Canberra, 3 April 1968
Enclosed are six copies of draft papers outlining suggested administrative principles for the operation of the Ministerial Member and Assistant Ministerial Member system which were prepared in discussion with Mr. Watkins during his recent visit to Canberra.1
It is envisaged that the paper marked CWP/2 should be handed to Ministerial Members and Departmental Heads as the basis upon which the new system would operate. The final draft paper as settled between us would of course require the Minister’s approval before delivery.
I would like to receive your comments on the papers and we could then give consideration to any particular aspects in the light of your comments.
[ matter omitted ]2
Attachment
CWP/1
CONSTITUTlONAL WORKING PARTY—PRINCIPLES TO BE ADHERED TO IN EVOLVING WORKING ARRANGEMENTS FOR THE OPERATION OF THE ‘MINISTERIAL’ SYSTEM AND THE ADMINISTRATOR’S EXECUTIVE COUNCIL UNDER THE NEW CONSTITUTIONAL ARRANGEMENTS FOR PAPUA AND NEW GUINEA
(1) The working arrangements now to be evolved must not be inconsistent with the following principles:—
(i) the object of the changes should be to ensure that elected members, within defined limits in practice as well as in form, carry some responsibilities of a ministerial character;
(ii) the Ministerial Members would be responsible, within defined limits for certain selected Departments dealing with matters of immediate electoral concern such as Education, Health and Works (but not for ‘reserved’ Departments such as Administrator’s Department, Law, Information, Police and Security);
(iii) though the arrangements should ensure maximum participation and exercise of authority in the day-to-day business of the administration of the Departments concerned, the authority and responsibilities of ‘Ministerial Members’ must be confined within arrangements which leave to the Administrator as the representative in the Territory of the Commonwealth Government ultimate authority within the Territory;
(iv) it should be recognised that movement towards a ministerial system requires a complementary move forward in the Administrator’s Executive Council so that it becomes the forum for collective policy making and its composition is limited to the holders of Ministerial office and officials.
(2) Similarly, the arrangements made pursuant to (1) above and any future development or modification of those arrangements must conform to the following principles governing future constitutional development:—
(a) though the Commonwealth would progressively devolve its authority, in practice it would, short of self-government, retain final responsibility in the sense that it remains accountable for the administration of the Territory;
(b) this devolution would not apply in relation to certain ‘reserved’ subjects—internal security, external affairs, defence, constitutional advance, law and information;
(c) the need for a reasonable pace of constitutional development has to be balanced with the difficulty of maintaining standards of administration; progress needs to be evolutionary and educational but cannot await the availability of persons with full capacity to operate at normal standards of developed countries;
(d) the extreme economic dependence of the Territory and the fact that a substantial part of the Budget is met by Australia must be recognised; in these circumstances the Commonwealth must determine the strategy of the Budget;
(e) the Commonwealth Government’s control over the conditions of service of the Australian members of the Territory Public Service must be preserved;
(f) the final constitutional pattern for a self-governing territory should not be unduly determined by the interim arrangements.
CWP/2
PROPOSED ARRANGEMENTS FOR THE OPERATION OF MINISTERIAL MEMBERS
I. General
The elected members are to participate actively in the formulation of policy and undertake duties and functions in the Administration so that they assume many of the functions and responsibilities of Ministers.
It must, however, be recognised that there are certain areas of special Commonwealth interest and responsibility. These may be classified as:—
• defence, external affairs (neither are responsibilities of the Administration), information, law, internal security and police, the public service, and constitutional changes;
• the Budget, which must remain of special concern to the Commonwealth while the majority of finances available are provided by the Australian grant.
These items must be outside the scope of the system; but this does not mean that they are all to be unilaterally controlled by Australia. Budget matters will be discussed by the Administrator’s Executive Council and at the Departmental level Ministerial Members would participate in discussion on the draft Estimates at the earliest possible stage. Constitutional changes to be effected through amendment of the Papua and New Guinea Act will continue to be discussed between the Government and the House of Assembly.
In respect of the remaining matters the elected members are to be involved in the formation of policy and to hold some, but not all, the duties and responsibilities of a Minister. The proposed major changes are:—
• the creation through amendment of the Papua and New Guinea Act of Ministerial Members and Assistant Ministerial Members; and
• the expansion of the functions of the new Administrator’s Executive Council by increasing the range of matters on which it will be consulted so that it will be the principal policy making body in the Territory.
Ministerial Members. and Assistant Ministerial Members will be appointed by the Minister for External Territories on the nomination of the Administrator in consultation with the House of Assembly. During its first session the House will appoint a nomination committee of five who will consult with the Administration to produce a list of fifteen nominees. This list, after approval by the House, will be forwarded to the Minister who will then appoint the various nominees to the seven positions of Ministerial Member and eight positions of Assistant Ministerial Member.
