What we do
PM&C's International Division advises and supports the Prime Minister on international issues including trade and aid.
Our National Security Division advises and supports the Prime Minister on issues including defence policy and operations, non-proliferation, intelligence, transport security, border protection, emergency management and counter-terrorism. We also support the National Counter-Terrorism Committee.
In addition, our APEC 2007 Taskforce is preparing to organise 100 days of high level meetings for 8000+ delegates.
How we measure our performance
For this output group, our overall focus is on ensuring that the Prime Minister, our executive and other stakeholders are satisfied with the timeliness and quality of our work.
Key results in 2005–06
In 2005–06 PM&C continued to support the Prime Minister by providing whole of government leadership and advice on a range of national security and international issues. Our major areas of work included:
- counter-terrorism (CT) policy—we coordinated work to implement a comprehensive national approach to CT, engaging all levels of government (see page 40)
- national security capabilities—we worked on a range of intelligence, aviation and maritime security, and defence issues (page 42 and 43)
- emergency and other aid—we kept the Prime Minister briefed on numerous developments (page 44)
- international partnerships—we advised the Prime Minister on strengthening relations with Australia's major security and trading partners (page 46), and
- APEC 2007—a premier international trade and economic forum, APEC 2007 will be the largest security operation conducted in Australia (page 48).
Feedback was obtained from the Prime Minister, his office and other stakeholders throughout the year.
The majority of our work in this area was assessed as being timely and of high quality. In addition, in the CT context:
- a 2006 Public Service Medal was awarded to Dr Wendy Southern for her outstanding public service in the area of domestic security policy development, and
- a 2006 Australia Day Achievement Award recognised the contribution of our new CT policy team.
National leadership on counter-terrorism (CT) policy
In 2005–06 PM&C led work to develop and implement a comprehensive national approach to CT policy issues. We:
- assisted the Prime Minister to convene a special meeting of the Council of Australian Governments (COAG)
- helped implement and report progress on COAG's CT agenda, and
- continued to lead national CT coordination and science efforts.
The special meeting of COAG was held in September 2005. It focused exclusively on CT issues including:
- progress in implementing the agreement on surface transport security endorsed by COAG in June 2005
- proposed further changes to the Commonwealth Criminal Code to deter and prevent potential acts of terrorism, and to prosecute where these occur
- the implications for Australia of the London bombings of July 2005, and
- a major review of airport security and policing by UK expert the Right Hon Sir John Wheeler (see also page 43).
PM&C played a significant role in setting up the COAG meeting and helping prepare agenda papers on a number of sensitive and complex issues (see also Chapter 2 page 16).
At the meeting, COAG noted that national CT arrangements were well developed and agreed in principle to a number of new CT measures.
COAG also endorsed a revised National Counter-Terrorism Plan to take into account issues including the lessons learnt from Mercury 04, Australia's first multi-jurisdictional CT exercise.
Implementing COAG'S CT agenda has involved significant work for PM&C and for the National Counter Terrorism Committee, which we chair (see opposite). Major milestones in 2005–06 included:
- strengthened CT legislation, including measures for control orders and preventative detention to restrict the movement of those who pose a terrorist risk to the community
- COAG endorsement of a new National Emergency Protocol in February 2006, which sets out how all governments will cooperate and communicate in the event of a national emergency
- the appointment of an airport police commander at each of Australia's 11 major airports to coordinate security and law enforcement responses, and
- a new code of practice on the use of closed-circuit television to deter, and assist in the response to, an attack.
Work with line agencies and with states and territories is continuing on:
- unified policing arrangements at major airports—these will involve state and territory police as well as the Australian Federal Police (AFP)
- the roll-out of a national document verification service to combat the use of false and stolen identities
- a refocused CT exercise regime and timetable with a stronger focus on Australia's ability to manage mass casualty incidents, and
- a COAG review of the control of security-sensitive chemical, biological and radiological materials.
National CT coordination was also pursued at an officials level through the National Counter-Terrorism Committee.
The committee comprises officials from relevant Australian Government agencies as well as from all First Ministers' departments and state and territory police services. In 2005–06 the committee:
- met four times in various locations around Australia and held three secure teleconferences, and
- conducted exercise Mercury 05, which involved more than 4000 people in five jurisdictions (see photo at right).
