Defence Subcommittee of the Joint Standing Committee on Foreign Affairs, Defence and Trade has completed its examination on Defence’s implementation of the Defence Industry Security Program and management of non-compliance.

Defence Subcommittee Chair, Mr Julian Hill MP, said “National security imperatives require Defence to execute and enforce strict contractual obligations with defence industry. “The Auditor General’s Report No. 4 (2021-22) Defence’s Contract Administration – Defence Industry Security Program raised serious concerns regarding Defence’s implementation of the Defence Industry Security Program and management of non-compliance which is fundamental to assuring the security of Defence’s people, information, and assets. The Committee has carefully considered Defence’s progress in implementing the six primary recommendations it committed to a year ago. The Committee’s recommendations are designed to ensure the appropriate level of parliamentary oversight is imposed and maintained as Defence undertakes efforts to remediate deficiencies in the Defence Industry Security Program and commends this report to the Government”.

The Committee recommended the Department of Defence:

  • listen more carefully to industry concerns raised via this inquiry regarding the quality of DISP security training including for APS staff and embed a structured, transparent mechanism to ensure industry feedback directly informs continuous improvement to ensure training meets industry’s reasonable expectations.
  • provide written advice to the Committee within six months of the tabling of this report detailing the implementation of the customer resource management and engagement system (CRM) system, how it assists with knowledge management and engagement with DISP entities, and its ability to recall accurate, auditable, and accessible data on DISP entities.
  • implement systems which regulate and audit DISP compliance, and:
  • Within six months of this report being tabled in Parliament, outline in writing to the Committee how all six recommendations of the ANAO in Auditor-General Report No. 4 of 2021-22 have been fully implemented, and any actions which remain outstanding
  • Within 12 months of this report being tabled in Parliament, report back in writing to the Committee on its progress in further improving DISP related compliance and audit systems and provide reliable data estimates against a number of directed criteria which can be found in the report.

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