Page index
Portfolio overview
Reception desk, One National Circuit.
Portfolio agencies and ministers
The Department of the Prime Minister and Cabinet (PM&C) is the main policy advice and coordination agency in the Prime Minister and Cabinet portfolio. There were seven other agencies in the portfolio in 2006–07. However, the National Water Commission, a statutory agency in the portfolio at 1 July 2006, was transferred to the newly created Environment and Water Resources portfolio as part of the machinery of government changes announced by the Prime Minister on 23 January 2007 and recommended to the Governor-General on 30 January 2007. At the same time, the Office of Water Resources, a division within the Department of the Prime Minister and Cabinet, was transferred to the Department of the Environment and Water Resources. More information on the outcomes and activities of the other agencies in the PM&C portfolio and the National Water Commission may be obtained from their individual annual reports and websites.
The Prime Minister of Australia is the Hon John Howard MP. In 2006–07 he was assisted by:
- the Hon Gary Hardgrave MP as Minister Assisting the Prime Minister until 30 January 2007
- the Hon Mal Brough MP as Minister Assisting the Prime Minister for Indigenous Affairs
- the Hon Julie Bishop MP as Minister Assisting the Prime Minister for Women’s Issues
- the Hon Kevin Andrews MP as Minister Assisting the Prime Minister for the Public Service until 30 January 2007
- the Hon Joe Hockey MP as Minister Assisting the Prime Minister for the Public Service from 30 January 2007
- the Hon Malcolm Turnbull MP as Parliamentary Secretary to the Prime Minister until 30 January 2007, and
- the Hon Tony Smith MP as Parliamentary Secretary to the Prime Minister from 30 January 2007.
Figure 2.1: Ministers and portfolio agencies at 30 June 2007

Departmental overview
What we do
Our primary role is to provide advice to, and support for, the Prime Minister and the Cabinet. In serving them, we undertake a variety of activities and are engaged in a broad range of issues. The principal matters we deal with are outlined here.
Staff member at a new work station at One National Circuit.
Policy advice and administrative support to the Prime Minister: We provide advice to the Prime Minister on a range of issues including all matters considered by Cabinet. We take a particular responsibility for policy coordination across government. We work with central and line agencies to ensure that the Prime Minister and Cabinet are given advice that is properly coordinated across government.
Assistance to Cabinet and its committees and the Federal Executive Committee: We ensure that the Prime Minister and Cabinet are given accurate, clear and timely advice that takes into account the views of all portfolios. We provide secretariat support for meetings of Cabinet and the Federal Executive Council and we manage processes that facilitate the decision making role of Cabinet and monitor the implementation of Cabinet decisions.
Coordination of government administration: We provide services to the Prime Minister and to the Australian Government to enable the business of government to be managed in an efficient, effective and coordinated manner. Our department is the primary source of advice on machinery of government matters and interaction between the parliament and the public service, including coordination of the government’s legislation programme.
Intergovernmental relations and communications with state and territory governments: We seek to facilitate cooperation between the Australian Government and other governments in Australia. We coordinate arrangements for meetings of the Council of Australian Governments (COAG) and advise the Prime Minister on the implications of proposals for Commonwealth–State relations.
Government ceremonial and hospitality: We provide high-level support for major events, such as visits by heads of state, ceremonies and State occasions, and coordinate the logistical arrangements for the Prime Minister’s overseas visits.
Honours and national symbols: We are responsible for policy advice, operational support and awareness-raising in relation to the Australian honours system and on national symbols.
Coordination of government communications and advertising: We have responsibility for administrative coordination of government information and campaigns and for support to the Ministerial Committee on Government Communications.
Support services: We provide a range of support services to the Prime Minister, the ministerial team and the government. These services include assisting the Leader of the House and the Manager of Government Business in the Senate to programme government business in Parliament. We provide a range of support services to the office of the Prime Minister and the ministerial team. We also support the operations of the Prime Minister’s official residences and provide staffing and administrative services to former Governors-General. In addition, we provide the information technology, human resource and financial management support, record keeping and physical working environment to support our staff and taskforces.
MissionTo contribute to the good governance of Australia by supporting the Prime Minister and the Cabinet in the effective development and delivery of policy across the whole of government. To achieve that goal by demonstrating excellence in leadership in the Australian Public Service. |
Values
We are strongly committed to the Australian Public Service (APS) Values and the Code of Conduct set out in the Public Service Act 1999. All staff attend presentations by our Secretary on APS values and ethics as part of their orientation to the department.
