2. Departmental Overview

• A. Our Department
• B. Our Role and Functions
• C. Our Organisational Structure
• D. Our Executive Group
• E. Our Outcome and Outputs
• F. Our Performance
• G. Our Portfolio
• H. The Way Forward

A. Our Department

Our mission: To contribute to the good governance of Australia by supporting the Prime Minister, the Cabinet Secretary 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.

Our values: The Department of the Prime Minister and Cabinet (PM&C) is strongly committed to the Australian Public Service (APS) values and the Code of Conduct set out in
the Public Service Act 1999. We place a high priority on:

• professionalism, commitment and excellence in management and leadership
• timely, responsive and high-quality service to the Prime Minister, the Cabinet Secretary, other portfolio ministers and parliamentary secretaries appointed to assist the Prime Minister carry out his portfolio responsibilities
• constructive and cooperative relationships within the department and with other agencies and governments
• career and development opportunities for our staff, and
• a rewarding and caring work environment.

B. Our Role and Function

Prime Minister Kevin Rudd and Mr Terry Moran

Our role: Our primary role is to provide support to the Prime Minister, the Cabinet Secretary and the Cabinet, and to achieve a coordinated and innovative approach to the development and implementation of government policies. To achieve this, we undertake a variety of activities and engage in a broad range of issues. The key matters we deal with are outlined in this section.

Policy advice and administrative support to the Prime Minister: We provide strategic advice to the Prime Minister and the Cabinet Secretary on a range of issues, including all matters considered by Cabinet. We take a particular responsibility for policy coordination across government, working with central and line agencies to ensure the Prime Minister, the Cabinet Secretary and the Cabinet are given advice that is sound and well coordinated.

We maintain a strong commitment to producing high quality, forward looking and innovative policy advice. To achieve this we increasingly take an evidence-based approach when formulating responses and policy advice to government. An evidence-based approach to policy means putting the best available evidence from research at the heart of policy development and implementation. Policy and practice based on systematic evidence are seen to produce better policy outcomes.

In practice, an evidence-based approach to policy formulation takes into account key patterns in sectoral data; analyses public attitudes, behaviours and expectations; identifies international best practice examples and develops and tests hypotheses about trends and causal links. Within PM&C, this approach augments more traditional research and first principles-based policy formulation.

We also actively engage with government across a range of matters. In an environment of contestable policy advice, we increasingly place a premium on compelling and persuasive communication.

By working across areas of policy that have, in the past, often been kept separate, our conclusions frequently move audiences away from traditional, or comfortable, ways of thinking. Presenting new and, at times, confronting work means that the presentation must persuade readers, not just communicate ideas.

The need for ideas to be persuasive and defensible drives our requirement to use a variety of contemporary mechanisms to communicate high quality policy advice. These mechanisms include the traditional policy brief, speaking notes, the business case, strategic policy reports and delivery review reports. Each of the various formats has its merits and applicability. The format chosen for a specific use must be fit for purpose, and the most appropriate one will be used for the purpose at hand.

Assistance to the Cabinet, its committees and the Federal Executive Council: We ensure that the Prime Minister, the Cabinet Secretary and the Cabinet are given accurate, clear and timely advice that takes into account the views of all portfolios. We provide secretariat support for meetings of the Cabinet and the Federal Executive Council. We also manage processes that aid the decision-making role of Cabinet and monitor the implementation of Cabinet decisions.

Coordination of government administration: We provide services to the Prime Minister, the Cabinet Secretary and 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 program.

Intergovernmental relations and communications with state and territory governments: We actively advance cooperation between the Australian Government and other governments in Australia by carrying forward an extensive range of work through the Council of Australian Governments (COAG), including a revitalised and broadened national reform agenda. We coordinate arrangements and provide secretariat support for meetings of 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.

Australian honours and symbols policy: We are responsible for policy advice, operational support, and for raising awareness about the Australian honours system and national symbols.

Support services: We provide a range of support services to the Prime Minister, the Cabinet Secretary, 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 schedule government business in parliament. We provide a range of support services to the offices of the Prime Minister, the Cabinet Secretary and the ministerial team. We support the operations of the Prime Minister’s official residences and provide staffing and administrative services to former Governors-General, as well as advice and support on arrangements for the Governor-General Designate. In addition, we provide the information technology, human resource and financial management support, record keeping and the physical working environment to support our staff and taskforces.

