Defence leak probe launched following The Nightly’s report on looming military cuts

Defence has confirmed a “priority” investigation has been launched into whether sensitive information was leaked to The Nightly following a report this week that exposed concerns about looming cuts to military projects.

Officials appearing at a Senate estimates hearing have also revealed the Nightly story contained information that was subject to a secretive new safeguard mechanism known as a “sensitive issues protocol” (SIP) designed to stop classified breaches.

This week The Nightly detailed growing angst within the defence sector over possible defence program reductions and cancellations as the Government looks for ways to fund the expensive AUKUS nuclear submarine endeavour.

“There has been a notification of a potential breach of obligations and so a notification has gone into our system and an investigation has commenced,” Secretary of the Department of Defence Meaghan Quinn told the estimates hearing late on Thursday.

“We have a process where if there’s a suspected breach, there’s a notification and then there’s an identification of whether there has or hasn’t been a breach and then investigation.”

Under questioning from Greens leader David Shoebridge, Chief of Defence Admiral Mark Hammond also confirmed he was aware the matter was now being investigated.

“It’s an automatic process. If there is an allegation that someone inside the department has leaked information, that there is a process that’s automatically triggered,” the CDF said.

Vice Chief of Defence Robert Chipman told the committee that a request for an investigation into the alleged leaking of information to The Nightly had been initiated by the ADF’s Head of Force Design Major-General Matt Pearce.

“That form goes to Security and Estate Group and it is racked and stacked against their priorities. But we understand that it will be prioritised and will be an investigation launched from Security and Estate Group.”

“It is simply a mechanism to ensure that we understand who is briefed into information so that if there is a leak then we can identify who’s had access to that information,” Air Marshal Chipman said when asked to describe the SIP.

Deputy Secretary for Governance John Reid then told the committee that the SIP procedures had been introduced by Defence two years ago and confirmed it been used this year to protect information about budget planning for military projects.

“The Sensitive Issues Protocol, it was developed around 2024. I don’t have to hand how many times it has been used. It’s used in a range of different ways to manage particularly sensitive matters across the department,” Mr Reid said.

Earlier in the day defence officials also declared to the committee that cuts to large military projects such as Hunter class frigates and infantry fighting vehicles can’t be ruled out as the department continues to search for budget savings.

“We do a review of our budget on a regular basis. We review it at our defence committee every month, and there’s various other mechanisms,” Secretary Quinn told Senate estimates when questioned about The Nightly’s report on Thursday morning.

“So, we are following our usual process in relation to looking at our budget and managing to meet budget rules and my PGPA (Public Governance, Performance and Accountability) responsibilities as the accountable officer,” she added.

Pressed by Liberal Senator James Paterson on suggestions that “nothing is off the table” as part of the budget process, the Secretary responded: “We always review everything at all points in time.”

Just ahead of the hearing, Labor disclosed fresh details of its reprioritisation of the Defence Integrated Investment Program, which involves the reallocation of funding from programs considered less important or close enough to completion.

It includes $20 million from deployable air traffic systems and hangars and $100 million from transitioning legacy Huon-class mine hunter coastal vessels to modern capabilities, including autonomous systems.