In addition, and consistent with APS values, we place a high priority on:
- professionalism, commitment and excellence in management
- timely, responsive and high-quality service to the Prime Minister and other ministers
- constructive and cooperative relationships within PM&C and with other agencies and governments
- career and development opportunities for our staff, and
- a rewarding and caring work environment.
Role and outcomeOur primary role is to provide support to the Prime Minister and the Cabinet and to achieve a coordinated approach to the development and implementation of government policies. Our planned outcome is: sound and well coordinated government policies, programmes and decision making processes. |
Structure and outputs
During 2006–07 we contributed to the achievement of this outcome through four output groups
(see Figure 2.2).
- Output Group 1 provided policy advice on economic, industry, infrastructure, environment, resources and regional policy issues, forecasts of Australia’s economic performance, coordination of budget processes and effective management of COAG’s work programme.
- Output Group 2 provided policy advice on social policy issues, including income support, indigenous policy, health and aged care, veterans’ affairs, housing, disabilities, employment, education and training, immigration and multicultural affairs, families, women, youth and community services.
- Output Group 3 provided policy advice on international issues, including trade, aid and treaty issues, and on national security issues, including defence policy and operations, intelligence, non-proliferation, counter terrorism, border protection, emergency management and support for the National Counter Terrorism Committee, and organisational and logistical arrangements for the 2007 APEC meetings.
- Output Group 4 provided policy advice on parliamentary, machinery of government, legal and cultural issues, and a range of support services, including secretariat services to Cabinet and its committees and the Executive Council; monitoring the implementation of Cabinet decisions; development and coordination of the government’s legislation programme; coordination of government communications; coordination and promotion of awards and national symbols; support to the official establishments and former Governors-General; and administration of State occasions and the official visits programme.
Our organisational structure is described in Figure 2.3 and the distribution of staff between organisational units at Figure 2.4.
Figure 2.2: Our outcome and output framework

Figure 2.3: Our organisational chart at 30 June 2007
|
SECRETARY PETER SHERGOLD |
|---|
|
DEPUTY SECRETARY JENNY GODDARD |
| Industry, Infrastructure and Environment Division Rhondda Dickson |
Economic Division Paul Tilley
|
Cabinet Division Wendy Southern
|
|
DEPUTY SECRETARY LOUISE MORAUTA |
|---|
Social Policy Division Serena Wilson
|
People, Resources and Communications Division Anne Hazell
|
|
DEPUTY SECRETARY DUNCAN LEWIS |
International Division Hugh Borrowman
|
National Security Division Angus Campbell
|
Government Division Barbara Belcher
|
|
DEPUTY SECRETARY ALAN HENDERSON |
| APEC 2007 Taskforce |
| * Denotes acting. |
Figure 2.4: Staff distribution at 30 June 2007
Division |
Number |
|---|---|
| Executive | 11 |
| Economic Division | 33 |
| Industry, Infrastructure and Environment Division | 41 |
| Social Policy Division | 66 |
| International Division | 43 |
| National Security Division | 33 |
| Cabinet Division | 35 |
| Government Division | 44 |
| People, Resources and Communications Division | 129a |
| APEC 2007 Taskforce | 212 |
| Support Services | 8b |
| TOTAL | 655c |
a Includes three Official Establishments Unit staff.
b Comprises five support staff for former Governors-General and three departmental liaison staff in ministerial offices.
c Staff listed are all employed under the Public Service Act 1999 and include 204 non-ongoing staff, 26 part-time staff and 15 staff on paid long-term leave. Staff on unpaid long-term leave are not included.
The staff of PM&C taken outside our new building—March 2007.
Executive
Dr Peter Shergold AC (Secretary):
Dr Peter Shergold has been our Secretary since February 2003. As Secretary, Dr Shergold is responsible for providing the overall leadership of the department and shaping its future. He determines priorities and appropriate resource allocations, delivers organisational performance and directs high-priority initiatives. In consultation with the deputy secretaries, the Secretary is responsible for overseeing corporate governance and providing strategic direction in the department.
The Secretary chairs our Corporate Leadership Group, regular meetings of portfolio secretaries and senior Commonwealth, States and Territories offcials. He is also responsible for providing leadership to the APS and speaks extensively on public service issues.