Photo: Members of the PM&C Senior Leadership Group as at June 2009. From right to left – Sue Ball, Alex Anderson, Andrew Wilson, Terry Moran, Mike Mrdak, Angus Campbell, David Tune, Paul Tilley, Duncan Lewis, Gordon de Brouwer, Wendy Southern. Not present: Ben Rimmer, Rhondda Dickson, Dominic English, Yael Cass, Liza Carroll, Subho Banerjee, Martin Hoffman, John Cairns, Patrick Suckling, Tony Sheehan

C. Organisational Structure

Figure 2.1: Organisational structure for our department as at 30 June 2009.

Secretary – Terry Moran

Associate Secretary(Domestic Policy) - David Tune

• Deputy Secretary (Economic) - Gordon de Brouwer
• Executive Coordinator (Economic) - Paul Tilley
• FAS (Industry, Infrastructure & Environment) - Rhondda Dickson
  Infrastructure & Regulatory Reform
  Agriculture Environment & Competition
  Climate Change, Energy & Industry
• FAS (Economic) - Dominic English
  Economic Policy
  Fiscal Policy
  Taxation, Superannuation & Workplace Relations
  International Economy, Trade and Corporations
• FAS (Social Policy) - Yael Cass *
  Health & Ageing
  Indigenous Policy
  Employment, Education & Skills
• FAS ( Families, Immigration and Social Support) - Ngaire Hosking *
  Office for Work and Family Social
  Support, Immigration & Citizenship
  Social Inclusion Unit
• AS (COAG Unit) - Ron Perry

Deputy Secretary (Strategic Policy and Implementation) - Ben Rimmer

• Executive Coordinator (Strategic Policy & Implementation) - Martin Hoffman
• Executive Director (Strategy and Delivery Division) - Subho Banerjee
• AS (Cabinet Implementation Unit) - Kim Terrell

Deputy Secretary(Governance)** - Liza Carroll*

• FAS (Corporate Services) - Sue Ball *
  People and Governance
  Financial Management
  Information Services
• FAS (Government) - Alex Anderson *
  Awards & Culture
  Legal Policy
  Parliamentary & Government
  Privacy & FOI Policy
• FAS (Cabinet) - Wendy Southern
  Cabinet Secretariat
  Community Cabinet Secretariat
• FAS (Ministerial Support Unit) - John Cairns
  Official Establishments Unit
  Principal Editor and Communications Adviser
  Ceremonial & Hospitality
  Information Handling & FAS (Social Policy) Coordination

Associate Secretary (National Security & International Policy) (National Security Adviser) - Duncan Lewis

• Deputy National Security Adviser - Angus Campbell
• FAS (National Security Chief Information Officer) - Rachel Noble
• FAS (Homeland & Border Security) - Tony Sheehan
  Border Protection & Law Enforcement
  Infrastructure Security & Emergency Management
• FAS (Defence, Intelligence& Research Coordination Division) - Michael Shoebridge
  Defence Policy
  Intelligence Policy
  National Security Science & Technology
• FAS (Border Protection Working Group) - Rob Floyd *
• FAS (International) - Patrick Suckling *
  Asia Americas & Trade
  Pacific, Rest of the World, Multilateral

Office of the Coordinator‑General, Deputy Secretary - Vacant at 30 June (Note: Jennie Granger appointed 1 July 2009)

* Denotes acting.
** For most of 2008–09 this position was occupied by Mr Mike Mrdak until his appointment as Secretary of the Department of Infrastructure,Transport, Regional Development and Local Government on 29 June 2009.

D. Our Executive Group

Mr Terry Moran AO (Secretary): Mr Terry Moran is responsible for providing the overall leadership of the department and shaping its future. He provides strategic direction, determines priorities and appropriate resource allocations, delivers organisational performance and directs high-priority initiatives. In consultation with the associate and deputy secretaries, the Secretary is also responsible for corporate governance. Mr Moran provides leadership of the Prime Minister and Cabinet portfolio. As the nation’s most senior public servant, Mr Moran is also responsible for providing overall leadership to the Australian Public Service. Mr Moran joined the department in March 2008.

