Report on performance

Effectiveness

To create a transport system that is more secure against the threat of terrorism and unlawful acts, the Office of Transport Security (OTS) continued to enhance Australia's policies for aviation security, regional aviation and air freight security; maritime security; critical infrastructure and surface transport security; and cargo and supply chain security.

Inquiries into major transport security incidents are undertaken as directed by the Minister

The Inspector of Transport Security Act 2006 came into effect on 8 June 2007.

The inspector undertook two inquiries: an assessment of Australia's surface transport security, and a review of a screening incident at Sydney Airport.

Advice to the Australian Government and industry reflects threat and risk assessment

OTS appointed five state-based security analysis liaison officers, to assist communication between OTS and industry.

OTS produced aviation security quarterly reports, transport security advisories and quarterly summaries of maritime and aviation security events and incidents, to assist in developing enhanced security awareness and implementing transport security priorities.

Aviation and maritime security is regulated in line with relevant legislation and is enforced appropriately

Amendments were made to the Aviation Transport Security Act 2006, Aviation Transport Security Regulations 2005, Maritime Transport and Offshore Facilities Security Act 2003 and Maritime Transport and Offshore Facilities Security Regulations 2003, to ensure their ongoing relevance in the evolving security environment.

As at 30 June 2007, OTS had 117 transport security inspectors located around Australia undertaking a continuing programme of audit and compliance activities throughout the year.

The aviation and maritime industries are engaged in developing and implementing transport security priorities

The Aviation Security Advisory Forum remained an ongoing key consultation mechanism for aviation security, and the Maritime Industry Security Consultative Forum remained an ongoing consultation mechanism for maritime security.

State and territory governments and industry are assisted to further enhance surface transport security

The Transport Security Working Group developed a comprehensive response to the Inspector of Transport Security's Surface Transport Security Assessment.

Targeted countries in our region are assisted to improve their transport security capabilities

OTS participated in the international Counter-Terrorism Coordination Group convened by the Department of Foreign Affairs and Trade to strengthen counter-terrorism cooperation and coordination in the region.

Officers were deployed to the Australian High Commission in Singapore under the Last Ports of Call programme.

Other governments and international organisations are engaged, so as to further Australian interests in the transport security sector ^a

Other governments continued to be engaged to promote equivalence of international security measures with Australian restrictions on the carriage of liquids, aerosols and gels for inbound flights to Australia.

Transport security support to special events and counter-terrorism exercises are coordinated

OTS contributed to the National Counter Terrorism Committee-sponsored series of counter-terrorism exercises conducted in support of security planning for Asia-Pacific Economic Cooperation meetings. Seven exercises were conducted, in various cities, from September 2006 to May 2007.

Government policy decisions on transport security are implemented on time and within budget

Transport security programmes were introduced for regulated air cargo agents. Approximately 850 programmes were approved, all within the regulatory timeframe.

Measures to restrict the quantities of liquids, aerosols and gels taken on board international flights to and from Australia were implemented within the regulatory timeframe and within budget.

Transport security, audit and compliance activity is conducted at/for approximately:

• 340 aviation industry participants covering 180 airports across Australia and 160 domestic and international airlines
• 7,500 general aviation aircraft on a risk assessed basis
• approximately 850 Regulated Air Cargo Agents
• 240 maritime security plan holders covering 70 ports and 300 related facilities, and
• 60 offshore oil and gas platforms

OTS conducted audit and compliance activities, based on risk assessments of regulated participants, with respect to:

• 180 airports across Australia, and 160 domestic and international airlines;
• 7,500 general aviation aircraft;
• 860 regulated air cargo agents;
• 296 maritime security plan holders covering 74 ports and 283 related facilities; and
• 64 offshore oil and gas platforms.

More than 11,000 foreign ships are risk assessed and security inspections targeted as appropriate

OTS inspected 1,389 foreign-flagged ships. This was the total number of inspections identified by the risk assessment process.

Aviation Security Identification Card-background checking of up to 50,000 existing, and an estimated 18,000 new entrants, in the aviation industry

OTS assessed approximately 58,000 Aviation Security Identification Card applications, and reviewed 52,000 existing card holders.

Maritime Security Identification Card-background checking of up to 130,000 people in the maritime industry

The OTS Background Checking Unit assessed all Maritime Security Identification Card applications. Approximately 80,000 applications were received.

