The Joe Walker Podcast - How Government in Australia Really Works — Glyn Davis & Terry Moran
Episode Date: December 22, 2025Glyn Davis and Terry Moran are two of the very small number of Australians who have literally sat in the Cabinet Room, week after week, watching the machinery of federal government operate from the in...side. Both served as Secretary of the Department of the Prime Minister and Cabinet (PM&C) — the most senior public servant in Canberra. Terry held the role from 2008 to 2011 (including during the Global Financial Crisis). Glyn held it from 2022 to 2025 (including the tail-end of the pandemic). Sponsors Vanta: helps businesses automate security and compliance needs. For a limited time, get one thousand dollars off Vanta at vanta.com/joe. Use the discount code "JOE". To sponsor a future episode, go to https://josephnoelwalker.com/sponsor/See omnystudio.com/listener for privacy information.
Transcript
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Hi everyone, a quick note before we start. This conversation was recorded on the 8th of December, about a week before the Bondi terrorist attack, so that's why you won't hear us reference it.
Like all of you, the attack made me deeply sad. I'm also very angry. I feel a sense of loss of innocence for Australia.
While it was recorded before the attack, there's a lot in this discussion that's broadly relevant to the decisions governments have been making and will keep making.
I hope you learn as much as I did. Thanks.
It's hard to convey just how demanding it is,
whoever you are, if you're the Prime Minister,
to say the exhaustion, you can see the exhaustion
on the faces quite quickly.
Have Prime Minister been getting more powerful in Australia?
There's a very interesting Canadian study by Professor O'Connor,
but basically says the core executive,
the centre of government,
reconfigures around each Prime Minister,
that the Prime Minister is such an important part of the system
that the system actually adjusts around them.
And that's a really interesting,
observation, it tells you that the core institutions are relatively
malleable, that is they can change quite quickly in response to
personalities. But it also probably tells you that you can't leave a
lasting mark. As secretary of DPMC, did either of you ever
actually sit in on meetings of the full cabinet?
Yeah, every week. Yeah. In the full cabinet meeting?
Yeah. Oh, that's so interesting. And in most committee meetings,
including national security and ERC. So you, so you guys saw everything in the
cabinet process in certainly in the Commonwealth but overall you need things to keep moving above all
you need them to keep moving you've only got two hours max to get through 10 of the most
significant policy items in front of the nation every week and if you can't do that efficiently
then sooner or later people are going to get very angry all right so today it's my great
honour to be chatting with terry moran and glynn davis i'm not going to read out their full
impressive resumes but most relevant to this conversation
They've both been secretaries of the Department of Prime Minister and Cabinet,
so the most senior public servant in Canberra.
Terry was secretary from 2008 to 2011,
and Glynn was secretary from 2022 to 2025.
Today we're going to chat about how government in Australia really works,
and I'm going to play the role of an overly inquisitive, borderline, annoying intern,
and ask a bunch of naive questions.
So welcome Terry and welcome Glynn.
Thank you.
Thank you.
So after my last episode with Hugh White, I had this feeling that it was sort of table stakes for political leaders and public intellectuals alike to understand the causes of the First and Second World War.
Having spent a week kind of preparing to talk with you about how government really works, I have a similar kind of sense.
I feel like for people who want to contribute to the national conversation, it's sort of table stakes to understand how government in Australia works.
And the interesting thing is that neither the Prime Minister nor the Cabinet are mentioned in the Constitution or in legislation.
Their functions are defined and shaped by conventions.
And reading the details about those functions and how Cabinet works, how government works was quite interesting.
Some of the details are quite strange.
So I want to get into all of that with you too today.
But the first question is, what is the biggest thing that well-informed Australians, people like the members of my audience,
get wrong or don't understand about how federal government works at a day-to-day level.
Jay, thanks for that.
The impossible question, of course.
I'm going to actually throw it back to you.
You did a really interesting piece of work late last year, early into this year,
around the quality of services in Australia and around the quality of Australian governance.
And that showed, perhaps to the surprise and even embarrassment of many Australians,
that we turn out to be quite good at this.
that by international standards, governments are efficient, effective, non-corrupt,
all the things that you would hope in a democracy, but aren't always true.
And that the quality of the services that's delivered is high,
which is not to say they're infallible and certainly not to say they couldn't be improved
or that they're on problems, but it is to say, in comparison, we do this really well,
which takes you back to that interesting question about why.
What is it about the combination of institutions and practices and cultures that have got us to this place?
And Australians have a talent for bureaucracy, which that makes us cringe, how little will we like that?
But it is, there's something in it.
We are good at this, we do it well, and it shows up in the quality of our services.
I think if you put that as a proposition to many Australians, they would be bemused, if not outraged.
I agree with that, but I think it's also the case that there's a bit of a deficit.
in the general understanding of government and how it works,
and particularly still, to my surprise,
not much understanding of what the Commonwealth does
versus what the states do.
And therefore, that undermines accountability
for things that could work better,
like hospitals, for example.
And on the federal divide,
I remember talking to the local manager
of the Services New South Wales office,
and I asked him,
So what's the single most common inquiry in this office?
And he said, it's how do I put in for a Medicare refund?
And he said, well, that's a Commonwealth Manor,
but I just happen to have a draw here full of forms.
So I'll just hand one over every time it comes up,
which is a nice piece of cooperation, I thought.
Yeah, well, when Dr. Nugget Coombs led the Royal Commission
into Australian Government Administration established by the Whitlam government,
he came back with a conclusion that there was a need for the Commonwealth Government
and the States to work much more closely in delivering services at the local level.
And the states were probably up for it, but the Commonwealth never was, and so it didn't happen.
And that, to me, is one of the opportunities lost because that would have made a quite significant
contribution to improving the quality of what government does in Australia.
Seems like they're coming to get us, Terry.
Oh no, they've gone away now
It's interesting on Nugget Coombs
You know in
1988 when we had the
Bicentenary celebrations
The person who won
Australian of the century was Nugget Coombs
It wasn't
But I think that says something about the kind of talent
For bureaucracy
It wasn't an entrepreneur or a scientist
It was Nugget Coombs
With very good reason
A remarkable Australian
Who did some terrific things
Yeah
Yeah.
So I have some questions about the role of the prime minister and then what you might
call the core executive.
So as I said, until about a week ago, I kind of thought I vaguely understood how government
in Australia works.
I quickly realized that I didn't.
But one of the things I did was reading some cabinet diaries just to try and build like
a visceral sense for the tenor of what happens in cabinet.
And the two that were most interesting were Neil Blewitt's cabinet diary and then
Gareth Evans is. And Pat Weller, who was Glynn's thesis supervisor, he said that Neil Blewett's diary,
which focuses on the first term of the Keating government, can be read as a, quote,
constant search for the site of real power within government. And it's so interesting that
even a figure like Blewett, this is a guy who was a Rhodes Scholar, a professor before going
into Parliament. He was health minister for seven years in the Hawke government, then held a couple
of other portfolios in the Keating government.
Even Bluitt could never quite pinpoint the location of power in Canberra.
Maybe it's worth just reading out this quote because I think it's so revealing.
So this is from Bluett's Cabinet Diary on the 6th of August 1992.
He goes into the PM's office to try and settle some issues.
Quoting Bluitt, gathered in the PM's office were Willis and Dawkins,
the PM and an array of key personal and public service officials.
Many of these people have more influence than us ministers.
My whole experience of ERC, that's the expenditure review committee,
confirms my belief that the closer one gets to what one thinks is power,
the more it seems to recede.
I've always assumed that the critical committee of government is the ERC.
Now it is obvious that members of the ERC,
apart from the treasurer and the finance minister,
a second-class citizens.
None of these second-class participants knows the full extent of the outlays and revenue side,
nor do they participate in all the numerous side deals made in the margins of the committee.
End quote.
So that's a long preface to the following question.
Where is the locus of power in the Australian government today?
In other words, if you could draw me a diagram, who or where is the core executive?
Well, if I were doing it, I'd draw a big circular spot on the table
and I put a lot of little circles in the midst.
all of which were important activities that had to find a relationship to all the others,
but none of it was in the control of one person.
So the expenditure review committee, policy committees of cabinet on various things,
and people who deal with foreign policy and defence,
all of these things go to the heart of what the national government is on about, plus more.
And to an extent, one of the things that's commendable about the Australian system government
is the people who have positions within that bigger circle talk to each other quite a lot.
And occasionally they talk to the states as well.
So interestingly, he's describing the Hork government.
He's describing old Parliament House because that's where that meeting would have happened
because 1980 is when the year they moved up the hill, as it were.
which if you as you can you can walk through it now you can actually go to bob hawk's office
it's being left set up exactly as it was on the night by all left and moved up the hill so you can
walk through the office that he's describing and the first thing it'll strike you is how small it is
so all those people are in it it's a very crowded space which is true of that whole building
there's 2,000 people working in a building that wasn't meant for anything like that number
And he's rightly describing the fluidity of who comes in and out of the rooms.
A group of Terry, it's not, there isn't an inner circle that controls everything
because everything is too fluid and too expansive for one group.
It depends on the issue, it depends on the focus of interest.
If for the Prime Minister it's a really important topic, yes, they'll buy in.
That's a small percentage of everything that's going on in government.
A lot of things will be settled by ministers getting together and one or another of the ministerial suites.
It'll be settled by a minister saying to a secretary, go and sort this out.
I don't know what the answer is, but I wanted to go away, fix it.
There isn't a single locus of power.
Obviously, the prime minister is a key player, as is the treasurer, but not on every issue.
They haven't got time to focus on every issue.
So what you're seeing is just a constant reordering of the agenda.
a constant flow in and out of people and suggestions and ideas, controlled through a set of routines
expressed through the cabinet handbook and through the ERC rules, I want to call the B-POS,
the budget operating rules, and other processes.
But those routines are to try and get a bit of a handle on so much that's going on and put
them through recognisable channels, so there's legitimacy to the decisions that are made
because two ministers talking by themselves in a room can decide something,
it's still got to go through some sort of process
so that it's recognised, recorded and acted on.
And that's why these routines are very important.
And these routines, in a sense, run everybody, including the Prime Minister,
who is at the centre of them, but nonetheless not so much in control
of it, it can just rely on a decision by her or him.
And ministers can't spend money just because they'd like to spend money.
They have to have it approved through either consideration of an issue by the treasurer or the finance minister
or more commonly considered by the expenditure review committee.
And similarly, many things can't go far unless somewhere, some were in the bureaucracy,
somebody has given some thought to, well, how would we do this and would it work?
And if they do that and then usually feed it into the prime minister's department,
if the answer is this will be a disaster, that stops it.
Right, right.
Yeah.
And there's the famous apocryphal piece of advice.
If you are going to do this damn silly thing, Minister, don't do it in this damn silly way.
Yes.
So we might come back.
And by the way, going back to Nugget Coon.
Nugget Coombs was brilliant at charming ministers all the way up to the Prime Minister.
I worked for the Whitlam government when Nugget was.
doing stuff there.
And he had quite an impact on Groff and the senior ministers.
Jim McClend, listen to what Nugget was trying to say.
And occasionally there are senior public servants of experience that are like that.
Yeah, I remember reading in this Pat Weller book about how I think Roland Wilson used to come
into cabinet meetings and give ministers his kind of opinion on economic issues and that
really took his opinion seriously.
Every now and again you get an individual
so respected and powerful in their own right
that they can't be ignored.
And the case I most cherish
is from Victoria, not the Commonwealth.
And after the First World War,
when the fire that lit the fuse
that caused the war,
after Sir John Monash came home,
he was good in charge of building
the electricity network that still serves Victoria.
And he did a stunning job of basically building electricity infrastructure in a state that didn't have any or not enough.
And there was a time which is recorded via Sir Robert Menzies when he was a state politician before he went federal,
where the cabinet met to discuss the SEC's next budget proposal and rejected it because they just didn't have that sort of money.
And the next week when they met a sort of embarrassed attendant came in while they were mid-meadding to say,
Premier, Sir John Monash is waiting outside to see the cabinet, not that he'd been invited
or anything, and they didn't know what to do, so they asked him in.
They all stood up because that's what you did when Sir John Monash came into the room,
and he went to the front end of the table, sat down and said, gentlemen, I understand that
last week you rejected my proposal for further funding for the SEC.
That's obviously because you didn't understand it.
I'm now going to take you through it.
Wow.
He took them through it, and at the end he said, I take it, we are all agreed.
got up and walked out.
There are not many people who could pull that off, but it's spectacular.
In the Kane years, John Kane's administration, ministers would have to go and try and
see individual departmental heads about issues that they wanted to fix.
Normally it should have been the other way around that the ministers would have called
in senior public servants, but what the Kane government in the Hean government in the
from the previous Liberal government was a significant level of respect for the most senior
public servants, which went to the point of senior public servants feeling that if they had
an important issue, they should be the ones who called on a minister, sorry, the minister
should call on them rather than the other way around.
That's all gone now too.
That's a distant but fond memory.
Yeah.
Have prime ministers been getting more powerful in Australia?
There's a very interesting Canadian study by Professor O'Connor for 30 years old now,
but it basically says the core executive, the centre of government,
reconfigures around each prime minister,
that the prime minister is such an important part of the system
that the system actually adjusts around them.
So some prime ministers are more dominant than others,
some are more interventionist than the others,
but in a sense their preferred style of it comes to dominant,
the process.
And that's a really interesting observation.
It tells you that the core institutions are relatively valuable, that is, they can change
quite quickly in response to personalities.
Right.
