CUSTOMS FUNCTIONS TO BE SPLIT IN MAJOR OVERHAUL

The Australian Customs Service is to be overhauled as one of the
Government's first administrative acts of its second term, with its
operations split into three new functions.

The shake-up, to be announced today, will spark new controversy over
the effectiveness of the Customs apparatus in protecting our shoreline
from illegal drug imports and other offences.

The bulk of the service will be assigned to a new "single border
control agency" administered by the Minister for Justice and Customs,
Senator Vanstone.

Ninety per cent of the Customs service workforce will be deployed in
the new agency, combatting drug importation and immigration and
quarantine offences.

The restructure is in line with reforms proposed by a
Government-commissioned review, headed by a former NSW top public
servant, Mr Gary Sturgess.

Cabinet has not met since the election, which means the overhaul must
have been approved before the election.

The restructure will see Treasury take over the tax functions
previously administered by Customs while its regulation of industry
assistance measures, such as the bounty system, will be given to the
Department of Industry, Science and Resources.

This has prompted concern within the top ranks of the service because
of the administrative complications that will result from splitting
its functions.

There are also concerns that the "single border agency" reform is a
cost-savings measure, with a figure of $100 million being mentioned.

The Government's approach to Customs control became an election issue
when the Opposition's then shadow Attorney-General, Senator Nick
Bolkus, accused the Government of being responsible for the death of
young heroin users.

Senator Bolkus drew a link between the Government's financial cuts to
the Customs Service, the Australian Federal Police and the National
Crime Authority and the rise in drug deaths in different States.

The Prime Minister rejected the statement as a "cheap, tawdry
guttersnipe attack", with the Opposition Leader, Mr Beazley, forced to
order Senator Bolkus to clarify his remarks.

Checked-by: Rich O'Grady