Annual Report 2011-12 - Part 1: Overview...arrangements for Australia’s hosting of G20 in 2014). We also ensured that forward-looking strategic policy was prioritised in the face

Part 1:

OverviewThe portfolio 2

The Department 5

From the Secretary 9

2 Part 1: Overview

Department of the Prime Minister and Cabinet

§ The Hon Warren Snowdon MP, Minister Assisting the Prime Minister on the Centenary of Anzac

§ The Hon Gary Gray AO MP, Minister for the Public Service and Integrity

§ The Hon Mark Dreyfus QC MP, Cabinet Secretary

§ Senator the Hon Jan McLucas, Parliamentary Secretary to the Prime Minister.

Portfolio changes

Significant changes occurred within the Prime Minister and Cabinet portfolio during 2011–12. These changes (described below) have been as a result of machinery of government changes reflected in the Administrative Arrangements Orders (AAO) of 19 October 2011, 7 and 14 December 2011 and 9 February 2012.

Transfers from the Prime Minister and Cabinet portfolio were:

§ the Office of the Australian Information Commissioner to the Attorney-General’s portfolio, including responsibility for the Australian Information Commissioner Act 2010

§ the privacy and freedom of information policy function to the Attorney-General’s Department, including responsibility for the Australian Information Commissioner Act 2010, the Freedom of Information Act 1982 and the Privacy Act 1988

§ the Australian Institute of Family Studies to the Families, Housing, Community Services and Indigenous Affairs portfolio, including responsibility for parts of the Family Law Act 1975

§ the Department of Regional Australia, Regional Development and Local Government and its related entity the National Capital Authority to a new portfolio, the Regional Australia, Local Government, Arts and Sport portfolio

The Prime Minister and Cabinet portfolio has a unique and privileged role at the forefront of public and government administration.

As at 30 June 2012, the portfolio comprised one Department of State, one Commonwealth company and seven prescribed agencies.

Department of State

§ Department of the Prime Minister and Cabinet

Commonwealth company

§ National Australia Day Council Limited

Prescribed agencies

§ Australian National Audit Office

§ Australian Public Service Commission

§ National Mental Health Commission

§ Office of National Assessments

§ Office of the Commonwealth Ombudsman

§ Office of the Inspector-General of Intelligence and Security

§ Office of the Official Secretary to the Governor-General

Our Ministers

As at 30 June 2012, the portfolio had the following Ministers and Parliamentary Secretaries:

§ The Hon Julia Gillard MP, Prime Minister

§ Senator the Hon Stephen Conroy, Minister Assisting the Prime Minister on Digital Productivity

§ The Hon Mark Butler MP, Minister Assisting the Prime Minister on Mental Health Reform and Minister for Social Inclusion

The portfolio

3Part 1: Overview

Annual Report 2011–12

§ Old Parliament House to the Regional Australia, Local Government, Arts and Sport portfolio

§ the national security science and innovation function to the Department of Defence.

New functions transferred to the PM&C portfolio were:

§ the cyber security policy function from the Attorney-General’s Department to the Department of the Prime Minister and Cabinet

§ the National Mental Health Commission, established on 1 January 2012 as an executive agency.

§ responsibility for cultural affairs, including moveable cultural heritage, support for the arts and Indigenous international repatriation, including related entities, to the Regional Australia, Local Government, Arts and Sport portfolio

§ responsibility for sport and recreation, including related entities, to the Regional Australia, Local Government, Arts and Sport portfolio

§ the National Archives of Australia to the Regional Australia, Local Government, Arts and Sport portfolio, including responsibility for the Archives Act 1983

Photo 1.1 Mr Stephen Sedgwick AO, Australian Public Service Commissioner, the Prime Minister the Hon Julia Gillard MP and Dr Ian Watt AO, Secretary of the Department of the Prime Minister and Cabinet at the launch by the Prime Minister of 2012 – The Year Ahead, communicating the priorities of the Government

4 Part 1: Overview


Figure 1.1 PM&C portfolio changes to agencies and functions during 2011–12

From PM&C portfolio To

Attorney-General’s portfolio

Cyber security policy function

National security science and innovation function

Office of the Australian Information Commissioner

Privacy and freedom of information policy function

Department of Regional Australia, Local

Government, Arts and Sport

Arts and cultural development functions

Sports and recreation functions

Old Parliament House

National Archives of Australia

Australian Institute of Family Studies

National Mental Health Commission (new agency)

Defence portfolio

Attorney-General’s portfolio

Regional Australia, Local Government,

Arts and Sport portfolio

Families, Housing, Community Services

and Indigenous Affairs portfolio

5Part 1: Overview


Outcome and program structure

The Department worked to achieve one outcome: Coordination of government activities; policy development; advice and program delivery to support and inform the Prime Minister, the Cabinet and the Cabinet Secretary.

