Statement of Service Performance for the year ended 30 June 2011Output Class 3: Intelligence coordination and national security priorities

DESCRIPTION

This class of outputs involves:

• coordinating central government activities to enhance New Zealand’s national security – including intelligence, counter-terrorism preparedness, emergency/crisis management, and defence operations
• providing advice and guidance on policies and preparation for strengthening national security
• producing intelligence assessments on political, economic, scientific, environmental, strategic, and biographic subjects overseas affecting New Zealand’s interests
• collecting, collating, evaluating, and analysing information that is used in the production of these assessments.

The use of effective planning and coordination processes in government can manage the risks of certain adverse events occurring, and can lessen their effect if they do occur. The department is responsible for assessing, monitoring and responding to threats of any kind in a timely and structured way.

OUTPUT CLASS 3 SERVICE PERFORMANCE: SECURITY AND RISK GROUP

Objective To provide integrated advice on issues involving national security and defence, and emergency management; and to guide and coordinate crisis-management arrangements across the government.

Performance

The renaming of the Domestic and External Security Group as the Security and Risk Group (SRG) in 2010 reflected the shift from a “domestic/external” split to a more holistic and broad-spectrum approach to national security. In its combined policy and operational roles, SRG has provided leadership and coordination across government on national security issues. In particular, it has worked with a range of government and non-government stakeholders to ensure national security issues are managed effectively and proportionately, and to build resilience in government and communities.

SRG fulfilled its advisory role for national security issues across departments and agencies with operational responsibilities for managing such risks. It coordinated the government’s response to situations that had significant consequences for New Zealand’s national security or interests. On behalf of government, SRG provided leadership, support and coordination around all major security issues.

Unprecedented challenges this year involved coordinating support for the responses to the Christchurch earthquakes – which included having the Director of SRG relocate to Christchurch because of the national state of emergency after the 22 February shock – and the Pike River mining tragedy. SRG was called upon to play key roles in our national crisis response mechanisms.

Advice was provided to the Prime Minister as necessary on Cabinet and Cabinet committee papers and met the requirements for quality and timeliness. A wide range of briefing notes on security issues of interest were also provided to the Prime Minister, both proactively and in response to requests from the Prime Minister. Feedback was received from the Prime Minister on advice tendered.

SRG supported the Domestic and External Security Coordination (DESC) system in the following ways:

• providing advice and support for departmental chief executives under ODESC (Officials’ Committee for Domestic and External Security Coordination)
• chairing Watch Group (close situation monitoring) meetings of specialists, to deal with particular issues at a “details” level
• facilitating interactions across central government, industry, local government and other sectors as appropriate, to advance policy and practical solution-finding
• providing advice and support for departmental chief executives under ODESC.

Other issues of national security relevance involving SRG included:

• assuring the security of New Zealanders at major events overseas (for example the New Delhi Commonwealth Games and the Cricket World Cup)
• supporting consular incidents overseas (such as the civil unrest in Africa and the Middle East)
• coordinating and supporting the security planning for the 2011 Rugby World Cup, including national exercises and preparedness
• assisting agencies which have primary responsibilities for leading all-of-government responses to a variety of national security threats, either to reduce or mitigate risk or to develop an enhanced state of response readiness
• supporting the process of designating a number of entities as terrorist organisations.

Objective To provide a system of foreign-intelligence collection and assessment activity that reflects policy priorities, national requirements and available resources and that also ensures a coordinated and harmonised outcome.

Performance

SRG developed effective working relationships with the newly formed Intelligence Coordination Group (ICG), to ensure that intelligence plays an appropriate role in the understanding and management of certain national security risks.

OUTPUT CLASS 3 SERVICE PERFORMANCE: INTELLIGENCE COORDINATION GROUP

Following a review of the intelligence agencies conducted on behalf of the State Services Commission, DPMC established the Intelligence Coordination Group (ICG) in September 2010. The role of ICG has been to:

• advise the Prime Minister on intelligence matters
• provide priority setting, coordination and collaboration, resourcing, and evaluation of the New Zealand Intelligence Community (NZIC)
• coordinate New Zealand’s international intelligence relationships.

Objective To advise the Prime Minister on intelligence matters.

Performance

With the assistance of agencies in the NZIC, ICG provided regular coordinated briefings to the Prime Minister, and to other Ministers where appropriate. Positive feedback was received from the Prime Minister on this.

Objective To provide priority setting, coordination and collaboration, resourcing, accountability and evaluation of the New Zealand Intelligence Community (NZIC).

Performance

With the assistance of intelligence agencies, ICG produced a joint Statement of Intent (SOI) on behalf of the core intelligence agencies which report to the Prime Minister – namely the Government Communications Security Bureau (GCSB), the New Zealand Security Intelligence Service (NZSIS) and the National Assessments Bureau (NAB). This is the first time that a joint SOI has been produced for the core intelligence agencies; and it sets out the agencies’ priorities, as well as performance measures, for the next 3 to 5 years. Central government agencies, along with the ODESC group responsible for the governance of the NZIC, have provided positive feedback on the creation of the SOI.

ICG closely worked with SRG to produce a paper outlining New Zealand’s National Security System (NSS) and updating the terms of reference for government decision-making bodies on national security. The completion of the NSS has meant that ICG has been able to continue work on setting priorities for the NZIC.

