Former independent MP Tony Windsor, who is now considering a return to federal politics, says he does not think the Australian Border Force (ABF) announcement was a mistake, but rather an attempt by the Government to engender fear in the community for political advantage.

Yesterday, the Federal Government announced that ABF officers would take to the streets of Melbourne's CBD in a joint effort with Victoria Police to crack down on crime and visa fraud.

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The operation was quickly called off, however, after hundreds of protesters stopped traffic in Melbourne's CBD, concerned about a possible attack on civil liberties.

Speaking to AM this morning, Mr Windsor said he "had no doubt" the operation was a government decision aimed at sparking fear into the public.

"If anybody had any illusions as to this agenda of Abbott's [Government] at the moment, in relation to creating fear in the domestic community, I think this exercise — this farcical exercise — in Melbourne really lays it out in front of most people," he said.

He said only a few weeks ago the Government "was calling upon the security people to have something ready every week for them".

"Now we see this week's episode — on top of possible attempts to go to war in Syria — this farcical situation developing in Melbourne, where citizens that have done nothing wrong are going to be seen [and] interrupted in the streets by these people in these magical mystery tour uniforms that they're parading around in.

"It is to create fear in the eyes of the community. It is to create a circumstance, similar to John Howard's Tampa circumstance, where people suddenly rush to one side of the political debate.

"It is an absolute disgrace."

Labor, the Greens and the union representing ABF officers are demanding answers from Immigration Minister Peter Dutton over the operation.

But Mr Windsor said the project could have been signed off without Mr Dutton's approval.

"Maybe Tony Abbott's doing more 'captain's picks' in relation to this. He might be circumventing Peter Dutton's ministerial portfolio," he said.

"But I can understand why Peter Dutton wouldn't want to stand in front of this. There is no way you could defend doing this in a country like ours."

Operation part of 'frightening' election agenda

Mr Windsor said the Abbott Government's election agenda had been strongly based on "fear-producing rhetoric".

"It's all part of a very sad agenda, in my view, to actually frighten people," he said.

"I've got no doubt that some of these people in Abbott's Government hope that something goes wrong domestically — that they can taunt a Muslim into doing something, so that they can say that 'we're the only ones that can protect you, the Labor Party are too weak to protect you, vote for us'.

"Well, I think that's an extraordinary agenda to go to an election on."

But he said engendering fear into the community was not an effective means of governance.

"The worst thing — and probably one of the best tools that bad governments can use, but the worst thing in terms of governance they can use — is to create fear within their own community," he said.

"We've had this constant barrage of fearful innuendo, fearful messages, press releases, and this is just another one on top of this barrage of fear-producing rhetoric that's been coming out of Tony Abbott, Peter Dutton and others.

"I just can't believe that a Liberal Party could actually be standing back and allowing these sorts of activities to happen in one of our major cities."