This outcome was supported by two programs: Prime Minister and Cabinet and Official and ceremonial support.

The Department

Figure 1.2 PM&C’s outcome and program structure

Outcome 1

Coordination of government activities; policy development; advice and program delivery to support

and inform the Prime Minister, the

Cabinet, and the Cabinet Secretary

Program 1.1

Prime Minister and Cabinet

Program component 1.1.1

Domestic policy


National security and international policy


Strategic policy and implementation


Support services and government operations


Commonwealth Heads of Government Meeting 2011

Program 1.2

Official and ceremonial support

This is consistent with the outcome and program structure (see Figure 1.2) and performance targets in the Portfolio Budget Statements 2011–12 and Portfolio Additional Estimates Statements 2011–12. There were no subsequent changes to the performance targets in the reporting period.

6 Part 1: Overview


Domestic Policy Group

The Domestic Policy Group supported the development of economic, environmental, productivity and social policies. We coordinated the Council of Australian Governments (COAG) arrangements, provided advice and support for the Budget process and policy advice in relation to the G20 (including the operational arrangements for Australia’s hosting of G20 in 2014). We also ensured that forward-looking strategic policy was prioritised in the face of the day-to-day demands of government.

National Security and International Policy Group

The National Security and International Policy Group provided advice on Australia’s foreign policy, trade and treaty matters, defence, intelligence, non proliferation, counter-terrorism, law enforcement, border security and emergency management. The Group also played a leadership role in the development of improved information management and integrated whole of government cyber policy.

Governance Group

The Governance Group provided advice on legal policy, parliamentary and government matters, honours policy, and support services to the Prime Minister, the Cabinet, Cabinet committee chairs, and Portfolio Ministers and Parliamentary Secretaries. The Group delivered the Department’s enabling and support functions. The Group oversaw the implementation and ongoing delivery of key programs, policies and initiatives, including the Government’s Australian Public Service reform, delivery and community engagement agendas. In 2011–12, it also delivered administrative and logistical arrangements for the Commonwealth Heads of Government meeting held in Perth in October 2011.

Group structure

A new reporting structure came into effect from 14 May 2012. The key changes were:

§ transfer of the Strategy and Delivery Division to the Domestic Policy Group

§ transfer of functions in the (former) Implementation Division to Government Division (APS reform) and Ministerial Support Division (community engagement)

§ changed reporting arrangements for the Cabinet Implementation Unit

§ transfer of the National Security Chief Information Officer/Cyber Policy Coordinator functions to the Deputy National Security Adviser position

§ changed divisional responsibilities in the National Security Group with information sharing policy transferring to the Defence, Intelligence and Information Sharing Division and cyber policy transferring to the Cyber Policy and Homeland Security Division.

As at 30 June 2012, the Department had three groups: Domestic Policy, National Security and International Policy and Governance. Detail on the role of each Group is provided below. Detail on the executive leadership of each group is provided in the Corporate Governance section of the report (see page 62).

Part 1: Overview


7

PM&C Staff

8 Part 1: Overview


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9Part 1: Overview


From the Secretary

Performance

The Department has had a successful year, responding well and effectively to the challenges and competing priorities that come with a very busy Government agenda, and the particular demands of minority Government, while substantially meeting each of our 2011–12 key performance indicators.

We supported the implementation of the Government’s national security and global engagement priorities. We drove policy solutions to Australia’s domestic challenges, most notably on social and economic policy and were responsible for advice and support on machinery of government and public sector governance across the APS. We also provided advice on the Government’s legislation program, parliamentary matters, ministerial arrangements and legal and constitutional matters.

We worked on high profile issues of national significance, in collaboration with our colleagues across the APS, such as the 2012–13 Budget, the Cyber White Paper, the Australia in the Asian Century White Paper, the National Disability Insurance Scheme (NDIS) Taskforce and the Environmental Regulation Reform Taskforce.

Detail on the breadth and depth of PM&C’s work in 2011–12 is provided in the Department’s report of performance in Part 2 of this report.

Departmental restructure

In 2011–12, the PM&C portfolio underwent significant changes. These included a departmental restructure in May 2012. The restructure enabled us to better align our policy functions with the Prime Minister’s priorities while ensuring we maintained our focus on delivering our core responsibilities. Further detail is at page 6 of this report.