But it also probably tells you that you can't leave a lasting mark, that you can change
the dynamics where you're the prime minister, but when you go, the system will reconfigure
around the next person.
So some prime ministers are more powerful, others aren't I can't see a trend.
Yes.
If a prime minister doesn't worry about consulting with his or her ministers,
and goes freelancing, they're going to face a bit of a rebellion from amongst the ministers
that could end up being a little bit tricky for the Prime Minister.
And so most Prime Ministers expect that if there's an important issue,
they'll hear about it from the Minister concerned,
and they shouldn't be facing any surprises at any point.
Usually ministers understand that,
but there are occasions when they don't or don't want to understand.
understand it.
And we have seen some Prime Ministers come to grief.
Yes.
Yes, some fairly recent times.
That's right.
So that's a constraint on the power.
As you say, it's not in the Constitution, you're not elected to Prime Minister.
You're elected by your party and not by the people.
So you're only there as long as the party is willing to tolerate you, whoever the party is
at the time.
And as we've seen, prime ministers who fail to carry their ministry or just don't look like they're
coping with the job, get rolled.
So the very strength of the Australian system is in the collegiality of decisions at the top
being made on important issues so that the Prime Minister, the Treasurer, perhaps the Attorney
General and other ministers are all involved, both for technical reasons and for political
reasons.
And by and large, our system continues to work really well on that front.
Yeah, you see Prime Minister is very careful about how they get on with their ministers
and not wishing ever to humiliate them or, like I said, a lot of care goes into this.
Yeah, this seems to be an interesting thing that distinguishes Australia.
So you often hear claims that Cabinet government is dead in Canada and the United Kingdom
and it's been replaced by prime ministerial government,
or at least by a core executive that's not the full cabinet.
Whereas in Australia, that doesn't seem to have happened to the same extent.
Maybe that's because political leaders in Canada and the UK are elected by a broader group
than just the parliamentary party, whereas by contrast, Australian Prime Ministers are more vulnerable
to their colleagues.
Does that seem to be the reason we haven't gone down the Canada and United Kingdom route?
I think it's part of it, but the other reason is that our system,
seems to work okay, from everybody's point of view.
Yes, and I'm wondering whether the UK would still think they have prime ministerial government
after the sequence that took out all of those conservative leaders in a row so quickly.
That's a bit of a reminder that prime minister is not as powerful as the party that chooses them.
Yeah.
And for a government in power, you can't go through that process of consulting widely the
population and the members of your party because you've got to make a decision quickly.
And in Australia at the federal level, Prime Minister is looking to make a significant decision, have to be wary of different views coming from different factions amongst the ministers, both supportive and otherwise.
And a sensible Prime Minister, therefore, has got to find a way to settle everybody down and bring them on side.
So true or false, Anthony Albanese is more powerful within Australia than Donald Trump is within.
the US?
Well, he can't send off the bombers with nuclear weapons and destroy a whole country.
They're just domestically.
He can't unilaterally impose terrorists.
He can't arrest people and have them sent offshore.
He probably doesn't authorize the blowing up of so-called drug boats.
And like, I don't think it's a reasonable comparison.
I think the Australian Prime Minister is much more enmeshed in the parliamentary and executive
system than a US president, who is, after all, elected to.
to be a sort of elected king in a way
that our prime minister is not.
An important part of how the prime minister operates
is in the central agencies, not just prime minister
and cabinet, but also treasury and finance.
And no matter how good the political advisors are,
they'll never be as much on top of the detail
that those departments have got to handle for big decisions.
And therefore, they and the prime minister
have no choice but to listen to.
what the official advice would be.
So often you get an interesting dance in a sense.
So a prime minister or a treasurer or a senior minister
might have a view about what they want to do.
But they then have to turn to the bureaucracy
and say, there's a global pandemic on.
We need to find financial support for people
who've lost who can't work.
How do we do this?
And then you rely on treasury and or PM&C
and all sorts of people to put together the proposal
So you know roughly where you want to go.
But if you said to a minister, go and design me the technical specifications for our jobkeeper,
you'd be pointless.
They don't have the expertise or the skill.
So it is a partnership because you could imagine a department coming back and saying, we
can't make that work.
There's just no way that works.
Yeah.
Now you might then get an interesting situation where the government said, well, you're
just going to make it work and then you get disasters and those are not unknown.
But in general, what you're seeing, partnership is the wrong word.
It's not ever in doubt who's in charge, it's the ministers, it's the government, but it is the
idea that ministers, particularly for complex technical questions, need expert advice and they look
to the public service to get that.
And that's in a sense, when we talk about stewardship in the public service, we are in part talking
about public service maintaining the expertise to be able to respond to unpredictable circumstances.
So sometimes you have expertise in the public sector that you're not calling on all that often.
That's not really the point.
The point is you need it there.
Last week, in preparation for our chat,
I read through the 15th edition of the Cabinet Handbook.
You're a brave man.
The people is as tragically nerdy as me.
I recommend it.
You can get it on the DPMC website.
It's only about 50 pages long.
I think the new edition is due out soon.
It is.
We're all excited.
So reading the Cabinet Handbook,
the impression I got about the institutional source of the PM's power,
is that it largely seems to flow from the PM's ability
to set the agenda for cabinet,
because obviously if items can't be put on the,
if matters can't be put on the agenda,
then they can't usually can't be decided upon,
important matters at least.
And perhaps secondarily, the PM's power seems to flow
from their ability to determine the existence,
membership, in terms of reference of cabinet committees.
Am I understanding that correctly?
Yeah, but there are other elements in it as well.
The PM has got to have a sense of where the whole show is supposed to be going and also have
a sense of what people out in the community will make of whatever is proposed to be done.
And part of the Prime Minister's strength and premiers too is usually access to good quality attitudes
research on where the community is at.
And that's for a long, long time, been very important in the Victorian government, for example.
And that gives the head of government, the Prime Minister or the Premier, a bit of an advantage
in dealing with his colleagues.
But it also shows that the Prime Minister's got to make sure that if something's to be done,
it's not going to be something which blows up in the public's mind, collective mind.
I think you're entirely right, though, to say that control of the agenda is a really important
power, and it's not the only consideration, as Terry rightly points out.
But it is, it allows you to sequence when things are going to come to Cabinet.
It also allows you to defer things that you really don't want to have discussed for
a while or forever.
And as Harold Wilson said, a decision deferred is a decision made.
And so it does give you authority.
The communities are important as well because they report back.
But the most important of those committees, the expenditure review committee, although in some cases the PM is technically the chair.
In practice, the treasurer is the driving force in that committee and will decide the agenda.
The other thing to say about an ERC is because it's doing the budget process.
We're talking about hundreds and hundreds of agenda items.
This is not a small committee, whereas a cabinet meeting might have 10 or less matters, and they're all important and they're all mature.
That is they've done the work
that's coming up as the end of a long process
rather than just something that's been
dreamed up the week before.
And in that sense, they're more routine
because they get dealt with.
The recommendations are normally accepted
because they've all been tested and workshopped
and not always, but that's the normal pattern.
Whereas committee work, he's often about
earlier in the stage,
trying to think through the problem
and test the options
before you go to cabinet.
because most committees can't make binding decisions.
There's some exceptions,
the National Security Committee is an exception.
But in most places, the committee work is more about trying to get on top of the issue.
Cabinet is about making the legitimate, defining, authoritative decision.
So when the PM wakes up in the morning,
there's a sort of a multiplicity of different types of information
that he or she could read.
There's overnight intelligence updates from the Office of National Intelligence,
media summaries, draft, cabinet submissions, forward schedules for travel, et cetera, et cetera.
If you were PM, what would be the first thing that you would read on a typical morning?
Impossible question.
As you say, there's a huge amount of material.
But the moment you get to work, there's also a queue of people outside your office wanting to get in and talk to you.
And you're much more likely to spend time in meetings being brief than you are being able to read this material.
and sort of detail that it works.
But you rely on your staff to read it
and to highlight things that you need to know about.
So you get summaries of summaries of summaries coming through.
Yeah, and you particularly want to know
before you walked out the front door of the lodge.
Yeah.
Whether there are any really big issues breaking in the media that morning.
Yeah.
Because you probably won't be able to get into Parliament House
or anywhere else without being confronted by journalists
asking questions about that matter, whatever it might be.
Yeah.
So it's not all about the policy papers.
It's also about the public presentation of it and what the public thinks.
Yeah.
Absolutely.
And so one case in point from my time at the state level and the federal level, and I worked
for two state governments as well as, well as the Commonwealth government more than once.
The Commonwealth is short of quality research, attitudes research, in a way that is not a problem
in the state.
So in Victoria, when Geoff Kennett was Premier, by agreement, he set up a system of regularly
testing community attitudes to the services delivered by the state government.
And that meant that he had a sense of what was going wrong.
a sense of what the opportunities for new things were and subsequent ministers stuck
with it meticulously and it really had a big impact on the quality of decision-making
within the government.
Less so at the common level as you're rightly saying.
Yeah, it's not as much part of the machinery though.
Yeah, because at the state level in Victoria, both sides of politics agreed that it would
be a good thing that there was market research done on the delivery of government services.
Hmm. And just, so very briefly, paint me sort of a picture of what the PM's diary would look like.
Are they just kind of staggering from meeting to meeting, or what does a typical day look like in Canberra?
Well, it depends greatly on where the Parliament's sitting.
Right.
Because it's a completely different world when Parliament's sitting.
Yeah.
Let's start there.
So, yeah.
And when Parliament's sitting, the tactics meetings will start very early.
Like 7 a.m.?
7 a.m. or earlier.
And the PM may or may not float in and out of that meeting.
It's normally led by the leader of the House rather than the PM,
but nonetheless, the PM staff will be there
because you're deciding tactics of the day.
But you're also deciding what legislation you're bringing forward
and priorities and trying to game the way the day is likely to play out.
And you've got an eye to media and an O to your program.
The PM, meanwhile, will start the day over there
or in meetings with her or his own office,
where they do some of that briefing
that we've just talked about,
what's going on, what's important,
what have we got to get across today.
There'll be a tricky negotiation
with the secretaries who manage the diary
about who's going to get in and who's not
and how we're going to do that.
The number of people wanting to get in
are always vastly over.
Can the PM see their own diary?
I mean, I assume they're not using Google Calendar or something.
Does Parliament have its own software?
Oh, the PM can see, yes,
and we'll have on their table
a kind of printout
a little plastic folder with the printout
but it'll move.
But they won't, can they check it on their phone?
Absolutely.
Yeah.
And is this, is this proprietary software or something?
No, I don't think so.
Actually, that's a good question
to which I don't have the answer.
But I doubt it's, I suspect it's the same system
the rest of government users,
which is the same systems
as the rest of the world use.
Things like Google on Microsoft or Google.
But don't hold me that.
I actually don't know.
on the prime minister's office side
because I worked in the public service not
in that. Sorry, keep going.
So, you know, we're only up to eight o'clock or something
and already you've got a plethora of meetings.
There'll be a series of ministers hanging around
that, so I hope you to get five minutes.
There'll be the media advisor
who just wants one minute to discuss an issue
and there'll be lots of those.
And then there'll be formal meetings through the day,
diplomats, you know, insignificant people.
If Parliament's the thing, that's when all the big delegations turn up, the business council,
the unions, the people who want attention from the government, so you've got to deal with
all of those, they sit in your diary. Meanwhile, all the cabinet meetings still happen.
Community meetings in particular still happen, particularly if you're in the middle of the budget
process. So it's not uncommon for the bells to ring in the middle of a committee meeting,
and all the, if it's the reps, all the members having to stand up and walk out of the meeting,
including the Prime Minister, go and vote on a resolution
and then come back and pick up the...
However paltry.
Yes.
Yes.
And so everybody's watching the clock,
which has the red and the blue,
the red and the green lights on them,
because that's what tells you that.
Because inside the cabinet room,
it's silent.
You can't hear the bells,
but you can't seize the lights.
So here lies one of the differences
between the American system
and the Australian system.
Yeah.
In the Australian system, when the ministers are in Canberra, as they are often, they're
all clustered in Parliament House.
And the public servants they deal with are near at hand and readily accessible.
And so there's a constant flow of information into the centre of government located in Parliament
House in a way that isn't achieved in the American system.
That's true, although there's a fascinating difference between state and Commonwealth
here, as you know, from Victoria, also from Queensland, that although when Parliament sits,
that's where everybody is.
For most of the time, Parliament is not sitting, ministers work in their department,
premiers included.
And so they're much more sitting with their public servants.
They spend much more time with their public servants than they do in Canberra.
it's easy to go to a meeting and hear directly from people you need to hear from
whereas in Canberra if you're a public servant you have to go up to Capitol Hill in order
to have your meeting there's a lot of sitting around in corridors waiting to get in
it's not the intimate relationship you get at state level it's quite a different
dynamic I think in Canberra but just to finish so that pattern of rushing into the house
and then of course you have to go for you have to be briefed for question time you then have
to do question time if you're the Prime Minister,
which is a very significant commitment.
And all the time,
there's these people trying to get in to see you and trying to it.
And so it's hard to convey just how demanding it is,
whoever you are, if you're the Prime Minister.
And how someone like John Howard did the job for 13 years
without falling over is a singular achiever.
I have to say, the exhaustion.
You can see the exhaustion on the faces quite quickly.
it is the most demanding of roles,
and not just for the Prime Minister,
for the Treasurer and lots of senior ministers as well.
And Parliament House reinforces this
because it's never ending.
There's no escape, in a sense.