Before he became Secretary of PM&C, Dr Shergold headed up a number of Australian Government agencies, including the Department of Education, Science and Training; the Department of Employment, Workplace Relations and Small Business; and the Public Service Commission. Before his public service career, he taught at the University of New South Wales. Dr Shergold was promoted to Companion in the Order of Australia in 2007 for his contribution to public policy and administration.
Ms Jenny Goddard (Deputy Secretary): Ms Goddard is responsible for economic, industry, infrastructure and environment policy advice and for service and implementation monitoring relating to Cabinet. She also chairs our Audit Committee.
In over 10 years in PM&C, she has worked in a variety of economic policy areas, including as First Assistant Secretary of Economic Division. Before joining PM&C in 1997, Ms Goddard served in the Australian Government’s Department of the Treasury for 13 years, including as the Treasury’s representative in London.
Dr Louise Morauta PSM (Deputy Secretary): Dr Morauta is responsible for social policy advice and coordination, and for people, resources and communications services. She also chairs PM&C’s Consultative Committee and the People and Leadership Committee.
Dr Morauta joined PM&C in April 2005, shortly before she was awarded the Public Service Medal for her work on health financing and blood issues while with the Australian Government Department of Health and Ageing. She has also worked in the Department of Finance and Administration and AusAID.
The department’s Executive, from left: Mr Alan Henderson,
Dr Louise Morauta, Dr Peter Shergold, Ms Jenny Goddard and
Mr Duncan Lewis.
Mr Duncan Lewis AO DSC CSC (Deputy Secretary): Mr Lewis is responsible for international policy and national security policy advice and coordination, and for a range of government support services. He chairs PM&C’s Information Management Strategic Advisory Committee.
Mr Lewis joined PM&C as head of the National Security Division in January 2004, after 30 years with the Australian Army. He has been appointed an Officer of the Order of Australia in recognition of his distinguished service in command of the Special Forces. He was appointed Deputy Secretary in 2005.
Mr Alan Henderson PSM (Deputy Secretary): Mr Henderson is head of the APEC 2007 Taskforce. The taskforce is responsible for managing the staging of meetings and coordinating security for APEC 2007, including ministerial and officials meetings around Australia and the APEC leaders meetings in Sydney in September 2007.
Much of Mr Henderson’s career was in the Australian Government’s Treasury (1974–91) but he worked in PM&C from 1991 to 2002 and in the Department
of Defence (as Deputy Secretary, Corporate
Services) from 2002 to 2006. He returned to PM&C to take up his current position in July 2006. He was awarded a Public Service Medal in 1998 for management of the Australian Government’s
input into the work programme of the Council
of Australian Governments.
Performance overview
Price
The total price of the department’s outputs in 2006–07 was $147.3 million. This comprised $136.1 million from government and $11.2 million from other sources (namely, the sale of goods and services, special accounts, resources received free of charge and miscellaneous revenue). More detailed information is provided in Chapter 8, ‘Our finances’.
Department-wide measures of performance
There are certain indicators against which the department’s performance is measured across all output groups, rather than separately by output. These are:
- ministerial correspondence (including ministerial briefings and messages)
- parliamentary questions on notice, and
- requests made under the Freedom of Information Act 1982.
Each of these is discussed in more detail below.
Ministerial correspondence
| Quantity |
On the basis of recent experience, in 2006–07 the department would expect to have to:
|
|
Timeliness |
The department aimed to meet specific deadlines, as follows:
|
Sorting mail in the mail room at
One National Circuit.
During the period 1 July 2006 to 30 June 2007, the department processed approximately 185,000 items of correspondence addressed to the Prime Minister—an average of 740 per day.
The largest volumes of correspondence related to David Hicks, workplace relations, immigration policy, climate change and the Kyoto agreement, drought assistance and water conservation, troops in Iraq and alternative/renewable energy.
Approximately 94 per cent of correspondence was processed on time which is a three per cent improvement compared with the previous year.
Some 7,536 briefings (minutes) were provided to the Prime Minister, Parliamentary Secretary to the Prime Minister, Minister Assisting the Prime Minister and the Office of the Prime Minister through the Ministerial Correspondence Unit.
In addition, the department coordinated the preparation of 600 messages to community groups and other organisations from the Prime Minister.
The volume of ministerial correspondence received in the past 10 years is shown at Figure 2.5.