$73.4 million

The actual price of this output in 2006-07 was $75.6 million.

Overall performance

Transport security is maintained and enhanced

OTS contributed to significant enhancements to transport security in 2006-07.

• Measures to restrict the quantities of liquids, aerosols and gels that can be taken on board international flights to and from Australia came into effect on 31 March 2007.
• The Aviation Transport Security Act 2004 and the Aviation Transport Security Regulations 2005 were amended to ensure legislation remains responsive to emerging threats and evolving industry requirements.
• From 10 March 2007, all regulated air cargo agents (RACAs) were required to have in place approved transport security programmes. OTS assessed and approved the security programmes of approximately 850 RACAs.
• An increase in explosive trace detection equipment was funded to enable the screening of domestic air cargo at each of Australia's major airports.
• A quality assurance system was designed to improve security training for air cargo industry employees. This underpins a new competency-based security training framework for RACAs that will come into effect on 1 July 2007.
• In partnership with the Australian Customs Service and industry, OTS conducted a trial to evaluate the capability of X-ray equipment in the air cargo supply chain.
• The rollout of the Maritime Security Identification Card (MSIC) scheme was completed on 1 January 2007. The scheme is now an established part of Australia's maritime and offshore industries maritime security framework.
• Background checking of applicants for maritime and aviation security identification cards was improved, through more efficient and timely processing of applications.

Inquiries into major transport security incidents are undertaken as directed by the Minister

The Inspector of Transport Security Act 2006 (ITS Act), which came into effect on 8 June 2007, provides a statutory framework allowing the inspector to conduct independent 'no-blame' inquiries and make recommendations in relation to transport security and offshore security matters.

Under the ITS Act, the Minister for Transport and Regional Services directs the Inspector to inquire into major transport security incidents, circumstances that suggest a systemic failure or weakness in transport security arrangements, or matters that may have implications for transport security arrangements in Australia.

In 2006-07 the Inspector undertook two reviews.

• At the request of the Australian Transport Council, the Inspector conducted an assessment of surface transport security. The report was completed in November 2006. In summary, the assessment found that Australia can take confidence in the progress that has been made in this country, in comparison to others. Revised security strategies and practices were put in place or are being implemented as a result of the assessment.
• At the direction of the Minister for Transport and Regional Services, the Inspector conducted a review of a screening incident which occurred at Sydney Airport on 28 January 2007. The review was completed and the Minister approved the recommendations made by the Inspector.

Advice to the Australian Government and industry reflects threat and risk assessment

Transport security information management

The Department continued to receive, manage and analyse a wide range of information relevant to transport security in 2006-07. The information was used to assist the transport sector in understanding the nature and level of threat in the transport security environment, and to inform the development of appropriate risk management strategies. The information was conveyed to industry and government by various means, including quarterly reports and regular risk context statements.

Security analysis liaison officers

As a result of Australian Government decisions arising from the report An independent review of airport security and policing for the Government of Australia (the Wheeler review), OTS appointed five security analysis liaison officers, based in state offices, during 2006-07. Their role is to act as the primary point of contact for the communication of threat and risk information between OTS and industry. They liaise effectively with industry contacts and representatives of government agencies to facilitate a two-way flow of transport security-related information.

Information products

Throughout the year, OTS worked with Australian intelligence and law enforcement agencies to produce strategic security risk guidance material and transport security-related advice to inform Australian Government policy and planning and assist industry participants to develop enhanced security awareness and implement security priorities.

In 2006-07 OTS delivered the following information products to Australian Government agencies and industry participants:

• three aviation security quarterly reports-these reports combined threat information provided by the Australian Security Intelligence Organisation with criminality assessments from the Australian Crime Commission;
• two transport security advisories-these advisories were developed in response to changes in the national and international security environment; and
• four quarterly summaries of maritime and aviation security events and incidents-these reports contained strategic analyses of incidents that had been reported to the OTS Operations Centre.

Security risk policy framework

OTS developed a strategic security risk policy framework during the year. The framework outlines the security risk management philosophy, methodology and associated language through which the Department provides transport security advice to the Australian Government and implements transport security legislation and policy with industry.

The final draft of the framework has been released to industry for comment. Its further development as a risk identification and audit and compliance tool will be an ongoing process and involve collaboration between industry, OTS and other government agencies, such as the Attorney-General's Department and federal and state police forces.

