foreign human intelligence collection agency, the Australian Secret Intelligence Service (ASIS). None of these agencies had any media profile to note.
The Petrov Royal Commission
The defection in 1954 of KGB officer Vladimir Petrov, and his wife, Evdokia, who was the embassy cipher clerk, was a major coup for ASIO and led to national and global headlines that put ASIO in the spotlight. A Royal Commission on Espionage followed which looked at espionage, but not at ASIO or other intelligence organisations. The commission was engulfed in controversy as the Labor Party saw it as a ploy launched by prime minister Robert Menzies on the eve of a federal election. As David Horner writes in his official ASIO history, The Spy Catchers, the truth was less dramatic. Yes, Menzies capitalised on the opportunity, but the defection was genuine. In the end, ASIO was placed under legislation. No one was prosecuted, because much of the corroborating evidence of the so-called nest of spies came from what was then a still highly sensitive source, decrypted Soviet diplomatic messages pointing to Australians supplying secrets to the Soviets. The ASIO Act 1956 followed. This was the first time an Australian intelligence agency was placed under legislation, although it would be some time before ASIO was made accountable to parliament.
The first Hope Royal Commission
Two decades would pass before another royal commission probed into the workings of Australia’s intelligence apparatus. In 1974 prime minister Gough Whitlam commissioned Robert Marsden Hope, a New South Wales judge and civil libertarian, to undertake the Royal Commission on Intelligence and Security (RCIS). Hope reviewed the post war intelligence arrangements and recommended a series of reforms, most implemented by Whitlam’s successor, Malcolm Fraser. This included establishing the Office of National Assessments (ONA) in 1977 as well as pushing through parliament a revised and expanded ASIO Act 1979. A Security Appeals Tribunal was established and later absorbed into the Administrative Appeals Tribunal (AAT), recently rebadged as the Administrative Review Tribunal.
Protective Security Review
Shortly after completing the RCIS, Hope was tasked to undertake a Protective Security Review (PSR) in February 1978. This followed the explosion of a bomb at the Hilton Hotel in downtown Sydney, which coincided with the Commonwealth Heads of Government Regional meeting chaired by Fraser. Hope was not tasked to identify the culprit (the bombing was linked to the Ananda Marga sect), but his review led to closer coordination of intelligence and policing, both at state and federal levels, and the prioritisation of organising to counter acts of terrorism.
Second Hope
In March 1983, newly appointed prime minister Bob Hawke commissioned Hope once again, this time to review progress of the intelligence community (AIC) had made since Whitlam had commissioned him a decade earlier. The Royal Commission on Australia’s Security and Intelligence Agencies (RCASIA) coincided with revelations of KGB shenanigans with former ALP National Secretary David Combe, which led to the expulsion of KGB officer Valery Ivanov. The review was then expanded to also consider a bungled ASIS exercise conducted at the Sheraton Hotel in Melbourne. In the public hearings that followed, Hawke took the stand and defended the efficacy and significance of Australia’s intelligence community. Hope subsequently recommended, and Hawke approved, the creation of an Inspector General of Intelligence and Security (IGIS), with enduring powers of a royal commissioner. The IGIS office holder still has these powers.
First Richardson, Holloway and Cook
Hawke’s successor as prime minister, Paul Keating, commissioned Dennis Richardson in 1992 to review ASIO and consider where a peace dividend following the Cold War could be harvested. Mindful of the searing cross-examination Hawke had experienced with the RCASIA a decade earlier, this review was managed behind closed doors and went largely uncontested. But it dealt with weighty issues, including reports of penetration by Soviet spies. It did so by downsizing and clearing out personnel. Also, Sandy Holloway was commissioned to review shortfalls in Australia’s foreign intelligence collection. A former director-general of ONA, Michael Cook, is widely seen as associated with internal security reviews as well. He would have been pleased with Richardson’s work.
Samuels and Codd
By the mid-1990s reports were emerging of further inappropriate behaviour in ASIS. Justice Gordon Samuels and Michael Codd were commissioned to review the matter and make recommendations. Their mid-1995 report proposed that ASIS come under legislation (as ASIO had in 1956 and again in 1979). This led to a drawn-out process as parliamentarians debated over how to respond. Reports in 1999 of a surveillance network run by the Five Eyes partners, Echelon, accelerated the momentum for reform not just for ASIS. Eventually ASIO, ASIS and the Defence Signals Directorate (DSD, later ASD) came under what would become the Parliamentary Joint Committee on Intelligence and Security (PJCIS).