Figure 2.5: Items of correspondence processed
Parliamentary questions on notice
| Quantity | On the basis of recent experience, in 2006–07 the department would expect to have to prepare draft answers to 145 parliamentary questions on notice. |
| Timeliness | The department aims to meet specific deadlines as follows:
|
The Prime Minister received 149 parliamentary questions on notice during the year. Many questions had a significant number of sub-questions and sought annual data for up to eight years. The trends relating to questions on notice are provided in Figure 2.6.
Of the 149 questions received in the year, 113 were from the House of Representatives and 36 from the Senate.
Responses to 174 questions were lodged during the year: 137 from the House of Representatives and 37 from the Senate. The average response times for lodgment of questions in 2006–07 (irrespective of the financial year in which the questions were asked) was: 182 days for the House of Representatives and 152 days for the Senate.
Twenty-one questions asked in 2006–07—11 from the House of Representatives and 10 from the Senate—were transferred to other ministers. There were 78 questions on hand at 30 June 2007.
Figure 2.6: Trends in parliamentary questions on notice
2002–03 |
2003–04 |
2004–05 |
2005–06 |
2006–07 |
|
|---|---|---|---|---|---|
PARLIAMENTARY QUESTIONS HANDLED |
|||||
| Questions on hand at 1 July | 21a |
29 |
51 |
127 |
124 |
| New questions received | 106 |
93 |
207 |
185c |
149 |
| Questions transferred to other ministers | 19 |
23 |
11 |
34 |
21 |
| Responses lodged | 58 |
45 |
65 |
151 |
174 |
AVERAGE DAYS TAKEN TO RESPONDb
|
|||||
| House of Representatives questions | 66 |
104 |
89 |
155 c |
182 |
| Senate questions | 62 |
83 |
97 |
159 c |
152 |
a This statistic reflects the fact that 37 questions lapsed due to the November 2001 election.
b Response times shown for 2006–07 and 2005–06 reflect the average number of days from the asking to the answering of questions, irrespective of the financial year in which the questions were asked. Previous years’ figures reflect the average time taken to lodge responses to questions asked in that financial year.
c This figure amended due to a reporting error.
Freedom of information requests
| Quantity | On the basis of recent experience, in 2006–07 the department would expect to have to respond to 35 freedom of information requests. |
| Timeliness | The department aims to meet specific deadlines as follows:
|
The department was responsible for managing 65 requests for information under the FOI Act received during 2006–07, plus 11 existing freedom of information (FOI) requests on hand at 1 July 2006. During the year, 43 FOI requests were finalised, leaving 33 FOI requests on hand at 30 June 2007.
The department received one application for internal review during the reporting period, and two were finalised.
Figure 2.7: Trends in freedom of information requests
2002–03 |
2003–04 |
2004–05 |
2005–06 |
2006–07 |
|
|---|---|---|---|---|---|
| Requests on hand at 1 July | 6 |
12 |
24 |
19 |
11 |
| New requests received | 26 |
66 |
34 |
60 |
65 |
| Requests withdrawn | 5 |
8 |
13 |
35 |
13 |
| Requests transferred to other agencies | 1 |
9 |
1 |
5 |
6 |
| Requests resolved | 14 |
37 |
25 |
30 |
24 |
TIMELINESS OF RESPONSES a |
|||||
| Requests dealt with in line with FOI Act deadlines | 29%–43%b |
30%–60%b |
32% |
30% |
28% |
a The statistics for 2002–03 to 2005–06 reported in this table differ from those reported in PM&C’s 2005–2006 annual report, due to errors in the calculation of the statistics which have now been corrected.
b Numbers of decisions notified within 31–60 days with consultation or within 31–60 days without consultation are unavailable for this year. Accordingly, timeliness is within a range where the lower figure would apply if all decisions notified within 31–60 days did not require consultation and the higher figure would apply if all decisions notified within 31–60 days had required consultation (and thus were within the period of time allowed under the FOI Act).
External participation: The department plays a significant central policy coordination role. Although we do not have any standing arrangements for outside participation in policy formulation or administration, in undertaking our role we commonly draw on perspectives from a wide range of stakeholders to discuss emerging issues as well as those currently under consideration by government. These stakeholders come from diverse backgrounds, including:
- financial services, retail, mining, energy, manufacturing and other private sector groups
- professional and other interest groups
- consumer representatives, and
- indigenous community leaders.