An Australian National Audit Office (ANAO) audit of CT arrangements tabled in October 2005 found that:
- national CT arrangements had undergone continuous and rapid evolution since September 2001, and
- agencies were highly positive about the professional and proactive support we provided for these arrangements.
Together with the Attorney-General's Department (AGD), we are taking steps to address the areas for further improvement identified by the ANAO, including in relation to the national CT exercise programme.
National science and technology support is important to enable Australia to develop and enhance its CT capabilities, including through targeted equipment purchases.
PM&C coordinates science, engineering and technology work to meet Australia's CT needs. In 2005–06 we:
- developed national science and technology research priorities for CT
- worked with publicly funded science agencies to develop and pursue a collaborative research programme
- sponsored fifteen new research projects under the Research Support to Counter Terrorism Programme, and
- continued to develop links with other CT researchers and suppliers—more than 100 organisations have registered with us over the last three years.
We also made a major advance by finalising agreements with the US to facilitate cooperation on science and technology for CT purposes (see page 46).
Domestic security capabilities receive attention
Protecting Australia and Australian interests is the first priority of government. The threat of terrorism has not only impacted on our international security response but has also had a significant domestic impact as well.
To protect our community against terrorism, PM&C acts as a central coordinating agency. In conjunction with those agencies with line responsibility, we have been focusing on developing capabilities in
- intelligence
- transport and border security, and
- defence response.
In 2005–06 PM&C continued to keep the Prime Minister briefed on the results being achieved, and on opportunities to further enhance Australia's capabilities. We briefed the Prime Minister on developments including:
- references to terrorist threats in travel advisories issued by the Department of Foreign Affairs and Trade (DFAT), and
- actual incidents including the London bombings of July 2005, and the second Bali bombing of October 2005.
Robust intelligence is vital to effective defence and foreign policy, and to help government to assess the risk of—and prevent and investigate—terrorist attacks.
Significant additional resourcing is going towards Australia's intelligence agencies. ASIO, for example, is to double its staffing over the next four years to meet emerging intelligence needs.
In 2005–06 PM&C continued to help the Australian Government implement its response to the 2004 Flood Report on Australia's intelligence agencies. Our major areas of work included:
- a new annual process whereby ministers consider agencies' performance, priorities and resource needs
- changes to the intelligence community's outcomes/outputs framework and foreign intelligence priorities to accord with the major redirection of the national intelligence effort in recent years, and
- advice on the Intelligence Services Legislation Amendment Act 2005, which came into effect in December 2005.
As a result of this Act, all legislative recommendations flowing from the Flood Report have now been implemented.
PM&C also contributed to a close alignment between the foreign intelligence effort and government priorities, in our role as a member of the Foreign Intelligence Coordination Committee.
Transport and border security is important to reduce the likelihood of our transport systems being a target of, or vehicle for, terrorism and to protect Australia's sovereign interests.
In 2005–06 PM&C worked closely with relevant agencies to keep the Prime Minister briefed on a range of issues, including a major review of airport security and policing by UK expert the Rt Hon. Sir John Wheeler.
In addition, as chair of the People Smuggling Taskforce, we coordinated the development of responses to unauthorised arrivals by boat into Australia.
We also led a review of fisheries compliance and enforcement. An outcome of this review was the establishment of a new Strategic Maritime Management Committee, led by PM&C, to facilitate ongoing whole-of-government work on civil maritime security.
Defence capability is central to the protection of Australia's interests across a broad spectrum—from CT to conventional war fighting. It also supports our response to natural disasters (see pages 40–1, 44–5 and 50).
In 2005–06 PM&C continued to provide advice on a range of defence issues, working closely with the Department of Defence (Defence) and other relevant agencies.
We provided advice to the Prime Minister on the Defence Capability Plan 2006–2016, as released to the public on 20 June 2006 by the Minister for Defence. The plan outlines more than $51 billion of major capital equipment proposals which are to be evaluated by government over the next decade.
Other significant areas of work in 2005–06 involved advising the Prime Minister on defence industry and strategic industrial capacity including defence industry policy and production issues, and the implementation of procurement reforms by the Defence Materiel Organisation.
International aid and assistance—an ongoing focus
The Australian Government provided aid and assistance in response to events across the world and closer to home over 2005–06.
PM&C continued to support the Prime Minister on emerging issues and progress in implementing measures. Our major areas of advice in 2005–06 involved:
- emergency and disaster situations in the Asia–Pacific
- Pacific governance and security
- stabilisation and reconstruction efforts in Iraq and Afghanistan, and
- other aid and assistance measures.