I first worked at the Department of the Prime Minister and Cabinet (PM&C) between March 1994 and March 2001, initially as the First Assistant Secretary of the Economic Division and then as the Deputy Secretary of the Economic, Industry and Resources Group. When I returned to the Department to take up the position of Secretary in September 2011, I found the core business of PM&C largely unchanged. In this respect I agree with Sir Geoffrey Yeend, Secretary of PM&C from 1978 to 1986, who wrote in PM&C’s first Annual Report in 1978–79:

‘The basic functions [of PM&C] do not change; nor does the basic character of the Department, and the intense pressure in working in the forefront of government activity continues.’

During the one hundred and one years that PM&C has supported the government of the day we have developed and honed our core role of providing high quality policy advice and support to the Prime Minister, the Cabinet, our Ministers and the Government. From major policy reform to supporting the Prime Minister’s international visits, our focus remains on what matters most to the Prime Minister, our Ministers and the Government as a whole.

We also take a lead role in the Australian Public Service (APS), helping to make sure that the public service provides the best possible advice to Government, and we do this by organising processes, facilitating dialogue, asking questions and, when required, taking the lead on issues.

10 Part 1: Overview


staff, our clear focus on providing high quality policy advice and support for the Prime Minister and the Cabinet, our flexibility in adapting to the priorities of the day and our understanding and control of government process.

The Review identified a number of ways in which PM&C can improve its practices:

§ by the senior leadership team communicating their expectations of PM&C officers more clearly and more frequently

§ through greater clarity of purpose and all PM&C officers becoming better at knowing what the Review called the ‘PM&C Craft’, which is about working on what matters to Government, about being selective and sensitive in the use of our time and energy and about only getting involved, for example, when an issue is a priority for Government, or when it affects multiple departments and needs central coordination to achieve a good outcome

§ through PM&C taking a more strategic approach to recruitment and the development of our people, particularly by hiring and developing good people managers

§ by continuing to better organise our corporate systems, including our information and communications technology, our human resources and our financial systems.

In 2012–13 we will focus on implementing practical strategies to address these findings and on making them relevant to all staff. I will also be looking beyond PM&C as the findings contain lessons that are applicable to all government agencies.

Further information on the ‘PM&C Craft’ is at Appendix A and the full Capability Review will be released later in 2012.

Finances

Machinery of government changes to the Department over the course of 2011–12 affected our financial structures. These are reflected in the financial statements presented in this report. Transfers of functions to and from the Department occurred relatively seamlessly and our financial management responsibilities were met in full.

People

Our performance was underpinned by the integrity and professionalism of our staff, their expertise and their specialised knowledge and capacity to respond quickly and flexibly. PM&C staff develop their skills, interests and APS careers at the centre of Government and movement of staff between PM&C and the rest of the APS enhances the skill base of both PM&C and the APS as a whole.

We will continue to engage with and develop our people. In 2011–12 the key human resource outcomes were the development of the Human Capital Strategy 2011–2014 and the implementation of the PM&C Enterprise Agreement 2011–14 and supporting employment guidelines.

Improving our organisation

Ahead of the Game: Blueprint for the Reform of Australian Government Administration recommended that all departments undertake a Capability Review.

In 2011–12 PM&C became the first department to undergo a formal, independent review, by a senior team from the Australian Public Service Commission.

The team praised PM&C for its ‘many strengths’ including the commitment and motivation of our

11Part 1: Overview


The year ahead

The next 12 months will be exciting and challenging and our key priorities will be:

§ supporting the Council of Australian Governments (COAG) and its senior officials in progressing the COAG reform agenda in areas such as skills, disability, schools funding and competition and regulatory reform

§ leading and supporting efforts to strengthen the national security community, including implementation of the Independent Review of the Intelligence Community

§ finalising the Australia in the Asian Century White Paper to consider the likely economic and strategic changes in the region and what more can be done to position Australia for the Asian century, and leading its implementation

§ developing the framework for the launch of the NDIS

§ continuing engagement in the G20 Forum and planning for Australia’s hosting of the G20 in 2014

§ implementing the findings of PM&C’s Capability Review.

I have greatly enjoyed my first year as Secretary of the Department and as the head of the APS. That enjoyment reflects the quality of the people I work with and the importance of the issues we are involved in. I look forward to another challenging year in 2012-13, working with my colleagues both in the Department and across the APS.

