Secretary’s Review

The department is playing a vital role promoting and protecting Australia’s interests internationally at a time when our economic, political and strategic environment is more complex and contested than at any time since the end of the Second World War.

Our challenge is to maximise Australia’s economic opportunities and minimise our strategic risk as a profound realignment of power and influence reshapes the Indo–Pacific region. Our commitment to the institutions, laws, principles and norms of behaviour that make up the global order is increasingly important as we face a rise in strategic competition and protectionist and nationalist sentiments. Securing outcomes through regional and multilateral institutions and processes is more demanding.

In 2016–17 we strengthened our engagement in the Pacific. We steered the conclusion of the Regional Assistance Mission to Solomon Islands (RAMSI), recognised internationally as a leading example of a successful stabilisation intervention. We worked with other agencies to strengthen our close and enduring relationship with New Zealand, supporting the February 2017 Australia–New Zealand Leaders’ Meeting. This laid the basis for further science, research and innovation cooperation through the signature of a new treaty. We deepened our economic, strategic and security partnership with Papua New Guinea and further developed relations with Fiji. We facilitated conclusion of PACER Plus Agreement negotiations, which bring together our foreign, trade and development agendas to support our goal of a more stable and resilient Pacific.

In a year of political transition in the United States, we engaged closely with the new administration to uphold the alliance and reinforce support for our shared interests in the region and globally. We bolstered our position as a valued partner of the European Union, the United Kingdom and other key countries in Europe at a time of considerable change and continuing economic challenges.

We maintained strong relations with Japan, including by celebrating the 40th anniversary of the Basic Treaty of Friendship and Cooperation. We strengthened relations with the Republic of Korea (ROK), and marked the 45th year of Australia–China diplomatic relations with a visit by Premier Li taking forward our Comprehensive Strategic Partnership. We supported the Minister for Foreign Affairs’ categorical condemnation of North Korea’s ongoing pursuit of its nuclear and missile programs.

We maintained a high tempo of engagement in Southeast Asia, securing agreement to hold an Australian-hosted Special ASEAN Summit in 2018, which will bolster strategic, security and trade partnerships. We achieved early and positive outcomes for Australian business from free trade agreement (FTA) negotiations with Indonesia and supported President Widodo’s first visit to Australia. We strengthened our Comprehensive Strategic Partnership with Singapore, including by significantly upgrading our bilateral FTA—providing new commercial openings for Australian business. We developed our partnerships with Malaysia and Vietnam and stepped up cooperation with the Philippines to counter violent extremism and support education reform.

Recognising the strategic importance of South and West Asia, the department played a key role in preparations for the first Indian Ocean Rim Association Leaders’ Meeting. We supported the Prime Minister’s visit to India, consolidated the Australia–Japan–India Secretaries’ trilateral and contributed to preparations for an India Economic Strategy.

We intensified efforts to secure constructive multilateral outcomes over the year. The department advanced our interests in the United Nations, worked to strengthen the rules-based order, supported global security efforts and helped deliver on Australia’s climate change commitments.

Working with regional and global partners, the department coordinated Australia’s strong response to the rise of ISIL in Southeast Asia and facilitated our military engagement in the Middle East. ISIL has now lost most of its territorial holdings in Iraq and progress was made against ISIL in Syria. We collaborated with Afghanistan, US and NATO partners to respond to serious security challenges in Afghanistan, where Australia maintains a military deployment that helps train, advise and assist local security forces.

Recognising the importance of a secure cyber domain to international commerce, security and innovation, our newly appointed Ambassador for Cyber Affairs worked with international partners to promote Australia’s vision for cyberspace that respects free speech, privacy and the rule of law.

In response to a rising public mood toward protectionism in some countries, and weak global demand, the department strengthened its efforts to make the case internationally and domestically for the benefits of open markets, the rules-based system and pro-growth reforms in multilateral trade and economic forums. We continued with our ambitious free trade agreement (FTA) agenda. Our economic diplomacy program focused on leveraging departmental assets in support of commercial interests and promoting conditions more favourable to trade and investment. Our efforts are helping to strengthen the economy and create more jobs.

Following the US withdrawal from the Trans-Pacific Partnership (TPP), we supported the Minister for Trade, Tourism and Investment’s engagement with his counterparts which resulted in agreement by the remaining TPP countries to assess options to bring the agreement into force and realise its benefits. We launched new FTA negotiations with Hong Kong, Peru and the Pacific Alliance and worked closely with Japan, the ROK and China to ensure the effective implementation of these FTAs to maximise the benefits and generate new openings for Australian business.