Aviation and maritime security is regulated in line with relevant legislation and is enforced appropriately

Aviation security

Aviation security is regulated by the Aviation Transport Security Act 2004 (ATS Act) and the Aviation Transport Security Regulations 2005.

The following amendments were made to the regulatory framework in 2006-07.

• The Aviation Transport Security Amendment Regulations 2006 (No. 5) were made on 4 December 2006, allowing for the creation of event zones to cater for the changing nature of activities conducted at airports.
• The Aviation Transport Security Amendment (Additional Screening Measures) Act 2007, which includes screening requirements for the carriage of liquids, aerosols and gels on international outbound and inbound flights, commenced on 31 March 2007.
• Special security directions were issued under section 67 of the ATS Act to restrict the quantities of liquids, aerosols and gels that can be taken on board international flights to and from Australia.

In addition, the Aviation Legislation Amendment (2007 Measures No.1) Bill was introduced on 21 June 2007. The proposed amendments include measures for:

• the screening of dignitaries;
• the enhancement of transport security programmes;
• the extension of some ATS Act law enforcement officer powers to eligible customs officers at airports; and
• the prohibition of causing interference to security-controlled airports, notably by laser-emitting devices. This Bill amends the Civil Aviation Act 1988 and the ATS Act to significantly strengthen the penalties for committing an offence using a laser-emitting device. The new penalties can include imprisonment for up to two years or fines of up to $5,500.

Maritime security

Maritime Security is regulated by the Maritime Transport and Offshore Facilities Security Act 2003 (MTOFS Act) and the Maritime Transport and Offshore Facilities Security Regulations 2003.

The following amendments were made to the regulatory framework in 2006-07.

• The Maritime Transport and Offshore Facilities Security Amendment Regulations 2006 (No.1) were made on 13 July 2006. These regulations allow for variations to an MSIC.
• The Maritime Transport and Offshore Facilities Security Amendment Regulations 2006 (No.2) were made on 27 July 2006. These amendments ensured that persons who would require MSICs would apply within the MSIC implementation period, which ended on 30 December 2006.
• The Maritime Transport and Offshore Facilities Security Amendment (Security Plans and Other Measures) Act 2006 received Royal Assent on 27 September 2006. The main purpose of this Act was to make procedural changes to the process for the approval of, and revision to, various types of maritime security plans.
• The Maritime Transport and Offshore Facilities Security Amendment (Maritime Security Guards and Other Measures) Act 2006 received Royal Assent on 27 September 2006. This Act provided maritime security guards with move-on powers and made minor amendments to the MTOFS Act.
• The Maritime Transport and Offshore Facilities Security Amendment (Security Plans and Other Measures) Act 2006 Proclamation received Royal Assent on 1 November 2006. This proclamation provided for the commencement of Schedule 1 to the Maritime Transport Security and Offshore Facilities Security Amendment (Security Plans and Other Measures) Act 2006 on 6 November 2006.
• The Maritime Transport and Offshore Facilities Security Amendment Regulations 2006 (No. 3) were made on 13 December 2006. The amendments provided for a series of minor technical changes to ensure the smooth commencement of the MSIC scheme on 1 January 2007. Amendments were also made to require maritime industry participants to provide the contact details of their security officers in a document accompanying their security plans.

In 2006-07 the Department published the following information and guidance papers on transport security regulation:

• Maritime security law enforcement officers guide, developed jointly with the Australian Government Solicitor (August 2006);
• Industry code of practice for the reporting of maritime security events (August 2006);
• Guidance paper on maritime security levels (August 2006);
• Guidance paper on ship security alert systems (November 2006); and
• Guidance for the reporting of security incidents and events by maritime industry participants (December 2006).

Air cargo security

The Australian Government, in partnership with industry, is implementing a range of new measures to strengthen the security of domestic and international air cargo, to address potential security threats to the aviation sector and improve the security of passengers and aircraft.

OTS oversaw the introduction of transport security programmes for RACAs in 2006-07. Since 10 March 2007, each RACA has been required to have an approved security programme covering its operations.

The Aviation Transport Security Amendment Act 2006 received Royal Assent on 14 September 2006. The amendments create a division of the Aviation Transport Security Act 2004 to regulate the way cargo is to be examined and cleared to ensure it is safe to be carried by aircraft, including making:

• explicit provision for the use of technology to examine air cargo; and
• provisions for two separate classes of regulated cargo business- 'regulated air cargo agents' and 'accredited air cargo agents'.