Emergency and disaster situations in 2005–06 included major earthquakes in Pakistan and Indonesia, and Hurricane Katrina in the Gulf region of the United States of America (US).
PM&C participated in interdepartmental emergency taskforce meetings and kept the Prime Minister briefed on Australia's responses to these disasters.
PM&C also continued to work with AusAID and other agencies to allocate and implement the $1 billion Australia–Indonesia Partnership for Reconstruction and Development announced after the Indian Ocean tsunamis of 26 December 2004.
Pacific governance and security continues to be a focus for Australian foreign policy.
In 2005–06 PM&C advised the Prime Minister on issues including:
- Australia's enhanced Cooperation Programme with Papua New Guinea (PNG)
- the Australian-led Regional Assistance Mission to Solomon Islands (RAMSI), and
- Australian Federal Police (AFP) trans-national crime units in six Pacific states.
We also advised on options for further assistance, including the measures announced by the Prime Minister at the Pacific Islands Forum Leaders' Meeting in October 2005.
In addition, we worked with a number of agencies to develop options for responding to civil unrest in Solomon Islands in April 2006 and in East Timor in May and June 2006.
The Prime Minister subsequently visited east Timor in July 2006, to speak with its new Prime Minister and with ADF and AFP personnel stationed there.
Stabilisation and reconstruction efforts in Afghanistan and Iraq are continuing with the participation of Australia and a number of other nations.
PM&C supported the Prime Minister in his decision making on ADF deployments to these areas and related issues. Major milestones included:
- the Prime Minister's visit to Iraq in July 2005 and to Afghanistan in November 2005, and
- a visit to Australia by Afghanistan's Minister for Foreign Affairs in August 2005.
In addition, as a member of the Australian Government's interdepartmental task force on Iraq, we provided advice to the Prime Minister on Iraq's rehabilitation and reconstruction.
We assisted Defence and other agencies on the planning of Australia's contribution to a Netherlands-led Provincial Reconstruction Team in Afghanistan, to be deployed in late 2006.
Other Australian Government aid and assistance. PM&C advised the Prime Minister on major aid issues including:
- the UN Leaders' Summit in September 2005
- the level of Australian aid
- the development of a white paper on aid in April 2006, and
- a new five year Australian Scholarships Programme.
Key international relationships
PM&C works closely with agencies including DFAT and Austrade to promote Australia's interests overseas, both on a bilateral and multilateral basis.
Bilateral relationships are the basic building blocks the Australian Government uses to pursue Australia's interests overseas.
In 2005–06 PM&C continued to play a role in this process, participating in relevant interdepartmental committees and keeping the Prime Minister briefed on developments.
We prepared and delivered visit programmes focused on advancing our foreign policy interests as part of the Prime Minister's eight overseas trips to 14 nations, and 26 visits to Australia by guests of the government.
Logistical support for, and more information on, visits is provided under our ceremonial and hospitality function (see page 64).
Australia's alliance with the US was a major focus of PM&C's advice in 2005–06. Our two nations celebrated the 60th anniversary of Victory in the Pacific (see photo on page 50). We provided advice on:
- a new Australia–US agreement on co‑operation in science and technology for homeland/domestic security matters (signed 21 December 2005)
- a memorandum of understanding between PM&C and the US Department of Defense on technology for combating terrorism (signed 17 May 2006, see photo at right), and
- bilateral discussions under these agreements—PM&C led the inaugural Australian delegation to the US in mid 2006.
Other bilateral relationships also received attention in 2005–06. Major areas on which PM&C advised the Prime Minister were:
- Australian–Indonesian cooperation on terrorism, people smuggling, illegal fishing and other shared security issues
- an additional bilateral memorandum of understanding with Afghanistan on counter-terrorism
- the implementation of Australia's free trade agreements (FTAs) with the US, New Zealand (NZ), Thailand and Singapore
- the advancement of FTA negotiations with China and Malaysia
- the progress of an FTA scoping study with Japan, and
- ANZAC commemorations at, and the heritage values of, the Gallipoli peninsula in Turkey.
Multilateral relationships provide opportunities for Australia to influence and benefit from cooperation on a regional and global scale.
Again, PM&C ensured the Prime Minister was briefed on the opportunities and issues that arose over 2005–06, including global efforts to stop the proliferation and shipment of weapons of mass destruction and related materials.
