NCA-FEDS MERGER RULED OUT

THE National Crime Authority will not be merged with the Australian Federal
Police but the future of the controversial body remains in doubt.

Senior state and federal bureaucrats and police officers will meet tomorrow
to discuss the shake-up of the authority and improvements to terrorism and
transnational crime fighting. The meeting will set an agenda for
ministerial discussions later this month on the fate of the NCA, and
between commonwealth and state leaders in April.

It is understood the commonwealth will rule out folding the NCA into the AFP.

But it remains unclear whether the AFP will take over any of the NCA's
responsibilities, as recommended in a confidential review of the
organisation handed to the federal Government earlier this year.

Extra money may be offered to the states in order to help win their speedy
legislative co-operation needed for the approach.

On Saturday, The Weekend Australian revealed a campaign, led by the Prime
Minister, against the 18-year-old crime-fighting body, with the aim of
killing it off and handing its powers to the AFP and a new Australian Crime
Commission.

Mr Howard publicly criticised NCA chairman Gary Crooke for advocating
legalised heroin trials. During the 2001 election campaign, the Prime
Minister said it was time to consider the "reformation, abolition or
replacement if necessary of the NCA". The review to the Government is
contradictory, warning that the NCA has "lost the confidence of key
stakeholders". But it also says its performance began to improve after
recent internal and legislative changes.

Other law bodies have become increasingly concerned the NCA has been
launching investigations on its own initiative rather than acting strictly
under references from the states.