The decision to develop an accredited air cargo agent scheme was announced in the 2007-08 Budget. The Department will develop the scheme, in consultation with industry.

Cross-modal regulatory project

In March 2007 OTS commenced a project to examine the scope for the consistent application of the government's transport security regulatory approach across transport modes.

A specific deliverable of the project will be the development of an enforcement regime. Guidance material that outlines the OTS regulatory approach will be developed as part of the project.

In order to reflect a whole-of-government approach, OTS has engaged senior executives from other government regulatory agencies in discussions related to the project. In 2007-08, OTS will engage with industry, to ensure:

• the cross-modal project is informed by industry;
• the outputs from the project are useful to industry; and
• OTS works with industry to deliver on high-level objectives.

The aviation and maritime industries are engaged in developing and implementing transport security priorities

Maritime Industry Security Consultative Forum

The Maritime Industry Security Consultative Forum (MISCF) provides a forum for OTS to outline security initiatives to industry, and for industry to provide feedback on these and other maritime security matters. MISCF membership includes industry leaders and decision makers who are best placed to provide input to government and communicate with the maritime industry.

During 2006-07, MISCF meetings were held:

• on 3 August 2006, in Brisbane;
• on 22 November 2006, in Fremantle, Western Australia; and
• on 15 March 2007, in Sydney.

Each meeting was attended by around 40 to 50 representatives of industry and government.

Aviation Security Advisory Forum

The Aviation Security Advisory Forum (ASAF) provides a forum for the commercial aviation sector to meet with government and explore, through discussion and consultation, a broad range of operational, legal, policy and regulatory issues relating to aviation security. The ASAF has a number of working groups which comprise government and industry representatives. These groups undertake informed and detailed work on a number of strategic issues on behalf of the ASAF.

During 2006-07, ASAF meetings were held:

• on 19 September 2006, in Adelaide;
• on 1 December 2006, in Canberra;
• on 7 March 2007, in Sydney; and
• on 1 June 2007, in Melbourne.

Each meeting was attended by around 40 industry and government stakeholders.

Over the Horizon Roundtable

The Over the Horizon Roundtable is a strategic forum where government and aviation industry leaders discuss emerging aviation security issues and consider what the commercial and policy settings might look like in five or 10 years time.

The first two meetings of the roundtable were held in September 2006 and February 2007. Topics discussed included communication, current and emerging technologies, security and the aviation environment, roles and responsibilities, vulnerabilities in the aviation security environment, and identity. The meetings were highly successful, and it is expected that similar events will be held every six months.

The roundtable is an important step towards enhancing the cooperative relationship between industry and government in this area, and industry has responded positively to it. It was noted by industry representatives that few governments in the world host similar strategic forums where industry and government work together on policy issues and decisions.

Infrastructure assurance advisory groups

The Australian Government's critical infrastructure protection goal is to ensure there are adequate levels of protective security for critical infrastructure, minimal single points of failure, and rapid, tested recovery arrangements.

This is achieved by engaging the owners and operators of critical infrastructure under the Trusted Information Sharing Network. The network comprises a number of infrastructure assurance advisory groups (IAAGs) representing the different business sectors across the Australian economy. The IAAGs allow the owners and operators of critical infrastructure to exchange information on shared threats and vulnerabilities and strategies to mitigate risk.

The Department is responsible for managing and supporting the Transport IAAG. This includes the national coordination of an 'all hazards' recovery and business continuity approach to protecting critical transport infrastructure.

Membership of the Transport IAAG comprises representatives of the owners and operators of critical infrastructure in the aviation, maritime and surface transport industry subsectors. The work of the group includes identifying risk, setting priorities, establishing best practice and sharing information, and is based on the principle of establishing trust by ensuring that there is a common, non-competitive interest in cooperating on the protection of critical infrastructure from an all hazards perspective.

In 2006-07 the Department hosted quarterly meetings with each subsector group and an annual meeting of the full Transport IAAG.

Aviation transport security incident reporting

The aviation security incident report project was completed in 2006-07. The project involved the development and distribution of guidance material to all aviation industry participants. The guidance material includes a Pocket guide for reporting aviation security incidents and two A3-sized posters that detail incident reporting procedures for people who witness an incident and people with reporting responsibilities. The guidance material aims to assist industry in fulfilling its incident reporting obligations, as required under the ATS Act and regulations.

