This was published 9 years ago
Martin Parkinson to return from exile with Turnbull shake-up of the public service
By Latika Bourke
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The top Treasury official sacked under the former Abbott-Credlin regime looks set to be returned from the cold and promoted to the public service's top job and made secretary of the Department of Prime Minister and Cabinet.
The Financial Review reported on Tuesday that Dr Martin Parkinson was set to be recalled to the bureaucracy after his controversial sacking as Treasury secretary in 2014, which was against the wishes of the then treasurer Joe Hockey.
Speculation of Dr Parkinson's reinstatement to the top levels of the public service came as Prime Minister Malcolm Turnbull confirmed on Tuesday the departure of Michael Thawley, the secretary of the Department of Prime Minister and Cabinet, and the retirement of Peter Varghese, secretary of the Department of Foreign Affairs. A vacancy has also opened up at the Department of Communications with confirmation that Drew Clarke will permanently serve as chief of staff to the Prime Minister.
One factor complicating Dr Parkinson's return to the public service is that his wife, Dr Heather Smith, is deputy secretary of Prime Minister and Cabinet. Dr Smith is also a former deputy secretary of Foreign Affairs and served as sherpa to the G20 under former prime minister Tony Abbott. There has been separate speculation Dr Smith could be appointed secretary of the Communications Department.
Unlike Lloyd, PM&C head Martin Parkinson the public service's capability and the quality of its advice is declining.Credit: Alex Ellinghausen
Dr Parkinson replaced Ken Henry as head of the Treasury in 2011 until he was replaced by John Fraser in January 2015. The Abbott government also replaced the former secretary of the Department of Prime Minister and Cabinet, Ian Watt, with Mr Thawley.
Dr Parkinson was first made a secretary in December 2007 by former Labor prime minister Kevin Rudd, who appointed him to oversee the new Department of Climate Change. His work in helping advise the former government in creating its emissions trading scheme was widely seen as the cause of his sacking under the Coalition.
Dr Parkinson attended the infamous Wild Duck dinner with Mr Turnbull, Clive Palmer and Liberal Party official Tom Harley in 2014. His attendance raised eyebrows among senior Labor figures, who feared the senior bureaucrat was becoming too involved in Canberra's political games. It also sparked speculation that Mr Turnbull was positioning for the leadership by showing how he could work better with the crossbench compared to Mr Abbott.
The speculation was laughed off by Mr Palmer at the time, who claimed the Liberal Party had moved on from Mr Turnbull.
RBA governor Glenn Stevens with former Treasury secretary Martin Parkinson in August.Credit: Louie Douvis
On the departmental changes, Mr Turnbull said Mr Thawley wanted to return to the private sector and would leave the job in late January, 2016. Mr Varghese will finish his role in July 2016 and then take up the chancellorship at The University of Queensland.
"New appointments to their positions will be announced in due course," Mr Turnbull said in a statement.