Defence denies spying on minister

CANBERRA - The Australian Defence Department has formally denied spying on its minister over his relationship with a Chinese-born friend.

It has also denied hacking into Joel Fitzgibbon's personal files and has welcomed a high-level independent investigation into what it called "serious" allegations.

Defence Secretary Nick Warner said an interim report he requested from the Defence Security Authority had found no basis to reports the department had spied on its minister.

The DSA's assessment found there was "no investigation of the minister, his personal relationship with Ms Helen Liu or of Ms Liu herself by any element of Defence".

The DSA said no investigative authority within Defence was even aware of Liu before media reports said the department had been spying on Fitzgibbon over his relationship with her.

It also denied that any part of the department "had any access, authorised or unauthorised, to personal information within the minister's office, including telephone contact numbers".

Warner welcomed confirmation the Inspector-General of Intelligence and Security Ian Carnell will investigate claims Defence employees hacked into IT equipment used by the minister, and related matters.

"These are serious charges and the Chief of Defence Force [Angus Houston] and I welcome Mr Carnell's independent scrutiny of these matters," he said. "Defence supports and will fully co-operate with Mr Carnell's investigation."

He said the DSA report, which had been passed to Fitzgibbon, carried preliminary findings and Defence would continue to investigate further.

Fitzgibbon and his tense relationship with his own department has been at the centre of a political storm this week, sparked by media reports about Defence staff allegedly spying on him.

The reports, which Defence has always denied, claimed Defence officials probed whether his association with Liu - a long-time family friend and Labor Party donor - constituted a security risk.

The controversy erupted on another front late last week after it emerged the minister had failed to declare to Parliament two trips to China paid for by Liu.

Fitzgibbon apologised on Friday for his mistake but said he should be judged on his job as Defence Minister, not omissions that dated back years when he was still in Opposition.

But Opposition leader Malcolm Turnbull said Prime Minister Kevin Rudd had a duty to sack his "incompetent" minister.

- AAP