II. Operational Aspects
(A) Role of Ministerial Members
(I) In Relation To The House Of Assembly
• Represent his Department in the House by answering questions;
• By introducing legislation concerning his Department’s functions and taking the responsibility for guiding the legislation through all proceedings in the House;
• By giving his Department’s views on resolutions and motions affecting it;
• By defending the administration of his Department;
• He would support (or at least not publicly criticise) policies and actions of the Administration;
• He would only introduce approved Administration Bills;
• He would resign on a vote of no confidence passed by the House;
• He will have no functions in relation to the Public Service.
(II) In Relation To The Administrator’s Executive Council
• Being a member of the Council he would support or at least not criticise in public policies or actions of the Administration;
• He would be bound to accept and carry out decisions made by the Council or else resign his office;
• He would represent the interests of his Department in discussions on the draft Estimates in the Council;
• He would introduce matters into the Council with the approval of the Administrator and in respect of his designated functions would generally represent such functions in the Administrator’s Executive Council (see later for procedure on policy matters);
• He will have no functions in relation to the Public Service.
(III) In Relation To Departmental Functions And Operations
• He would assume certain of the functions which now devolve on a Department Head;
• He would be responsible for the Department’s operational activities and to make decisions appropriate to those activities;
(NOTE:—It may be necessary to adumbrate the first two points by attempting to define what are the ‘functions’, ‘operational activities’ and ‘day to day decisions’ within the competence of a Ministerial Member;)
• All decisions of a Ministerial Member will follow consideration by him of papers and recommendations submitted to him by his Department and the decision of the Ministerial Member will be recorded in writing on such papers etc.;
• To co-operate with, and seek the advice of, his Departmental Head on all matters affecting the business and functions of the Department.
(iv) General
Ministerial Members should conform to the accepted code of conduct normally applicable to ‘Ministers’.
(B) Role of Departmental Head of a Department with a Ministerial Member
(i) In Relation To The House Of Assembly
• He would have no direct role per se, but would advise the Ministerial Member on matters within the competence of his Department.
(ii) In Relation To The Administrator’s Executive Council
• He would perform the function of advising the Ministerial Member on matters coming before the Council;
• He would perform the function of advising the Ministerial Member on matters coming before the Council;
(iii) In Relation To Departmental Functions And Operations
• He will remain responsible for the working and the efficient conduct of the business of his Department;
• To co–operate with and tender advice to his Ministerial Member on all matters affecting the business and functions of the Department.
(C) Relationship between Departmental Head and Ministerial Member
(i) General
• The basic assumption in the successful working of the proposed system is the mutual willingness of the parties to co-operate in its effective working. Immediately on its inception it seems desirable that separate symposiums be held for Departmental Heads and Ministerial Members to explain to them matters of detail arising from this paper and the basic philosophy underlying it;
• It is fundamental, of course, that all matters relating to the Public Service (establishments, duties, classifications, promotion, recruitment etc.) will remain the responsibility of the Public Service Commissioner and the Departmental Head—the Ministerial Members duties and responsibilities will not impinge on this area in any way.
(ii) In Evolving And Applying Policy And In Making Day-To-Day Decisions
• The initial difficulty is determining what is a policy matter and what is a day-to-day decision. There is an area where a distinction could not be readily made, but some attempt should be made to indicate guide lines;
• In the functional area for which the Ministerial Member is responsible (on other than policy matters) he has the final decision—if there is a dispute as to whether the matter is a ‘Ministerial functional’ matter or a policy matter, this is decided by the Administrator;
• A Departmental Head desiring to originate a policy proposal will clear same with the Administrator before discussing it with the Ministerial Member. If not cleared it would not be discussed with the Ministerial Member. If cleared , the Departmental Head would then consult the Ministerial Member—if the latter approved in toto the policy matter would be submitted in the normal course for decision of the Administrator’s Executive Council. If the Ministerial Member did not approve the policy matter (together with the views of the Ministerial Member) would be referred to the Administrator for his decision—the final form of its submission to the Administrator’s Executive Council would then be determined by the Administrator after seeking the Minister for External Territories’ approval where appropriate;
• If a Ministerial Member desires to initiate a policy proposal he will request the Department to prepare the proposal in appropriate form;
• Where policy proposals originate with the Ministerial Member they would be forwarded by the Departmental Head to the Administrator accompanied by any comments the Departmental Head deems necessary. (It is probable that the Ministerial Member would have availed himself of an opportunity of seeking the advice of the Departmental Head before formulating the policy proposal.);
• The final form of its submission to the Administrator’s Executive Council would then be determined by the Administrator after seeking the Minister for External Territories’ approval where appropriate;
• When the final form of the policy submission has been determined by the process indicated in the two preceding points the Administrator would decide where appropriate to put the policy to the Minister for External Territories either before or following its submission to the Administrator’s Executive Council.
