FED:Ken Henry calls it a day at Treasury

AAP General News (Australia)
12-21-2010
FED:Ken Henry calls it a day at Treasury

By Colin Brinsden, AAP Economics Correspondent

CANBERRA, Dec 21 AAP - It's not often that a public servant leaves their mark on mainstream
society, or is seen as bit of a celebrity.

But Ken Henry will leave the role of Treasury secretary early next year ticking both boxes.

Described by Prime Minister Julia Gillard as "one of the greatest of all Treasury secretaries",
he will leave a big hole as the Labor government's go-to man.

But his decision to step down from a position that he's held for a decade shouldn't
come as too much of a surprise.

Asked during a Senate hearing in July whether he would be available for a further five-year
term as secretary, his response was hardly one that saw him relishing the idea.

"With your indulgence, I am going to decline to answer that question," was all he would say.

He will leave the legacy of his root and branch tax review - which was 18 months in
the making and will form the centrepiece of discussion at the Gillard government's promised
tax summit next year.

The government has so far only scratched the surface of his 130-odd recommendations,
but the initial mining tax - the resource super profit tax - caused an uproar in the mining
industry and drew attacks from the federal opposition.

Dr Henry was the chief architect of the then Rudd government's stimulus measures in
response to the global financial crisis.

Despite being appointed Treasury secretary in 2001 during the realm of the then Howard
government, and re-appointed for a further five years in 2006, Dr Henry and the coalition
parties were hardly bosom pals in opposition.

He was attacked for the size of the stimulus, his department's forecasting, and even
the timing of his holidays.

But opposition treasury spokesman Joe Hockey was quick to offer his thanks for Dr Henry's
service on the announcement of his retirement.

"In the many years I have worked with Dr Henry, there have been robust exchanges, but
at all times I have respected his opinions and commitment to the job," Mr Hockey said
in a statement on Tuesday.

There were few surprises when Treasurer Wayne Swan announced in 2008 that Dr Henry
would chair the review team for the biggest review of the taxation system since 1975,
given his CV.

He joined the Treasury's taxation policy division in 1984 after completing his PhD
while lecturing at the economics department of the University of Canterbury in Christchurch,
New Zealand.

He was a senior adviser to then treasurer Paul Keating on taxation policy, head of
Treasury's Taxation Policy Division, and chairman of the Howard government's taxation
task force.

He was also deputy secretary of Treasury's economic group during the last major tax
change in 2000 - the introduction of the GST.

Tax aside, the formidable Dr Henry has the unique role of having a commanding advisory
role in the government's fiscal policy, as well as having a hand in the the Reserve Bank
of Australia's (RBA) interest rate decisions as a member of its board.

He has a social conscience, he's an environmentalist, and female journalists of a "certain
age" think he's a dish, apparently.

The Taree-born 53-year-old was awarded a Companion of the Order of Australia General
Division (AC) in the Australia Day Honours 2007 for his services to the economy and devotion
to native wildlife.

And it may not be the last we hear of Dr Henry.

"Over the coming months, I will be having further discussions with Dr Henry concerning
his future," Ms Gillard said on Tuesday when announcing his decision to step down.

So it may not be retirement to focus on a passion of his - caring for hairy-nosed wombats
just yet.

AAP cb/sb/cdh

KEYWORD: HENRY WRAP

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