By the end of September, parliament passed the Intelligence Services Act of 2001. This saw ASIS and DSD come under legislation for the first time. In addition, the powers of the IGIS would come to cover all six agencies of the intelligence community. These were ASIO, ASIS, DSD, DIO, ONA and the nascent Defence Intelligence and Geospatial Organisation (DIGO), which later became the Australian Geospatial-Intelligence Organisation (AGO).
Flood
Following the East Timor crisis of 1999, the first Bali bombing in 2002, and a scandal revolving around the unfounded claims of Iraqi weapons of mass destruction in 2003, the former ONA director Philip Flood was appointed to conduct a fresh review in 2004. His Report on the Inquiry into Australia’s Intelligence Agencies identified weaknesses in the analytical reporting process and reinforced the need for separation of intelligence analysis from policy formulation. He also called for a bolstering of resources and a reinforcing of ONA’s central role of AIC coordination.
Cornall and Black
In line with a recommendation by Flood for periodic intelligence reviews, Robert Cornall and Rufus Black were appointed to conduct an Independent Review of the Intelligence Community (IRIC) in 2011. In addition to commissioning the IRIC that year, prime minister Kevin Rudd established the National Security College (NSC) at the Australian National University (ANU) and appointed an Independent National Security Legislation Monitor (INSLM).
| Australia | United States | Canada | Britain | France | Indonesia | |
| Overarching Inspector-General/Commissioner | ✓ | ✓ | ✓ | |||
| Agency-specific Inspector-Generals | ✓ | |||||
| Ministerial oversight | ✓ | ✓ | ✓ | ✓ | ||
| Parliamentary oversight | ✓ | ✓ | ✓ | ✓ | ✓ | |
| Executive oversight | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ |
| Independent reviews or bodies | ✓ | ✓ |
Oversight and accountability mechanisms of Australia, compared with allies and partners. Source: author.
L’Estrange & Merchant
In 2017, a former secretary of the Department of Foreign Affairs and Trade and first NSC director, Michael L’Estrange, along with a former Defence deputy secretary of intelligence and security, Stephen Merchant, were commissioned to undertake the next periodic review, the 2017 Independent Intelligence Review (IIR), aided by Sir Iain Lobban from Britain. Their review identified the expansion of the Australian intelligence community with the emergence of intelligence functions within the Australian Transactions Reports and Analysis Centre (AUSTRAC), the Australian Criminal Intelligence Commission, the intelligence arm of the Australia Federal Police (AFP) and the intelligence function within the then Department of Immigration and Border Protection (now Home Affairs). This called for the renaming of ONA as the Office of National Intelligence (ONI), headed by a director-general of national intelligence (DGNI) with more resources and a remit to more closely coordinate and manage this expanded National Intelligence Community (NIC).
The L’Estrange Merchant report was written separately from the plan to establish a more expansive Home Affairs portfolio that would, in addition to ASIO, encompass the four latecomers to the NIC: AUSTRAC, ACIC, AFP Intel and Home Affairs Intel. This construct would in part be reversed under Prime Minister Antony Albanese, who returned ASIO, AUSTRAC, ACIC and AFP to the Attorney-General’s portfolio.
Second Richardson
After having overseen the culling and later rebuilding of ASIO, Dennis Richardson was called back to review the growing body of intelligence legislation, mindful that the Home Affairs arrangements had been announced at the same time as the 2017 IIR report was released. With a wealth of historical insights into the functions performed, in a lengthy report Richardson and his team outlined where significant streamlining of legislation would be useful.
And now Maude and Smith
With all of this before them, Smith and Maude, no doubt, would have realised that in conducting their Independent Intelligence Review, they were following a well-worn path of review and reform that’s been summarised here. The incremental and periodic reforms undertaken over more than half a century have seen Australia bequeathed an intelligence apparatus of state with high levels of accountability.
In the espionage business the secret of success is often enough in keeping one’s successes secret, there are always limits in how transparent these agencies can be. Mindful of this, successive reviewers and governments have recognised the need to bolster accountability mechanisms, including parliamentary, executive and independent ones as well as periodic reports to parliament and the Australian people. In an age of heightened foreign interference, misinformation and disinformation, the importance of these oversight mechanisms is more important than ever.