The distribution of the guidance material coincided with the launch of a new OTS webpage dedicated to aviation security incident reporting. The webpage provides access to the revised incident report form, which is now available in electronic formats. The ability to complete an incident report online at www.dotars.gov.au/transport/security/aviation/otsform.aspx and submit it directly to the OTS Operations Centre will increase the efficiency and consistency of the reporting process.

State and territory governments and industry are assisted to further enhance surface transport security

Transport Security Working Group

While surface transport security is the responsibility of state and territory governments, the Australian Government works with other governments to develop a consistent and coordinated approach. This arrangement is set out in the Inter-Governmental Agreement on Surface Transport Security signed by all jurisdictions in June 2005.

The Transport Security Working Group (TSWG) is the main forum for progressing surface transport security issues. Established in 2003, the group comprises senior transport officials from each state and territory and the Department. It reports to the Australian Transport Council (ATC), through the chief executive officers of transport departments.

Response to the assessment of surface transport security

In 2006-07 the TSWG developed a comprehensive response to the Inspector of Transport Security's 2006 assessment of surface transport security. At a special meeting of transport ministers held in February 2007, ministers agreed to the TSWG's recommendations, acknowledged the work that was already underway or complete, and asked the group to progress work in the key areas of national guidelines for surface transport security planning and security training for surface transport staff. The TSWG has commenced work in these areas.

The TSWG also:

• provided briefs to peak national bodies on the recommendations flowing from the assessment, and the way ahead for implementation;
• in response to a Council of Australian Governments (COAG) recommendation, began developing national guidelines for transport precinct security; and
• held a threat workshop for industry, in July 2006.

Transport Infrastructure Planning and Design Forum

The Department, with the TSWG, organised and delivered the Transport Infrastructure Planning and Design Forum held in Adelaide in February 2007. The forum drew together academic and industry experts in the areas of infrastructure planning, design and security, to highlight the importance of incorporating security considerations in the early stages of infrastructure design.

The forum addressed a COAG recommendation to provide information to surface transport owners and operators on best practice for achieving security outcomes through environmental design. It also addressed an ATC request to share ideas and information about infrastructure design to mitigate the impact of terrorist threats to the transport system.

Targeted countries in our region are assisted to improve their transport security capabilities

In 2006-07 the Department took part in Australian Government activities involving countries in the Asia-Pacific region, to improve aviation and maritime security.

The Department took part in the Counter-Terrorism Coordination Group led by the Department of Foreign Affairs and Trade, engaging with Japan and the United States to strengthen counter-terrorism cooperation and coordination in the region. Trilateral forum meetings were held in July 2006 (in Tokyo, Japan) and June 2007 (in Sydney).

The Department also engaged with Asia-Pacific Economic Cooperation (APEC) forums such as the Transportation Working Group and the Counter-Terrorism Task Force, to improve multilateral coordination on transport security issues in the region. The working group met in September 2006 (in Vancouver, Canada), and task force meetings were held in September 2006 (in Danang, Vietnam), January 2007 (in Canberra) and April 2007 (in Adelaide).

The Department was involved in diverse projects to improve transport security in the Philippines during the year. This included:

• enhancing aviation security by sponsoring Filipino officials to attend International Civil Aviation Organization (ICAO) courses held in Malaysia and Hong Kong, and the AVSEC World 2006 conference held in Sydney, and assisting the Philippines Office of Transportation Security to plan for the development of a dedicated aviation security training centre;
• enhancing maritime security by expanding, and continuing to deliver, the Philippines-Australia Port Security Capacity Building Project, as well as participating in the Trilateral Philippines Pilot Port Project in conjunction with the United States and Japan; and
• assisting the Philippines Office for Transportation Security to
  • prepare the Philippines Security Programme for Sea Transport and Maritime Infrastructure and related policies and procedures;
  • prepare port facility plans that comply with the requirements of the International Ship and Port Facility Security Code (ISPS Code);
  • introduce the concept of a transport security precinct for locations where elements of critical maritime, road and aviation infrastructure are in close proximity;
  • introduce the concept of port security plans for all major Philippine ports;
  • provide training to Filipino personnel on ISPS Code verification and audit requirements;
  • inspect a number of key ports, including all international ports, the major ports along the Strong Republic Nautical Highway and ports in the Sulu archipelago; and
  • conduct a national transport threat assessment workshop, a contingency planning workshop and a follow-up workshop, bringing together the lead agencies involved in counter-terrorism in the Philippines.

