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Seven arrested as police foil planned Christmas Day terror attack in Melbourne

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A Christmas Day terrorist plot targeting Melbourne landmarks has been foiled after police conducted raids across the city's north west.

Seven people have been arrested and five are in custody stopping what police chief commissioner Graham Ashton said was a potential multi-mode attack at Federation Square, Flinders Street Station and St Paul's Cathedral.

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Melbourne Christmas day terror plot foiled

Police chief graham Ashton said police have foiled a potential multi-modal attack in Federation Square and St. Paul's Cathedral on Christmas Day. Vision courtesy ABC News 24.

He said the attack, using "explosive devices" was "mostly likely" set to be carried out on Christmas Day. 

The five in custody are a 24-year-old from Meadow Heights, a 26-year-old Dallas man, a 22-year-old Campbellfield man and two 21-year-old men, one from Flemington and the other from Gladstone Park.

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A 20-year-old woman and a 26-year-old man, both from Meadow Heights, were released without charge.

Apart from explosives, police also suspect guns and knives may have been used. Police said the suspects were "self-radicalised" but inspired by Islamic State.

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Counter-terrorism police were questioning five people in custody and they are expected to face court later on Friday. Police anticipate laying charges in relation to "acts in preparation of a terrorist event."

Prime Minister Malcolm Turnbull said the planned attack was "one of the most substantial terrorist plots that have been disrupted in recent years".

In strong words condemning the plot, Mr Turnbull said: "What these criminals seek to do is kill us but they also seek to frighten us, to get us to abandon our Australian way of life.

"They want to divide Australians. We will not let them succeed.

"I want to thank the men and women of the police in Victoria, the Australian Federal Police and ASIO and other agencies for their work in thwarting this terrorist activity, which was an Islamist terrorist plot inspired  - as the Victorian police commissioner just observed a moment ago - by Daesh or ISIL," Mr Turnbull said in a press conference.

He outlined that 12 major plots had now been disrupted since September 2014, when the terror threat level was raised to "probable", and 57 people charged as a result of 25 counter-terrorism operations.

"This news will be of great concern to all Australians. We are approaching the Christmas season, a time when we come together in peace and love, with our families. We congregate in public places for Christmas, for New Year's Eve. It is a time of happiness and joy.

"These terrorists sought to disrupt it. They have been thwarted. They are in custody. They are no longer a threat to Australians' security."

Police said these men were Australian-born and in their 20s - except for one Egyptian-born man. Police said some had a Lebanese background. 

Chief Commissioner Ashton said police executed search warrants in Flemington, Meadow Heights, Dallas, Campbellfield and Gladstone Park overnight as part of Operation Kastleholm. The counter-terrorism operation also involved Australian Federal Police and ASIO. 

"These individuals have been persons of interest for some period of time," he said. "They're people we have been concerned about for a period of time."

He said intelligence led police to step-up their investigation in the past fortnight. Surveillance of the suspects conducting reconnaissance at Federation Square lead them to believe the area was the intended target. 

"If this had gone under guard, this would have been a significant attack," Mr Ashton said. 

Mr Ashton said the raids had neutralised any terrorist threat to the city on Christmas Day.

"Everything that we're getting at the moment indicates we have done that," he said.

There was no suggestion of international assistance to suspected terrorists, police said. 

The raid found evidence an improvised explosive device was being constructed.

"The attack had the potential to cause significant community harm," Mr Ashton said. 

"The community should be concerned but should be reassured that we have got on top of this particular issue. 

"The sort of threats that were presented really try to want us to cower before terrorism, but this is a clear example of where we don't cower before terrorism. We get on, we get out and enjoy Christmas, enjoy our new year." 

Police were conscious of a Berlin or Nice style attack with a heavy vehicle, but there was no evidence to suggest that was going to happen in Melbourne. 

Extra police will be at major events in coming weeks including the Boxing Day test and Carols by Candlelight. 

St Paul's Cathedral featured in an Islamic State propaganda video released last month.

The footage, released on November 7, contained confronting images of beheadings, corpses and missiles in the Middle East, before a shot of Melbourne's cityscape appears.

The scene is followed by a blast at a mosque and then images of Melbourne Airport and St Paul's, on the corner of Flinders and Swanston streets in the CBD.

Melbourne was the only Australian city to feature in the 20-minute video, titled The Impenetrable Fortress.

Services will proceed at St Paul's Cathedral as planned over Christmas.

Very Reverend Dr Andreas Loewe, the Anglican Dean of Melbourne and St Paul's, urged Victorians tempted to point fingers to instead think of peace.

"St Paul's is one of Melbourne's most iconic religious buildings, a symbol of faith in our city and we work very hard to promote a degree of reconciliation between different faith communities in our city," Dr Loewe said.

"I believe this may well cast fears in peoples' hearts and minds and may well also point the finger at particular groups and I would want to encourage the people of Melbourne to enjoy their christmas celebrations and to promote the values that Christmas stands for.

"I would encourage people to celebrate Christmas wholeheartedly, confidently and with great joy and particularly at this time giving thanks for our police and those working tirelessly to keep us safe."

Premier Daniel Andrews said the work of authorities had stopped a very serious matter and that there would be increased police presence at large gatherings.

"These threats are not notional they are very real right across our city and our state," MR Andrews said.

"Victorians should go about their business; this is a very special time of the year."

In an environment in which "we cannot mitigate all risk," the Prime Minister also called on people to keep their eyes open and "speak up" if they see or hear anything suspicious, urging them to report it to the national security hotline.

Opposition Leader Bill Shorten said the arrests were concerning but echoed calls for Australians to enjoy the Christmas season as they normally would.
"The few extremists in our community who would wish to disrupt the Australian way of life, they win when we give up."

Federation Square venue managers have said they were shocked to learn the tourist hotspot was a target.

Beer Deluxe venue manager James Curran said he felt "distressed" when he first heard the news. "Especially that it was planned for Christmas," he said.

Mr Curran said he was expecting the day's trade to be quieter than usual as many CBD businesses had closed for the year. He said no one had called to cancel bookings.

Elizabeth Velevski, manager of Federation Square restaurant Arintji, said she was "worried and concerned". "Everyone is living on the edge at the moment," she said.

A staff member from Taxi Restaurant said staff arrived at work in shock.

Most Federation Square restaurants, businesses and galleries will be closed on Christmas Day. Those which will trade are Mama's Gozleme, Melbourne Day Tours, which will close early, and Taxi, which will open for lunch.

- With Alexandra Laskie

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