PRIME MINISTER
FOR MEDIA 14 July 1987
I have decid ed to recommend to the Governor-General that he
approve major changes to the structure of Commonwealth
administration. He has-agreed to my making an early
announcement of my proposed recommendations. The changes
are aimed at achieving substantial enhancement of the
decision-making process and at removing overlap and
duplication of functions.
in summary, the changes will:-
substantially reduce the number of Commonwealth
departments to achieve administrative efficiencies and
savings, better policy co-ordination and improved budget
processesi enhance ministerial control of departments by moving to
a 2 level ministerial structure, each Cabinet minister
being responsible for one of 16 large portfolios
supported In most cases by one or more non-Cabinet
ministers responsible for specific parts of the Cabinet
minister's portfolio, or assisting across the range. of
functions.
For example, within the portfolio of the Minister for
Foreign Affairs and Trade there will be a Minister with
specific responsibilities for Trade Ne oti at ions and within
the Community Services and Health port olio there will be
Ministers for Aboriginal Affairs and Veterans' Affairs. As
I promised before and during the election campaign, there
will continue to be a. separate department of Veterans'
Affairs the only Department additional to the 16 portfolio
structure. The total size of the ministry will be 30 of
which 16 will be Cabinet ministers.
These changes reflect the results of a comprehensive review
of the structure of government and the government's
perception that there is room for substantial streamlining
of the administrative machinery. The new structure will, as
I have said, reduce overlap and duplication. it will also
ensure that all portfolio, interests are represented in a
Cabinet that is of manageable size; will provide the
opportunity for Improved budgetary and corporate management
processes; will provide savings from economies of scale; and
will introduce broader perspectives within portfolios
without reducing the necessary impact of particular
Interests. miost importantly, the new structure reflects and
is attuned to the national policy imperatives which must
command our attention at the present time and In the'longer
term. 0) 28
Division of responsibilities within portfolios Is something
about which I will write to each minister when the ministry
is decided and I allocate portfolios after the Caucus
meeting. Subject to the special arrangements referred to
above in the Veterans' Affairs area, what I intend is that
the Cabinet ninister would have overall responsibility for
the portfolio and would represent it in Cabinet, although
non-Cabinet ministers will take to Cabinet submissions on
matters in their specified areas of responsibility. The
Cabinet minister will have the power to determine matters in
dispute within the portfolio but will of course, involve the
other ministarc in corporate management and policy
development. Xn Parliament, the Cabinet minister will be
ultimately accountable on major policy matters although the
non-Cabinet ainistors will take day to day responsibility
for their own treas including answering qestions and
developing and steering through legislation.
So far as departmental operations are concerned, in most
cases there will be a portfolio secretary advising the
Cabinet Minister on the range of matters within the
portfolio. within most portfolios there will also be one or
more associate secretaries to carry responsibility in
particular areas.
Some notable features of the new structure Include:
consolidation of exporteprmotion of commodities and
manufactures with the relevant domestic industry
departmenti ( Industry, Technology and Commerce and
Primary industries and Energy), with the Minister for
Foreign Affairs having responsibility for bilateral and
multilateral trade negotiations, thus emphasising the
central importance of trade to our foreign relations.
There will also be a minister for Trade Negotiations who
will play a key role, assisting the Minister for Foreign
Affairs and Trade and the industry ministers;
amalgamation of the 2 major portfolios with
responsibility for education and training and the labour
market into a Department of Education, Employment and
Training. This will ensure better co-ordination of
education policies, in particular TAFE and school
retention policies with labour market requirements,
including training policy. There will be a separate
industrial relations portfolio. The minister for
industrial Relations will play a role of particular
importance in the Industrial relations aspects of the
restructuring of manufacturing Industry which is such an
essential element of our medium term economic
developmentl the Attorney-General will have overall responsibility
for law enforcement functions hitherto handled by the
Special Hin~ Ister of State; 0 0 to) 8
there will be a broadly based community services and
health portfolio with responsibility for health policy,
community services and housing assistance with a
separate department of veterans, Affairs and a statutory
commission responsible for Aboriginal Affairs which wili
be created as soon as new arrangements can be put in
place. There will be separate Ministers for Veterans'
Affairs and Aboriginal Affairs;
the 3 departments with major infrastructure
responsibilities Transport# Aviation and
Communications will be brought together under one
Cabinet minister, thus improving the coherence of policy
making in this critical area;
the related elements of the existing departments of
Arts, Heritage and Environment, Sport, Recreation and
Tourism and Territories will be amalgamated in one
portfolio of Arts, Sport, Environment and Tourism.
There will be a separate Capital Territory office within
the portfolio;
Most Government common services will be combined in. one
department with a clear mandate to implement devolution
of services to departments and economic char in
policies and practices in line with, In particular, the
recommendations of Mr David Block's Efficiency Scrutiny
Unit.
Althou h the primary impetus for these fundamental changes
is efficiency and the better delivery of government
services, there will be substantial savings arising from
amalgamations, through economies of scale and the removal of
duplication. These arrangements are estimated to result in
staff savings in a full year of some 3,000 positions, which
the Government has directed should be achieved through a
process of attrition or'voluntary action on the part of
employees. There will be no compulsory retrenchment. 0 This
would result in savings of about $ 96 million In a full year.