We worked closely with Austrade, the Treasury and across government to promote policies in line with the Government’s aim of enhancing Australia’s position as an attractive and competitive destination for productive foreign investment. We were also active in the development of the Critical Infrastructure Centre.

The department continued to deliver an innovative aid program focused on where we can make the greatest impact. We sought to better integrate our aid program with our foreign and trade policy objectives. Building on Australia’s commitment to the 2030 Agenda for Sustainable Development and the Addis Ababa Action Agenda, we took opportunities to leverage private sector finance to better resource development challenges. Our advocacy with development organisations secured increased resources for Australian development priorities, for example the World Bank’s aid allocations to the Pacific more than doubled. This will advance the long-term prosperity of the most vulnerable countries in our region.

Australia remains a generous humanitarian partner to communities affected by natural disaster or those experiencing crises and conflict. With around 66 million people displaced globally, we increased humanitarian assistance to those affected by conflict—targeting areas of greatest need—including shelter, food and water, medicine and education. We have driven innovation in responding to humanitarian needs through the Humanitarian Supplies Challenge, and shown leadership in implementing reforms agreed at the World Humanitarian Summit in 2016.

Reflecting the Government’s commitment to long-term engagement with our region, the Minister for Foreign Affairs championed an expanded New Colombo Plan. Working with universities, the private sector and partner governments we delivered a larger program enabling more young Australians to live, study and undertake business internships in the Indo–Pacific region.

Australians travelled in record numbers over the past year. We issued more than two million passports in 2016–17, a new record. We improved the average passport processing time by 38 per cent, year-on-year. Demand for consular assistance continued to be high. On any typical day, the department was managing 1,500–1,600 active consular cases. We ensured crisis contingency arrangements were in place for the Rio de Janeiro Olympics and Paralympics and we led the Government’s response to the attempted coup in Turkey and terrorist attacks in Nice, Berlin and London.

The department implemented the Government’s decision to grow Australia’s diplomatic network, opening new posts in Doha (Qatar), Lae (Papua New Guinea) and Bogotá (Colombia), bringing the number of posts overseas to 115 (including Austrade-managed posts) with an additional 69 consulates headed by honorary consuls.

We held the first-ever Global Heads of Mission Meeting (GHOMM) in March 2017 that helped to take forward our commitment to work closely with the Australian community to advance the Government’s domestic agenda. Our heads of mission engaged stakeholders across urban, regional and remote Australia to test and strengthen the advice we provide to ministers on Australia’s policy settings and sharpen the tools we use to deliver our broad-ranging international agenda. Their outreach created new linkages and opportunities and generated tangible commercial and cultural outcomes.

The department is leading a cross-agency taskforce, overseen by a whole-of-government board, to take forward the Government’s commitment to produce a Foreign Policy White Paper—a comprehensive framework to guide our international engagement over the next decade. In developing the White Paper, the taskforce is drawing on the insights of the GHOMM, prominent individuals, subject-matter experts, representatives from state and territory governments, the business community and members of the public.

Through our modernisation program, the department focused on increasing productivity and strengthening our capacity to deliver the Government’s agenda. To maximise post responsiveness, we brought six regional service delivery hubs online in 2016–17, streamlining overseas corporate services. We continued to implement our Women in Leadership Strategy to enhance the productivity, diversity and capability of our workforce. We mainstreamed flexible work arrangements and improved remote work access, enabling us to maximise resources across our global footprint.

In supporting ministers to deliver Australia’s foreign, trade and investment, and development policy priorities, the department is continually striving to improve results and performance. We have more closely linked departmental, work unit and individual level performance measures to deliver better results. To strengthen our risk culture, I have asked all staff to develop and prioritise risk management as an essential professional skill.

Reflecting this focus, this year’s annual performance statement (APS) takes a new shape. In 2016–17, the APS specifically addresses the department’s eight corporate plan priority functions, rather than presenting activities across our many business areas. This provides a clearer line of sight between the APS, the Corporate Plan and the Portfolio Budget Statements (PBS). This streamlined approach is intended to demonstrate more effectively our performance against our purpose.

Consistent with the PBS and Corporate Plan, we used case studies and reviews to demonstrate our performance. The ratings in the APS reflect the broad range of performance information available to us, including feedback from ministers and the Government, internal and external audits, the performance framework for Australian aid, a range of internal processes (including internal governance committees), as well as the results presented here.

The department demonstrated strong financial performance in 2016–17.

In 2017–18 we expect continuing instability, uncertainty and complex challenges but also opportunities. Later this year we will release the Foreign Policy White Paper. The department will then commence work on its implementation to ensure we continue to pursue effectively our international interests—safeguarding the prosperity and security of all Australians.