Treasury secretary Phil Gaetjens not required to supply CV before appointment

Government defends decision to appoint new Treasury secretary without asking for a copy of his CV during appointment process.

Secretary of Treasury Philip Gaetjens (left) with Treasurer Josh Frydenberg and Prime Minister Scott Morrison in Canberra. Photo: Gary Ramage

Treasury secretary Phil Gaetjens has revealed he didn’t supply a CV to the department of Prime Minister and Cabinet during the appointment process for the top job as the government’s key economic adviser.

Appearing before a Senate Estimates hearing, Finance Minister Mathias Cormann defended the government’s selection of Mr Gaetjens, who was appointed Treasury secretary in August after more than a decade working as chief of staff to former treasurer Peter Costello and former treasurer Scott Morrison.

“The CV of Mr Gaetjens is well-known,” Mr Cormann said. He said the appointment process across the public service was a matter for the Prime Minister’s portfolio.

Under questioning from Labor senator Kristina Keneally, Mr Gaetjens said he was marginally involved in the political aspects of his staffing roles.

“With respect to media releases and the political aspects of questions on notice I took a very minimal approach,” Mr Gaetjens.

“I have had 42 years in the public sector. I have worked for governments of both persuasions at state and federal levels, and represented Australia at the international level.

“I have never been a member of a political party. I have tried to pursue good public policy.”

Mr Gaetjens said he couldn’t see how it was “relevant” when Ms Keneally asked him how many times he advised Mr Morrison to vote against establishing a banking royal commission.

Labor has demanded that Mr Gaetjens be limited in his role in preparing documents for incoming governments and has signalled it may remove Mr Gaetjens from the role if it wins government.

Mr Cormann defended the selection of a former Liberal staffer to the role of Treasury secretary, which pays about $875,000 a year, noting that former secretary Ken Henry had worked for former prime minister Paul Keating before heading the department.

Mr Cormann also noted currently Department of Foreign Affairs and Trade secretary Frances Adamson and Department of Agriculture secretary Daryl Quinlivan were former Labor staffers who were appointed by the Liberal government.

“We have a whole series of secretaries who have worked in Labor ministers’ offices,” Mr Cormann said.

Mr Gaetjens was appointed to the role after the surprise resignation of John Fraser in June. Mr Fraser subsequently joined the board of scandal-plagued wealth management group AMP.

Appearing before the senate committee, Mr Gaetjens warned Australia’s household savings rate was expected to decline even further as consumer prices tore ahead of sluggish wages growth and spending rose faster than saving.

The household savings rate has tumbled to its lowest level in six years as more families are forced to raid savings to pay for things they need.

Mr Gaetjens also said prophesies of an imminent credit crunch were overblown. “I want to emphasise that financial conditions overall remain expansionary,” he said.

He said housing prices had recently softened, would continue to soften gradually, but he said housing activity was “expected to remain elevated”.