Work has been done on a number of projects to ensure that the NZIC is well coordinated and collaborative. Examples include: coordinating regular meetings of NZIC heads and senior management as well as “working level” forums to ensure a coordinated NZIC approach to issues of importance to New Zealand; ensuring the NZIC is well-coordinated in terms of giving support to the Police leading up to and during the Rugby World Cup in 2011: reviewing training and professional development in the NZIC; reviewing overseas representation; and assisting Parliament’s Intelligence and Security Committee with the passage of the NZSIS Amendment Bill.

In addition, ICG has worked to ensure that the NZIC is using its resources as efficiently as possible. This year it coordinated a joint Budget submission for GCSB, NZSIS and NAB – the first-ever such submission – and it has also led a working group on future information management needs in the NZIC, to ensure prudent use of NZIC resources. ICG has also taken advantage of the opportunities afforded by the Pipitea House co-location of much of the NZIC and has actively worked to ensure a more coordinated and collaborative response from the NZIC on issues of importance to the Government.

Objective To coordinate New Zealand’s international intelligence relationships.

Performance

ICG has developed a coordinated and coherent “voice” for the NZIC when dealing with its international counterparts, to ensure that New Zealand’s national interests are served.

OUTPUT CLASS 3 SERVICE PERFORMANCE: NATIONAL ASSESSMENTS BUREAU (NAB)

The main focus of the National Assessments Bureau (NAB) has continued to be implementation of the changes, mandated by the Cabinet in March 2010, that arose out of a review of intelligence agencies. This has comprised establishing mechanisms for carrying out NAB’s broadened mandate for coordination of assessments that draw on the resources of the whole of the NZIC, initiating a business model review of NAB, and moving to a new office location.

The National Assessments Committee (NAC), which is chaired by the Director of NAB, has continued to develop and evolve. It is now the primary vehicle by which the national assessments programme, mandated by the March 2010 Cabinet decisions, is coordinated. This ensures an NZIC-wide view of the most pressing assessment priorities and the allocation of the most appropriate assessment resource to the task. The NAC’s mandate has evolved to include matters relating to national security more generally, as well as external developments of relevance to New Zealand policy interests. In another significant development, nearly one-third of NAC reports in this reporting year were drafted by other agencies whereas previously the great majority of NAC reports were written by NAB. The NAC also assists in providing oversight of the weekly executive intelligence summary. This report has evolved into a weekly whole-of-community product coordinated and edited by NAB, and is the basis of the newly-implemented weekly brief to the Prime Minister. As well as coordinating and editing the report, NAB contributes about sixty per cent of the material used in it.

NAB has initiated a business-model review which focuses on NAB’s “value proposition” and its internal processes. In keeping with the direction provided by the Cabinet mandate, NAB has taken a consultative approach in reviewing its coverage as the NZIC seeks to pool and better coordinate resources in order to deliver efficiencies.

In March 2011 NAB moved its office location from the Reserve Bank Building to Pipitea House, thus implementing another of the Cabinet’s March 2010 directives. The move was carried out successfully with no sensitive or classified material being compromised and with minimum down-time for NAB’s operating capability. In Pipitea House NAB is co-located with two other agencies of the NZIC, which provides a strong foundation for the closer cooperation and coordination mandated by Cabinet.

Objective To ensure the effective provision of high-quality, accurate and succinct assessments of national security and overseas developments that are of policy relevance to New Zealand.

Performance

There were no instances of significant factual errors being reported in papers that had already been issued.

In a few instances, readers (particularly in New Zealand diplomatic missions overseas) provided additional information, insights and interpretations subsequent to the publication of papers, especially for biographic reports. (NAB generally seeks such input before publication, as part of its established process of consultation to improve the quality of its assessments.)

In order to provide greater quality assurance and transparency, NAB is implementing a process of documenting the consultations undertaken, the analytic techniques used, and the information base for the major assessments produced.

During the reporting period:

• The NAC approved 22 (2009/10: 41) papers. The decline in numbers is partly due to the increased time required to produce each report (as the result of increased emphasis on quality assurance) and partly due to the interruption to the NAC’s programme while new terms of reference and processes were being implemented.
• NAB prepared 219 (718) biographic reports. The decline in numbers was partly due to a decline in demand for such reports (which are produced in response to specific ministerial requirements) and partly as the result of NAB adjusting its coverage to provide “narrower but deeper” reporting.

At least 90 per cent of assessments submitted to the NAC required no more than minor revision. (This performance indicator remains unchanged from last year.) NAB maintains a file record of the outcome of every NAC meeting so that its performance against this criterion is documented.

There were 167 (194) other assessments and reports prepared, including 52 (87) executive intelligence summaries.

Objective To ensure that the Prime Minister, other senior ministers, and officials are satisfied with the assessments and reports provided.

Performance

NAB continues to implement its responses to the Government’s updated guidance on its expectations for intelligence assessment reporting. The weekly briefings to the Prime Minister and to the Minister of Foreign Affairs, delivered by the Director of ICG and based on the executive intelligence summaries coordinated by NAB, provide a regular forum for those ministers to provide feedback and to request additional reports and information on priority matters. Feedback from the Prime Minister and ministers was positive.