Federal election 2019: Joe Hockey to quit as Australian Ambassador to US

Joe Hockey will leave his job as Ambassador to the US amid speculation Labor wouldn’t extend his term.

Joe Hockey with US President Donald Trump. Source: Instagram

Joe Hockey will depart as Australian Ambassador to the US at the end of the year rather than seek an extension to his term.

Mr Hockey made the decision himself but did so amid growing speculation that a Labor government would not extend his four-year term for a year to allow him to stay until the US election, in November 2020.

It is possible that a Shorten government would ask him to leave the post even earlier than the natural end of his term in January next year but that is unlikely.

Mr Hockey will leave the post even if the Coalition is re-elected.

His decision not to seek an extension will see him move into the private sector, most likely back in Australia but possibly in New York depending on opportunities.

It will raise speculation about who Labor might appoint to the key post if it wins government.

Former federal ministers Stephen Conroy and Stephen Smith are among the names that have attracted speculation. Former ministers Wayne Swan and Greg Combet have also been floated as possible contenders.

Whoever replaces Mr Hockey will face the immediate challenge to trying to forge links with a White House and with an unconventional president who has not always treated close allies with the traditional respect of past administrations.

Because of this it is likely that a Labor government would select a former politician with direct links to Bill Shorten rather than a career diplomat who might carry less weight in Trump’s Washington.

Although Mr Hockey has been an effective envoy he has not always enjoyed a close relationship with Labor’s shadow foreign affairs spokesperson Penny Wong, who would become foreign minister if Labor wins.

Ms Wong has recently pursued Mr Hockey in Senate estimates asking questions about his dealings with Helloworld, a travel company in which he is a major shareholder.

Mr Hockey has dismissed any suggestion of wrongdoing but Ms Wong took another shot at the Ambassador at the weekend. When asked about postings she said: “we will look at all current decisions and current appointments on their merits. I know Joe Hockey has been very keen to tell people in the media that he’s doing an outstanding job.’

Her recent comments dampened speculation that Labor would follow the example of former prime minister Tony Abbott when he extended the term of the Labor-appointed Ambassador in Washington Kim Beazley.

Mr Hockey is seen in Washington as an effective envoy, using unconventional means to gain access to close Trump advisers, especially his economic advisers and the current acting chief of staff Mick Mulvaney.

He has occasionally played golf with Donald Trump and was also close to Trump’s former chief of staff John Kelly.

Under his Ambassadorship Australia was one of the few countries to be exempted from steel and aluminium tariffs.

Hockey also helped to rebut attempts by Ireland to seek access to the 10,500 US work visas a year which Australia has exclusive access to.

He has been closely involved with the Trump White House on infrastructure issues where he has shared his experience as Treasurer on funding new infrastructure.

He was a Liberal member of parliament from 1996 to 2015 and Treasurer in the Abbott government from 2013 to 2015.

Asked whether she had spoken to Mr Hockey about his intentions in the role, Foreign Minister Marise Payne said she spoke to the Ambassador “all the time”.

The Minister would not comment on speculation of Mr Hockey’s imminent return to Australia.

“The Ambassador was appointed for a four-year term and I’m sure he’ll complete that term,” she said.

Senator Payne declined to say whether a re-elected Coalition government would ask Mr Hockey to serve another term.

“He is doing an outstanding job and I’m sure he will continue to do so,” she said.

Additional reporting, Sean Parnell

Cameron Stewart is also US Contributor for Sky News Australia