If you're the Prime Minister,
you are the centre of attention
the whole time, wherever you go.
And just how do you get any off time?
How do you get to stands?
Which is why the lodge makes sense
as a place that you can escape to behind a wall.
And there are some differences
between, say, Victoria
and the Commonwealth.
in Canberra. In Victoria, years ago, when the colonial administration was being set up
before the Commonwealth was formed, it was influenced by the Northca Trevelyan report and the expectations
that created for politicians of a competent public service. And in Victoria, from time to time,
people would question whether the people are any good and that would be an opening for the
advisors to jump in and join the dots if it wasn't immediately apparent what should be done.
And so we now see debates about the ability of the public service to properly serve government.
of those positions which are critical are well placed, in part because these days
Commonwealth and state bureaucracies are over-influenced by the enthusiasm of microeconomists
and macroeconomists, who in their enthusiasm can bedazzle heads of government, whether
it's at a state or Commonwealth level. And so there's a bit of a problem in our system, which
is that we've allowed it to be too weighted in favour of economic enthusiasms without putting
beside that a really good understanding of what's going on in the community and how they feel
about hospitals and schools and migration and all that sort of stuff.
And unless premiers try and take account of that, they get into trouble.
Is there anything else interesting to say on what...
an average non-sitting day looks like or is it just kind of much the same?
Just the same without having to go into the train.
Yeah.
They are full dose.
But of course, Prime Ministers also travel a lot domestically.
And so a Prime Minister would, when Parliament's not sitting, would be much more likely
to schedule meetings into state to go and do openings and do all of those things.
Many of which are programmed a long way out.
So you're sort of committed to the program.
It gets very difficult if something arises that changes the dynamics, which
only intensifies the time pressure because often you're under pressure to do it anyway
but you've had to divert to some other more immediate issue and so you're constantly trying
to make up the lost time. It is demanding, exhausting and it requires a degree of good grace
from everyone involved to recognise what's being asked of an individual.
Yeah. Yeah, physical energy levels are not evenly distributed and
It makes sense that PMs tend to be individuals of unusual energy because it does seem like such a wildly demanding role.
They also get good at working out what they can delegate and what they can't, what really matters and what is.
And they learn how to, one of the reasons for some of the travel is it just gives you thinking time.
So you're on a plane for two hours to Adelaide or Brisbane is to, is to turn.
hours you can actually talk to people in the plane, think, work through issues, it actually
matters because it's otherwise there's very little reflection time. Yeah. All right, so I've got
about 400 questions. Oh geez, four, let's see, four or five pages of questions about
cabinet, which I'm going to rapid fire at you. Some are more trivial than others, but I kind of want
to be like a fly on the wall in the cabinet room, but also kind of understand the routine.
So just to begin with, to kind of back up a little bit, could you give a sort of three or
four sentence summary of what the Department of Prime Minister and Cabinet does, just for
anyone lacking that context?
The Department of Prime Minister and Cabinet is the central agency, so it runs the cabinet
process and physically runs it.
It organises the agendas, make sure there's D and Coffey, records the decisions, transmits them
to agencies.
but more than that, it provides advice to the Prime Minister
on every matter before Cabinet and detailed expert advice,
which means it needs to have what's called shadow functions
which look at every part of government
and are able to provide independent advice on those.
So a Minister going into a Cabinet meeting with a submission
knows that there's been close to conversations
between their department and PM and C,
but also knows the Prime Minister will have in front of her or him
a briefing from the Department
that's meant to be as thorough and if needed critical as possible.
So it's without fear or favour advice, and that's what PMNC does.
It also runs a whole sort of auxiliary functions, the International Protocol, visits.
It provides support for Kiribili House and the lodge and so on.
But its principal function is this core policy function,
both understanding policy, helping set up collaborative policy,
policy-making across the whole of government and then providing advice to the Prime Minister
as that process, often a committee process, often lots of inter-genital committees coming
together, will eventually have to be distilled through the Cabinet Handbook into a submission
which is strictly ordered because it has to cover a whole sort of fields and by the time
it gets to Cabinet Government should be confident that every piece of information they
need to make a decision has been thoroughly tested and is
before them and that everything they're being told is accurate.
The fact, not being contested at that point.
This is a judgment question for cabinet, not a fax question.
As Secretary of DPMC, did either of you ever actually sit in on meetings of the full
cabinet?
Yeah, every week.
Yeah.
In Canber every week.
In the full cabinet meeting?
Yeah.
Oh, see, this is so interesting.
And in most committee meetings, including national security and ERC.
Yeah, and the same at the state level.
Okay, because, of course, you were secretaries of the Department of Premier and Cabinet.
Not in Queensland, curiously.
In Queensland, there was a separate Cabinet secretary.
It was a full-time role, I may.
There was a separate Cabinet secretary in Victoria,
but nonetheless the Secretary of the Prime Minister,
the Premier's Department sat in the Cabinet room.
Okay, so you guys saw everything in the Cabinet process?
Certainly in the Commonwealth, yeah.
Okay, fantastic.
Well, this is good because now I can ask all of my questions.
So, okay, so I'm just going to rapid fire these at you.
So firstly, when the doors close, how many non-cabinet ministers are present and who are they?
So I think at the federal level you've got, which is mainly what I'm interested,
and you've got the three note takers, you've got some cabinet room attendants
who are kind of passing things back and forth from staffers to ministers,
and then you as the secretary of DPMC, anyone else?
No.
And no assistant ministers.
You would get called in if you were part of a submission for your submission.
That's it.
And then you go.
When the door closes, it's the cabinet and only the cabinet.
Yeah.
And the officials are silent.
You're not to say a thing.
You're never called into the debate.
Yeah.
Yep.
So from reading the cabinet handbook, the figure who emerges is the most mysterious and potentially
very powerful is the cabinet secretary.
They're kind of like the PM, this conciliary.
At the moment, it's a minister.
Andrew Shulton, in the past, I think it's sometimes been a political staffer.
Yes, I think the practice has changed quite a lot depending on the government and power.
Yeah.
Even with the prime minister in power.
In Victoria, unless it's changed, it was always a parliamentarian.
So at the moment at the federal level, it's a parliamentarian.
Yeah.
How powerful is that person as cabinet secretary?
Well, they don't decide the agenda.
And in that sense, they're not powerful.
for, that Prime Minister will, the Prime Minister is the Chair of the Committee, Cabinet Committee,
and therefore the Prime Minister settles the agenda.
But the Cabinet Secretary, who was previously Mark Dreyfuss, as the Attorney General,
I mean, it is a very significant role.
You do play a key role in advising the PM about what is urgent and what is not,
what can wait and what needs to be settled now.
You also take the, you write down the decisions of the Cabinet.
Yes, yeah.
So those decisions are technically known as the minutes, which is a little bit confusing,
but in this context, Cabinet Minutes refers to the outcomes of the Cabinet meeting,
the decisions taken.
And one of the interesting things I learned just while reading about how Cabinet works,
reading some of Pat Weller's work, is that sometimes there need to be decisions about what the decisions were.
It's not always obvious what Cabinet agreed.
and so there might be discussions after Cabinet
about what are the actual minutes.
And obviously the people in the first instance
responsible for recording those decisions
are the note takers.
And so you've got three note takers in the room.
I don't know if you have this information at hand,
but what tends to be the professional background
of those note takers?
Because I imagine they can't just be scribes
because there's a level of kind of interpretation
that needs to happen.
They need some policy context.
So who do those individuals typically tend to be?
So we talked about the shadow functions inside PMNC
that are expert groups around each area.
Whoever leads that particular shadow function
comes into the cabinet room as the note taker for the item.
And so they know the policy as well as anyone in the room.
And so you mentioned disagreements about what was the side of,
they are with my experience, incredibly rare.
Incredibly rare.
Because the recommendations have been worked through.
People know exactly what's on the table.
Sometimes if there are amendments on the fly, and that happens, you might get ambiguity.
It's normally sorted out by the cabinet secretary with the PM.
It doesn't go back to cabinet unless it's a substantial issue.
But I can remember it best, not even a handful of times from that.
A little more common with ERC only because of the sheer volume of what's coming.
through, but even then it's a rarity.
It's a very structured process.
And the note takers have got an important role to play in making sure that individual
departments understand what the final result as a cabinet decision on a particular matter
was.
Yeah.
So random logistical question.
Cabinet means most weeks of the year, right?
But Parliament, at least for the House of Reps, only sits about 20 weeks a year.
Does that mean for the weeks in which Parliament isn't sitting,
Cabinet Ministers all have to fly back to Canberra for the Cabinet meeting?
Yep.
Okay.
Because there's no video attendance you are in the room or you're not there.
It has to be a physical meeting.
Yes.
Okay.
So it's tough for any ministers from W.A.
Absolutely.
And airport's all around the country on a Sunday night.
You can see Cabinet Ministers waiting for their plane.
Interesting.
Okay.
So I'm interested in what does.
doesn't make it to cabinet, that's too broad a question, but I'm going to narrow it down.
What's an example of sort of a borderline issue where you'd need to have a conversation about
whether or not that's an item that should make it to the cabinet table?
Well, you might have an issue that's immensely sensitive politically, perhaps in the national
security space, and normally that wouldn't go through unless there was some reason the
Prime Minister wanted his colleagues to know about it.
Yes, and the way, it varies from government to government, but in recent years, the cabinet
will meet, at the start of its meeting, it'll just be cabinet ministers, all officials
will leave the room and they will discuss anything political or, frankly, who knows what
they discuss, but they will have the conversation.
So there's a sensitive matter they want to raise, it'll be raised, there are no no takers,
there are no decisions recorded, it's not a decision session, it's a prime minister briefing
the cabinet on the issues of the data.
and then the officials get called in
and they turn to the agenda
and work their way through the agenda.
That provides a chance to do short briefs
on sort of current issues
and sometimes signal that we'll be coming back
to this in a more structured way as the Cabinet.
I see.
And in the case of the Victorian system,
when I was there, it might have changed.
I don't know.
At the very beginning of the Cabinet meeting,
only ministers would be in the room
and they could raise anything of political concern about a submission that they wished.
And then that wouldn't necessarily be placed before the Secretary of the Premier's department
when he came in to sit in on the meeting.
So there's an opportunity for a political discourse, which is really valuable for everybody concerned.
Yeah, yeah.
I'll come back to that because that's one of the things that surprised me about how
cabinet works is just that the kind of political strategising is mixed in with the actual
executive decision making but I think it was for the federal cabinet that practice of
starting the meeting with the political stuff started that practice started on
Howard I think and that was the practice in Victoria under Braxham Brumby okay
interesting yeah it's not a it's not uncommon no uncommon but there are variations on
it sure where in the meeting and all that yeah and even even in the Keating government
They still had those conversations, but it just wasn't routinely at the start necessarily.
The logic of cabinet ministers wanting to have a political discussion with no one else in a room makes perfect sense,
and that's a standard feature of all government.
I've got some questions about submissions.
Again, I'll just sort of rapid fire these at you.
And my interest here is just that if there's a template that's good enough for the federal government
that's kind of evolved over the decades, it's served Australia through wars and all sorts of crises,
maybe there's some lessons we could learn from that but first question is what
what's either in terms of pages or words what's the maximum length of a cabinet policy
submission so it's done in terms of pages but there's not one there's multiple parts to a
submission yeah so you have a two-page summary at the front end that goes to all of the
core things and lists the recommendations you'll then have a yeah explication
that runs through some of them, you'll then have a second section that goes through what
I call coordination comments, where each agency provides its view on the, and that's important
because if you're a minister, you can read not just what the proposal says, but what the rest
of government thinks of it. And the intention there is, again, frank and fearless advice.
If you think it's a dumb idea, you say it's a dumb idea. You say it nicely, but you say this would
not be a why as he's public resources or whatever it is you want to say.
And then there's attachments at the back where you need to lay out, particularly implementation plans, evaluation strategies.
So they're thick documents, but in a sense, once you get used to reading them, it's easy to go to the level of detail that you want to get into as a minister.
And with so many different sections, those papers can't be written with a love of detail, exhaustive detail.
Because if you do that, they don't get read, then you have mistakes.
made. And when I went to be a chancellor of university, I was a bit surprised at the quality
of the papers coming forward to the university council for decision. And I said, well, look,
you know, in government, this just wouldn't be acceptable. And so I persuaded a very, very good
person out of the state government to come and do a template and some instructions as to how to use
It transformed everything overnight.
Because it does provide a discipline.
That's why I talk about it as a routine.
It means, for example, you can't put in a submission
until you've answered all the questions in the cabinet handbook.
That's really important.
You can't rush something in and try and sneak through the cost
without the comment, for example,
because there's a section.
If it's not filled in, the cabinet secretariat will not let it go
onto the cabinet papers because it's an incomplete paper.
It is a significant.
discipline on.
Did you, in your time, did you notice any commonalities in the poorly drafted cabinet
submissions or does the template in cabinet?
So the cabinet is the government's software that facilitates the kind of end-to-end
cabinet process.
That's where cabinet submissions are kind of lodged and tracked.
Does the template in cabinet, is that so rigid that it doesn't really permit or doesn't
allow much margin for error?
No, but there is a coordinator.
process that PMNC is central to, when a draft is put forward, there's then a consultation
between PMNC and the agency.
And if it's a poorly drafted policy, part of PMC's responsibility is to say this isn't
up the standards and work through what that means.
Now, there can be a bit of tension coming out of that, put it mildly.
Nobody likes being told that their submission is not of the standard that it should be.
