The Joe Walker Podcast - How Government in Australia Really Works — Glyn Davis & Terry Moran

Episode Date: December 22, 2025

Glyn 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
Discussion (0)
Starting point is 00:00:00 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.
Starting point is 00:00:40 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,
Starting point is 00:01:00 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
Starting point is 00:01:28 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.
Starting point is 00:02:05 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.
Starting point is 00:02:28 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.
Starting point is 00:03:18 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,
Starting point is 00:03:53 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?
Starting point is 00:04:27 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
Starting point is 00:05:02 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,
Starting point is 00:05:20 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,
Starting point is 00:05:47 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
Starting point is 00:06:24 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
Starting point is 00:06:38 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
Starting point is 00:06:51 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,
Starting point is 00:07:24 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.
Starting point is 00:07:59 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.
Starting point is 00:08:28 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?
Starting point is 00:08:54 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.
Starting point is 00:09:34 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
Starting point is 00:10:14 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.
Starting point is 00:10:53 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.
Starting point is 00:11:27 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.
Starting point is 00:12:03 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,
Starting point is 00:12:39 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.
Starting point is 00:13:07 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.
Starting point is 00:13:39 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.
Starting point is 00:14:04 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,
Starting point is 00:14:35 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.
Starting point is 00:15:11 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
Starting point is 00:15:41 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.
Starting point is 00:16:13 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,
Starting point is 00:16:39 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
Starting point is 00:17:02 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,
Starting point is 00:17:34 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.
Starting point is 00:17:49 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
Starting point is 00:18:22 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
Starting point is 00:19:05 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,
Starting point is 00:19:42 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.
Starting point is 00:20:26 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.
Starting point is 00:21:00 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.
Starting point is 00:21:25 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
Starting point is 00:21:50 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
Starting point is 00:22:10 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.
Starting point is 00:22:30 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.
Starting point is 00:23:05 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.
Starting point is 00:23:23 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
Starting point is 00:23:44 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.
Starting point is 00:24:06 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
Starting point is 00:24:50 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.
Starting point is 00:25:25 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.
Starting point is 00:26:03 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
Starting point is 00:26:19 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,
Starting point is 00:26:36 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.
Starting point is 00:27:08 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.
Starting point is 00:27:38 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
Starting point is 00:27:58 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.
Starting point is 00:28:30 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.
Starting point is 00:29:13 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.
Starting point is 00:29:47 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.
Starting point is 00:30:03 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,
Starting point is 00:30:32 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.
Starting point is 00:30:46 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
Starting point is 00:31:02 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
Starting point is 00:31:14 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.
Starting point is 00:31:27 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
Starting point is 00:31:45 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
Starting point is 00:32:14 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,
Starting point is 00:32:34 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
Starting point is 00:32:47 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.
Starting point is 00:33:21 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
Starting point is 00:33:51 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,
Starting point is 00:34:22 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,
Starting point is 00:34:46 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.
Starting point is 00:35:01 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
Starting point is 00:35:24 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
Starting point is 00:36:27 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.
Starting point is 00:37:11 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
Starting point is 00:37:33 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.
Starting point is 00:38:28 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
Starting point is 00:39:14 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
Starting point is 00:39:37 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.
Starting point is 00:40:03 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
Starting point is 00:40:44 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?
Starting point is 00:41:16 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.
Starting point is 00:41:31 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?
Starting point is 00:41:53 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,
Starting point is 00:42:20 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.
Starting point is 00:42:36 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.
Starting point is 00:42:53 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.
Starting point is 00:43:16 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,
Starting point is 00:43:44 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.
Starting point is 00:44:18 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,
Starting point is 00:44:39 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
Starting point is 00:44:56 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.
Starting point is 00:45:22 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.
Starting point is 00:45:53 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,
Starting point is 00:46:21 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.
Starting point is 00:46:36 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
Starting point is 00:46:57 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.
Starting point is 00:47:36 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
Starting point is 00:47:58 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
Starting point is 00:48:16 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 point is 00:48:55 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.
Starting point is 00:49:29 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
Starting point is 00:50:13 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.
Starting point is 00:51:01 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.
Starting point is 00:51:48 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
Starting point is 00:52:07 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.
