New PC chair announced after previous appointee snubs role

While the government announced in late July that Chris Barrett, deputy secretary of the economic division in the Victorian Department of Treasury and Finance, would be endorsed as the new chair of the Productivity Commission (PC), he has since decided not to take up the role.

The Victorian government has revealed that Mr Barrett will instead take up the role of secretary in its Department of Treasury and Finance in December, replacing its outgoing secretary David Martine (who announced he would step down from the position at the end of the year).

The federal Treasurer Jim Chalmers MP noted that Mr Barrett had taken on a different position, stating: “I thank Mr Barrett and wish him well with future endeavours. He is a talented and experienced public policy professional who will continue to make a meaningful contribution.”

Given the move, the Albanese government has revealed it will recommend to the Governor-General that Danielle Wood, the chief executive of public policy think tank Grattan Institute, should be the next chair of the Productivity Commission (PC).

Subject to the Governor-General’s approval Ms Wood will take up her position as soon as possible, for a term of five years.

Announcing Ms Wood as the new candidate, the Treasurer noted that she would become the first woman to lead the Productivity Commission or any of its predecessors, labelling her as “an outstanding economist who will bring exceptional public policy expertise to the Productivity Commission”.

“Her track record of leadership and innovative research at the Grattan Institute will greatly contribute to the PC’s mission,” Mr Chalmers said.

“Her appointment follows a merit-based process involving interviews with two departmental secretaries and the APS Commissioner.

“In a rapidly changing global economy, the Productivity Commission is more important than ever in providing world-class advice on productivity as well as prosperity and progress more broadly. I look forward to working closely with Ms Wood on the Albanese government’s agenda to renew, refocus and renovate this core economic institution.”

Ms Wood said she was honoured to be endorsed for the role at the Productivity Commission and praised the work the Grattan Institute had been able to achieve.

“My time at Grattan has been the most exhilarating, challenging, and fun of my career,” she stated.

“I’m proud that, under my leadership and that of my predecessor, founding CEO John Daley, Grattan has been able to evolve from an institute into an institution, with a central role in improving public policy in the interests of all Australians.

“The credit for that belongs to the incredible staff we have at Grattan – they are stunningly bright, intellectually curious, and driven to improve public policy in the public interest. Australia is lucky to have them, and I will miss them all.”

Grattan Institute board chair Lindsay Maxsted said the organisation was “very disappointed” to be losing Ms Wood and declared the government had made a “fine appointment”.

Mr Maxsted stated: “Those involved in public policy in Australia know that Danielle is an exceptional economist, with an ability to break down a problem, pinpoint its causes, and then imagine and design practical solutions.

“Everyone at Grattan also knows Danielle as a thoughtful and welcoming colleague, a strategist, and an inspiring leader. She leaves with the best wishes of all of us.”

He added that the Institute will advertise immediately for a new CEO.

Before becoming CEO at the Grattan Institute, Ms Wood was a principal economist and director of merger investigations at the Australian Competition and Consumer Commission (ACCC), a senior economist at NERA Economic Consulting, and even a senior research economist at the Productivity Commission.

‘Turbocharging’ the PC

In an essay released in February, Capitalism after the crises, Mr Chalmers advocated the renewal of the Productivity Commission.

In it, he labelled the Productivity Commission “a powerful think tank advising government on productivity” but noted that “these institutions need to help deliver change in areas of disadvantage, to prod and inform and empower”.

In an interview, Mr Chalmers addressed the essay and said the Productivity Commission could be a “real ideas factory, a real engine of economic policy ideas”.

“I don’t want to mess with its independence, I don’t want to substantially diminish the Productivity Commission, I want to turbocharge it,” he added.

[Related: Government unveils preference for PC chair]