Targeted countries in our region are assisted to improve their transport security capabilities

The Department contributed to transport security in Papua New Guinea under the Enhanced Cooperation Programme, through the development and implementation of maritime security regulations, implementation of enhanced aviation security measures and delivery of aviation and maritime security capacity building assistance. Maritime and aviation security divisions were created within the Papua New Guinea Department of Transport and Civil Aviation Authority respectively.

Other key activities included:

• improving aviation security in Indonesia, particularly at Denpasar Airport and Jakarta Airport, by delivering stages 3, 4 and 5 of the Joint Indonesia-Australia viation Security Project. The project was implemented progressively as follows
  • Stage 3 was conducted between 28 July and 13 August 2006;
  • Stage 4 was conducted between 21 November and 3 December 2006; and
  • Stage 5 was conducted between 6 February and 3 March 2007;
• strengthening port security in Indonesia through the delivery of two iterations of a one-week training course for Port Security Auditors;
• strengthening engagement and cooperation through the Pacific Governance Support Programme;
• strengthening maritime security by sponsoring participants to attend the Lloyd's List Port and Maritime Security Conference held on 30 April and 1 May 2007;
• enhancing Australia's overseas presence through the deployment of two officers to the Australian High Commission in Singapore, for three years of full-time service under the Last Ports of Call programme;
• conducting aviation security assessments at Kupang Airport (in Indonesia) and Dili Airport (in East Timor), and developing capacity-building options for improving security standards at these airports;
• contributing to a joint Australia-New Zealand aviation security capacity-building project in Solomon Islands; and
• conducting aviation security inspections in Port Vila and Santo, Vanuatu, in April 2007.

Other governments and international organisations are engaged, so as to further Australian interests in the transport security sector

International Civil Aviation Organization

Australia gives effect to its international obligations under the Convention on International Aviation (the Chicago Convention) by virtue of the Crimes (Aviation) Act 1991, the Aviation Transport Security Act 2004 and the Aviation Transport Security Regulations 2005. The body responsible for administering the Chicago Convention is the ICAO.

Australia, through OTS, is actively represented on the Aviation Security Panel of ICAO, particularly in regard to the development of aviation security standards and measures.

On 1 December 2006 ICAO recommended that security control guidelines for the screening of liquids, aerosols and gels be applied to international air services. The guidelines recommended that restrictions on the carriage of liquids, aerosols and gels be introduced from 1 March 2007. On 31 March 2007 Australia introduced restrictions in line with the ICAO recommendations.

In 2006 Australia also strongly supported the establishment, by ICAO, of an enhanced point of contact network for the communication of imminent threats to international civil aviation. Australia was one of the first ICAO member nations to join the network.

International Working Group on Land Transport Security

Following the Ministerial Conference on International Transport Security held in Japan in January 2006, the Government of France established the International Working Group on Land Transport Security (IWGLTS).

The work programme of the group draws on principles for counter-terrorism endorsed by the G8 Roma/Lyon Group in April 2006. Formed to combat international crime and terrorism, the G8 Roma/Lyon Group comprises Australia, Canada, France, Germany, India, Indonesia, Israel, Italy, Japan, Malaysia, Russia, Spain, the United Kingdom and the United States.

The Department contributed to international information exchange by participating in the inaugural working meeting of the IWGLTS, held in France in April 2007. Departmental officers delivered a presentation to the IWGLTS on the national code of practice for closed-circuit television (CCTV). The Department will lead a follow-on project on CCTV on behalf of the IWGLTS to be delivered at the next meeting.

International forums on maritime security

The Department engaged with foreign governments and international organisations through a number of forums dealing with maritime security issues, including the International Maritime Organization (IMO) and APEC, during 2006-07.

The Department takes a lead role in the consideration of international maritime security as the Chair of the IMO Maritime Security Working Group. In 2006-07 the Department chaired two meetings of the group-one in Istanbul, Turkey, in November-December 2006, and another in London, United Kingdom, in March 2007.

The Department also plays an active role in the security subgroup of the Maritime Experts Group of the APEC Transportation Working Group. The Department attended a meeting of the subgroup, held in Vancouver, Canada, in September 2006. The Department also led or participated in APEC maritime security workshops and exercises in Papua New Guinea, South Korea, Vietnam and Canada during 2006-07.

