ORGANISED crime syndicates have infiltrated Australian airports, with corrupt baggage handlers, Customs officials and airline staff suspected of smuggling drugs and firearms into the country.

Federal authorities, trade unions, border-protection groups and airlines have revealed there are gaping holes in aviation and maritime security.

A new federal parliamentary inquiry, into the adequacy of aviation and maritime security measures to combat serious and organised crime, has been told less than one per cent of air cargo is physically examined and catering trucks are never searched.

The extraordinary evidence was given in public hearings in Sydney on Friday and Melbourne on Thursday.

Evidence presented by NSW Police Deputy Commissioner Dave Hudson was so sensitive it was heard in a closed session with no public access.

The Australian Federal Police Association claims the current "declare" or "nothing to declare" customs system also allows drug mules to freely smuggle illicit drugs without being caught.

"The introduction of the voluntary 'declare' or 'nothing to declare' process at Australian airports has increased the ability for organised crime to utilise mules to transport narcotics and other illicit goods through the Customs barrier undetected," the Association's submission states.

The Australian Services Union is also critical of the honour-based system, saying it is inappropriate that international passengers are allowed to bypass scrutiny.

Qantas' submission to the inquiry admits corrupt employees could misuse their positions to perpetrate unlawful activities and facilitate criminal and terrorist activity.

"The potential for a trusted insider (airport/airline employees, contractors, security personnel, retailers, etc) to circumvent security measures and use their knowledge of the environment is an ongoing consideration for aviation industry participants," it states.

Labor senator and committee chairman Steve Hutchins, who oversaw two public hearings last week, admitted border security was lax.

"We are not at all impressed about what appears to be the ease with which people are able to access maritime cards let alone aviation security cards," he told The Sunday Telegraph.

"Over the years, it's been proven that on the waterfront and in airports, there are clearly people who have links to organised and serious crime. Whatever we can do we should do to root them out and make sure that illegal drugs and firearms aren't on the streets."

Senator Hutchins said he was also disturbed by claims that people accessing areas near baggage handling services did not have aviation passes.

The Transport Workers' Union national secretary Tony Sheldon said catering materials and air cargo were rarely inspected and that a delegate with 20 years experience was only aware of one inspection in the past year.

According to Australian Customs, fewer than 40,000 of the 6.1 million pieces of luggage screened by X-ray are physically opened and searched.

The Parliamentary Joint Committee on the Australian Crime Commission is expected to hand down its findings later this year.

During a public hearing in Sydney on Friday, Mr Sheldon said airport security was flawed because companies were "trying to do it on the cheap" and not training enough staff.

Mr Sheldon was particularly critical of the main screening system for airport employees - the aviation security identification cards, or ASIC, system.