But that's, and PM&C will be blamed if a submission does.
does come forward. Yeah. And in the case of the Victorian government, when I was secretary of
the Premier's Department, if such a submission came forward and it was seriously deficient,
I'd just simply say, go away and try again. Yeah. Because I knew that it had brought up in the
cabinet room. Yeah. Okay. And sometimes I wouldn't have bind it too much if the particular secretary
were, we're going to cop it because of that, but that's not really being fair to you
Colbex. Yeah, yeah. So, okay, so by the time I guess the cabinet room, there are rarely
have ever any deficiencies in the submission. No, we have to be a bit careful, though. I mean,
yes, there are possibilities of mistakes. Yeah. Not everything is well written. Not everyone
releases their inner hemming way when they get to write the submission. Like, I wouldn't
only get carried away. They're not perfect gems of documents. They're still human. They still
have errors. And they still, sometimes they lied, key decision, key points that need to be
made. And sometimes, you know, there are people who try to push things through that they know
they're going to struggle, so they, you know, frame it in as positive. So, no, it has all the
foil walls of anything that people are involved in. But the system is designed to minimize those,
standardise the process, and provide the same scrutiny on every submission. And that's the key
discipline in my view. It's what happens before it gets into the cabinet room that decides the
quality. Yeah. So as secretary, when you're rejecting submissions,
you know, exposure drafts coming from the departments, can you generalise? What are the common
shortcomings and the ones where you say, no, that's not good enough? Try again. Is it a lack of
detail? It's seldom a lack of detail. It's a lack of suitable analysis of the problem.
Yeah. Yeah. Yeah. Tends here to jump straight to the preferred solution and not argue why
and not argue the alternatives and or a failure to say,
if we did this, these are the implementation challenges we face.
And part of every submission issue, you know, from the hamburger you face,
you've actually got to say, if this is adopted,
here is how we are going to go about implementing it.
And here's the evaluation strategy,
whether we'll know if it worked or not.
That's actually a tough discipline,
because you're actually being asked to set out,
what are the threshold here for this thing actually to be considered as success?
Okay, say I'm a minister who wants to come fully informed to cabinet meetings and contribute
to the collective debate, even on a line portfolio that doesn't directly impinge on my own.
And I know not every minister's like this and not every minister has time to read every
cabinet submission, but say, hypothetically, I'm a minister who does.
On average, how many hours would I spend reading cabinet submissions and assume I don't read
the attachments, just the submissions?
Oh, the paper's that thick or thicker.
So once you get disciplined about doing it, you know how to do it and you know what you're looking for.
In a sense, you're reading the material in the early pages of the submission.
The executive summary.
To see if it raises concerns.
Yeah.
And there might be a point of which you say, I'm pretty comfortable with this.
It makes sense and move on.
Yeah.
I still think you're up for a couple of hours of solid reading.
And that's just picking and choosing.
That's just, you know, not diving deeper than you need to.
And if you want to read everything, including all the attachments, you've better put a day aside or whatever it is.
Yeah.
Yeah, well-crafted cabinet submissions at the Commonwealth level and at the state level are very brief at the beginning part, but able to cover all the relevant points.
And therefore, a minister might want to go further if they had a particular interest in a particular point, or they were in the treasurer.
or a finance minister and they were really worried about the proposal to spend a lot of extra
money. They needed to find some way to either justify or block it. And so it all depends
where you're coming from. Yeah. The Secretary of P.M.C. would spend several hours every week
going through cabinet submissions, not just next week. It's not just this week's and next
weeks, but pipeline things. And have multiple meetings with those shadow teams during the week
just to review where we're up to on submissions,
including a significant one
a couple of days out from the cabinet papers
being distributed to ministers to finalise
how we're going to brief on a submission.
So for us, that would take, you know,
there's whole days of work in that.
So a minister who wants to be completely thorough
is looking at a fairly similar time commitment.
I, in the two secretary roles that I had,
I tried to make sure that there was at least one deputy secretary who was really on top
of the range of policy issues of concern to the government.
And it was his or her job to really go through it.
And if they missed anything, they copped it.
But they tended not to.
So that's just a sign that, yes, there's a simbing process.
Yeah, yeah, yeah.
So when I worked in Queensland, Premier Goss would make
us sit in front of him for an hour before the cabinet meeting and he would practice by
by interrogating us on the cabinet agenda and he would always find the paragraph you hadn't
read and ask you the probing question and you just dreaded that sort of so we it's been
much of the weekend reading the cabinet books I'd hope and hope to get through this meeting
on Monday morning we enjoyed it when he traveled well I I work for three premiers in
Victoria, and two prime ministers, and none of them did that to me.
You're very fortunate, Ed.
So what's the median length of time for creating, for drafting a cabinet submission
for the Department of Defence?
Because I've heard some can be worked on for years before they reach Cabinet,
but I assume those are outliers.
And just roughly, what do you think the median might be?
Very hard to say, and for this reason, a lot of the defence
submissions are around acquisitions, around defence procurement, and they are often hundreds of
millions, if not billions of dollars, and yes, they take a long time because the scale of
decision is so big, and the thoroughness required, so extreme.
They're also the largest submissions you're ever going to see, because you're trying to work
out how you would acquire a frigate or aircrafts or whatever it is you're buying for the next
20 years. It's not like, and so the level of detail is extraordinary. And those are the ones,
years seem to mean exaggeration, but those are the ones that take enormous time. And they get
workshopped through a whole sort of committees long before they get to National Security Committee.
But many defence ones won't be much different in calibre from those from other agencies. You're
dealing with a problem. You're trying to outline how you're going to manage it. Yeah.
What your response is.
And months is a, from the time you decide there's going to need to be a cabinet discussion
of this matter through an extra getting in front of cabinet, it's typically a number of months.
Months, yeah.
And there are processes long before cabinet buys in.
So if you're a minister, you see things at the end of the chain, not along the way.
Yeah, yeah.
Just quickly, you've mentioned the kind of standard template.
but it's the executive summary, the recommendations, the analysis.
It might have some attachments, including the coordination comments from different departments.
I assume the actual template in cabinet is more granular than that in terms of the rubrics or the sections,
and it would vary depending on the type of submission.
You mean the presentation the minister would make?
Or you mean the nature of the submission itself?
The nature of the submission itself.
Why aren't we to sort of closer to standard than...
Oh, really?
So it's not incredibly prescriptive in terms of sort of subsections and what?
Yeah, no, it is.
That's what I mean.
It is.
It is quite great.
No, I wouldn't say it incredibly.
It's a set of headings.
You have to answer each other.
And headings are designed to make you outline each relevant consideration for making a decision.
They're the policy cycle explained.
What's the problem?
What are the alternative approaches?
we've considered, why have we chosen this particular instrument, who if we consulted,
what was the advice back from the coordination comments and then why these recommendations?
That's basically the only new start again.
All right.
So I want to talk about, I guess, the kind of vibe or tenor of cabinet meetings now.
Can you just paint me a picture of what the discussion in the cabinet room is like?
So, you know, how informal can cabinet meetings be?
How heated do they get?
How structured is the debate?
If we were a fly on the wall, what would we witness?
In my experience, they weren't heated.
Ministers who had read the submissions and had something to say would invariably be heard.
That might provoke a bit of a conversation around the table.
But by and large, I think the ministers were depending upon submissions and attachments being comprehensive and capable of supporting whatever the decision was that needed to be taken.
And you'd sometimes find that a minister with a particular interest,
perhaps the Attorney General or perhaps a minister who was chairing the Cabinet Committee
that dealt with social policy issues would come in and have something additional to say.
But I think by and marge the minister's bringing forward submissions
proceeded on the basis that they and their department
had got everything on paper that needed to be there
and therefore there could be a, you know, a reasonable discussion about the merits or otherwise
before a decision was taken, and it seems to work.
Yeah, I'd agree with all of that.
Collegial, focused on the submissions, if there were factional or other tensions, they didn't surface in the Cabinet room.
It would be inappropriate for that.
Some people didn't...
The point we didn't make at the very beginning is that Cabinet is the forum for the Government,
sinking or swimming on a variety of issues.
So they know that the ministers know that any cabinet submission can have some deficiencies
and it's best if they're found and sorted out.
But also the cabinet submissions are really dealing with sensitive issues
that everybody in the government has to get right.
Exactly so.
Yeah.
So they're collegial.
They can be funny at times and, you know, people, you know, sort of light relief.
I remember a cabinet meeting in which one of the cabinet members had just turned 50.
It was his 50th birthday and cabinet sank him happy birthday.
And then someone said at the end, it's a bit rough to have to spend your 50th birthday in cabinet.
And he said, it could be worse.
It could be shadow cabinet.
Yeah.
So when I was reading cabinet diary,
the Blewett and Evans ones.
Three things stood out to me in my naivity.
Let me summarize what they were
and you can react to them or not.
But the first one was, as we mentioned earlier,
the political strategizing mixed in
with the executive decision making.
In Neil Blewitt's diary,
he talks about the kind of general waffles
that they had with Keating,
kind of giving a kind of broad sweeping
state of the nation type address to the cabinet.
The second was it's kind of,
and maybe this was not so much
a feature of your experiences in the Rudd Gillard and then Albanese cabinets, but just
it's funny to contrast the formality of British cabinets, which you get in accounts like
Richard Crossman's account of the Harold Wilson government with the sometimes the occasional
infamality of Australian cabinets. I mean, there are so many anecdotes. But a couple of days ago
in a bookshop, I just happened to pick up the new Troy Bramston biography of Goff Whitlam
and just turn to the page
where he's describing the Whitlam cabinet
and there's Whitlam like swearing at his ministers
and throwing his papers across the cabinet room
and all sorts of things like this.
Yeah, that sounds right.
It was obviously an infamously rowdy cabinet,
maybe an outlier, but even, you know, in,
was it in Gareth or Blewitt's Cabinet Diary
that there's a story of Keating opening cabinet
by saying not to listen to the ABC in the morning
because you can't have fuckers filling.
your mind up with shit at 8am and just so it's funny um how the the Australian style it's a little bit
different and then the third thing which which I think we should talk about is how much latitude
the PM has to chair the meeting well or poorly and the PM's skill as a chairperson seems
to be unusually important to the quality of the decision making um which is interesting because
it's not something most people might think about when you think about what skills are needed to be a good
PM. You had the ability to chair a meeting well. And we've had PMs with different styles of
chairing over the years. I think Menzies was famously very good at kind of synthesizing the debate
and summarizing it as an outcome, which was pleasing to everyone, even people who probably
didn't agree with the outcome. Whitlam's cabinet was very rowdy, as we've said. Fraser was like
very domineering, but he was domineering. He pushed people because he wanted to test ideas. Hawke was
the kind of relaxed consensus builder he didn't state his views too early but he could also let
debates turn into this is a quote from gareth evans's diary he could let debates turn into
easel and sessions which dragged on too long and sucked up minister's time how it was very
punctual and business like there are kind of varying accounts of the rudd cabinet but pretty
negative ones in paul kelly's book triumph and demise chris barrett who is wayne swans chief of
staff talks about the meetings being run inefficiently and sometimes rudd would use them
as kind of personal briefing sessions, Terry, I'm not sure of that,
checks out with your experience,
but the kind of general point is that there's this kind of range of different styles,
which seem to matter to the outcomes and to just how well government runs.
I mean, government, the kind of pace of decision-making could sort of grind to a snail's pace
or it could be too fast, depending on how the PM chairs cabinet.
So could you step me through some of the, I guess, on the one hand,
some of the hallmarks of a good chair,
And then on the other, are there any habits of chairing a cabinet that reliably produce
worse outcomes for government?
I think you touched on a number of the hallmarks of really good chairing.
The ability to let people speak and not dominate by saying what you want out of this discussion
early on as a chair is crucial.
If you start the meeting by saying, I'm looking for us to do this and this, you've killed
the debate before it started and people were resent you for it.
If they have a chance to speak and to hear the same evidence that you're hearing,
and then you can sum it up well and provide a pathway that most people in the room can nod,
and so that makes sense.
That's an excellent outcome.
And the chairing matters, for the reason we discussed before,
a PM has seen not to be able to manage cabinet would quickly lose the confidence
of the senior ministry and then the broader backbench.
It's such a core skill to the job.
If you couldn't do it at least possibly well, then it really matters.
The time-endous thing matters.
You mentioned John Howard and time-indness.
That is hugely important.
There's always such a backlog of things waiting to get to Cabinet.
There's so much material running around that if you can't efficiently move it through,
then the whole government becomes, and toward the end of the hawk years,
there's a famous case about a mining list that the government just couldn't make a decision.
on and they kept coming back and back and Gareth Evans' diaries talk about that, sort
of signal to the cabinet that the Prime Minister was in their view losing the grip
on the role and it was important in their thinking about its time for change.
So the ability to keep government moving to be responsive to your colleagues, but to give clear
direction at the end, you want, you know, for better or worse, we've dealt with this matter,
it's finished, it's over, it's a clear and unambiguous decision, now we get on with it
and we move on. Those are the skills you look for in a great cabinet chair. Stiles matter
because people are different and there are times when you do expect people to sit back
and you just need a bit of venting and you let people do that. But overall, you need things
to keep moving. Above all, you need them to keep moving. You've only got two hours
max to get through 10 of the most significant policy items in front of the nation every week.
And if you can't do that efficiently, then sooner or later people are going to get very
angry that their issues are not getting dealt with.
Yeah, I've worked for two prime ministers and two premiers.
One prime minister got into spot of bother, but I don't think it was driven entirely
by the cabinet process.