International engagement on aviation security

The Department encouraged international governments to establish restrictions on the carriage of liquids, aerosols and gels equivalent to the measures announced by the Australian Government, thereby removing the need for secondary screening for inbound flights to Australia.

Four workshops were held with representatives of last port of call nations. Individual workshops were held in East Timor and the Philippines, with two being held in Indonesia. The purpose of the workshops was to enhance their understanding of the new liquids, aerosols and gels restrictions.

Transport security support to special events and counter-terrorism exercises are coordinated

OTS cooperated with the Department of the Prime Minister and Cabinet's APEC Taskforce, state police, and transport industry bodies to deliver effective transport security for five APEC meetings held in Australia in 2006-07:

• the Mining Ministers Meeting (Perth, February 2007);
• the Small and Medium Enterprise Ministers Meeting (Hobart, March 2007);
• the Transportation Ministers Meeting (Adelaide, March 2007);
• the Energy Ministers Meeting (Darwin, May 2007); and
• the Health Ministers Meeting (Sydney, June 2007).

Government policy decisions on transport security are implemented on time and within budget

Approximately 850 transport security programmes for RACAs were approved within the regulatory timeframe.

Measures to restrict the quantities of liquids, aerosols and gels taken on board international flights to and from Australia were implemented by the required deadline of 31 March 2007 and within the approved budget.

Transport security, audit and compliance activity is conducted at/for approximately:

• 340 aviation industry participants covering 180 airports across Australia and 160 domestic and international airlines
• 7,500 general aviation aircraft on a risk assessed basis
• approximately 850 Regulated Air Cargo Agents
• 240 maritime security plan holders covering 70 ports and 300 related facilities, and
• 60 offshore oil and gas platforms

OTS is responsible for delivering a transport security audit and compliance regime based on risk assessments of the regulated participants, incorporating elements of threat, vulnerability and industry information. Through OTS, Australia conducts audit and compliance activities in line with international benchmarking of comparable countries such as Canada, New Zealand, the United Kingdom and the United States.

At 25 June 2006, 117 transport security inspectors were employed by OTS.

In 2006-07 OTS conducted audit and compliance activities with respect to the following industry participants where it was deemed appropriate:

• 185 airports across Australia, and 160 domestic and international airlines;
• 11,000 general aviation aircraft;
• 850 regulated air cargo agents;
• 296 maritime security plan holders, covering 74 ports and 283 related facilities; and
• 64 offshore oil and gas platforms.

Details of audit and compliance activities undertaken by OTS are shown in Tables 3.7 to 3.10.

More than 11,000 foreign ships are risk assessed and security inspections targeted as appropriate

The Department manages a security risk assessment process for foreign-flagged ships. Every ship seeking entry to Australia is subject to this risk assessment. Many of the ships are also subject to a security inspection.

The total number of foreign flagged ships that entered Australia in 2006-07 increased to 12,097. The number of security inspections of foreign-flagged ships increased to 1,389 in 2006-07, from 841 in 2005-06.

Aviation Security Identification Card-background checking of up to 50,000 existing, and an estimated 18,000 new entrants, in the aviation industry

The OTS Background Checking Unit assesses every Aviation Security Identification Card (ASIC) application received. Approximately 58,000 applications were assessed during 2006-07.

Following the introduction of strengthened disqualifying criteria for new ASIC applicants on 6 March 2006, OTS undertook a review of all ASIC holders that had obtained their cards prior to 6 March 2006, to ensure they remained eligible. The review assessed more than 52,000 card holders.

The Department also made changes to the Aviation Transport Security Regulations 2005 to facilitate the transfer of the ASIC background-checking function to AusCheck (a new division within the Attorney-General's Department), due to occur on 3 September 2007.

Maritime Security Identification Card -background checking of up to 130,000 people in the maritime industry

The OTS Background Checking Unit assesses every MSIC application received. Approximately 80,000 applications were assessed during 2006-07.

The Department also made changes to the Maritime Transport and Offshore Facilities Security Regulations 2003 to facilitate the transfer of the ASIC background-checking function to AusCheck, due to occur on 3 September 2007.

• major
• screened
• regional

• foreign regular public transport
• domestic regular public transport

Improved aviation security at Last Port of Call airports, consistent with international standards

Aviation security at last port of call airports was improved through the provision of training and capacity building to raise aviation security standards at the airports to meet the internationally accepted ICAO standards.

