Influential or ‘enfeebled’: Has Treasury lost its mojo?
With government spending the highest in 40 years, productivity growth at a 60-year low and no tax reform in 25 years, an uncomfortable question is being whispered in Canberra: Has Treasury lost its mojo?
When Ted Evans ran the federal Treasury in the 1990s, the former telephone linesman spoke in a whisper, but he wasn’t shy of speaking truth to power. When he really wanted to make a point, he sometimes tapped his fist on the table.
“No minister, you cannot do that,” Evans told treasurers and assistant treasurers, several past officials say. His successor, Ken Henry, delivered a scathing assessment of Howard government climate and water policies in front of the entire department’s staff in 2007, calling them “frankly bad”.
John KehoeEconomics editorJohn Kehoe is economics editor at Parliament House, Canberra. He writes on economics, politics and business. John was Washington correspondent covering Donald Trump’s first election. He joined the Financial Review in 2008 from Treasury. Connect with John on Twitter. Email John at jkehoe@afr.com
