Congestion-busting bureaucracy

Australia’s 25 million people, for better or worse, are administered and regulated by two million federal, state and local public servants — about one official for every 12 or 13 of us. In return, taxpayers pay about $160 billion a year in public sector wages.

After regaining office in May, Scott Morrison appointed himself the Public Service Minister, signalling his determination to make commonwealth bureaucrats more accountable and to ensure they are better serving the “quiet Australians” . Their role, as he says, is to deliver the government’s agenda rather than becoming bogged down in bureaucracy. As Simon Benson reported yesterday, the shake-up will be felt across all 18 federal departments and more than 100 agencies.

It promises to be one of the largest public sector reforms since Bob Hawke streamlined 28 portfolio areas into 18 departments in 1984. The working of the public service is vital to boosting productivity, as Mr Morrison said yesterday. In its five-yearly review, Shifting the Dial, the Productivity Commission notes: “Without a renewal of commitment from time to time among the institutions that set societal objectives, preserve standards and make public services effective, there is little prospect of advancement in the living standards of Australians.”

The point of public sector reform, as Mr Morrison says, is “congestion-busting in bureaucracy, ensuring that we get things done”. Service delivery in many facets of public administration needs to be speeded up and improved. Less red tape and green tape creating undue delays in business regulation and environmental approvals, for example, would encourage private investment and jobs growth, especially in regions needing more economic activity.

Mr Morrison’s appointment of Treasury secretary Philip Gaetjens to replace Martin Parkinson, who is retiring as secretary of the Department of Prime Minister and Cabinet, is a good start to the process. Mr Gaetjens has immense experience as chief of staff to Peter Costello and Mr Morrison in Treasury. He also served as secretary of the NSW Treasury under former premier Mike Baird. The appointment of Steven Kennedy, a former economic adviser to Kevin Rudd and Julia Gillard, as the new Treasury secretary shows a welcome commitment to promotion on merit.

As Mr Morrison says, the issue of how well the federal government works with the states is critical to his agenda. The commonwealth employs about 240,000 of Australia’s two million public servants. If the reform process is to achieve its potential, the government, in co-operation with the states and territories, also needs to double down on federation reform. The operation of the three tiers of government needs to be streamlined to remove duplication and make regulation light but effective to encourage enterprise. Maximising value for taxpayers in sectors such as health and education where roles tend to overlap is vital.

A review of the public sector by former Telstra boss David Thodey, to be finalised soon, will help guide reform. In a brief report ahead of the main review, senior mandarins conceded the public service was slow, reactive and “siloed”. Cabinet ministers, they said, were obstructive and not interested in making departments more productive. All of which is ripe for a good overhaul. Mr Morrison’s reform agenda is not a barbecue stopper. But the nation needs it.