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Tony Abbott defends his move to replace Treasury head Tony Abbott defends his move to replace Treasury head
(6 months later)
Tony Abbott has declared that new leaders have the right to “place their stamp” on the nation’s economic policy, after the former Treasury secretary Ken Henry criticised the decision to replace his successor at the key agency.Tony Abbott has declared that new leaders have the right to “place their stamp” on the nation’s economic policy, after the former Treasury secretary Ken Henry criticised the decision to replace his successor at the key agency.
The prime minister announced shortly after the September election that the Treasury secretary, Martin Parkinson, would stand down in mid-2014 and three other departmental heads would be sacked immediately.The prime minister announced shortly after the September election that the Treasury secretary, Martin Parkinson, would stand down in mid-2014 and three other departmental heads would be sacked immediately.
Henry, who served as Treasury secretary from 2001 to 2011 under both sides of politics, said Parkinson should be asked to stay in his position.Henry, who served as Treasury secretary from 2001 to 2011 under both sides of politics, said Parkinson should be asked to stay in his position.
“No government has ever thought it appropriate to remove the head of the Treasury and put in somebody who they think is of the right – let’s say of a more comfortable political character,” Henry told the ABC on Wednesday night.“No government has ever thought it appropriate to remove the head of the Treasury and put in somebody who they think is of the right – let’s say of a more comfortable political character,” Henry told the ABC on Wednesday night.
“Now I’m not saying that is what has motivated the prime minister on this occasion … The fact is I don’t know, but if that is what is intended, then that would be a very disappointing move and quite a historic one.” “Now I’m not saying that is what has motivated the prime minister on this occasion … The fact is I don’t know, but if that is what is intended, then that would be a very disappointing move and quite a historic one.”
Abbott defended the public service shake-up, saying on Thursday Parkinson was “a very distinguished public servant” but new governments had a right to make changes.Abbott defended the public service shake-up, saying on Thursday Parkinson was “a very distinguished public servant” but new governments had a right to make changes.
“You’ve got to understand that incoming governments do very much want to place their stamp on the economic policy of the country and that’s exactly what we are doing. We are placing our stamp on the economic policy of the country,” Abbott said in Adelaide.“You’ve got to understand that incoming governments do very much want to place their stamp on the economic policy of the country and that’s exactly what we are doing. We are placing our stamp on the economic policy of the country,” Abbott said in Adelaide.
“Let there be no doubt that Australia’s policy direction changed very substantially back in September of last year. Australia at the official level went from being a high-tax, high-regulating government to being a low-tax, deregulating government.“Let there be no doubt that Australia’s policy direction changed very substantially back in September of last year. Australia at the official level went from being a high-tax, high-regulating government to being a low-tax, deregulating government.
“That’s a very, very big change and we expect everyone in the system to be working enthusiastically with us as we reshape our country to provide more jobs and greater prosperity for all.”“That’s a very, very big change and we expect everyone in the system to be working enthusiastically with us as we reshape our country to provide more jobs and greater prosperity for all.”
Fairfax Media reported this week that the former prime minister John Howard and the former treasurer Peter Costello had told the treasurer, Joe Hockey, to keep Parkinson in the role. The endorsement from the senior Liberals reportedly came just before the election. There is now speculation that Parkinson’s tenure may be extended until the end of the year.Fairfax Media reported this week that the former prime minister John Howard and the former treasurer Peter Costello had told the treasurer, Joe Hockey, to keep Parkinson in the role. The endorsement from the senior Liberals reportedly came just before the election. There is now speculation that Parkinson’s tenure may be extended until the end of the year.
Parkinson, a former secretary of the Labor-established Department of Climate Change and previously deputy Treasury secretary, was appointed to head the key economic agency in March 2011 after Henry’s retirement. Parkinson served as a senior adviser to the Labor treasurer John Dawkins in the early 1990s. Parkinson also worked at the International Monetary Fund on international financial reforms.Parkinson, a former secretary of the Labor-established Department of Climate Change and previously deputy Treasury secretary, was appointed to head the key economic agency in March 2011 after Henry’s retirement. Parkinson served as a senior adviser to the Labor treasurer John Dawkins in the early 1990s. Parkinson also worked at the International Monetary Fund on international financial reforms.
Abbott said he would not “respond to comments that other people have made” about Parkinson’s position “because my argument is with the Labor party, not with members of the community”.Abbott said he would not “respond to comments that other people have made” about Parkinson’s position “because my argument is with the Labor party, not with members of the community”.
“I simply want to say that Martin Parkinson has been a very distinguished public servant for many, many years now,” Abbott said.“I simply want to say that Martin Parkinson has been a very distinguished public servant for many, many years now,” Abbott said.
“I think he is doing a fine job as the head of Treasury and I look forward to continuing for some time to work with him.”“I think he is doing a fine job as the head of Treasury and I look forward to continuing for some time to work with him.”
Henry, who served as Treasury secretary under treasurers Costello and Wayne Swan, said he was disappointed with Hockey’s attacks on Treasury forecasts before the election.Henry, who served as Treasury secretary under treasurers Costello and Wayne Swan, said he was disappointed with Hockey’s attacks on Treasury forecasts before the election.
Henry said he knew how difficult it was to produce economic forecasts and for a department to serve the government of the day “in a responsible but also apolitical manner”.Henry said he knew how difficult it was to produce economic forecasts and for a department to serve the government of the day “in a responsible but also apolitical manner”.
“A department is unable to defend itself in public, obviously, if it’s attacked by a politician,” Henry told the ABC.“A department is unable to defend itself in public, obviously, if it’s attacked by a politician,” Henry told the ABC.
Henry led a tax review for the Rudd government and this week renewed his call for reform, warning that the nation could not afford new spending on the current revenue base.Henry led a tax review for the Rudd government and this week renewed his call for reform, warning that the nation could not afford new spending on the current revenue base.
Abbott said the government’s immediate tax reform program included repeal of the carbon and mining taxes. The prime minister said Henry was a “distinguished retired federal public servant” who deserved to be listened to with respect, but they were “just private views of a private citizen”.Abbott said the government’s immediate tax reform program included repeal of the carbon and mining taxes. The prime minister said Henry was a “distinguished retired federal public servant” who deserved to be listened to with respect, but they were “just private views of a private citizen”.
Employment has been at the centre of political debate this year, with latest labour force figures on Thursday showing the national jobless rate remained steady at 6%. Labor and the unions have repeatedly called on the government to develop a comprehensive jobs plan.Employment has been at the centre of political debate this year, with latest labour force figures on Thursday showing the national jobless rate remained steady at 6%. Labor and the unions have repeatedly called on the government to develop a comprehensive jobs plan.
Abbott said the number of people out of work was “much higher than we would like it” and it made him more determined to cut taxes and regulation.Abbott said the number of people out of work was “much higher than we would like it” and it made him more determined to cut taxes and regulation.