I J Watt Secretary

Leadership of the APS

As the head of the APS, I have a strong interest in building an APS that is the Australian Government’s first choice for policy advice, policy implementation and program and service delivery. While the APS does not have, and has never had, a monopoly on these services, we must ensure that it is the organisation the Government looks to first and foremost.

To do this we must function as a single APS, engaging early on issues of national significance and working collegiately in teams that go well beyond department and agency boundaries.

As stewards of the APS, the Secretaries of Departments of State lead by example with collegiate and collaborative behaviour. In June 2012 I chaired the annual retreat of the Secretaries’ Board where Secretaries discussed, amongst other issues, our vision for the APS. Arising from this discussion was a set of principles agreed to by all Secretaries that identifies the role and ethos of the APS. The statement, ‘What do we want the Australian public service to be?’, can be found at Appendix B. I think that these ideas are a useful way of thinking about how we should operate as an APS.

By embracing opportunities like the Capability Review, and by adopting the principles referred to above, PM&C in conjunction with all APS agencies can help ensure that we are the source of policy and program advice, implementation and delivery to which the Government turns first.

12 Part 1: Overview


Feature Celebrating PM&C’s First

One Hundred YearsOn Monday 11 July 2011 the Department marked the beginning of its centenary year with the launch of its first official history, From Postbox to Powerhouse.

At a morning tea attended by a large number of PM&C staff and former PM&C Secretaries Michael Codd AC, John Menandue AO and Max Moore-Wilton AC, then Secretary Terry Moran AO congratulated the book’s three authors: Pat Weller, Joanne Scott and Bronwyn Stevens, on the ‘wonderful history’ they had produced and acknowledged the contribution of Ross Laurie, ‘the fourth author’, who passed away during the project.

Mr Moran explained how the book’s title charts the evolution of the Department from a ‘clearing house for correspondence from the Prime Minister to London and the states’ to an agency that plays ‘a crucial role in the Cabinet process and with administrative arrangements and in decisions that affect every corner of the nation’.

In his highly entertaining book review, Senator John Faulkner, representing the Prime Minister, described the history of PM&C as ‘a chronicle of the centrality of government in the life of the Australian community and the good that can be achieved through thoughtful public policy’.

Co-author Professor Pat Weller also gave some insight into the challenge of distilling a hundred years of complex events, controversial debates and colourful personalities into a mere 300 pages.

In a sweet conclusion to proceedings, International Division’s Stephanie Hillman, was awarded first prize in the PM&C Centenary Cake competition.

The centenary was also honoured in true PM&C style on 10 February 2012 when the normally utilitarian surrounds of the PM&C amenities room were transformed into a setting reminiscent of Baz Luhrman’s The Great Gatsby as the Secretary and the Photo 1.2 Senator the Hon. John Faulkner at the launch of the centenary

history of PM&C From Postbox to Powerhouse

13Part 1: Overview


Department’s staff celebrated the centenary by hosting the Prime Minister, the Hon Julia Gillard MP, former Prime Minister, the Hon John Howard AC and a number of former Secretaries.

Both the Prime Minister and Mr Howard spoke warmly of the vital role the Department plays in supporting the leader of the Government of the day. Former Prime Minister, the Hon Bob Hawke AC also sent a message conveying his gratitude to PM&C and paid special tribute to the Ceremonial and Hospitality Branch for their support during his time as Prime Minister.

The gala also marked the official naming of One National Circuit as the Andrew Fisher Building in honour of the man who began his working life in the coal mines of Scotland at the age of ten and went on to serve as Prime Minister of Australia three times between 1908 and 1915.

The Prime Minister acknowledged the ‘powerful legacy’ of Andrew Fisher, including the foundation of the Royal Australian Navy, the Commonwealth Bank and the national capital in Canberra as well as maternity allowances and workers’ compensation for Commonwealth employees. Alongside these significant national reforms, Prime Minister Fisher was also responsible for the creation of a separate Prime Minister’s Department in 1911.

Before the Prime Minister asked Mr Howard to help her unveil the plaque, she reflected that, a hundred years on, ‘The Department plays a central policy development and coordination role across government, realising Andrew Fisher’s vision of an agency that would support the Prime Minister of the day’.

Photo 1.3 Stephanie Hillman with her winning entry in the PM&C Centenary Cake Competition

Documents

Annual Report 2011-12 - Part 1: Overview...arrangements for Australia’s hosting of G20 in 2014). We also ensured that forward-looking strategic policy was prioritised in the face