Mr Duncan Lewis AO DSC CSC (Associate Secretary/National Security Adviser): Mr Lewis is responsible for national security and international policy. He oversees the International Division; the Homeland and Border Security Division; the Defence, Intelligence and Research Coordination Division; and the National Security Chief Information Officer. Mr Lewis has been Associate Secretary and National Security Adviser since December 2008.

Mr David Tune PSM (Associate Secretary, Domestic Policy): Mr Tune is responsible for domestic policy, including the Families, Immigration and Social Support Division, COAG Unit, Social Policy Division, Economic Division and Industry, Infrastructure and Environment Division. Mr Tune has been Associate Secretary since July 2008.

Mr Angus Campbell (Deputy Secretary/Deputy National Security Adviser): Mr Campbell is responsible for supporting the work of the NSA and managing the daily business of the National Security and International Policy Group. He coordinates the implementation of policy initiatives announced in the National Security Statement and the Homeland and Border Security Review. Mr Campbell was appointed to the position of Deputy NSA on 30 March 2009.

Mr Ben Rimmer (Deputy Secretary): Mr Rimmer is responsible for medium- and longterm strategic policy advice, and for advice to the Prime Minister on implementation and delivery issues across government. Mr Rimmer has been Deputy Secretary since July 2008.

Dr Gordon de Brouwer (Deputy Secretary): Dr de Brouwer is responsible for overseeing policy advice to the Prime Minister and the Cabinet Secretary on domestic and international macroeconomic and financial policy. Dr de Brouwer has been Deputy Secretary – Economic since March 2009.

Ms Liza Carroll (A/g Deputy Secretary): Ms Carroll has been acting Deputy Secretary since June 2009. Ms Carroll is responsible for governance, including the Corporate Services Division, Government Division, Cabinet Division and Ministerial Support Unit. Ms Carroll was head of the Families, Immigration and Social Support Division from December 2007.

* Includes 6 staff employed for the support of former Governors-General and staff currently inoperative (both paid and unpaid). Inoperatives include: staff on paid leave greater than three months (maternity leave, long service leave, annual leave) and staff on leave without pay (external temporary transfers, overseas travel or study) and other temporary employment in the interests of the APS.

E. Our Outcome and Outputs

Our planned outcome for 2008–09 is: ‘sound and well coordinated government policies, programs and decision-making processes’.

During 2008–09 we contributed to the achievement of this outcome through five output groups.

Output Group 1: Economic and Industry

Provide policy advice on economic issues, including on taxation, superannuation, workplace relations, fiscal policy (including all policy proposals with financial implications), Commonwealth-state financial relations, macroeconomic conditions, financial markets and housing; industry, infrastructure and environment issues, including water, heritage, regional services, transport, climate change, energy and resources, communications, regulatory reform, competition policy, small business and agriculture policy issues; and the effective management of COAG’s work program.

Output Group 2: Social Policy

Provide 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 citizenship, families, women, youth, sport, community services and coordination of family impact statements.

Output Group 3: International and National Security Policy

Provide policy advice on international issues, including trade, aid and treaty issues; and on national security issues, including defence, intelligence, non-proliferation, counter-terrorism, law enforcement, border protection, maritime and aviation security, critical infrastructure protection, e-security, emergency management, health security and the coordination of security-related science and technology research.

Output Group 4: Strategic Policy

Provide strategic policy advice and analysis in relation to domestic and international issues.

Output Group 5: Support Services for Government Operations

Provide policy advice on parliamentary, machinery of government, legal, FOI, privacy and cultural issues, and a range of support services, including:

• providing secretariat services to the Cabinet, its committees and the Executive Council
• monitoring the implementation of Cabinet decisions¹
• developing and coordinating the government’s legislation program
• coordinating and promoting awards and national symbols
• providing support to the official establishments and former Governors-General, and
• administering State occasions and the official visits program.

