Toothless tiger fear for Australia's crime-busting agency

By GREG ANSLEY Australia correspondent

CANBERRA - Australia's federal crime-busting agency faces a grim fight for survival against plans believed to include the removal of its powers of investigation and to allow the domestic spy agency to tackle major crime.

The Government will unveil its proposals for the National Crime Agency to state and territory police ministers in Darwin tomorrow despite nationwide opposition to any moves to reduce the agency's role against organised crime.

Although details of the proposals have yet to be revealed, it is certain that the agency will be renamed the Australian Crime Commission and that it is likely to have a smaller staff and budget.

The expected move comes as concern grows about the rise of organised and transnational crime, its links to terrorism and people-smuggling, and the growth of both homegrown and foreign cartels and bikie gangs in Australia.

The Government gave notice of its intention to overhaul the controversial agency in the runup to last year's election as part of its response to the September 11 terror attacks, with Prime Minister John Howard flagging a body similar to the American Federal Bureau of Investigation.

The states agreed in principle in April to a reformed agency, but on the condition that its powers and effectiveness would be increased.

The agency, formed in 1984 through federal and state legislation to combat organised crime, has a chequered but broadly successful record against drugs, money laundering, major theft, fraud, tax evasion, bribery and extortion.

Successes, including the jailing of expatriate New Zealand drug dealer Ian Saxon, were offset by such high-profile losses as the failed case against one-time corporate highflyer John Elliott, the former head of Elders IXL.

In 1994 one officer was killed and another maimed by a parcel bomb sent to its Adelaide bureau.

Its latest available accounts, for 1999-2000, reported the recovery of more than A$250 million ($288.13 million) from tax and other frauds, cracking four large Australian heroin syndicates and successes against Southeast Asian crime gangs.

Against this, it has regularly trod on the toes of the state agencies with which it works.

Circumstance and politics have also worked against the agency.

Howard promised reforms in last year's security-dominated election campaign, and was incensed at the National Crime Agency's support for trials of the legal supply of heroin to addicts.

The Justice Minister, Senator Chris Ellision, confirmed that the new commission would have a smaller staff, but denied that it would be stripped of key powers.

The commission would be expanded to include new links with Customs and the Australian Security and Intelligence Organisation, Ellision said.

But in a leaked letter, agency chairman Gary Crooke warned that reduced resources could hobble the fight against organised crime.

State ministers said any plans to reduce the new commission's role would be blocked.