The 2004-05 Budget features a $54.5 million boost over four years to Defence’s ability to provide counter-terrorism intelligence, develop regional special forces and counter terrorism networks.

Defence will also expand its program of training and exercises with regional partners.

Defence Minister Robert Hill said providing national security was the first priority of the Howard Government.

"Our national interests at home and overseas are increasingly affected by global insecurity and the threat of terrorism and the 2004-05 Budget includes extra money to boost Defence’s intelligence capabilities and protect Australia’s critical infrastructure," Senator Hill said

"We are also committed to working with our regional partners through an expanded program of joint training and exercises and by building greater levels of security cooperation. In addition, we will host senior special forces counter-terrorism commanders and counter-terrorism policy officials from South East Asian and allied countries for the first Regional Special Forces Counter-Terrorism Conference next month."

Recognising that intelligence is the front line in the war against terrorism, the extra money will be used to:

• Employ more analysts and intelligence officers in Defence’s Intelligence and Security Group, increasing its capability to monitor and report on transnational issues including international terrorism.

• Increase staffing levels in the Defence Intelligence Organisation to enhance its operational, analytical and technical capabilities.
• Improve the Defence Signals Directorate’s counter-terrorism capabilities.
• Enhance the Defence Imagery and Geospatial Organisation’s capacity to support domestic counter terrorism forces, law enforcement agencies and emergency response activities through providing essential infrastructure information at critical locations. This is part of a whole-of-government Critical Infrastructure Protection initiative.

Senator Hill said Defence would also work on strengthening counter-terrorism capacity, cooperation and links throughout the region.

Defence will undertake an expanded program of counter terrorism training and exercises with regional partners. Examples include EX WYVERN SUN in Thailand in July 2004, which will test the crisis response mechanisms of the Thai and Australian Governments to a simulated terrorist incident, involving a hostage recovery scenario. In September, the Incident Response Regiment will conduct EX BLACK ORCHID with its counterpart unit in Singapore, with the aim of exchanging information and techniques related to the resolution of terrorist incidents where explosives and/or chemical, biological or radiological materials are used.

Defence will also host senior special forces counter-terrorism commanders and counter-terrorism policy officials from South East Asian and allied countries for the Regional Special Forces Counter Terrorism Conference in June. The conference will provide an opportunity for senior counter-terrorism officials to establish links and share information regarding national counter-terrorism response mechanisms and the capabilities of special forces counter-terrorism units.

"The new measures will further boost Australia’s national security capabilities, building on the Howard Government’s efforts to protect us from the threat of terrorism," Senator Hill said.

"Since 11 September 2001, we have committed more than $1.3 billion to the Australian Defence Force to fight the war against terrorism. The money has been spent not only on helping with the international effort to remove the threat of al Qaeda and their supporters from Afghanistan, but also to strengthen our defences at home.

"The ADF is better prepared than ever to respond to terrorist threats in Australia and contribute to international efforts to reduce the spread of global terror networks and weapons of mass destruction.

"Today’s Budget will further strengthen our ability to defend Australia and our national interests."