The Role of the Administrator’s Executive Council
• Apart from budgetary proposals (which are considered later) it is contemplated that the Administrator could consult the Council on all matters except those relating to defence, external affairs, the public service, constitutional matters and internal security (although at his discretion he could keep the Council informed on those matters). In urgent cases the Administrator would be able to act without the advice of the Council but would let the Council know as soon as possible of the action which he has taken;
• Since the Council is an advisory body the Administrator is not required to accept its advice;
• In practice it could be hoped that few occasions would arise where it should be necessary for the Administrator to act contrary to the advice received; if Ministerial Members so requested any dissenting views would be conveyed to the Minister;
• It follows from the foregoing that, subject to the Administrator’s responsibility to administer the government of the Territory, the Administrator’s Executive Council be the principal instrument of policy of the Executive Government of the Territory;
• The composition of the Administrator’s Executive Council would require that the official members on the Council cover all Departments of the Administration not represented on the Council by Ministerial Members.
The role of Assistant Ministerial Members
• Assistant Ministerial Members will be given specified functions within the Department to which they are appointed and in the carrying out of these specified functions they will be subject to the over-riding authority of the Permanent Head;
• Outside their specified functions, they could participate in the activities of the Department to which they are attached by performing all or some of the following activities as and when required without any formal prescription of same as part of their duties:—
- To assist during preparation of Bills within the Department,
- To represent the Department at official functions,
- To answer questions in the House,
- To meet official visitors,
- To participate in Departmental conferences,
- To participate in preparing budget estimates,
- To participate in Departmental policy formation,
- Liaison with representative public bodies.
The Estimate and budget
• This is a continuing process running from January to entry of Bill into House of Assembly. There are certain stages.
• Preliminary consultation will take place with the Administrator’s Executive Council on the overall shape of the Budget following some preliminary consultation between the Administrator and the Department of External Territories. Subsequently the Administrator’s Executive Council or a committee of it might discuss certain general propositions e.g. the amount of money to be spent on secondary or tertiary education on3 Works Programme (within the overall revenue likely to be available);
• Detailed budget preparation would then take place including participation by Ministerial Members in preparation of Departmental estimates. Assistant Ministerial Members would be consulted Departmentally on matters within their responsibilities but would not come into the Administrator’s Executive Council deliberations;
• The estimates would then be referred to the Administrator’s Executive Council on the clear understanding that they are draft estimates and changes can still be suggested by the Administrator. Official members of the Council would represent Departments not having Ministerial Members—there would be power to call in the Departmental Head if necessary;
• The Administrator’s recommendation on the Budget would then be referred to the Minister for External Territories. Submission to the Government would follow;
• After decision by the Commonwealth on the amount of the grant there would be a reference back to the Administrator’s Executive Council. There would then be a final submission by the Administrator to the Minister for External Territories and a decision on the final form of the Budget before its introduction into the House of Assembly;
• Any Supplementary Budget would go through the process outlined above.
Ancillary matters related to estimates and budget procedure
(i) The Select Committee recommended the appointment by the House of a Budget Committee of five elected members to provide an additional link between the House and the Government in budgetary matters, and as a means by which members could channel budget proposals for reference to the Administrator’s Executive Council (via the Speaker to the Administrator) or the Ministerial Member representing the Department concerned.
It has now been suggested that the Budget Committee might be given the following additional functions to be performed by it early in each year:—
• Give its views on new works which might be included in next year’s Works Programme;
• Given opportunity to put forward suggestions on the Estimates having regard to the provision made in the current year’s appropriations.
(ii) Financial delegations—Ministerial Members could exercise financial delegations within the framework of the budget. Variations within allocations or for purpose, of any extent,4 would still be required to be approved by Treasury. Consideration will also have to be given to any form of financial delegation to a Ministerial Member which now rests with a Departmental Head.
[NAA: A452, 1970/4520]
1 Watkins had visited Canberra in late March for discussions on the PNG Act (for reference to fact and purpose of visit, see telex 4008, Hay to DOET, 22 March 1968, NAA: A452, 1970/4520, and letter, Warwick Smith to Hay, 3 April 1968, ibid.). For context of Watkins’ visit, see Document 167.
2 Matter omitted includes a request for consideration of ‘which powers vested in the Departmental Heads by Ordinance should be able to be exercised by Ministerial Members also’.
3 This should perhaps read ‘or’.
4 A word appears to be missing in this sentence.