Starting point is 00:52:33 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.
Starting point is 00:53:03 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
Starting point is 00:53:44 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,
Starting point is 00:54:25 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,
Starting point is 00:55:10 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,
Starting point is 00:55:30 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.
Starting point is 00:56:06 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.
Starting point is 00:56:23 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
Starting point is 00:57:06 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
Starting point is 00:57:42 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.
Starting point is 00:58:12 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
Starting point is 00:58:42 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,
Starting point is 00:59:21 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
Starting point is 00:59:59 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.
Starting point is 01:00:38 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,
Starting point is 01:01:11 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.
Starting point is 01:01:32 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.
Starting point is 01:01:49 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?
Starting point is 01:02:15 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.
Starting point is 01:02:51 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.
Starting point is 01:03:29 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.
Starting point is 01:04:04 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.
Starting point is 01:04:32 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
Starting point is 01:04:54 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
Starting point is 01:05:09 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
Starting point is 01:05:44 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,
Starting point is 01:06:04 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
Starting point is 01:06:39 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
Starting point is 01:07:23 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.
Starting point is 01:07:58 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
Starting point is 01:08:33 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,
Starting point is 01:09:00 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.
Starting point is 01:09:27 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,
Starting point is 01:10:11 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.
Starting point is 01:10:52 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
Starting point is 01:11:19 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.
Starting point is 01:11:45 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?
Starting point is 01:12:24 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
Starting point is 01:13:03 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.
Starting point is 01:13:29 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
Starting point is 01:13:45 considering complex legislative suggestions agree, but the third thing is less likely in the first two agree sometimes you get an iconic
Starting point is 01:13:59 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
Starting point is 01:14:28 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,
Starting point is 01:15:05 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
Starting point is 01:15:29 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.
Starting point is 01:15:44 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.
Starting point is 01:15:57 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.
Starting point is 01:16:11 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?
Starting point is 01:16:44 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
Starting point is 01:17:20 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
Starting point is 01:17:52 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.
Starting point is 01:18:36 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?
Starting point is 01:19:07 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.
Starting point is 01:19:30 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.
Starting point is 01:20:05 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.
Starting point is 01:20:31 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
Starting point is 01:21:06 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.
Starting point is 01:21:46 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.
Starting point is 01:22:14 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.
Starting point is 01:22:52 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.
Starting point is 01:23:36 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.
Starting point is 01:24:10 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.
Starting point is 01:24:38 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,
Starting point is 01:25:15 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,
Starting point is 01:25:50 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
Starting point is 01:26:13 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.
Starting point is 01:26:44 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.
Starting point is 01:27:18 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
Starting point is 01:28:08 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
Starting point is 01:28:26 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
Starting point is 01:29:07 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.
Starting point is 01:29:42 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.
Starting point is 01:30:19 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,
Starting point is 01:30:34 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.
Starting point is 01:30:52 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
Starting point is 01:31:28 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.
Starting point is 01:31:50 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,
Starting point is 01:32:10 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.
Starting point is 01:32:46 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,
Starting point is 01:33:23 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
Starting point is 01:34:12 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
Starting point is 01:34:51 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.
Starting point is 01:35:20 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,
Starting point is 01:35:57 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.
Starting point is 01:36:27 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
Starting point is 01:36:55 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.
Starting point is 01:37:14 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
Starting point is 01:37:51 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
Starting point is 01:38:09 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
Starting point is 01:38:25 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.
Starting point is 01:38:43 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.
Starting point is 01:39:05 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
Starting point is 01:39:42 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
Starting point is 01:39:58 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
Starting point is 01:40:21 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?
Starting point is 01:40:48 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.
Starting point is 01:41:12 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
Starting point is 01:41:39 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.
Starting point is 01:42:12 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.
Starting point is 01:42:38 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.
Starting point is 01:42:51 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
Starting point is 01:43:07 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.
Starting point is 01:43:46 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
Starting point is 01:44:47 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.
Starting point is 01:45:17 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.
Starting point is 01:45:44 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
Starting point is 01:46:08 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,
Starting point is 01:46:39 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
Starting point is 01:47:36 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
Starting point is 01:48:01 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?