1. The Cabinet Implementation Unit was moved to Strategic Policy (Output Group 4) on 1 July 2008 following an organisational restructure. For the purposes of this annual report, the Cabinet Implementation Unit’s performance reporting will be reported against Output Group 4 – Strategic Policy.

Figure 2.3: Our outcome and output framework

Outcome
Sound and well coordinated government policies, programs and decision making processes

• Output Group 1
  Economic and Industry Policy
  • Output 1.1
    Economic and Industry Policy
• Output Group 2
  Social Policy
  • Output 2.1
    Social Policy
  • Output 2.2
    Work and Family
  • Output 2.3
    Social Inclusion
• Output Group 3
  International and National Security Policy
  • Output 3.1
    International Policy
  • Output 3.2
    National Security Policy
  • Output 3.3
    APEC Taskforce¹
• Output Group 4
  Strategic Policy
  • Output 4.1
    Strategic Policy
• Output Group 5
  Support Services for Government Operations
  • Output 5.1
    Cabinet Support
  • Output 5.2
    Machinery of Government
  • Output 5.3
    Support to Official Establishments
  • Output 5.4
    Support for Ministerial Offices
  • Output 5.5
    Ceremonial and Hospitality
  • Output 5.6
    Freedom of Information and Privacy Policy
  • Output 5.7
    2020 Summit¹
  • Output 5.8
    Government Communications²
  • Output 5.9
    Pacific Islands Forum

1. Activities associated with Outputs 3.3 and 5.7 were completed prior to the commencement of 2008–09. Minor residual wind-up costs related to the APEC Taskforce were recorded in 2008–09.
2. The Administrative Arrangements Order of 3 December 2007 resulted in the abolition of the Government Communications Unit (GCU) and the transfer of the aggregated media buying function and AUSPIC to the Department of Finance and Deregulation.

F. Our Performance

Each output group has provided performance information in this report. However, there are certain indicators we use to measure our performance across all output groups. These are:

• ministerial correspondence and briefings
• parliamentary questions on notice
• requests made under the Freedom of Information Act 1982, and
• resourcing.

Detailed performance reporting for each output group is provided in chapters 3 – 7.

Ministerial correspondance

Between 1 July 2008 and 30 June 2009, the department processed approximately 165,000 items of correspondence addressed to the Prime Minister, other PM&C portfolio ministers, the parliamentary secretary and their offices – an average of more than 660 items per day. While the total volume was approximately eight per cent lower than expected, continuing the trend displayed late in the previous year, it was still 3,000 items above the 10-year average.

The most frequent topics arising in this correspondence included:

• climate change
• fiscal issues, such as the stimulus package, lump sum payments to pensioners and families and first home buyers
• water management, and
• emission targets.

There was also a large volume of correspondence about the Victorian bushfires over a relatively short period.

The volume of ministerial correspondence received in the past 10 years is shown below.

Figure 2.4: Items of correspondence processed

Text equivalent for Figure 2.4

Parliamentary Questions on notice

There were 18 parliamentary Questions on Notice on hand at the start of the financial year, and a further 83 questions were addressed to the Prime Minister during the year. 71 responses to questions were lodged in the period and 12 questions were transferred to other ministers. One question was withdrawn. There were 17 questions on hand at 30 June 2009.

1. There were 75 questions that lapsed due to the November 2007 election.
2. These figures are average number of days, for relevant responses, between questions being asked and responses being lodged. For 2004–05, relevant responses are those lodged in that financial year in response to questions asked in that financial year. For subsequent years, all the responses lodged in the financial year were counted, regardless of the year in which the questions were asked.

Senate Estimates questions on notice

As part of the Senate Estimates function the Governance team in the department is responsible for coordinating and tabling responses to questions taken on notice during Senate Estimates hearings. A major achievement of the team has been to table every Senate Estimates Question on Notice since February 2008 on time, despite an increasing number of questions (see Figure 2.6).

The high quality, timeliness and responsiveness of the support provided by the Governance team during, in the lead up to and following Estimates hearings was reflected in positive feedback from the Prime Minister’s Office, the Office of the Cabinet Secretary and the departmental executive.

Figure 2.6: Trends in Numbers of Senate Estimates Questions on Notice

Text equivalent for Figure 2.6

AE – Additional Estimates (February)
BE – Budget Estimates (May)
SBE – Supplementary Budget Estimates (October)
*No SBE in 2007 due to the Federal election.

