Public Sector Governance in Australia

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1 Public Sector Governance in Australia

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3 Public Sector Governance in Australia Meredith Edwards John Halligan Bryan Horrigan Geoffrey Nicoll

4 Published by ANU E Press The Australian National University Canberra ACT 0200, Australia anuepress@anu.edu.au This title is also available online at National Library of Australia Cataloguing-in-Publication entry Title: ISBN: Notes: Subjects: Public sector governance in Australia / Meredith Edwards... [et al.] (pbk) (ebook) Includes bibliographical references and index. Public administration--australia--decision making. Intergovernmental cooperation--australia. Australia--Politics and government. Other Authors/Contributors: Edwards, Meredith, Dewey Number: All rights reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical, photocopying or otherwise, without the prior permission of the publisher. Cover design and layout by ANU E Press Printed by Griffin Press This edition 2012 ANU E Press

5 Contents Acknowledgements.... ix Abbreviations.... xi Introduction....1 Part I. Context and Framework 1. Dimensions of Governance for the Public Sector The problems of governance-talk Meanings and components of governance From governance conceptions to governance planes and forms Norms of public sector governance in their broader governance context Governance changes, limits and challenges Conclusion Rise of Corporate and Public Governance Three phases in public sector reform Modes of governance at the system and agency levels Rise of corporate governance Redefining governance in the public sector: Ahead of the Game, CFAR and Uhrig The emergence of public governance Conclusion Exploring Tensions in Public Governance Tensions in context Tensions between the political and executive arms of government Organisational tensions within departments and agencies Tensions in integrating authorities, companies and corporate governance Sources of tension in integrating authorities and companies Difficulties in coordination and collaboration within and external to government Tensions in accommodating concepts and language of governance.. 74 Conclusion v

6 Part II. Rise of Corporate and Public Governance 4. System Governance Overview of system governance The relationship between the political executive and the public service Senior appointments Central steering and coordination Governance styles and issues Conclusion Departmental Governance Governance of the department of state External accountability and relationships Issues in public governance Directions for departmental governance in the 2010s Conclusion Board Governance in Authorities and Companies The roles of the board and management Improving the capacity of the public sector board Infrastructure Australia and public-private partnerships Conclusion Participatory Governance Participatory governance frameworks Active participation: Issues and challenges Fundamental factors Conclusion vi

7 Part III. Key Issues 8. Creating and Regulating Public Sector Bodies The changing environment for governance design The impact of governance regulatory architecture upon governance arrangements Formal governmental guidance on governance design arrangements From policy design to legislative implementation Conclusion Appointments and Boards The Australian context and a comparative perspective Behaviour of main players and empirical findings Principles and better practice Unresolved issues of principle Conclusion Public Governance: Challenges and Issues in an Age of Uncertainty Governance trends and challenges Continuing and emerging tensions Implications for government Governance for the twenty-first century Conclusion Appendix 1: Methodology for Interview Study Appendix 2: Flipchart of FMA Act Agencies and CAC Act bodies Appendix 3: The Stages in a Good Appointment Process References Index vii