Okay.
although the anxieties of some cabinet members
were apparent at cabinet meetings
but their anxieties were dependent
upon a whole lot of things outside the cabinet room itself
and so you know one could have a very interesting discussion
about what can bring down a prime minister or a premier
but there'll be such a variety of possibilities
that it won't take you very far.
All right.
So I've got some general questions about cabinet
and then how...
Got an extraordinary amount of work for this discussion.
Well, yeah, we'll see what you think of these next ones.
But so one, obviously one thing I learned
is just that big decisions don't always happen in the full cabinet.
They can be stitched up in the PMO,
in ERC or some other committee or in the corridor, the Parliament House.
From your vantage point, what fraction of important decisions
are genuinely forged in Cabinet and what fraction are settled elsewhere
and then merely endorsed by Cabinet, roughly speaking?
Well, I'd say most decisions are worked out before the meeting and go through.
Yeah, but it would be a mistake to think,
of that as sort of cabinet not working because what happens is there are negotiations discussions
and the process that gets you there.
Time it gets to cabinet, you are broadly looking at an agreed set of recommendations.
Not that everyone in the room will necessarily agree, but that's what you're not dealing with.
It's a feature, not a bug.
Yeah, and so those sorts of, you know, more tense, emotional, angry discussions
They're not going to happen in the cabinet room.
They're going to happen a long way back.
They're not going to happen in public.
They're probably not going to happen with public servants in the room.
Or they're going to happen in committee meetings.
I have seen committee meetings get pretty heated, state and Commonwealth level.
And that's because people have genuinely different, strikingly different views about what's the right thing to do.
It's the right process because you don't have the argument and you move to a decision.
Well, the committees that can be a bit difficult are.
those in social policy
those dealing
with expenditure of government funds
the expenditure review committee
for example
and conceivably
those
considering
complex legislative
suggestions
agree, but the third thing is less likely
in the first two
agree
sometimes you get
an iconic
development proposal
in which people have a view for or against the development
and that there's no way to resolve it
except to have the arguments and then it's a majority vote.
They can be the most, in my experience, the most emotional
people because it's how do you feel about native forests
or ocean pollution or whatever the issue happens to be
and you've got people strikingly different views
but they also represent constituencies that have striking.
different views and there is no easy resolution of that.
And so you do need a process that forces you to step through it and make a binding core.
And the good thing about the Australian system, at the state level and at the Commonwealth
level, when compared with other similar democracies, particularly in America, but also
to an extent in Westminster, is that the whole process is genuinely well understood by most
of the politicians of both sides of politics in Australia.
And if they don't know something,
well, they know it's quite easy to get most solutions
or most answers that you might need from the candidate handbooks.
And so there's no excuse for them saying,
oh, I've been surprised by this.
I didn't realize that this might happen
because that's just a lack of application
by the minister in question, which happens, which happens.
But the colleagues don't necessarily
look upon that fondly.
Right.
So when the cabinet debate
isn't going the PM's way,
what are some tricks
you've seen prime ministers
used to get their way in cabinet?
Bad language.
Well, I'm not serious about that
because if it's not going
to the prime minister's way,
it might be set aside
for a further discussion
outside the cabinet
involving selective ministers.
Right.
So they'll defer it.
I'll say we need more information.
or something.
Yeah, something like that.
It doesn't happen often.
Yeah.
Because people know once you get to the cabinet table, you've got to make the decisions one way
or the other.
And the only person that can deflect that would be the Prime Minister or the Premier who's
not happy with where the colleagues have got to and he doesn't want the decision to be taken,
so you send it out for a bit more work.
When big mistakes are made by a government, so things that Prime Minister's and Ministers and
has come to regret.
What's typically the root cause of those mistakes?
Is it junior public servants, not having thought through the unintended consequences of their advice?
Is it the cabinet making decision processes don't facilitate the right outcome?
Have you noticed any patterns when mistakes are made?
What's the root cause?
In a few cases, the cause of the reaction was a feeling that
the matter X, whatever it was, had not been subject to sufficient political scrutiny
so that the government could proceed without danger.
Yeah, I think that's really common because often policy choices and political choices
don't match up.
And so a cabinet might in good faith make a policy choice with having thought enough
about the politics or the other way around.
But you can see that, and particularly if they rush a decision in response to some public
crisis or moment.
So often you can see bad choices made, and what often happens is governments then
at the next election just quietly drop whatever it was that they recognised didn't
quite work as they expected and they move on.
They don't ever say we made a mistake, they move on.
But it's lack of prep, it's rushing into choice, it's not having considered carefully
enough, the consequence, the electoral and other consequences.
And there's another factor that, and that's the temporal one, what makes sense at one time
turns out to not make sense over the long one.
And the case that a lot of people talk about at the moment in it, so the raising of tobacco
taxes to discourage smoking was a widely accepted public health initiative that worked well.
And we saw the Australia use of tobacco decline just very steadily over a long period.
What I think few people anticipated is we might hit a point where the incentives to bring
in tobacco illegally.
Yeah.
Black markets and the development of a, now that wasn't an intended consequence and I don't
think it was a disgust consequence because I think the assumption was that the use of tobacco
would just pale off until there would be no point in a black market.
That's not being the case.
So there you get a case of what made sense for a long time,
and not just briefly, a long time, makes less sense.
But most people would say, okay, so what do we do now?
And that's what's not obvious.
You don't want to give in to a black market.
On the other hand, prohibition is not got a long record of success in most areas.
So what are you going to do?
And now you have to have a new and quite awkward policy discussion
because your policy instruments, which worked really well for a long time,
so suddenly no longer work.
Yeah.
Can you think of any examples of physical exhaustion
impairing the judgment of prime ministers or ministers
and degrading outcomes?
Not really.
Not examples.
We've all seen exhausted people.
And so it's more likely to result in bad behavior and snaps and, you know, unpleasant workplace moments.
It's less likely, again, because we're discussing routines for decision-making that have channels and processes and timelines.
It doesn't play in as a factor.
You could imagine an exhausted cabinet eventually agreeing to something because I were just so tired and sick of it.
I just wanted it to go away.
I think the process mitigates against that
because the decision makers at any one time might be exhausted
but all of those people who are working on the process on the way through
are not in the same place
and they're lucky to give the same advice and failure.
Terry, what about Kevin Rudd deciding to shelve the CPR
in the strategic priorities and budget committee?
I think he'd just come off a kind of two-day mammoth kind of set of
with the state premieres about this was when he was trying to do his health reform
and then he made the decision immediately after that in a meeting of the SPBC.
Do you think, like how much do you think his personal physical exhaustion played a role
in that decision which I think he said he now regrets?
Well, it's hard to know because he had a great deal of stamina
on almost any occasion, which was not necessarily beguiling, but it was real.
And so I don't think the stamina issue was the point there.
I mean, he was a politician with very good judgment on both good days and bad days.
Yeah.
So it's interesting that your tenures as secretaries at the federal level
overlapped with our two biggest national crises of this century.
Terry, you were obviously secretary during the global financial crisis,
Glenn, you caught the tail end of the pandemic.
If we take the strategic priorities and budget committee
and also the national cabinet as inspiration,
I don't want to talk about those two examples in particular.
I'm more to reflect on the general principle,
but just using those as a kind of primer.
How different is the optimal decision-making format
in times of crisis to the optimal decision-making format in normal times?
You think about cabinet and the machinery of government.
Take the one that you mentioned, which was the global financial crisis.
Kevin said, well, I want to have a meeting every day with you and people from PMNC and Treasury.
And there's to be a briefing that goes to what's happened overseas in the night before, as part of all of that, plus any actions.
that might be needed.
Yeah.
And Ken Henry was fabulous in doing all of that.
He really got Treasury wound up to deliver.
Yeah.
And the relevant Deputy Secretary in PM&C that handled it was ex-Treasory and respected economist.
So all I had to do was sort of orchestrate the meetings and the contributions, because
the most capable people that you could have advising the Prime Minister were at the table.
Yeah, and I should say in fairness, I came in right at the end of the COVID crisis.
The heavy lifting was done by Phil Gaetians, who was my predecessor and by Prime Minister
Morrison.
So by the time I came to PM&C, the architecture that had been developed through COVID
was firmly in place and well developed.
The National Cabinet had become the core institution for making national decisions.
And it continues, though not with the urgency it did through the COVID years.
And it was quite a significant shift from the former Council of Australian Governments,
the COAG process that both Terry and I knew and loved as state officials.
Speaking ironically, of course.
Yes, as state officials and then something very strange of it ending up on the other side of the table in PEPNC.
But what it did was it just showed that national institutions can change.
None of them appear in the Constitution, of course.
they are, they're all informal in that sense and their custom and practice and they're now well
established. But it was a remarkable shift and it happened in a relatively short space of time.
And it was actually encouraging that a democracy in a crisis can be so nimble.
Can be nimble.
Yeah. I have a question on national cabinet. We'll come back to that towards the end.
Speaking at a very high level, it seems like more centralisation in a time of crisis is appropriate.
Not surprisingly.
Yeah.
Yeah. Yeah.
Well, selective.
centralisation so you don't have everybody in the room you just have people who are
capable and have something substantial to contribute yeah and when that comes down
to economic issues you don't actually tend to or to have the Reserve Bank in the
room but you do ought to have Treasury and some people out of finance and the
economists out of PM and C and that's what Kevin was making use of yeah yeah yeah
So if you could change one thing about the machinery at the centre, as it exists today,
so one rule, one committee, one role, one bit of digital infrastructure, whatever,
to improve the quality of federal decision making, what would you each choose?
Give me the option to get.
Surely some things have bugged you while you were working there.
So it could be anything, but for example, a rule, a committee, subcommittee,
some digital infrastructure like cabinet.
a role that doesn't exist that should or that does exist that shouldn't, etc.
Yeah, I mean, the key thing you'd want is more time for almost all of these processes,
particularly for cabinet and committee meetings,
because everything always feels like you're running out of time,
you're running short of time.
And there's no way to arrange the rest of life.
How do you create time?
Well, you don't.
And if you're a parliamentarian, if you're a minister, if you're a prime minister,
the work you do in policy, the work you do in cabinet is one small part of a much bigger portfolio
of things you are constantly doing.
And you're trying to fit this in amongst everything else you're doing.
The exhaustion factor is non-trivial because it really is extremely demanding.
And as officials, we would like more time with our principles to work through the cabinet
decisions and have a better sense of their preferences.
And often that is actually a challenge.
Well, you know, you go into brief on an issue that they haven't had to do with before.
They haven't had a time to think through what they think.
And you're trying to get a sense of, you know, what would be useful for you in helping to make this decision.
And again, it's just down to time.
It's just that you get your, you know, schedule time to talk with them, which is really important.
But it isn't ever enough for anybody.
Everybody's got the same poverty of time.
And that's the thing to which.
If there are life hacks to deal with that, that would be great to know about.
The poverty of time, that could be a good title for a memoir of a former secretary of DPMC.
Well, by the time a cabinet paper goes forward to cabinet,
all relevant people in government will have been consulted,
and that will have influenced the nature of the decision that is available to be taken.
And mainly, in my experience, the papers that have been done on that basis go through, bang, so it's not a problem.
And the issue that becomes a problem is where there's a troubling political overlay that has to be considered.
But that doesn't necessarily torpedo proposals being brought forward.
it just causes a testing of those proposals
with regard to the anxieties that a minister
or whoever might have.
Would you agree with that?
I agree with that entirely.
Most things go through Cabinet quickly and efficiently
because they have been so thoroughly road tested
that they're not contentious.
And so they invest their time on the handful
where it's really difficult to know what the right call is
and they're often recurring issues.
that can't be resolved simply, they're environmental controversies, their complex
decisions about energy transmission, they're the things that actually need multiple
goes to get through. It's something, you know, we've just seen the environmental
protection and conservation legislation go through and the number of iterations
of that over a couple of years were extraordinary because it's such a
complicated piece of machinery and you don't make a decision. There are elements of it that
need to be worked through systematically and you can't make some until you've made decisions on
the earlier ones. So you get multiple passes at it. That's necessary. It's not a, you couldn't
easily avoid that. They are just time consuming and you are trying to balance interests
and you're trying to balance political against policy outcomes. You're trying to balance balance
and balanced development against environment.
I mean, it is, these are fundamental choices.
They're not simple, and you can't do them in one hit.
And so a lot of cabinet time has taken up, often with those sorts of very specific,
very technical issues.
And so in my experience of cabinet consideration of issues,
there weren't many that had to be delayed for further consideration.
largely because, if they had to be deferred,
there was some deficiency in the scoping of the policy challenge ahead
or the political challenge ahead.
So by and large, again, I mean,
you wouldn't expect a significant issue to lay on the table
with cabinet for six months.
It's not the way it works.
Now, once it's ready to go to cabinet,
they just want to have done.
and they fixed.
They one way or another quickly make a decision.
Yeah.
So by the end of your time this year,
there was nothing that really bugged you,
a process or a system that you thought,
we need to fix that,
but I haven't had a chance to fix it.
But there are a thousand things you'd like to do differently.
That's not your system to play with.
You are part of the system.
And yes, you get a very influential voice from P and C,
but you don't get to control everything.
On the contrary, the system works best at a public service level
when there's good collaboration across the core central agencies
when Treasury Finance attorneys and PMNC work well together around issues.
And that goes to how the Secretary's Board runs.
It goes to how a lot of the interdepartmental committees run.
It's the key role of the deputies, as Terry mentioned.
They are really important.
You look for deputies who can take control of a policy issue and manage the work across
government around that issue.
That's part of their role.