Asia/Pacific region

Aviation security inspections were carried out in Kupang Airport (Indonesia) and Dili Airport (East Timor), and capacity-building options were developed for improving aviation security standards at these airports.

$0.9 million

The actual cost of this programme in 2006-07 was $0.1 million.

The underspend of $0.9 million was due to delays in finalising the lease of the facility in the Philippines to host an aviation security training centre.

Approval has been given to move $0.7m to 2007-08.

Overall performance

Strengthened security measures for international and domestic passenger aircraft through increased inspection of air cargo

The Department completed arrangements for the introduction of explosive trace detection equipment for use in domestic air cargo transport. The sector will be reimbursed for the purchase of equipment. Operators will commence using the equipment in 2007-08.

Enhanced air cargo inspection regime of international export air cargo carried on passenger services

The Department commenced comprehensive trials of air cargo X-ray equipment to assess the capability of existing and new generation technology to detect explosive material and devices. The first two phases of the trials were completed in 2006-07.

Major Australian airports and cargo facilities

The explosive trace detection equipment will be located and operated at major Australian airports and cargo terminal facilities where cargo is prepared for loading onto aircraft.

Major Australian cargo terminal operators, freight forwarders, key airport participants, X-ray equipment suppliers and other government agencies have been involved in the trial of X-ray equipment. The trial has also received the assistance of international organisations based in China and the United States.

$11.7 million

The actual cost of this programme in 2006-07 was $4.9 million.

The underspend of $6.8 million was due to the cost of international explosive trace detection (ETD) machines being less than anticipated; delays in the delivery of some domestic ETD Machines; and delays in the signing of contracts relating to the X-ray trials.

Approval has been provided to move $3.8m to 2007-08

Overall performance

Closed circuit television (CCTV) is evaluated as an aid to security at four regional airports

As part of the Securing Our Regional Skies package, the Department completed a trial of CCTV systems at four sites, to assess the significance of CCTV as a deterrent to acts of unlawful interference with aviation.

CCTV systems were trialled at the airports at Dubbo (New South Wales), Gladstone (Queensland), Moorabin (Victoria) and Geraldton (Western Australia).

$0.2 million

The actual cost of this programme in 2006-07 was $0.2 million.

Overall performance

Security is enhanced at regional airports handling regular public transport services

The Department continued to deliver a regional passenger screening capability as part of the Securing Our Regional Skies package that was announced in August 2004 to improve security for Australia's regional airports and airlines.

Regional passenger screening is being implemented by providing hand-wand metal-detecting kits and associated training at up to 145 regional airports that operate regular public transport services. These measures will enable regional airports to continue to operate in the event of a heightened security alert.

Metal detection equipment and training is provided to 145 regional airports ^a

The distribution of the hand-wand metal-detection kits and associated training to 145 identified regional airports operating regular public transport services throughout Australia is ongoing. A further 280 candidates were trained across seven states and territories in 2006-07.

$1.8 million

The actual cost of this programme in 2006-07 was $1.0 million.

The underspend of $0.8 million is due to additional metal detection equipment no longer being required.

Overall performance

Integration of technology in enhanced passenger screening processes with minimal impact on passenger clearance rates

The Department commenced planning for a project to assess the effectiveness of commercially available technologies that claim to be able to detect explosives in liquids, aerosols and gels. Trials will be conducted at selected airports to assess the capacity for integration of the technologies into enhanced passenger screening processes with minimal impact on passenger clearance rates. The project is expected to continue in 2007-08.

Improved aviation security consistent with international requirements

The Department will liaise with independent scientific bodies, Australian and international industry bodies, Australian government agencies at the state, territory and national levels, and governments overseas, to ensure aviation security enhancements are consistent with international requirements.

11 Counter Terrorism First Response airports and identified domestic airports

It is expected that the technology trials to detect explosives in liquids, aerosols and gels will be conducted at a number of the 11 designated airports.

$2.1 million

The actual cost of this programme in 2006-07 was $0.0 million.

The underspend of $2.1 million was due to lead times associated with the procurement of suitable screening technology, laboratory test sites and qualified scientists; and relevant contracts not able to be finalised during 2006-07.

The Department will seek approval to move the funds to 2007-08 as part of the Additional Estimates update.

Overall performance