There should be si gnif i-, ant savings in the current year
these will be sett led in the course of the budget process.
The Government has accepted the recommendations of the
report of the Efficiency Scrutiny Unit headed by David Block
on proposed successor arrangements to the Public Service
Board. The Efficiency Scrutiny Unit has recommended that
the Public Service Board be abolished and that
responsibility for its . existing functions be allocated as
fol 1owst all operational aspects of personnel matters to be
devolved to departments;
public service arbitration, pay and conditions matters
to be transferred to the Department of industrial
Relations; classification issues to be transferred to the
Department of Finance; and 00028 -1
management improvement programs to be devolved to
departmentG with the Department of Finance maintaining a
small unit In the area of program budgeting.
The Efficiency Scrutiny Unit has recommended that a Public
Service Commission be established as the successor to the
Board with independent statutory responsibility for the
policy aspects of recruitment, promotion, mobility,
discipline and retirement.. it would be headed by a single
full-time Public Service Commissioner. The Merit Protection
and Review Agency will be retained as a separate body.
The Government has accepted these recommendations on the
basis that they will eliminate duplications of functions
while ensuring resource savings over time.
implementation of the Efficiency Scrutiny Unit findings will
ensure that public service reform initiatives and other
essential functions of the Board are maintained at least at
the same standaird.
David Block will continue to work as a consultant to the
Prime Minister and the Government on effective management in
the public sector. The program of efficiency scrutinie
will continue, but run by individual Departments. Mr Block
will be turning his attention to broader issues of public
service management including the following matters on which
I have asked himi to report:
the benefits of bringing together the Social Security
and CES notw~ orks;
the prospect of using the Department of Social Security
more widely as a payments agency;
the scope for devolving and making more businesslike the
provision of common services ( where he will offer
assistance to the Minister for Administrative Services
in particular) I
the case for a single foreign service; and
the on-going role of the National Capital Development
Commission, In the context of moves towards enhanced
municipal government In the ACT.
He will also be involved in the review -of local government
financing and devolution of programs to local government
( which I referred to in the election campaign), and in
advising on the process of assets sales by the Government.
I also foreshadow that I will be recommending to the
Governor-General that Mr Block be appointed to the proposed
part-time board of the Public Service Commission. 0 0-0 23
The Minister for Industrial Relations will chair a Committee
of Ministers with overall responsibility for co-ordinating
the various measures to enhance the efficiency and
effectiveness of the public service, including those
announced today.
Further details ( including the duties of the remaining
non-Cabinet Ministers) will be announced following the
swearing-in of the new Ministry next week, and a full
statement will be made to the Parliament when it resumes in
September. The attached table sets out the structure and
major functions of the 16 portfolios. 0 0 0,28
STRUCTURE AND MAJOR FUNCTIONS OF 16 CABINET PORTFOLIOS
( order does not indicate eventual seniority order in
Ministry)
1. PRIME MINISTER
Most of current functions including status of women,
multicultural affairs and the bicentenary
2. ATTORNEY-GENERAL
Current functions, pLus law enforcement
3. INDUSTRY, TECHNOLO0GY AND COMMERCE
Current functions plus:
* science policy, CSIRO, patents and national standards
* building industry
* nuclear science and technology
* export services ( including Austrade) and marketing of
manufactures
4. TRANSPORT AND COMMUNICATIONS
Current functions of Aviation, Transport and
Communications FOREIGN AFFAIRS AND TRADE
External relations including multilateral and bilateral
trade relations, and overseas information services
6. DEFENCE
Current functions, except for Defence Force. Remuneration
Tribunal
7. TREASURER
Current functions plus Industries Assistance Commission 00 029 9
INDUSTRIAL n9LATIONS
Industrial Kelations and wages policy
Public service pay and conditions
Remuneration Tribunal and Defence Force Remuneration
Tribunal
9. EDUCATION, BAPLOYENT AND TRAINING
Educaticn, employment and training programs including
Commonwealth Employment Service
Research funding
Youth affaira
COMMUNITY SERVICES AND HEALTH
Community services and health programs
Housing asiaotance programs
Aboriginal affairs ( through a separate statutory
Aboriginal Development Commission)
Separate Department of Veterans Affairs
11. INIGRATION, ETHNIC-AFFAIRS AND LOCAL GOVERNMENT
Current functions ( Minister to assist Prime Minister for
Multicultural Affairs)
Local government and regional development
12. SOCIAL SECURITY
Current functions
13. PRIMARY INDUSTRIES AND ENERGY
Current functions of Departments of Primary Industry and
Resources and Energy, plus commodity marketing
14. ARTS, SPORT TOURISM AND ENVIRONMENT
Most current functions of Departments. of Arts, Heritage
and Environment and Sport, Recreation and Tourism 000291
ACT matters ( administered through a separate ACT Office,
to incorporate additional functions including ACT further
education) FINANICE
Current functions
16. ADMINISTRATIVE SERVICES
Current common services functions of Department of Local
Government and Administrative Services, with additional
common services functions including national mapping,
construction, information services, analytical
laboratories, inquiries, parliamentary and ministerial
services, national ' archives, and valuation services
Bureau of Meteorology
Electoral Commission
Honours and awards 0 00 29