National security: Brandis laws to protect critical assets

Businesses and operators of ­critical infrastructure would be subject to ­direction powers under proposed legislation.

George Brandis during Senate Question Time. Picture: Gary Ramage

Businesses and operators of ­critical infrastructure across the country — including water, electricity and ports — would be ­subject to federal government ­direction powers that require them to defend against spying from foreign agencies, terrorism and other national security risks, under proposed legislation.

Attorney-General George Brandis will today release draft legislation that would require infrastructure deemed critical to national security to mitigate its operations against attacks involving foreign state-based infiltration, sabotage and coercion, or face statutory orders to upgrade their defences.

The “last resort” directions powers would be invoked in the event of an adverse finding by ASIO that sufficient measures had not been undertaken to mitigate against the threat.

The new laws have been prompted by growing foreign-ownership interest in Australian assets as well as the increased threat of terrorism.

Development of the new laws follows the federal government’s decision last year to intervene to block the sale of the NSW ­government-owned energy network Ausgrid to Chinese interests following the discovery of a significant national security risk.

There had also been significant concern raised about the Defence Department’s lack of objection to the sale of the Port of Darwin to a Chinese company.

Of most concern to the government are power grids, ports, telecommunications companies and water facilities, which if disrupted would have a significant impact on large populations and the country’s economic interests.

In the case of ports, it would cover those deemed vital for defence purposes, liquid-fuel imports or bulk-cargo exports. Electricity providers would be required to prove they had measures to protection against physical (terrorism) or cyber-attack and were immune to espionage.

Utilities that serviced at least 100,000 water and/or sewage connections or held a licence agreement with a state or territory regulator would be subject to the new laws.

All electricity-generation and distribution networks, including interconnectors, would also have to comply with ASIO standards.

The last-resort power under the Security of Critical Infrastructure Bill 2017 would only be used in situations where there was a significant national security risk, the owner or operator had not implemented mitigations to address the risk, or where no existing regulatory framework existed that could be used to enforce mitigations

The proposed laws, which the government will release for public submissions, follow the establishment in January of the Critical Infrastructure Centre, which was tasked with an audit of the nation’s critical infrastructure for the purpose of a register of assets.

The register would provide a government database of who owned, controlled or had access to critical infrastructure assets and allow for risk-assessment of those assets.

“Foreign involvement in Australia’s critical infrastructure is essential to Australia’s economy,” Senator Brandis said last night.

“However, with increased foreign involvement, through ownership, offshoring, outsourcing and supply chain arrangements, Australia’s national critical infrastructure is more exposed than ever to sabotage, espionage and coercion.

“(The legislation) will create a ‘last resort power’ which will allow the minister to issue a direction to an owner or operator of a critical infrastructure asset to mitigate significant national security risks.”