Freedom of Information requests

We were responsible for managing 76 new requests under the Freedom of Information Act 1982 during 2008–09, in addition to the 25 FOI requests already on hand at 1 July 2008. During the year, 43 requests were resolved, 24 requests were withdrawn, and 16 requests were transferred in full to other agencies. We had 18 requests on hand at 30 June 2009.

We received four applications for internal review during the reporting period, three of which were finalised and one was still on hand at 30 June 2009. We also received two applications for reconsideration of decisions, both of which were finalised.

During the reporting period, the department was the respondent in one application for review of an FOI decision by the Administrative Appeals Tribunal (AAT); at 30 June 2009 the matter was with the AAT for decision.

1. Note: The statistics reported for the years 2004–05 to 2005–06 differ from those reported in our 2005–06 annual report, due to errors in the original calculations. The statistics reported in this table match those in our 2006–07 and 2007–08 annual reports, which included similar notes to this one.

G. Our Portfolio

Agencies in the Prime Minister and Cabinet portfolio produce a range of outputs essential for a well coordinated, efficient and accountable public administration supported by a values-based Australian Public Service.

PM&C is a department of state and the main coordination agency in the Prime Minister and Cabinet portfolio. In addition to PM&C, at 30 June 2009 there were 13 other agencies in the PM&C portfolio, including the National Australia Day Council – a Commonwealth company subject to the provisions of the Commonwealth Authorities and Companies Act 1997 (the CAC Act).

At 30 June 2009, included in the Prime Minister and Cabinet portfolio were:

• Senator the Hon Penny Wong, as Minister for Climate Change and Water
• Senator the Hon Joe Ludwig, as Cabinet Secretary
• Senator the Hon Mark Arbib, as Minister Assisting the Prime Minister for Government Service Delivery
• The Hon Greg Combet MP, as Minister Assisting the Minister for Climate Change, and
• The Hon Anthony Byrne MP, as Parliamentary Secretary to the Prime Minister.

1. The Museum Of Australian Democracy at Old Parliament House became an Executive Agency under the Public Service Act and transferred to the PM&C portfolio on 1 July 2008.
2. The National Archives of Australia was transferred to the PM&C portfolio on 1 May 2008. Due to an oversight it was not included in the list of PM&C portfolio agencies in the 2007–08 Annual Report.
3. The NADC is a Commonwealth non-profit company reporting under the provisions of the Commonwealth Authorities and Companies Act 1997.

H. The way forward

We will continue to work on improving the quality of our policy advice and our corporate systems by bedding down changes and implementing improvement initiatives.

Over the coming year we will be making a bigger investment in professional learning and development for all of our staff, from our graduates through to our Senior Executive Service. The graduate intake will be doubled from 15 to 30 in 2010, and students may once again apply for temporary employment through our Vacation Employment Program.

Expanding the scope of the traditional recruitment pool for PM&C will also be a focus of effort. This will require moving beyond the traditional market of Commonwealth public servants and state and territory public services into the private sector and international markets. The aim is to foster a culture of continuous organisational renewal based on attracting a diverse range of the highest quality talent available. Extending the range of entry points into PM&C and fostering career development pathways that bridge the public and private sectors will be central to this strategy.

Building on the strengthened governance arrangements that have been put in place in the department over the last year, we will be enhancing the focus across all business areas on: good risk management practices; planning for major projects; and tools to assist compliance with best practice financial management, procurement and contract management.

Harnessing new technologies in information management and communications that offer robust solutions to the demands of PM&C’s complex and highly security sensitive operational environment will also be a priority over the coming period.

Finally, our main focus over the coming year will be to continue to provide high quality and innovative policy advice and support to the Prime Minister, the Cabinet and our portfolio ministers. We will continue to oversee implementation of the government’s policy reform agenda in all its aspects, including, for example, the continuing challenge of delivering Commonwealth-state reform, Australia’s response to the challenges posed by climate change and the global financial crisis, Closing the Gap on Indigenous disadvantage and addressing key national security and international policy challenges and opportunities.

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