Decision-Making and the Australian Cabinet
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DECISION MAKING AND THE AUSTRALIAN CABINET SYSTEM Mr Bruce Taloni Australian Department of the Prime Minister and Cabinet Paper for Greater China Australia Dialogue on Public Administration Guangzhou, China – October 2016 Parliament House, Canberra Australia Introduction The key decision making processes of the Australian Government have remained and applied consistently for over one hundred years, since the formation of the Commonwealth of Australia in 1901. The centre piece of the Australian system is the Cabinet. The Cabinet is responsible for directing government policy and making decisions on important national issues. The fact that the Cabinet exists by virtue of convention not constitution, and has remained the Government’s principal decision making body, is testament to its value. At the heart of a strong Cabinet are the principles of confidentiality and collective responsibility. Maintaining confidentiality allows the Cabinet to fully discuss issues before making decisions. To make informed decisions, the Cabinet must work in a way that is truly consultative. Wherever possible, the Cabinet should consult colleagues, the bureaucracy and the wider public. This paper outlines the Australian Government's decision making processes, with Cabinet at its heart. It describes the various Cabinet sub-committees and discusses the key components of a working system. The paper also explores the decision making process more generally, as well as outlining current and emerging challenges, as well as the changing nature of the processes and the need for constant adaptation. The Cabinet The Cabinet is the council of senior ministers who are empowered by the Government to take binding decisions on its behalf. The Cabinet is a product of convention and practice. There is no reference to the Cabinet in the Commonwealth Constitution and its establishment and procedures are not the subject of any legis latio n. Provided the guiding principles of a Cabinet system are met—collective responsibility and solidarity—it is for the Prime Minister of the day to determine the shape, structure and operation of the Cabinet. As the Cabinet does not have specific terms of reference or powers laid down in statute, the outcomes of its deliberations may require action by the Governor-General, individual ministers whose executive power is derived from Chapter II of the Constitution, holders of statutory office, or by the Parliament to be put into effect. Australia’s First Federal Cabinet: Prime Minister Barton and his Ministers with the Governor-General, Lord Tennyson The Australian Prime Minister The Prime Minister of Australia, the Hon Malcom Turnbull MP, is responsible for the membership of the Cabinet and Cabinet committees, determines and regulates all Cabinet arrangements for the Government and is the final arbiter of Cabinet procedures. The Prime Minister advises the Governor-General on the appointment of ministers (including the title and scope of each minister’s portfolio) and determines which ministers will form the Cabinet. As chair of the Cabinet, the Prime Minister sets the Cabinet’s agenda and determines when and where meetings take place. The Prime Minister leads and guides discussion to achieve a collective response and ensures the clarity of decisions. In exceptional circumstances where a collective decision is not possible the Prime Minister’s view is authoritative. The Ministry The Ministry is comprised of the Ministers of State including Cabinet ministers and assistant Ministers. Together they form the Federal Executive Council - the body which formally advises the Governor-General on the administration of the Commonwealth of Australia. The Cabinet principles and conventions apply to the whole Ministry, not simply those ministers in Cabinet. Prime Minister Turnbull’s Full Ministry - 2016 The Cabinet Secretary The Prime Minister may appoint a Cabinet Secretary to manage the day-to-day procedural and operational matters of the Cabinet and any Cabinet committees. The current Cabinet Secretary is Senator the Hon. Arthur Sinodinos AO. The Cabinet Secretary or the Assistant Cabinet Secretary attend all meetings of the Cabinet and Cabinet committees and are responsible for the smooth running of meetings and for authorising the record of decisions (‘the Cabinet minutes ’). Through delegations from the Prime Minister, the Cabinet Secretary has the power to: (a) provide authority to ministers to bring items forward for consideration by the Cabinet or a Cabinet Committee; (b) finalise the Cabinet and the Cabinet committee business lists; (c) maintain and enforce the integrity of Cabinet rules and processes, including working with the Department of the Prime Minister and Cabinet (PM&C) to ensure Cabinet submissions are of high quality; (d) authorise Cabinet minutes; (e) approve absences of Cabinet ministers; and (f) deal with practical issues regarding the co-option of non-Cabinet ministers and assistant ministers, and the attendance of officials. What are the Cabinet Committees? Cabinet committees are usually established either around a subject area, such as national security, or around a general function of government, such as expenditure. Temporary or ad-hoc Cabinet committees may also be established by the Prime Minister to carry out particular tasks. Cabinet committees derive their powers from the Cabinet. Generally, Cabinet committee decisions are brought forward to the Cabinet for endorsement, so the Cabinet retains the ultimate power of decision. While some committees may make final decisions for security or practical reasons, most Cabinet committee decisions may not be acted on until they have been endorsed by the Cabinet. The Cabinet may alter a Cabinet committee decision or ask a Cabinet committee to consider a matter further. The National Security Committee of Cabinet The National Security Committee focuses on major international security issues of strategic importance to Australia, border protection policy, national responses to developing situations (either domestic or international) and classified matters relating to aspects of operation and activities of the Australian Intelligence Community. The Expenditure Review Committee of Cabinet The Expenditure Review Committee considers matters of detail regarding expenditure and revenue for the Budget. The Digital Transformation Committee of Cabinet This committee oversees the Digital Transformation Agenda, and is responsible for: • strategic priorities for whole-of-government common service delivery platforms and better aligning deliverables with broader Government policies such as smaller government and contestability; • the prioritisation of service transformation investments put forward through the Budget process; and • other high-level policy and service delivery issues, for example if agreement cannot be made at the agency level. The Governance Committee of Cabinet The Governance Committee provides advice and oversight of governance and integrity issues, which include, but are not limited to, the Statement of Ministerial Standards and issues arising from the Lobbyist Code. The Indigenous Policy Committee of Cabinet The Indigenous Policy Committee ensures a whole-of-government approach to Indigenous policy decision-making and program implementation. The Innovation and Science Committee of Cabinet The Innovation and Science Committee provides advice on science, research and innovation matters, including but not limited to: • Implementing the National Innovation and Science Agenda; • developing and considering new policies and ideas; • a Statement of Expectations for Innovation and Science Australia; and • a long-term National Innovation and Science Plan. The National Infrastructure Committee of Cabinet The National Infrastructure Committee provides advice on the Government's infrastructure agenda to support the nation's productivity including, but not limited to: • progress on major projects; • working with the States, Territories and private sector on infrastructure investment and delivery; and • policies to better meet infrastructure needs. The Parliamentary Business Committee of Cabinet The Parliamentary Business Committee considers priorities for the Australian Government's legislation program and requests to the Prime Minister for the presentation of ministerial statements. The Service Delivery and Coordination Committee of Cabinet This committee considers the implementation of the Government's key priorities, including joined up service delivery and communications. The Federal Executive Council The Governor-General exercises the executive power of the Commonwealth under section 61 of the Constitution of the Commonwealth of Australia. This power extends to the execution and maintenance of the Constitution and laws of the Commonwealth. Section 62 of the Constitution establishes the Federal Executive Council to ‘advise the Governor-General in the government of the Commonwealth’. Members of the Executive Council are chosen, summoned and sworn in by the Governor-General and hold office at the Governor-General’s pleasure. While the Governor-General presides over meetings of the Executive Council, he or she is not a member of the Council. The powers exercised by the Governor-General on the advice of the Executive Council are referred to as those of the ‘Governor-General in Council’. Some of the decisions of the Cabinet and Government must be agreed in Council, prior to any announcement. Powers exercisable by the Governor-General in Council under the Constitution or, more commonly