Scott Morrison plots mandarins shake-up

Scott Morrison is preparing a shake-up of senior APS ranks following the appointment of DFAT secretary Frances Adamson as SA governor.

DFAT secretary Frances Adamson has been named as South Australia’s next governor. Picture: Naomi Jellicoe

Scott Morrison is preparing a shake-up of senior Australian Public Service ranks following the appointment of Department of Foreign Affairs and Trade secretary Frances Adamson as South Australian governor, with key department chiefs expected to be named within six weeks.

Ms Adamson’s five-year tenure as DFAT secretary will end on June 25, setting the scene for major changes across strategic public service roles.

Her departure presents the Morrison government with an opportunity to reset its foreign and security strategy amid rising tensions with China and increasing geo-strategic competition in the Indo-Pacific region, which have placed strain on diplomats, consular staff and policy officers.

The Australian understands the Prime Minister is yet to land on his final pick to replace Ms Adamson, despite speculation among Canberra bureaucrats that veteran diplomat Paul Grigson, who has worked closely with Mr Morrison on the government’s Vaccine Strategy Integration, is a leading contender.

Others floated as possible replacements include DFAT Indo-Pacific Group deputy secretary Justin Hayhurst, DFAT Inter­national Security, Humanitarian and Consular Group deputy secretary Tony Sheehan, former DFAT deputy secretary Clare Walsh and Defence secretary and former senior diplomat Greg ­Moriarty.

As well as the DFAT post, a new Attorney-General’s Department secretary will need to be appointed after Chris Moraitis was named Director-General of the Office of the Special Investigator late last year, tasked with investigating and prosecuting alleged war crimes in Afghanistan.

The Australian understands while no decision has been made on the new secretary line-up, there were growing expectations inside the public service that changes could include movements in the Defence, Home Affairs and Prime Minister and Cabinet departments. Current DPMC secretary Phil Gaetjens, Mr Morrison’s former chief-of-staff, is rumoured to be considering retirement before the end of the year.

Ms Adamson, who was Australia’s ambassador to China between 2011 and 2015, will be sworn in as South Australian governor in Oct­ober, replacing outgoing governor Hieu Van Le.

Standing alongside South Australia Premier Steven Marshall on Wednesday, Ms Adamson said she would use her international relations expertise to help the state “further develop” its links with the world via trade and investment and “people-to-people links”.

Foreign Minister Marise Payne described Ms Adamson, who worked as Malcolm Turnbull’s international adviser before being appointed DFAT secretary, as “one of Australia’s most accomplished and respected public servants and diplomats”.

Senator Payne credited her with leading implementation of the government’s Pacific Step-up, enhancing engagement in South-East Asia and overseeing Australia’s aid program targeting regional COVID-19 recovery.

“Her oversight of the 2017 foreign policy white paper was instrumental in guiding Australia’s foreign policy agenda,” Senator Payne said.

“Within the department, Ms Adamson has championed ambitious internal reform, including a highly successful women in leadership program, and a strengthened focus on diversity and inclusion. Her intellect and experience are respected across government, business and the broader community.”

After China moved to shut own contact with Morrison government ministers, Ms Adamson set-up crucial back-channel com­muni­cation with Chinese officials via Australia’s embassy in Beijing.

The next DFAT head will be tasked with navigating the China relationship and pursuing new trade markets after Beijing ­imposed sanctions on many Australian exports.

DFAT insiders said unlike Defence Minister Peter Dutton, who has a close relationship with Home Affairs department secretary Michael Pezzullo, Senator Payne “does not bring anyone in her wake”.

The Australian understands Mr Moriarty is keen to remain in Defence, with senior government sources playing down the prospect of him moving out of the portfolio in favour of Mr Pezzullo. They said he was also a potential contender for DFAT or Home Affairs.

Sources said Mr Pezzullo was a longshot for the DFAT post but it would be a “culture shock of enormous proportions” if he were named in the role.

Amid calls from business leaders for a reset in the Australia-China relationship, Chinese Foreign Ministry spokesman Zhao Lijian on Tuesday welcomed comments by Australian Industry Group chief executive Innes Willox, who warned DFAT officials that Australia needed to calm tensions with Beijing.

Ms Adamson was chief-of-staff to former foreign affairs and defence minister Stephen Smith from 2009 to 2010. Trade Minister Dan Tehan said she had served Australia with “distinction over a long and varied career”.