KEY POINTS:
Australia's new Labor Government will put its key counter-terrorism agencies under further scrutiny as it continues an accelerating review of national security.
The Attorney-General, Robert McClelland, yesterday announced a judicial inquiry into the bungled arrest and detention last year of Indian-born Dr Mohamed Haneef, wrongly linked to botched bombing attempts in London and Glasgow.
The Federal Police has also released the recommendations of an earlier inquiry into its flawed co-operation with the domestic spy agency, the Australian Security Intelligence Organisation, and other agencies. This warned that unless changes were made, future cases against alleged terrorists could fail.
The inquiries follow the collapse of several terrorism prosecutions despite a wave of counter-terrorism legislation, including draconian detention laws, since the September 11, 2001, terror attacks on the United States and the subsequent Bali bombings.
They also come as the trial of 10 alleged members of a Victorian terror cell continues in Melbourne.
The Government has already announced the withdrawal of combat troops from Iraq, launched a new defence white paper and begun separate reviews of key decisions of John Howard's former conservative Government, including the planned purchase of new strike jets.
McClelland's inquiry into the Haneef affair, to be led by former New South Wales Supreme Court Judge John Clarke, QC, fulfils an election promise made by Labor as the former Government's case against Haneef descended into farce, undermining the credibility of the Federal Police and counter-terrorism laws.
Haneef had moved from London to work as a registrar at Gold Coast Hospital when Australian agencies linked him with an alleged cell of Islamic doctors who tried to ram British airport terminals with bomb-laden vehicles.
The case hung on the incorrect evidence that a SIM card given by Haneef to a second cousin when he left London eight months previously had been found at the scene of the Glasgow attack. The cousin, Sabeel Ahmed, was one of the alleged bombers.
He was held for 12 days without charge and finally charged with recklessly supporting a terrorist organisation. He was granted bail against the wishes of the Government and, when charges were dropped, forced to leave Australia after then-Immigration Minister Kevin Andrews used discretionary powers to cancel his visa.
McClelland said the Street inquiry was an important step in ensuring public confidence in the nation's counter-terrorism measures.
"Australians are entitled to be reassured that their national security agencies are functioning as effectively as they can be," he said.
But as the Opposition attacked the Haneef inquiry as a political stunt, McClelland said the inquiry might have to be upgraded to a royal commission if key witnesses - including Andrews - declined to appear.
The review of interoperability between the Federal Police and its national security partners warned in recommendations released yesterday that new doors needed to be opened between counter-terrorism agencies.
The review was launched after last year's collapse of a case against Sydney student Izhar Ul-Haque, accused of training with Pakistani terrorists.
HANEEF INQUIRY
To look into the handling of the collapsed case against former terrorism suspect Mohamed Haneef.
The investigation has cost about A$7 million ($8.1 million), involved 450 law enforcement officials and is technically still in progress.
STREET REPORT
Review warns more high-profile terrorist prosecutions could fail without reforms after the collapse of the case against Sydney student Izhar Ul-Haque.
It said trust between the Australian Federal Police and Australian Security Intelligence Organisation needed to improve.