Demoted ministers turn heat on PM

Reshuffle losers Kim Carr and Robert McClelland bluntly declare they did not want to be turfed out of their jobs.

By InvestSMART · 14 Dec 2011

By InvestSMART ·
14 Dec 2011

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Reshuffle losers Kim Carr and Robert McClelland bluntly declare they did not want to be turfed out of their jobs.

RESHUFFLE losers Kim Carr and Robert McClelland have bluntly declared they did not want to be turfed out of their jobs, as Prime Minister Julia Gillard reacted tetchily to questioning about her controversial reshuffle, which gave big promotions to key backers.

As leadership aspirant Kevin Rudd bought into the debate by defending Senator Carr's performance as industry minister, the demoted ministers put the heat on Ms Gillard.

Senator Carr said his move - out of cabinet to the junior portfolio of Manufacturing and Defence Materiel - ''was not of my choosing''. Thanking those who had worked with him, he said the reshuffle was ''not a reflection of our efforts or our achievements''.

Mr Rudd, who is overseas, said the reshuffle was a matter for Ms Gillard but ''Minister Carr has been, in my experience, a very good minister for industry.

''He was largely responsible during the global financial crisis for ensuring that none of the Australian car companies fell over ? I have much respect for his work on that count.''

Left factional convener Doug Cameron said he too was disappointed, describing Senator Carr as hardworking and competent, adding there was a view in caucus and the unions that ''he hasn't been treated fairly''.

Mr McClelland, who becomes Minister for Housing, Homelessness and Emergency Management when ministers are sworn in today, said he had told Ms Gillard he preferred to remain Attorney-General.

Ms Gillard admitted: ''He didn't want to leave being Attorney-General. Being involved in these conversations about change obviously means you have a set of difficult conversations.''

The PM denied ministers had threatened to resign and bit back sharply when it was put to her that, given the numbers in the House, such threats were not needed. ''Oh, crazy. What's the point of that question?'' she said on the ABC.

She said she had selected the best team to meet the nation's circumstances now. ''I have selected people who have got the skills to deliver the changes we need ? But I've also selected people who can publicly make that case for change.''

She defended the promotion of two of her strongest backers in last year's coup, Bill Shorten and Mark Arbib. She said Mr Shorten had done a remarkable job when he had responsibility for disability and a great job in superannuation, while Senator Arbib had the ''capacity to step up and do more''.

Pressed on why she had demoted Senator Carr, she said she had wanted to ''create a new department and new portfolios to focus us on the future economy, and that is what I've asked Greg Combet [who will take over Industry as well as continuing in Climate Change], in particular, to do.''

The government was working out yesterday whether Mr Shorten, who is the new Workplace Relations Minister, will still be acting Treasurer and acting Finance Minister for much of January, when both Wayne Swan and Penny Wong are on leave. Unless Ms Gillard acts in these jobs herself, the government lacks other appropriate senior ministers.

Former High Court judge Mary Gaudron, the first woman to serve on the court, will be at the swearing in today of Nicola Roxon, her former associate, as the first female federal Attorney-General.

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Frequently Asked Questions about this Article…

What happened in Julia Gillard's cabinet reshuffle and who were the main winners and losers?

The article describes a high-profile cabinet reshuffle by Prime Minister Julia Gillard. Key demotions included Senator Kim Carr and Robert McClelland, while Bill Shorten and Mark Arbib received major promotions. Greg Combet will take on Industry in addition to Climate Change, and Nicola Roxon is being sworn in as Attorney‑General. The reshuffle is presented as a move to create new portfolios focused on the future economy.

Why were Kim Carr and Robert McClelland demoted, according to the article?

Both Kim Carr and Robert McClelland made public their disappointment at being moved. Carr was shifted out of cabinet to the junior portfolio of Manufacturing and Defence Materiel and said the move 'was not of my choosing.' Gillard said the changes were intended to create a new department and new portfolios to focus on the future economy. McClelland told the prime minister he preferred to remain Attorney‑General but will become Minister for Housing, Homelessness and Emergency Management.

What does Kim Carr's move to Manufacturing and Defence Materiel mean for investors interested in industry and manufacturing policy?

The article notes Carr has been moved to the junior portfolio of Manufacturing and Defence Materiel, and that Kevin Rudd defended Carr’s record as industry minister—especially his role supporting Australian car companies during the global financial crisis. For investors, this signals a change in senior industry leadership that may affect policy focus; anybody invested in manufacturing, automotive suppliers or defence contractors should watch for any new policy announcements from the revamped industry portfolio.

How might Robert McClelland's change to Minister for Housing, Homelessness and Emergency Management affect property and housing market investors?

McClelland is being moved from Attorney‑General to Minister for Housing, Homelessness and Emergency Management. While the article doesn't specify new housing policies, investors in residential property and housing-related sectors should note the change in ministerial responsibility and monitor for any future housing policy initiatives or regulatory shifts from his new portfolio.

What does Bill Shorten's promotion mean for superannuation and workplace relations investors should watch?

The article highlights that Julia Gillard praised Bill Shorten for a 'remarkable job' in disability and a 'great job in superannuation.' Shorten has been promoted to Workplace Relations Minister and may act as Treasurer and acting Finance Minister during January when senior ministers are on leave. Investors tracking retirement savings, superannuation policy or workplace regulation should pay attention to any policy moves or statements from Shorten given his new responsibilities.

Who will lead Industry and Climate Change after the reshuffle?

Greg Combet will take over Industry while continuing in his Climate Change role, according to the article. The government framed this as part of creating new structures to focus on the 'future economy,' so investors monitoring climate‑related and industrial policy should follow announcements from Combet and the newly shaped department.

Were there reports of ministers threatening to resign over the reshuffle?

According to the article, Prime Minister Gillard denied that ministers had threatened to resign. She reacted sharply to suggestions of threats and said she had selected the best team to meet the nation’s circumstances and to argue for necessary changes.

Who is Nicola Roxon and why is her swearing‑in as Attorney‑General noteworthy for investors?

The article notes Nicola Roxon is being sworn in as Attorney‑General, with former High Court judge Mary Gaudron to attend the ceremony. Roxon will be the first female federal Attorney‑General. For investors, a new Attorney‑General is relevant because the office oversees legal and regulatory frameworks that can affect corporate governance, litigation risk and regulatory enforcement, so it’s worth watching her approach to legal and regulatory matters.