The three pillars of Labor's foreign policy and the war against terror

Finally, a Labor government will continue to deploy the RAAF Orion detachment and ships like the HMAS Stuart in the Gulf under Operation Slipper. The frigates' role is to protect major Iraqi oil terminals at the head of the Gulf. This will continue under Labor, as part of the counter-terrorist functions of the deployment.

Labor's highest priority in the war against terror is south-east Asia.

Unlike Iraq and Afghanistan, this is a region where Australia's engagement must be permanent. This is not just a matter of geography: it is because of our economic and military weight in the region and our expertise. We are a more valuable ally to the United States here than anywhere else in the world.

This imposes a serious discipline: we have to calculate every action taken by ourselves and our allies for the contribution it makes against terrorism in the region.

Australia must engage more effectively with Asia - the third pillar in Labor's foreign policy. In the past, Labor governments were able to shape the pattern of regional arrangements, most notably through APEC. The Howard government, trying to position itself politically against us, has produced statements designed for the 24-hour news cycle. But in the region, they resonate for years.

With his "Deputy Sheriff" comments, Mr Howard turned our beneficial relationship with the United States – as seen by the region – into something more awkward. His advocacy of the now defunct doctrine of "extended pre-emption" – a position Australia could never pursue without local support – again compromised Australia's capacity for regional leadership.

Mr Howard did not prepare the ground for the Iraq engagement through diplomacy in the region. This failure, in particular, has undermined Australia's capacity to build trust among the local Muslim states. To be a useful ally in the war against terror, we need to remove all impediments to Asian engagement.

Closer co-operation with Indonesia is an essential part of this strategy. We need to confront both the immediate threat of terrorism and the underlying social and economic factors that give rise to terrorist recruiting grounds.

Labor recognises that more needs to be done to strengthen Indonesia's counter-terrorism capacities. The new Indonesian National Police faces enormous funding, training and operational challenges.

A Labor government will provide further funding so Australian Federal Police can assist the counter-terrorism work of the Indonesian Police. These two initiatives, in education and policing, will cost $37.5 million over two years.

The war against terror is a long, tough war. The starting point for Australia is the field of jihad in which we live. The Howard government carries too much baggage to effectively engage with south-east Asia. Its actions in Iraq have made us a bigger target and diverted resources from the real war against terror.

Labor has an alternative vision and strategy in these dangerous times. We believe in time-limited deployments in areas where we do not have strong permanent interests; closer engagement and permanently building our security in Asia; and we see every aspect of this war - our relations with the United States, our relations in the region - from the viewpoint of what maximises the security of our people and our friends.