Asked about reports that the Lucas Heights nuclear reactor had been identified as a terror target by Willie Brigitte, Ruddock said: "It is subject to an ongoing inquiry".

Ruddock refused to comment further on the claims published by The Australian newspaper and Australia's nuclear energy agency referred all questions to Ruddock.

"There are a number of locations in our community, which are essentially vulnerable," Ruddock said. "Part of the nature of intelligence is to work out locations that could be at risk."

Without identifying its sources, The Australian said Monday that Brigitte, 35, may have been plotting an attack on the reactor, on the southern outskirts of Sydney, or on defence facilities in Sydney.

However, it was not clear if the idea of attacking nuclear or military facilities was a worst-case scenario or stemmed from actual intelligence, the paper said.

The Australian also reported that audits of telephone calls had revealed contacts between Sydney's Islamic community and people in Pakistan who are of interest to Western intelligence agencies.

On Friday, Australia banned the hardline Pakistani militant group Laskhar-e-Taiba, who one man questioned in relation to Brigitte is alleged to have had ties to.

The group is one of the most hardline in Pakistan, is active in Indian-controlled Kashmir and has been blamed for a series of terrorist attacks in India. David Hicks, one of two Australians held the United States forces in Guantanamo Bay, Cuba, had links with the group, his father has said.

Ruddock on Monday slammed the existing powers of Australia's spy agency as "third or fourth best", and insisted they needed to be beefed up.

Ruddock told a forum on law and terrorism that the recent capture and interrogation of Brigitte had highlighted the weaknesses.

Earlier this year, Australia strengthened the powers of the Australian Security Intelligence Organisation, giving it the power to detain and interrogate people for up to a week.

But Ruddock said the measures had been watered down as they went through parliament and were inadequate. Issues such as the need for an interpreter halved the interview time, he said.

"I do not believe their powers are sufficient for their purpose," he said.

Ruddock has launched a review of those powers. A bill before parliament would eradicate the need for a terrorist organisation to be banned by the United Nations before it could be banned by Australia.

"The process is cumbersome and it's impractical. It limits the capability and the authority for the government to act," he said.

Brigitte was deported to France last month, where he is now being held over alleged terror links. While in Australia he married an Australian convert to Islam who had previously served in the Australian military.

WAR.WIRE