Starting point is 01:48:23 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
Starting point is 01:48:47 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
Starting point is 01:49:12 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,
Starting point is 01:49:35 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,
Starting point is 01:50:07 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?
Starting point is 01:50:36 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
Starting point is 01:51:10 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,
Starting point is 01:51:36 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
Starting point is 01:52:30 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.
Starting point is 01:52:52 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
Starting point is 01:53:23 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.
Starting point is 01:54:04 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
Starting point is 01:54:25 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
Starting point is 01:54:55 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
Starting point is 01:55:44 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
Starting point is 01:56:27 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.
Starting point is 01:56:51 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.
Starting point is 01:57:28 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.
Starting point is 01:57:59 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,
Starting point is 01:58:19 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
Starting point is 01:58:53 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
Starting point is 01:59:27 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.
Starting point is 01:59:47 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,
Starting point is 02:00:11 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.
Starting point is 02:00:54 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.
Starting point is 02:01:25 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...
Starting point is 02:01:48 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
Starting point is 02:02:13 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.
Starting point is 02:02:47 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.
Starting point is 02:03:02 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
Starting point is 02:03:20 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
Starting point is 02:03:34 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.
Starting point is 02:03:48 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.
Starting point is 02:04:10 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.
Starting point is 02:04:40 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.
Starting point is 02:05:03 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.
Starting point is 02:05:45 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,
Starting point is 02:06:14 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. Scaling a business is hard enough already. So you don't want to be bottlenecked on things like compliance. And while achieving compliance can help you win bigger deals and to new markets, and deepen trust with customers, it can also cost a lot of time and money. By automating up to 90% of work involved in SOC2, ISO-27-001 and more, Vanta gets you compliant
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Starting point is 02:07:38 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?
Starting point is 02:07:58 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
Starting point is 02:08:12 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.
Starting point is 02:08:48 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.
Starting point is 02:09:14 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.
Starting point is 02:09:52 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.
Starting point is 02:10:12 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.
Starting point is 02:10:32 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.
Starting point is 02:10:50 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
Starting point is 02:11:17 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
Starting point is 02:11:37 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
Starting point is 02:11:49 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,
Starting point is 02:12:11 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.
Starting point is 02:12:42 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,
Starting point is 02:13:00 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.
Starting point is 02:13:19 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.
Starting point is 02:13:51 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
Starting point is 02:14:37 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.
Starting point is 02:15:12 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.
Starting point is 02:15:46 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
Starting point is 02:16:09 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
Starting point is 02:16:26 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
Starting point is 02:16:46 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.
Starting point is 02:17:12 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
Starting point is 02:18:37 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.
Starting point is 02:19:30 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.
Starting point is 02:20:03 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.
Starting point is 02:20:42 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.
Starting point is 02:21:53 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
Starting point is 02:22:26 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
Starting point is 02:23:01 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.
Starting point is 02:23:41 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.
Starting point is 02:24:04 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.
Starting point is 02:24:18 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...
Starting point is 02:24:36 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.
Starting point is 02:24:51 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
Starting point is 02:25:13 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
Starting point is 02:25:38 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...
Starting point is 02:25:53 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.
Starting point is 02:26:09 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
Starting point is 02:26:36 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
Starting point is 02:27:11 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.
Starting point is 02:27:47 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.
Starting point is 02:28:16 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
Starting point is 02:28:51 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
Starting point is 02:29:04 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.
Starting point is 02:29:21 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.
Starting point is 02:29:33 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
Starting point is 02:30:07 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.
Starting point is 02:30:47 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.
Starting point is 02:31:04 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.
Starting point is 02:31:25 All right. Well, it's been fun. Yeah. Thank you both. That's a pleasure. I really enjoyed it. I hope you enjoyed this episode. If you did, you can support the show by leaving a five-star rating on Apple Podcasts or Spotify
Starting point is 02:31:35 or by subscribing on YouTube. Thanks to this episode sponsors, you can find them in the episode description. And thanks to Bill Manos and the Manos Foundation. for their generous patronage of the show. If you'd like to become a sponsor or patron, you can go to jNwpod.com slash sponsor or email me at joe at jnwpod.com. That's joe at jnwpod.com.
Starting point is 02:32:01 Thanks for listening. Until next time, chow.

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