That's why they're there.
And you try to choose well so you get skillful people.
I think Terry and I would both say we had the chance to work with some fabulous people
who showed that over and over again.
And a lot of the tricky issues have to be resolved internally at the bureaucratic level
before they get to cabinet.
and I can think of some specific examples
where there was just months of work,
often with a state government involved
or a major corporation or something or a sector,
before you wanted to get anywhere near Cabinet
because you didn't want to put in front of Cabinet
something that hadn't been worked through
and even if you didn't know the answer,
you needed Cabinet to have the chance,
which you would often do in committee,
to say, well, here is, like there are three choices here.
And at this point, what we need is an indication from you about which way we should develop.
So when asking you to make a final decision, we just need to know is the inclination to go one of different ways.
That's the sort of routine work that's going on behind the scenes long before it actually gets into a cabinet recommendation.
But cabinet recommendations are recommendations.
You don't put up options, you put up the recommendation.
Yeah, yeah.
Yeah, and you don't get to that easily on really major issues.
Yeah.
Imagine I become PM and I decide to make solving the housing crisis my top national priority.
I say, this is what I want my economic legacy to be.
I want to be known as the guy who solved the housing crisis and I'm going to try and do it in three political terms.
Concretely, how is that new top priority reflected in the mission?
machinery of government, the org structure of DPMC, cabinet committees, etc. So do I, as PM,
do I set up a cabinet committee for housing policy? Is a housing group added to DPMC? What happens
exactly?
Well, you've got to find a good source of advice on how you could solve the problem.
So setting up a bureaucratic arrangement won't solve it. You've got to have a strategy for
doing it. And so far, the Commonwealth has struggled with getting a strategy. Even when
Glynn was here, they were struggling to get a strategy because everybody was thinking in terms
of putting it out with the private sector to build things. But that doesn't necessarily get
you what you want. So... But just in terms of... But I think, I mean, Terry's right about
a sequence. Until you know what you want to do, there's no point setting up machinery.
Yeah, but say I've decided.
You're right sequence.
So we have seen recently something pretty much follows what you've just said.
The government, having decided on its priority, assigns a minister, creates a new division,
in this case within Treasury, brings in new skills into it, puts it on the National Cabinet agenda,
gives it enormous impetus in terms of funding,
because the ambition to do 1.2 million new homes is an extraordinarily ambitious agenda
and requires, therefore, a real allocation of resources.
I guess the thing about government is you can't just do one thing.
You never have that luxury.
So, yes, you give it an enormous, you know, you really get on with it
and you try to set up the structures that are allowed to do it.
But what you're trying to do is set up the structure so that that will continue
while you turn your mind to the hundred other things that are going to need your attention.
So, yes, you have major priorities, but you cannot not just have only priorities.
We've seen lots of governments around the world that have announced they've got five key priorities,
and that's what they're going to focus on, and it lasts just a bit longer than the press release.
But in the reality of government is you think about the multiplicity of services you're providing,
the groups you're supporting, the programs that you need to continue or you need to focus on.
It does not allow for extreme focus.
Even at state level, that's very hard to do.
And governments always have signature programs, but I can't just have those.
So I would go to the department and say,
could you dig out the old papers on what Sir Robert Menzies did
and also find out how he decided to handle the states
and what they would do?
Because Menzies faced this problem after the Second World War
and he actually got it all done.
He got all these houses done, this land developed, all that sort of stuff.
And it wasn't done just by trying to get a few companies interested in developing land
or building apartment blocks.
It was actually done by going back to what we were talking about before,
in Victoria's case, to get, through the state government,
to get various things built.
or all the engineering stuff that needed to be done
was done through government arrangements.
And it worked.
And now we've embarked upon an approach
where we are largely reliance
and what the private sector can do
and it doesn't seem to be solving the problem.
Now, you won't agree with me entirely,
but that's okay.
And as a sidebar, what's interesting
is that under artificial intelligence,
We now have access to all those briefs back to the Menzies period.
We can interrogate them instantly.
We can actually look at consolidated policy advice over decades and we can try and have a more
informed discussion about what has worked in the past and what might work in the future.
Well, to comment on that, going back many, many years, what the Liberal government in Victoria
did was set up arrangements to do a lot of the work that under the current arrangements,
is left to the private sector
and so there was an entity
that had the job of taking
land and developing it for houses
and other things
and there was a number of different agencies
that got houses built on that land
and other land
and so it all worked very quickly
in a way that is avoiding us at the moment
yes but it's also a reminder
isn't it that a housing question
sort of crosses a whole lot of government
because it's got to do with skilled labour
it's got to do with financing
it's got to do with taxation policy
like housing isn't housing
it's actually something much larger
and the fascinating question is
how at a government level
you coordinate all of those policy inputs
to try and get to an outcome
well when Menzies approach Victoria
he managed to get a cooperative government
on both sides of politics
over a period of time to do the job
And I think likewise in New South Wales.
Yeah, well, I'm not suggesting despair.
I'm just saying it's a nice example of complexity
and having to manage complexity.
So I'll finish up by saying that we assume
that the private sector can do almost anything,
do it well, do it quickly and do it at no great cost.
But that's not true.
Many of the things that need to be done,
they can't do well.
Robo Debt, employment service,
disasters when they are contracted out to the private sector.
But Canberra, under the influence of Treasury, still believes that if you want something done,
well, do a contract with some firm and get them to do it for you.
And they might, but they'll make a great profit out of it as well.
And so I think we're being a bit naive about who can do what with speed in a number
in an emergency
and housing is an emergency
at the moment. So you promised to be controversial
and here we are? Oh well I
go further if you like. Oh yeah
please
would it be
would it be fair to say that
unless I established
a committee or subcommittee of cabinet
for housing I'm not like
truly serious about solving it
or is it difficult to answer
because it kind of depends on what my policy is and that
affect whether I need a committee or subcommittee.
Well, committees are there for a purpose.
If you know the variables you need, you can just directly talk to the relevant ministers
and you talk to the immigration minister about what is the workforce needs it and you
talk to the education minister about training and so on.
Communities are most valuable when you actually don't know what you need and you broadly
need to bring a group of people together to work your way through to be clear about
what it is going to be in play.
So the committee might come a little late, come earlier in the process, and then we do an ad hoc committee or something.
Yeah, and that's not uncommon.
Yeah.
Could I go one step further to test your patience in this issue?
Please.
Arguably, what's gone wrong with the public service here and in Canberra is the effect over many years of Treasury zealots migrating from the Treasury Department or the Finance Department in Canberra.
is the effect over many years
of Treasury zealots
migrating from the Treasury Department
or the Finance Department in Canberra
into departments
to have a strong hold over how policy is developed.
And what's been neglected
is preparing our public servants
in various jurisdictions,
including here,
who have the ability
to actually make things happen like housing or land development.
And that's what we used to do when Sir Robert Menzies was around.
And when he found a reasonable basis of dealing first
with John Kane Senior's government
and then the subsequent liberal governments in Victoria.
And by the time all of that was done,
I mean there was been a huge amount of land development
for housing, and there'd been a great number of social housing units built all over the
place.
And so it's Treasury which says the only way to get anything done is to contract it out.
That's not true.
And their Treasury in its ideology is standing in the way of getting some important things
done in Australia.
So I'm just reflecting with a little bit of irony here, how hard it is now.
to hire economists into the public service.
Good.
I don't think it is good.
It is, you know, we've gone from a period where people wrote books,
you know, complaining that economists were running the entire APS to now.
What was one of those books?
The managerialism.
Yeah, yeah, yeah.
Argument.
Yeah.
Various people wrote.
So you think it's the opposite now?
Well, the argument was Terry's argument.
But...
Because Terry clearly hates economists.
No, no, no, no.
Some of his best friends, except, right.
Some of my best friends are macroeconomists.
It's the microeconomist that I don't like.
It's not the economist.
It's the economics thinking, and in particular the principal agent thinking
that said contracting out was a viable way of managing conflicting interests.
I didn't know you liked economists so much.
No, well, I was just ruefully noting that the Commonwealth has gone from people
saying we've got a surferter economist to it.
It's actually been quite hard to recruit and hire,
And that's just because there are so many other career options and choices for economists.
But I'm also seeing, in my time in Canberra, quite a significant pushback against the earlier attraction of contracting.
And a realisation, and there's enough studies around a realisation, that contracting hasn't always achieved.
We're on the same page there.
On this world, we might be the degree of difference here.
So it raises a problem, though, because if you...
If you decide to bring back into government large sections, which is what's happened over the last three years, you immediately copped the criticism, you're growing the APS, there are too many public servants and so on, and even the conversion of labour hire employees into APS employees, which I strongly support it and think it's the right thing, now attracts, you know, regular complaints that the public service is out of control and growing in great numbers, even though the costs are actually no different.
and so we're going to have that argument again about what is the appropriate scale of the public service
and part of our challenge always here is governments are ambitious they have things they want to do
the citizens are ambitious for the services they want to access and don't want to pay the taxes for
them nobody does but also how do we do this and in the past we've tried to do it with a degree
of contracting we're now at a point where that's much less.
less acceptable and we're having to find alternatives.
There is a really interesting debate going on about what that might look like and you
and I have discussed that out of session about relational contracting and the way that
changes the dynamics of how contracting can work.
But we are going to have to have this discussion.
You can't be against contracting if you're also going to be against having more public
servants, if you aren't willing to live with a reduction in what the public service can do.
And that's a difficult task.
But it's interesting that the scale of the public service, at least the Commonwealth level,
has broadly stayed static against population.
That is, it's grown roughly with the population,
even though you can read lots of rhetoric around, out-of-control numbers.
It's not the case.
But you're always having to defend absolute numbers as opposed to relative numbers,
and relative numbers haven't shifted absolute numbers have.
I'll come back to the public service.
I've got one more cabinet question.
So in my last conversation with Hugh White,
Hugh mentioned that if hypothetically China attacks Taiwan
and America decides to defend,
the Australian decision to support America
won't be made by the full cabinet.
According to Hugh, but it wasn't clear to me
whether a decision like that would be made
by the National Security Committee
or an even smaller group within the National Security Committee.
So I guess the question here is how are decisions about going to war made?
I'm fortunate to have never been around Cabinet when that decision's made,
but it has been at various times.
It's not a decision I imagine anyone would make lightly.
The National Security Committee is likely to discuss such a matter,
but I think it unlikely that it wouldn't be then referred to Cabinet.
ANSC, after always a committee of cabinet, and I'd expect it to be referred to cabinet,
but let's hope we never find out. Terry, I agree. And Hugh is a deep skeptic about America
these days, and that probably feeds into his view as to how you'd handle the situation
that you described. But I'm a bit of a sketch.
about America as well in those circumstances and I can't see that in the face of all
of that Prime Minister could avoid going to cabinet on the issue of do we go there in
support of America or not so you think it would have to get it would get need to
get endorsed well it's potentially so controversial because because of the way in
which America is positioning itself and the way
which China is positioning itself too.
Yeah.
I'm curious how this happens logistically.
So say you're the Prime Minister,
you get a call at 3 a.m. in the morning
and Australia needs to make a decision
within three or four hours about whether to support America
and defending Taiwan.
I mean, how is that,
assume Parliament's not sitting,
and so your cabinet are all in different cities.
How is that conversation actually coordinated?
Is there some kind of secure video conferencing platform the government would use?
Does everyone have to immediately jump on a flight back to Canberra?
Because there's a real time constraint here.
How does that happen?
Yeah, this is one where I'm going to drop out because...
Too sensitive?
It goes into a ministry of security arrangements,
so I don't think I should be discussing.
Yeah, fair enough, and I'm reluctant as well.
but the IT links around Australia for the use of ministers
in circumstances like this aren't too bad.
Yeah.
So I don't think that getting people together,
which would take time,
is an obstacle to people sitting around and making a decision.
And if you think we need an endorsement from the full cabinet,
does that mean that in that three or four hours
we have to try and coordinate the full cabinet
to make a decision about supporting America?
Well, ideally, you'd hope that that was the lawyer was handled,
but there may not be time for that to be the case.
In which case, it might just be the NSC.
Yeah.
Yeah.
Because the NSC can make decisions that don't need to be endorsed by Cabinet, right?
There are two committees that can,
the Parliamentary Business Committee and the NSC.
So the NSC could make that decision
without the endorsement of full Cabinet.
Well, the Prime Minister would have to decide on that.
And if the decision were going to be held through the NSC,
they'd have to be then a follow-on so that all the Cabinet was informed as to what was happening,
which is not hard to do.
Okay. To finish, on a somewhat lighter note,
I've got an assortment of questions more or less loosely related.
more or less loosely relating to state capacity.
Thank you.
So, if we laid off the bottom 10% of performers across the APS tomorrow,
what would happen in the medium term?
So put aside the question of short-term disruption
on a continuum from the sky falls in to nothing happens
to actually the APS becomes quite a bit more productive, what happens?
Well, think for a minute about where the workforce is
because 10% across the board means 10% less people running the Indus,
10% less people running in the defence forces.
And where are the big workforces?
They're either in service delivery or they're in defence.
And so we can talk about what defence cuts might look like,
but what it would mean for the big service delivery agencies,
for Services Australia, for NDAS, for the health system
would be directly felt by the public very quickly.
It would be my expectation.
Different parts of that system
you can't tamper with.
So you can't not use the health system as we know it
to do that side of the problems.
But in respect of things like
some of the social welfare type of problem,
programs like employment services, as was mentioned, and others, you could actually seek
to set up a collaborative arrangement with the states and the local government entities to
be service delivery agents funded by the Commonwealth.
