PM-Takes-Razor-To-Budget-A-Team

The Australian, Australia 09 Dec 2019, by Simon Benson Geoff Chambers

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PM takes razor to budget A-team EXCLUSIVE SIMON BENSON GEOFF CHAMBERS New ‘heart’ drives Morrison agenda Scott Morrison and Josh Fry- denberg have established a new “heart of government”, slimming down the budget razor gang and EXCLUSIVE recruiting key advisers and reformers to deliver the SIMON BENSON Coalition’s economic blueprint GEOFF CHAMBERS for the 2022 election. In a move to streamline the Scott Morrison and Josh Fryden- date, insiders revealed Mr Fryden- expenditure review committee berg have established a new “heart berg regularly stays at Kirribilli process, the Prime Minister has of government” slimming down, House when he is in Sydney, re- contained permanent cabinet with the budget razor gang and flecting a close relationship with membership to himself, the newly recruited key advisers to de- Mr Morrison. The pair, as shown Treasurer, Finance Minister Ma- liver the Coalition’s economic in part two of The Australian’s thias Cormann, Deputy Prime blueprint for the 2022 election. Power List, have appointed trusted Minister Michael McCormack In a move to streamline the Ex- advisers to influential roles to help and Health Minister Greg Hunt. penditure Review Committee pro- shape the Coalition’s reform agen- The Australian understands cess, the Prime Minister has da as they combat international the ERC is now meeting twice a contained permanent cabinet headwinds, stagnant wages and week during parliamentary sit- membership to himself, the Trea- flat consumer spending. tings and having more frequent surer, Finance Minister Mathias A senior minister described the contact, accelerating the govern- Cormann, Deputy Prime Minister relationship between Mr Morri- ment’s response to policy and Michael McCormack and Health son and Mr Frydenberg as expenditure. Minister Greg Hunt. “unique” and the closest between a “Individual members will ro- The Australian understands prime minister and treasurer since tate in to present their cases,” a the ERC is now meeting twice a Robert Menzies and Harold Holt. government insider said. “But Mr Morrison consults Mr Fry- this ERC is now where the big week during parliamentary sitting periods and having more frequent denberg on everything from the decisions and broad economic economy, budget and electoral strategies are made. It’s the ERC contact, accelerating the government’s pace in responding to pol- mood to internal party politics and that Morrison wanted. And they fundraising. “They are from differ- are the people who he wanted.” icy and expenditure. “This is where the heart of gov- ent states and very different elect- Ahead of the mid-year econ- orates; this gives them both unique omic and fiscal outlook update ernment now lies. Individual members will rotate in to present perspectives,” the minister said. next week, insiders revealed the On Saturday, Mr Frydenberg Treasurer regularly stays at Kir- their cases,” a senior government ribilli House when in Sydney, re- insider told The Australian. had his work spread across the flecting his relationship with Mr “This ERC is now where the big kitchen table in his Hawthorn Morrison. A senior minister de- decisions and broad economic home, with Mr Morrison on scribed the relationship as the strategies are made. It’s a very con- speakerphone, trawling through closest between a prime minister centrated group. It’s the ERC that budget papers for MYEFO. and treasurer since Robert Men- Morrison wanted. And they are “It is a very close relationship,” zies and Harold Holt. the people he wanted.” another cabinet minister said. “It’s Ahead of next week’s mid-year genuine. They would speak to FULL REPORT P5 economic and fiscal outlook up- each other several times every day JOSH FRYDENBERG P12 The Australian, Australia 09 Dec 2019, by Simon Benson Geoff Chambers

outside the meetings of cabinet is a well-known networker with a and Expenditure Review Commit- contact book spanning multiple tee, leadership meetings and all industries and fields. the formal meetings.” Following the May 18 election, Mr Frydenberg, who has lead- corporate Australia was rattled. ership aspirations that have led to Many had written off Mr Morri- comparisons with John Howard son and put in place staff and and Peter Costello, is said to have strategies to appease Labor. Major no intention of undermining Mr companies and lobby groups have Morrison and would not be inter- now begun the process of recon- ested in the leadership unless it necting with the Coalition. was a “velvet” transition. Mr Morrison and Mr Fryden- Despite a successful partner- berg, along with other govern- ship, the Howard-Costello dy- ment players including Ben Morton and Yaron Finkelstein, namic was undermined by Mr have worked with business leaders Costello’s ambitions for the top to ensure they are on the same job. Ironically, Mr Howard and Mr wavelength moving towards the Costello have now become im- 2022 election. portant sounding boards for Mr The Business Council of Aus- Morrison and Mr Frydenberg. tralia — which had been frozen As Mr Morrison did as trea- out over a perception it had surer, Mr Frydenberg regularly banked on a Labor victory and was seeks counsel from Mr Costello. Treasury Secretary Steven slow to campaign for company tax Kennedy, appointed in July, Aus- cuts — is back in favour. Former tralian Competition & Consumer MYOB chief executive Tim Reed chair Rod Sims, financial and cor- was installed as BCA president last porate watchdogs Wayne Byres month and intends working with and James Shipton and Pro- government on shared goals. ductivity Commission chair Mi- Not everyone got it wrong. chael Brennan are also in close Master Builders Australia chief contact with Mr Frydenberg. Denita Wawn was one of the few Reserve Bank of Australia gov- industry leaders who picked the ernor Philip Lowe, who has been at winning team. Others retain rela- odds with government over his tions with the government, name- commentary on stimulus, infra- ly Australian Mines and Metals structure and monetary policy, re- Association chief Steve Knott and West Australian mining lobby mains one of the most influential head Paul Everingham. economic figures in the nation. Mr Writing in The Australian Frydenberg has also assembled a today, Mr Frydenberg says with team of economic advisers, led by government spending “around its chief of staff Martin Codina, that lowest level in 50 years” and wel- includes Nathan Wonder, a for- fare at its lowest level in 30 years, mer Treasury official, and former “now is the time to pay down NAB executive Adam Clark. Labor’s debt. If not now, when?”. Victorians Michael Sukkar, the Assistant Treasurer and Housing Minister, and Jane Hume, the As- sistant Minister for Superannu- ation, Financial Services and Financial Technology, are also working closely with Mr Fryden- berg leading reforms in the housing and financial sectors. As revealed in The Weekend Australian, Mr Morrison relies on the advice of a small circle of corporate confidants and does not seek the approval of business exec- utives. In contrast, Mr Frydenberg