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Inappropriate and politically motivated appointments to public offices

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Australia lacks formal procedures to help ensure appropriate and unbiased appointments to public offices.

Privileged relationships can lead to inappropriate or politically motivated public office appointments. In late 2005, for example, businessman Robert Gerard resigned from the Reserve Bank board after it was revealed that he had had an eleven year dispute with the Australian Taxation Office over the use of tax havens. The Treasurer’s approval of Gerard’s appointment to the Reserve Bank in 2003 raised questions about the adequacy of the selection process for public office. When he was Prime Minister, John Howard said he was reluctant “to introduce yet another layer of regulation and inspection” for appointments, arguing that this will “end up dissuading people from being interested in appointments to public positions” (Wood, The Australian, 3 December 2005). This is not, however, the view of other western democracies.

Many other countries have introduced formal measures to improve the quality and political neutrality of appointees to significant public offices. Under the so-called Nolan system in the UK, an independent Commissioner for Public Appointments regulates, monitors, reports and advises on appointments made by Ministers to the boards of over a thousand national and regional public bodies. Government departments are required to follow the Commissioner’s principles and code of practice when making these public appointments. In Canada, all appointments for chief executives, directors and chairs of Crown corporations are subject to a merit-based system. Ministers make recommendations which are then subject to review by a parliamentary committee prior to the final appointment (Edwards, 2004). In Australia, the lack of transparency for public sector appointments represents a threat to a strong democracy.

The Rudd Government has promised to introduce a new independent system for public appointments to the ABC, SBS and the Museum of Australia but not for other bodies. Details have not yet been released.

 

Sources:

Edwards, M. (2004). “Appointments to public sector boards in Australia: Cronyism or competence?”
http://democratic.audit.anu.edu.au/papers/20040701_edwards_pub_sec_app.pdf

Wood, A. (2005). “Caution goes by the board in risky Reserve Bank appointments”, The Australian, 3 December 2005.

 

 

 

 

 

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