The New South Wales Counter Terrorism Exercise Programme is an integral part of the Government's measures to ensure preparedness for a terrorist attack.

Exercises involving simulated terrorist attacks are held to test counter terrorism capabilities. These exercises require access to and use of New South Wales Government owned land, facilities and assets including the rail network, power generation facilities and water infrastructure. Access to private sector assets is sometimes also required.

The following whole of Government approach is to be applied to the risk management of exercises conducted under the New South Wales Counter Terrorism Exercise Programme:

• Deeds of indemnity will not be issued to Government agencies. Government agencies are accordingly asked not to request a deed of indemnity in respect of any exercise.
• Deeds of indemnity will not be issued to private sector parties that provide assets for use in an exercise, unless the New South Wales Counter Terrorism Exercise Steering Committee determines, in consultation with NSW Treasury, that there are exceptional circumstances, which justify provision of an indemnity.
• Provision of a Certificate of Currency adequately demonstrates that appropriate insurance cover is in place to meet any liabilities. Accordingly, the New South Wales Counter Terrorism Exercise Steering Committee should, on behalf of the agency or agencies designated as the "responsible" agency or agencies for the purposes of the exercise, provide a Certificate of Currency to those agencies and private asset holders that have agreed to allow an exercise to be conducted upon or around their land, airspace or waterways.
• In the event of a loss, risk allocation should occur on a fault basis; whereby the Government agency, private asset holder, or other party whose negligence caused the loss will be responsible for that loss.
• Where the loss is not suffered as a result of one party's negligence, or it is not possible to identify which party was negligent, the agency designated by the New South Wales Counter Terrorism Exercise Steering Committee as the "responsible agency" for the relevant exercise site will be liable for the loss. In appropriate circumstances the loss may be apportioned among a number of relevant agencies.
• Any disputes arising between Government agencies are to be resolved in accordance with Premier's Memorandum 1997-26 Litigation Involving Government Authorities.
• Any disputes arising with private sector parties are to be resolved by the "responsible agency".

Chief Executives are asked to ensure that this approach to the risk management of exercises conducted under the New South Wales Counter Terrorism Exercise Programme is complied with.

State Owned Corporations are encouraged to adopt this approach as part of their policy.

Morris Iemma
Premier

Issued by: Premier's Department
Contact: Veronica Lee
Phone: 02 8374 5131
Email: [email protected]
Date: 26 September 2006
This Memorandum does not supersede any other Memorandum or Circular.