A major area of advising for PM&C was the inaugural east Asian Summit meeting, held in Kuala Lumpur in December 2005. Other significant issues on which we provided advice included:
- the Pacific Islands Forum Leaders' Meeting in PNG in October 2005
- the Commonwealth Heads of Government Meeting in Malta in November 2005
- the Asia–Pacific economic Cooperation (APEC) Leaders' Meeting in the Republic of Korea in November 2005
- the global Proliferation Security Initiative including through PSI Exercise Pacific Protector 06 in Darwin in April 2006
- the World Trade Organisation Doha Development Round negotiations held throughout the year
- ongoing negotiations on an FTA between Australia, NZ and ASEAN, the Association of South east Asian Nations, and
- exploration of a possible FTA with the six Gulf Cooperation Council countries.
APEC 2007 preparations in full swing

APEC focuses on facilitating economic growth, cooperation, trade and investment in the Asia–Pacific region. Its 21 member economies collectively account for well over half of the world's gross domestic product—more than US$19 trillion in 2001 and growing.
Each year, one APEC economy hosts a series of ministerial and senior officials' meetings, including the annual Leaders' Meeting which determines APEC priorities for the following year.
In October 2002 the Australian Government endorsed a proposal for Australia to host an APEC Year in 2007.
The APEC discussions in 2007, and the APEC Leaders' Meeting in Sydney on 8–9 September 2007, will be one of the most important international meetings hosted by Australia in many years.
Fifteen ministers' meetings and senior officials meetings will be hosted in the lead-up to the Leaders' Meeting, involving between 8000 and 10 000 delegates. A large international media contingent is also expected.
PM&C's initial role was to organise and manage the logistics solely for the Leaders' Week, but this was expanded in early 2005 to include all APEC ministerial and senior officials' meetings on the official programme. Our major areas of work in 2005–06 included:
- Meeting locations. Meetings will be held in all states and territories except Victoria, with the two Leaders' Retreats to be held in special venues.
- Project budgets. The Australian Government has announced it will spend $216.3 million over four years on hosting APEC 2007. PM&C's budget for APEC work will reach $115 million over three years.
- Recruitment of appropriately skilled staff. The taskforce has grown into the largest single area of PM&C, comprising 109 people at 30 June 2006 (see photo opposite). Most staff are based in Sydney, the location of Leaders' Week, together with AGD's APEC Security Branch (33 people) and the NSW Police APEC Security Command (43 people).
- Learning. Systematic orientation for new staff has been provided to build a strong team in the shortest possible time. Lessons learnt from previous events—such as APEC 2005 in Korea—have also been incorporated into planning (see photo at left).
- Coordination. Memorandums of understanding have been finalised with states, territories, and a range of Australian Government agencies involved in meetings and other events.
- Communications. The APEC Australia 2007T website, www.apec2007.org, was launched on 20 June 2006 to provide information to delegates, officials, media and the broader community. It will be expanded over time to allow, for example, delegates to register for accreditation or book accommodation.
Preparations have gone well but there is much yet to be done—APEC 2007 will be the largest and most complex security operation ever conducted in Australia.
PM&C expects to deliver an APEC Year to remember, as well as a strong legacy that future APEC host economies can build on. We will continue to work closely with stakeholders including:
- the APEC 2007 executive—chaired by our Secretary, this is the senior body overseeing the event
- the various decision making and operational groups that report to the APEC 2007 executive
- AGD, which is coordinating protective security arrangements, and
- DFAT, which is managing Australia's relationship with APEC and the policy agenda for the year.
Once the APEC 2007 year is over, we expect to evaluate and share the lessons learnt with future host economies, the APEC secretariat and others.
Other milestones in 2005–06

A Firework Display on the Sixtieth Anniversary of Victory in the Pacific
Natural disasters. We continued to brief the Prime Minister on, and to develop options for responding to, major natural disasters including the dispatch of ADF personnel as part of Operation Tropical Cyclone Larry Assist in April 2006. This work involved many different parts of PM&C and other agencies, as acknowledged in Chapter 2 (see page 13).
Commemorative events. We worked with the Department of Veterans' Affairs to mark a number of significant military events including:
- the state funeral of Mr Peter Casserly, Australia's last World War I veteran (see also page 67)
- ANZAC Day 2006, and
- the sixtieth anniversary of Victory in the Pacific on 12 August 2005 (see photo to right).

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