John Anderson threatens to quit ASPI over Varghese review

John Anderson has blasted a review, which Labor is due to largely accept, recommending funding for the ASPI Washington office be cut and a government observer put on its board.

Former DFAT secretary Peter Varghese and former deputy prime minister John Anderson.

Former deputy prime minister John Anderson has blasted a review recommending funding for the Australian Strategic Policy ­Institute’s Washington office be cut and a government observer put on its board, with the Coalition elder statesman threatening to leave the think tank’s council after the government indicated it would accept most of what was recommended in the review.

The release on Thursdayof the review, and the government’s response, follows alarm being sounded over the potential curtailing of think tanks’ research on China, in the wake of Beijing raising concern frequently over the anti-commentary from groups such as ASPI.

Of the 14 recommendations in the review – led by former Department of Foreign Affairs and Trade secretary Peter Varghese – the government accepted eight in full, a further three in principle, and “noted” the remaining three.

Recommendations agreed to in full include implementing “a principles-based framework” in the commissioning of strategic policy work, providing annual priorities to the think tank and strategic policy sector, and ending public funding of ASPI’s Washington office.

Among those agreed to in principle, the government will “reconstitute” ASPI’s council, with its chair and two of its members appointed by the defence minister, two appointed by the opposition leader and up to three members appointed by the council itself “based on a skills matrix”.

Labor also agreed in principle to a recommendation to provide government “observer status” on the boards of organisations that received commonwealth funding, with Labor’s response noting observer status was appropriate “at a minimum”.

“The sector plays an important role in driving public discussion and strengthening partnerships on national security matters,” a statement from the Department of Prime Minister and Cabinet said.

“Changes implemented through the government response will promote a stronger and more sustainable sector into the future. This includes improving sector and national security policy outcomes and ensuring continued value for money for the Australian government.”

ASPI executive director Justin Bassi said the review was “an abandonment of the founding principles to which successive governments for more than 20 years have adhered”.

While Mr Varghese said it was far from unusual for organisations that received funding to have government representation on their boards, the review prompted outcry from the strategic policy sector and senior figures in the Liberal and National parties.

Mr Anderson, an ASPI council member since 2022, said he was considering leaving it over the matter.

“I’ll see what the government does but I’d have to consider very carefully my own position, because I believe in ASPI and the things we set it up for are more pertinent now than ever,” said Mr Anderson, deputy prime minister when ASPI was formed in 2001.

“The review was misconceived, I think the findings were wrong and I think the government is making a terrible mistake.”

Mr Anderson said Beijing would “think they’ve had a big win” after the handing down of the review and the “nobbling” of ASPI.

“What is it that the government doesn’t want to hear? Don’t they want to hear truth about Uighurs and defence capabilities?” he said.

“This seems to be about saving the skin of government not the skin of the Australian people.”

On the concern of greater government control over ASPI, Mr Varghese pointed out he “only recommended observer status, not membership” for commonwealth representation on the think tank’s board.

“I don’t think there can be any doubt about the value and importance I place in my report on the independence of think tank analysis … and none of my recommendations compromise that independence,” he said.

Mr Varghese added that he also didn’t think it the case “that the majority of governments in the world have a government-funded think tank in Washington”, for which ASPI received $5m in 2021.

Changes that were just “noted” by government included that funding for the United States Studies Centre, Perth USAsia Centre, ASPI and the National Security College be extended until June 2027, the supporting of a “deductible gift recipient” status for ASPI, and moving to a five-year funding cycle.

Opposition home affairs spokesman James Paterson said the changes would “neuter” ASPI and silence an influence voice in Australia’s national security debate.

“The Albanese government’s agreement to the recommendation to defend ASPI’s office in Washington DC could not come at a worse time ahead of president (Donald) Trump’s inauguration next month,” Senator Paterson said in a joint statement with opposition defence spokesman Andrew Hastie.

“ASPI built significant influence with the first Trump administration. The DC office has been instrumental in convening influential networks in Washington, which it leverages for visiting Australian ministers, parliamentarians and officials. This is access that the Albanese government will struggle to replicate given the extensive, unwise and inappropriate comments made by senior ministers about President Trump.”