And the benefit of that is that they're much closer to the communities affected than would
be the companies that might do that work and the way in which companies have done the employment
services work has been remorselessly criticised over the years but they still get the contracts
because the Commonwealth doesn't want to change it does want to employ the people that would
be necessary to deliver it oh well no if you if you decide to do an arrangement with local
government as I suggested all you've got to do is give them the money and and the guidelines
minds as to what they've got to do.
Yes.
And I've been talking to local government recently on this very point, suggesting that they
should give it some thought.
Indeed.
But I guess what you're saying is, if you're going to do this damn stupid thing, don't
do it in this damn silly way.
If you're going to knock off 10% of the workforce, do the prep work in advance and think
about the different delivery system rather than imagining you could make the system more
efficient just by firing.
Yeah, but no rational government would do it if.
correctly, the public service advised them on the consequences at the local level of doing
just that.
Is there actually a mechanism that exists to, say, say if you wanted to lay off the top,
sorry, if you wanted to lay off the bottom 10% of performers, is there actually a mechanism
that exists to that?
Are there grounds to do that?
Well, how would you define low performers?
Yeah, what, and you don't rank people in any way?
It manages to give you a score or something.
You don't do an ordinal ranking.
Yeah, I mean, very few companies would do that unless, if you think about other players outside government, unless you had a very reliable system for knowing who your performance were, and being able to rank them from one to 100, basically, so that you can, you know, it's growing out for things going along as an approach.
Right-wing savants have these dreams, but they don't work them at in practice.
But you're not Corking Joe that, of course.
No, no, he's not a right-wing savant.
This is Socratic questioning.
I don't necessarily agree with the questions I'm putting.
Okay, next random state capacity question.
So in a congressional system, like in the US,
obviously the president has greater scope
to pick experts from across society
to join his or her cabinet,
whereas obviously in our parliamentary system,
cabinets formed from the parliamentarians.
So it's interesting how many different fields
a single minister can potentially be responsible for across the course of his or her career.
So just for illustration, here's the range of portfolios held by Kim Beasley
during the 13 years of Hawkeet in government, Minister for Aviation, Special Minister of State,
minister assisting the Minister for Defence, which is obviously the role he was best known
for, Minister for Transport and Communications, Minister for Finance, and Minister for Employment, Education, and
training. So that's that's interesting of it in and of itself. Separately you also have the
problem of as we've discussed with respect to ministerial workloads. You're not just being a
minister. You're also accountable to parliament. So there's a whole lot of parliamentary business that
detracts from your time, at least when parliament's sitting or primarily when parliament's
sitting. So just as a thought exercise, holding everything else constant, if we could somehow
switch Australia to a congressional model. So our ministers are picked by, I guess in this case,
the president and they're not members of parliament. Would that be a sort of a net negative
or a net positive for Australian state capacity? Net negative in my view. Why is that? Well, because
look at the American system and you'd say, shit, do we want that? But we hold everything else we
love and cherish about Australia constant and we just change just change that
somehow so you're right to point to the trend and it is a so in my time as a
vice-chancellor I worked with 11 different higher education ministers oh wow
who lasted on average 18 months or maybe two years so it that high turnover was
in one sense it's why you need a good bureaucracy if you've got to turn the
ministers over that quickly that's where the continuity comes but but
But you don't get, you can't have, hold everything else constant
and change something as fundamental as the role of ministers.
Ministers are drawn from Parliament accountable to it.
It's Parliament that approves the legislation.
It's Parliament that approves the budget they operate.
We've talked about Cabinet government
and executive government as we should,
but it sits in a wider context of a representative democracy.
And I don't think you could fundamentally change that in our system.
Others have tried the Canadians, for example, have a system where you can be a minister without,
you can just sort of parachute it into the parliament in order to be a minister,
and other countries have sort of similar things.
You could make it work in our system potentially, but you'll actually be changing more than that.
You'll actually be changing the legitimacy of a minister to make decisions.
But also, Parliament is a pretty good training ground for the skills you need to be a minister,
It's a pretty good way of sort of sorting out who's got the capacity.
And you mentioned Kim Beasley's many portfolios.
You could argue that he became a very effective minister over time precisely
because he saw so much of government and understood how it worked.
At the time he hit the Defence Ministry later in his career, he was a formidable
defence minister because he brought a decade's worth of ministerial experience.
He knew how cabinet worked, he knew how to get decisions made.
You don't start there.
You've got to learn.
I can remember, again, discussions with premiers
about saying, you know, we could have less ministers
and premiers saying, yes, we could.
But to be good, you have to first be bad,
or at least you have to be inexperienced,
and to do that, you need some more junior portfolios
people can learn in so that they acquire over time.
The skill and the attributes,
you wouldn't likely give it up.
Yeah.
In the Australian context, ministers,
are there to provide political leadership, political evaluation of what might be done
in a portfolio, and to be answerable to colleagues, i.e. the cabinet, who are all more or less
of the same composition in terms of their experiences. And my judgment is that it works well.
Occasionally, you get people in the private sector saying, well, you know, we should just
have a few business people in there to really make things fly. But the truth is that we're
The truth is when business people are put into the boards or even to be CEOs of government
enterprises, it doesn't necessarily make a huge, great big difference.
In Max Faber talked about politics as a vocation, and like other vocations, it had to be
learnt.
It needed time and needed dedicated opportunity and you had to have people who were committed
to learning those skills.
They are very different skills
from being a senior official
or being a great business leader.
They are quite a distinctive set of skills
and they have to do with being able to communicate
to the public and being able to sense the public nerd
and bring it into your political decisions.
None of that is intuitive.
It all has to be learned in those time.
And there's no course, there's no induction.
Well, there are plenty of a claim,
but no, you have to actually.
And, you know, it's the sort of 10,000 hours argument.
It's why when we have had experiments of parachuting people into politics,
it's generally not gone as well as people.
Yeah, yeah.
And so many of the people who did go into politics
and ended up as ministers Kim Beasley being one of them,
Gareth Evans being another,
they were exceptional performers.
And there are others in the same category on both sides of politics.
And so I spent my time talking to lots of senior people in the private sector,
I wouldn't want any of them running a government department.
Because they're not attuned to the community's feeling about things
and the community's expectations of what a given department might do.
Yeah, I'm less persuaded by that around agency leadership than around political leadership.
Oh, sorry, I meant to be talking about political leadership, I guess, as ministers supported
by public employees.
Yeah, I've seen plenty of very skilled people come in from laterally into leadership
roles in the public sector and done very well.
It can be done, but it's because running organizations has more in common.
Yeah, and I've recruited a few of them, but the good ones are fairly rare.
Yeah.
So let me ask a kind of narrower version of the question.
Assume that we don't change the parliamentary system,
but somehow you could guarantee that each minister has relevant expertise in their portfolio.
Would that actually be better or worse than the current system of ministers being, I guess,
informed amateurs?
Because maybe there are virtues to being an informed amateur.
Maybe you don't need expertise.
You can bring that in.
Your job is just kind of...
I put it slightly differently.
Yeah.
I would say that ministers, wherever they come from,
should be open to advice from the senior public servants
that they deal with as to the policies and so forth
which should be pursued.
And that being the case,
ministers have to be given time
to sort of become aware of the nuances they will face
looking after a department or agency or whatever
and to an extent many of them now do
have an opportunity to get those skills
and it's working better here, frankly,
than it does in Britain or the United States.
Yeah, Amity's is a patronising world.
and that's why I'd be cautious about it.
Renaissance people.
Being a minister is a profession in itself.
Yeah, yeah.
And it's the good ones.
It's not about the content.
It's about judgment and political understanding
and skills and ability to persuade.
And it's a set of skills.
Yes, our content is great,
but it's not the bail and end all.
And in the sense,
part of judgment is to be able to look at the advice
you've been given by your agency.
and say, I'm comfortable with this
or I'm not comfortable with this for this reasons.
That's part of the, and in a sense
to go back to cabinet process
as part of having to write a cabinet submission like that
is you're telling the minister
long before it gets to cabinet.
This is our understanding of the problem.
This is how we've proposed it.
And the minister might say,
I don't share your confidence
that you've understood the problem.
And that's not uncommon.
Ministers send back draft submissions
and say, I'm not, you know,
like you're going to have to show me
that this is,
this is as you've understood it.
In a sense, they're exercising judgment.
They don't have the content, but if they're not persuaded,
they'll say, no.
The colleagues won't buy it.
No, colleagues won't buy it, and no citizen will buy it.
That's not a plausible logic that you're giving me here.
Go back and do some more work.
And that's actually a strength of the system,
not an occasion to amalgamate two different types of work.
What are ministers likely to do as a politician,
and what a minister might do running a department or an agency,
if you tried to put those two together in the one person,
probably neither imperative would fare well.
Yeah, there's the sort of old rhetoric around public servants being experts
who are on tap, but not on top.
In a sense, the profession that the ministers are in
is to make those calls.
It's interesting that the one,
exception to this general rule of ministers as informed amateurs is attorneys general.
They're generally former lawyers.
Maybe that's just because parliamentarians disproportionately are lawyers, and so you've kind of got
plenty to choose from.
You've got plenty to choose from.
I don't know.
Maybe there's another reason for that tradition.
Also, if you're going to be choosing judges, you want to have at least some expertise.
And if you're a minister who might be dragged before a court at some stage, you'd really
like to think that the Attorney General was competent to give you some advice on what to do.
Because the Attorney General is considering legal advice and having to make calls on it.
Oh, in that sense, I think it's perfectly sensible.
There are ministers who draw on their own professional backgrounds, do that, but it's a surprisingly
young profession and so people haven't necessarily got the professional careers or other careers
before they come into politics in a way that was less true in earlier generations.
We now have a promister who's older than the cabinet by a significant average of the cabinet
by significant margin.
That's probably often true, Howard and others.
But the average, you know, if you take the average age of ministers, it's 40s and 50s, not
60s.
I'm not saying it's a bad thing on the contrary.
You want diversity and you want span.
But if you've been important, you know, to get to be a minister in the government,
you've usually had to spend a decade in Parliament or close to it if we're into the ministry,
which you start to work back to how long does that give you to develop deep professional expertise.
So we really are choosing people we hope on judgment rather than on contour.
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So earlier in the year, I did a live conversation with the economist Stephen Hamilton and Richard Holden
talking about the pandemic as a case study,
the handling of the pandemic is a case study in Australia's state capacity.
Listen to it, it's fabulous.
Oh, great.
And I don't know if you can speak to this or if you even know.
Maybe there's more a question for you, Glenn.
But did you ever get any insight into why the federal government went all in
on the AstraZeneca vaccine?
No, I didn't.
It was a decision made under a different government, of course.
An earlier government and I wasn't in any way involved.
So no, I actually have no.
No idea.
No idea.
That one still baffles me.
Because even ex ante, it was sort of an obvious mistake to put all your eggs in one basket
like that.
No, but none of us can see the advice they had before them and you're in a global competition
for vaccines and it may be a judgment, a pragmatic judgment about what's possible.
From what I heard at the time, I think that was probably the reason why they went, because
they knew they could lock in a supply of very many doses of the vaccine that they may not be
able to achieve by going to a number of different suppliers.
So sorry, we can't solve the mystery for that.
No, no.
My search continues.
But that makes sense.
I mean, I've also heard maybe they were trying to kill two birds with one
and do some industry policy as well.
Oh, that did arise.
If you could boil it down, what are the specific differences that have meant
the national cabinet has turned out to be so much more effective than COAG?
Well, it had a crisis and nothing concentrates the mind like a crisis to actually force you to work together.
Yeah.
And so the test will be, and it's too early, but the test will be before and after.
COVID, the National Cabinet during COVID and the National Cabinet when COVID was over,
and whether life doesn't return to a more familiar pattern over time where National Cabinet becomes less effective.
And look, it makes perfect sense.
And a global crisis that transcends ideology and party affiliation and has to be addressed is
a great reason to collaborate and cooperate with really effectively.
It's harder to do that when it's business as usual.
I just didn't see much in it.
It was just two different ways of naming something.
And it was frequency of meetings, I think, was really important.
And so they got used to working together in a way that under COAG.
But it was still the same thing.
same people who would have sat around the table for a co-eague decision.
Absolutely, that's all I'm saying.
That's true.
I guess there's something about proximity,
about having to spend time together over lots of issues
and develop a working camaraderie.
So it might not have survived even the change of premiers over time.
Yeah.
Yeah, I wonder if it's sort of like that iterated games thing.
It forces you to be more cooperative.
That's right.
Yeah, it's not prisoners to labor because you're doing it multiple times.
Yeah.
Exactly.
That's right.
Yeah.
Okay, two final questions.
Australia's talent for bureaucracy, where does it come from?
So, Hancock had a couple of explanations when he coined the phrase.
So I think it was Alan Davies who coined the phrase in Australian democracy.
In Australian democracy.
But you're right that it draws on themes in Hancock.
Because Hancock has a long description around.
Hancock's famous passages about Australians viewing this as a vast public utility.
Yes.
I do apologize. You're entirely right.
Hancock, though, laments that it's a very rule-bound public service at the time
and has a seniority system.
He talks about how if you want to head the post office, you have to join as a clerk
and work your way up over a lifetime.
And this is before the days when it's as meritocratic as it is now.
Yeah.
He's having a dig.
