The land which used to import criminals as its major economic activity is now complaining that cyber criminals are turning the country over. (I wonder why your ancestors ended up down there... sub.ed.)

Alastair MacGibbon, a cyber security expert, says the government needs to impose tighter control on ''backyard'' internet providers and adopt an enforceable code of conduct. MacGibbon said that the Aussie government was slow and reactive and failed to combat cyber crime and espionage, which cost billions of dollars a year and threaten the security of government agencies and businesses.

He said that while the 'softly softly' approach had allowed Australia to develop its internet capacity in a relatively unfettered and competitive way it was at the cost of safety and security, which may now be inhibiting future growth.

Foreign hackers were having a field day in Oz carrying out economic espionage and the government needed to do more to expand its intelligence support for the private sector.

The report says the implementation of a national broadband network should be matched by a more extensive cyber security plan because the boost to internet speeds will lead to increased computer use, he said.