Public Sector Governance in Australia

Public Sector Governance in Australia

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

Published by ANU E Press The Australian National University Canberra ACT 0200, Australia Email: anuepress@anu.edu.au This title is also available online at http://epress.anu.edu.au National Library of Australia Cataloguing-in-Publication entry Title: ISBN: Notes: Subjects: Public sector governance in Australia / Meredith Edwards... [et al.] 9781921862892 (pbk) 9781921862908 (ebook) Includes bibliographical references and index. Public administration--australia--decision making. Intergovernmental cooperation--australia. Australia--Politics and government. Other Authors/Contributors: Edwards, Meredith, 1941- Dewey Number: 320.60994 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

Contents Acknowledgements.... ix Abbreviations.... xi Introduction....1 Part I. Context and Framework 1. Dimensions of Governance for the Public Sector.... 9 The problems of governance-talk.... 9 Meanings and components of governance... 11 From governance conceptions to governance planes and forms.... 21 Norms of public sector governance in their broader governance context.... 25 Governance changes, limits and challenges... 30 Conclusion.... 33 2. Rise of Corporate and Public Governance.... 35 Three phases in public sector reform.... 35 Modes of governance at the system and agency levels... 39 Rise of corporate governance.... 41 Redefining governance in the public sector: Ahead of the Game, CFAR and Uhrig.... 48 The emergence of public governance.... 55 Conclusion.... 57 3. Exploring Tensions in Public Governance... 59 Tensions in context... 60 Tensions between the political and executive arms of government... 64 Organisational tensions within departments and agencies.... 65 Tensions in integrating authorities, companies and corporate governance.... 67 Sources of tension in integrating authorities and companies.... 68 Difficulties in coordination and collaboration within and external to government... 71 Tensions in accommodating concepts and language of governance.. 74 Conclusion.... 77 v

Part II. Rise of Corporate and Public Governance 4. System Governance.... 81 Overview of system governance.... 81 The relationship between the political executive and the public service... 84 Senior appointments.... 85 Central steering and coordination... 87 Governance styles and issues.... 100 Conclusion.... 106 5. Departmental Governance... 107 Governance of the department of state... 107 External accountability and relationships... 117 Issues in public governance... 122 Directions for departmental governance in the 2010s... 127 Conclusion.... 128 6. Board Governance in Authorities and Companies.... 131 The roles of the board and management.... 132 Improving the capacity of the public sector board.... 146 Infrastructure Australia and public-private partnerships.... 148 Conclusion... 149 7. Participatory Governance.... 151 Participatory governance frameworks... 152 Active participation: Issues and challenges... 157 Fundamental factors.... 159 Conclusion... 170 vi

Part III. Key Issues 8. Creating and Regulating Public Sector Bodies.... 175 The changing environment for governance design.... 175 The impact of governance regulatory architecture upon governance arrangements... 177 Formal governmental guidance on governance design arrangements.... 182 From policy design to legislative implementation.... 186 Conclusion.... 199 9. Appointments and Boards.... 201 The Australian context and a comparative perspective.... 202 Behaviour of main players and empirical findings.... 204 Principles and better practice.... 209 Unresolved issues of principle.... 214 Conclusion.... 221 10. Public Governance: Challenges and Issues in an Age of Uncertainty... 223 Governance trends and challenges.... 223 Continuing and emerging tensions... 226 Implications for government.... 229 Governance for the twenty-first century.... 236 Conclusion.... 238 Appendix 1: Methodology for Interview Study 2004 07.... 239 Appendix 2: Flipchart of FMA Act Agencies and CAC Act bodies... 241 Appendix 3: The Stages in a Good Appointment Process.... 243 References.... 245 Index.... 283 vii