It's not necessarily all true.
because even in the time he's writing
in the 30s there were some remarkable
public service leaders
and then we saw that
and we've talked about Coons
but we saw that going into the war
and seeing Australia through
post-war reconstruction
and this is a remarkable group of people
we've always had a larger state
because of the nature of how we were set up
by the British
that really mattered
we have actually been a democracy
longer than most countries
so we've had longer to develop our system
them. Good point. I know that sounds strange, but it's actually not strange. I mean, you can,
you can run a credible argument that New Zealand is the oldest democracy, continuing democracy
on the planet, and we're not far behind. That's because we had universal suffrage, if that's the
mark of the democracy. From the sort of 1850s-ish. Yeah, which is, well, we didn't get universal
male suffrage. Male suffrage, but we have universal suffrage from the early 1900s, and New Zealand's
a decade ahead of us on that.
But that, and so you've had to have governments
that have to work with the entire population
for 125 years.
Yeah.
And even the United States doesn't get,
even if it doesn't get female suffol,
you know, female suffrage of the 1920s,
and then it takes the,
it takes the laws of the 1960s
to make sure that voting rights are a revival
when a while leave up, whereas we've had to respond,
we've had genuine democratic system
for a very long time.
I think that's a part of it.
We've had an active estate, but it's a part of it.
We're isolated, so we've had to fall back on our own circumstances.
That's part of it.
But I'll have to go back and look at Davies to see if he offers an explanation of why.
He doesn't really.
You probably would find it more in Hancock than Davies.
Well, it's not so much what has been written,
but what some of the old hands say about the Victorian Public Service,
that in the late 19th century,
following the release of the Northca Trevalian report in London,
the Northca Trevalian report was picked up
as a basis for how you would organise the Victorian Colonial Service
or Public Service, this is before Federation.
And when we federated,
the basis of the Federation was in Victoria
and many Victorian public servants were transferred across to the new Commonwealth Public Service.
And they took with them an understanding of the North Court Trevanian principles about merit-based
recruitment and advancement and advancement of merit, so on and so forth.
And so a lot of the features of the public services in Australia, but particularly the
Commonwealth and Victoria, come from historical accidents over a century.
ago. And that wasn't towards any ill result, but it was just we were greatly influenced by
what the Brits were doing. Yeah, that clearly does matter. It probably helps that we don't
have an aristocracy. So we're... Oh, it's a pity, actually, isn't it? They could go in the
Senate, you know? Good, yeah. Why does it help that we don't have an aristocracy? Because the British
Civil Service and the British Army, you had to buy...
in the Army, you actually had to buy.
That was in the 19th century.
19th century, but we never had any of that in the same way.
So we didn't have to overturn a set of cultural traditions that were so much more embedded.
I mean, Mocha Trevelyan basically said it's time to begin change, but the change takes a long time.
And they recommend, interestingly, that we learned from the Chinese, and we use civil service exams and merit-based recruitment and advancement.
And that was early in its introduction into the Victorian Public Service
and spilled over into the Commonwealth Public Service after Federation.
Yeah.
And so it's a bit of good luck, in my view.
Yeah, no, I think that's a fair call.
And we've been very fortunate and well served by.
And so when you look at the states, you're not going to like this,
but I used to go around talking about New South Wales as the home of the Rum Corps.
which sort of it was
but that was because
I think New South Wales administration
improved though over time
well I like
there were some people that we both know
that I like taunting with that remark
they never liked it
anyway
the point is
that Victoria was the
estate
that in the lead up to Federation
had a chance to form
a public service of the British model
and then
after Federation
exported into the Commonwealth
those people who knew that system
when they were working in Victoria
and were instructed in
the principles of merit-based recruitment
and all that sort of stuff
and so if you were going to be
sceptic though you'd say the abiding Australian fault
was the seniority system that we imposed
And certainly the criticism of state, perhaps less than Victoria, certainly strongly in Queensland for a long time, was that it was a very seniority-based system.
And sorry, that's promotion was based on length of time, sir.
Length of time, sir.
As opposed to merit application.
Well, when I first became associated with the Victorian system, there was a very strong merit system, including merit-based recruitment in the first place in the public service.
Yeah. And the Commonwealth used to do that. Another bit of history is that when Sir Robert Menzies was Prime Minister, he was despairing of the then Commonwealth Public Service. And he was told that the only person who could fix it had to be forgiven for the things that he'd done in the past that the lives didn't like. And he should be brought back to Australia from Switzerland where he was in a
a very comfortable appointment there to take over reform of the Australian Public Service.
And that was Fred. Fred Wheeler.
And so Fred came back and took up the position of chairman of the Commonwealth Public Service Board
and set about a whole series of merit-based enhancements of how the Commonwealth Public Service worked.
When Menzies was Prime Minister and he was dealing with the Liberal government in Victoria,
the Commonwealth reforms in Canberra had gone so well
that he sent somebody down to aid Lindsay Thompson, who was then the Premier,
to look at why the Victorian Public Service was so hopeless, right?
And basically, the recommendations out of that led to recruitment of a, of a new top level
in the Victorian Public Service, including a new chair of the Public Service Board,
who was Ron Cullen, you might remember.
And so the Commonwealth and Victorian Public Services advanced under the influence of the North
of Trevanian report with its emphasis on merit, both for recruitment and promotion.
And it's, you know, it's sort of fairly conventional view of what public service should do.
We were lucky here, whereas the rum corps ruled the rest in Sydney.
It's a really interesting point. I'd never really realised that point about the Victorian
public service playing such an important role.
Victoria, just generally Victoria feels like it's had an outsized,
and Melbourne in particular feels like it's had an outsized impact
on Australia's kind of benthamite view of government.
You think about people like David Syme and Deakin and Henry Higgins was from Melbourne.
I think, yeah.
Yeah, I think so, yes.
So David Kemp, though, would argue in his history of liberalism
that Victoria was the tariff-closed economy state
in New South Wales was the one that actually was much more committed to liberal trading rules
and Victoria was slow to catch up and he would, as others have done, argue that the depression
here of the 1890s was largely self-inflicted on Victoria because it failed to follow
sort of open economy type arrangements and as opposed to New South Wales and that's when
Sydney overtook Melbourne as the largest city in the country.
And the public service that Victoria had then, was still not too sympathetic to the sort of economic policies that prevailed in New South Wales, largely because it would have had the effect of basically reducing the influence of the public service.
And this is one final point.
I came in and out of the Victorian Public Service going way back a fair way, and I was told at one stage that it was Ron Cullen who told me this.
He said, look, the biggest problem the Treasury has got is that they don't employ economists, which is, you know, I mean, fair comment, actually.
And so the whole top end of the Victorian Treasury has changed
to bring in a lot of economists and things improved.
Your friends.
Oh, that's cruel.
One other thing that's just occurred to me
semi-related to what we've been talking about
is I wonder, so Australia has maintained a distinctively cabinet
form of government, unlike the other Westminster systems of the UK and Canada, yeah,
wonder the extent to which that's connected to our egalitarianism, the equality of manners.
Like we don't like leaders with too much octaritas, or the appearance of too much octaritas, at
least.
I'm wondering, though, whether we're not overstating the changes in the UK, given the earlier
conversation about the fact that governments reform around the personality of the prime
of a certain extent, whether the UK has probably got a wider range of experience than
might suggest.
Again, people have been talking about prime ministerial government for a very long time,
decades and decades, but it's actually harder to see a trend that says this is definitively
happening.
You can see highlights, and in times when it's, I keep coming back, any system where the
prime minister can be assassinated by the colleagues is one with a self-limiting control over
prime ministerial point yeah what do you think is a great book that remains to be written about
either an underrated individual in the history of australian government or just the mechanics of
government so i'll give you an example of a book i'd love to see written i'd love a historian to gather
up all of the red and blue books of the losing side and write a counterfactual history of
australia speculating on on what might have happened if the uh the other party had won government
What do you think is a great book that remains to be written?
Glynn's analysis of public policy in Australia over the last century.
Good answer.
It's a great question.
I'd like to read that.
And people don't know about blue and read books.
Do you want to just get a 30 second explanation?
Because people listening might not know.
So each time there's an election, PM and C forms up and happens at the state level as well.
Two teams, a blue team and a red team.
Not individuals who share that view, but as a professional task.
Red for Labor, blue for the coalition.
That's right.
I think I started that pattern.
Well, when I was there.
Possibly it's...
Yeah, because all they ever did was the Red Book, and I said,
really?
Yeah, for whoever happened to be government at the time.
Yeah.
Whereas what you needed was for both sides to have their policies analyzed
in terms of what needed to be done.
Wait, so do you think you might have started that in Australia or just in Victoria?
Oh, no, I just...
Yeah, I'd done it in Victoria.
And then everyone copied it?
No, no, I just did it when I was in...
I don't think of this...
I just took it for granted.
Maybe it's a more recent tradition
than I took it for granted.
I took it for granted that it was longstanding.
But so coming into the election,
these two teams track every announcement
by both sides.
And then they try and provide policy briefs
for an incoming prime minister,
whoever is elected
that says this is what you've committed to
here's the program that you've said you'll implement
here's our analysis of timelines and costs
and it's a really thorough piece of work
and then as you say after every election one of them gets
keep a copy but technically you know
symbolically you're throwing it aside
because it didn't matter but they all
they all exist and they're really really detailed
and the head of PMSC usually meets with the leader of the opposition
in the course of an election to discuss the book.
Ed was fun meeting with Tony Abbott.
Okay, well, I met with Peter Dutton
and we had a very respectful discussion about if he were successful,
here's what we're ready to do,
here are the arrangements for election day and the day after.
Oh, wait, so you actually talked to the leader of the opposition.
That's part of the process.
Before they...
Yes.
Before they...
I didn't, so I thought that conversation would only happen if they won government.
You'd say, here's the book.
You'd show them the book.
No, you don't show them the book.
You just let them know what work is happening.
Okay.
And what they can receive, yeah, should they be elected to be the first minister?
Yeah.
But, I mean, it goes down to practical examples like this is when we would meet on the day after
and this is what we would bring.
And so you're briefing them on what the process is going to be on election day and afterwards.
But what you're telling him is we'll be bringing you this basically your manifest.
Yeah.
And, you know, as thorough as we can, but the reason we want to give it to you as early
as possible is you need to go through it or your team needs to go through it and make sure
that we've accurately captured and what you, and because there's always a problem because
individual candidates announce things and what is it, what is definitively, and that's
why you go through it with it.
It's a very important process and it means the bureaucracy is attuned to what the alternative
government would want to do and has already begun thinking about how.
to go about doing it.
I think that's a really, really important tradition.
So what I've done down here and I did it in PMNC as well, on top of all of that, I got the
First Minister's Department to prepare an analysis of current issues of importance, policy
issues of importance, which may require some action and how you might take that action.
And invariably, those papers, which weren't just geared to things that a particular party
had promised, they were just our, or the departments of you of what was really pressing
at the moment and what was potentially a bit dangerous and they were always well received.
Yeah, yeah.
And it's an understood process and so both sides have an investment in it.
It's really important.
It's good.
And it's a way of demonstrating that the First Minister's department is on the ball.
Yeah, that's true as well.
And Treasury does the same.
Yeah, it's not just PMNC.
All the departments, right?
They all do for their portfolio, but Treasury and PMNC tend to do broader because...
And they've got a better broad view of things in those two departments.
So an incoming government would expect to get detailed advice on day one about their program.
And they'd be right to expect it.
they'll get it. And what I did down here before going to Canberra was not only prepare that,
but then get a professional editor to come in and turn it into plain English, right?
Yeah. And then to get a professional designer to come in and turn it into a publication
on a magazine style. And when I did that for Julia, she really liked it.
Well, I can tell you that tradition continues
Because that's how it was done
You mean I had an impact
That's gone away
No, or you had the same ideas
That's probably the story
The tradition of
It has to be accessible
It has to be written for
People who haven't been in government recently
And so they're not
You don't put it in the standardised government format
You put it in Xx
That's right
And what I did down here
I think I did it in Canberra as well
Was say to the people doing it
We've got to put in some nice photographs, some nice graphs on some of the issues.
Yeah.
Yeah.
All that sort of stuff.
I said, it's quite flattering.
Well, no, the model is a magazine that you would like to read.
Yeah.
That's clever.
That's right.
Yeah.
But what's a great book you think remains to be written about how government works?
So, Terry, you'd like to see Glyn's.
Yeah, no, I'm all for Glynn writing it.
Glenn, what's your...
It's a great...
Sorry, having somebody interview a series of prime ministers after they've left
to do the compare and contrast, how they understood the role, what they were trying to do, how it worked.
PMs write, you know, they'll all write their autobiography and so they should
and that's a useful thing to read.
But having A. Pat Weller go in and ask, and so that the same interviews and so that we
get a sense of how the role looks when you sit in it because it's so fast it happens so quickly
while you're there that you must come out of it at the other end slightly shell-shocked about
all of that and be just great if we could arrange for someone to walk them through while
while they're still with us and while the memories are still moderately fresh and so almost
the process where six months after you finish as pro minister you go the National Library
or somebody interviews you at length.
And there's a tradition of being frank
and maybe you don't release it for 20 years or whatever
so that people can say what they experience.
That is what I would like to read.
But the book I would really like to read about Australia
is actually none of those.
You can't do it.
There's no way to do it.
But wouldn't it be fascinating to hear
how the first Australians landed in this country
and how they dispersed and what they discovered
and how it looked to the first human eyes to see this continent.
Yeah.
Wouldn't that be the most fascinating thing?
Yeah.
But, yeah.
All right.
Well, it's been fun.
Yeah.
Thank you both.
That's a pleasure.
I really enjoyed it.
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