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C O N F I D E N T I A L CANBERRA 001697 
 
SIPDIS 
 
 
SIPDIS 
 
E.O. 12958: DECL: 11/28/2017 
TAGS: PGOV MARR ECON ETRD AS
SUBJECT: RUDD ANNOUNCES NEW CABINET 
 
Classified By: James F. Cole for reasons 1.4 (b) and (d) 
 
 ¶1. (C/NF) SUMMARY: Prime Minister-elect Kevin Rudd announced 
his 20-member Cabinet November 29.  It is a talented line-up 
that strikes a balance between different regions and the 
Labor Party's left and right-wing factions. Rudd honored his 
undertaking to retain his core economic team - Julia Gillard 
as Employment and Workplace Relations Minister, Wayne Swan as 
Treasurer and Lindsay Tanner as Finance Minister - in their 
positions.  He surprised many observers by appointing Stephen 
Smith as Foreign Minister and Gillard as Education Minister 
on top of Workplace Relations and her position as Deputy 
Prime Minister. Rudd has appointed Joel Fitzgibbon as Defense 
Minister and former Australian Labor Party (ALP) Leader Simon 
Crean as Trade Minister. The other major surprise was the 
appointment of gaffe-prone shadow minister and former rock 
star Peter Garrett as Minister for the Environment, Heritage 
and the Arts while creating a new position of Minister for 
Climate Change and Water (the two most important components 
of the Environment Ministry) and giving it to Senator Penny 
Wong, a rising star who performed well during the election. 
The Cabinet will be sworn in on Monday December 3.  We will 
report on the cabinet appointments in more detail, and 
provide a full list, septel.  END SUMMARY 
 
FOREIGN AFFAIRS 
 
¶2. (SBU) Western Australia's Stephen Smith, currently Shadow 
Education Minister and close to former Opposition Leader Kim 
Beazley, will be Minister for Foreign Affairs.  A former 
lawyer, Keating Government adviser, and State Secretary of 
the Western Australian ALP, Smith has a sharp mind and calm 
manner, although he has little experience in foreign affairs. 
In his press conference, Rudd cited Western Australia's 
time-zone (it is two hours behind eastern Australia and the 
same as several Asian countries) as an advantage of having 
Smith in the portfolio.  Former Keating Government Minister 
Bob McMullan  was touted for Foreign Affairs but will be 
Parliamentary Secretary to the Foreign Affairs Minister -- 
with responsibility for overseas development. 
 
DEFENSE 
 
¶3. (SBU) In Defense, Fitzgibbon's appointment is a reward for 
his solid performance in that portfolio and perhaps gratitude 
for helping deliver Rudd New South Wales support in his 
leadership coup 12 months ago.  Assisting Fitzgibbon will be 
two Parliamentary Secretaries Greg Combet and new MP and 
former Australian Army lawyer, Mike Kelly.  Combet is the 
former secretary of the Australian Council of Trade Unions 
and has no background in defense procurement, which is his 
new portfolio. 
 
TRADE AND AGRICULTURE 
 
¶4. (SBU) Former ALP leader Simon Crean, a minister in the 
last ALP Government, retains the Trade portfolio he held when 
Labor was in opposition.  Former ALP spokesperson for 
Immigration, Tony Burke, is the new Minister for Agriculture. 
 Having just finished his first term in Parliament, this is a 
significant appointment for someone Rudd called a "rising 
star" in his press conference.  An accomplished politician 
who increased his margin of victory in the recent election in 
Qwho increased his margin of victory in the recent election in 
what was already a safe Labor seat, he is from Southwestern 
Sydney and is not likely to have much of a background in 
agriculture. 
 
CLIMATE CHANGE 
 
¶5. (SBU) Former Labor Environment and Water Spokesperson 
Peter Garrett has lost the climate change portfolio but will 
be Minister for the Environment, Heritage and the Arts.  The 
Cabinet Ministry of Climate Change and Water will be held by 
South Australian Senator Penny Wong who performed very well 
during the recent election.  (Wong visited the United States 
on an IVG earlier this year.)  The former Foreign Affairs 
Spokesman Robert McClelland will be Attorney-General.  Nicola 
Roxon continues her role in health for the ALP as the new 
Health Minister.  She will have the unenviable task of trying 
to improve quality and control expenses in Australia'a 
state-run public hospitals.  Martin Ferguson is new Minister 
for Resources, Energy and Tourism.  His expertise is in 
 
transport and regional services.  Senator Chris Evans, the 
former Labor spokesperson for resources from Western 
Australia, is Minister for Immigration and Citizenship. 
 
A TOUGH LOAD FOR GILLARD 
 
¶6. (C/NF) COMMENT: In September, Rudd broke ALP tradition by 
declaring that he would name the Ministry rather than cater 
to the demands of the various factions within the party.  He 
appears to have chosen a capable team that contains a good 
mixture of youth and experience while also maintaining the 
balance between the factions.  Gillard has a monumental task 
as the Minister responsible for overseeing the winding back 
of WorkChoices and implementing Rudd's "Education 
Revolution."  Its unclear why she would take on two difficult 
portfolios and now that the Liberal Party has named the 
capable and high-profile Julie Bishop as its spokesperson on 
industrial relations (see septel), Gillard will have her 
hands full.  While Smith may have little experience in 
foreign affairs, it is probable that the real foreign 
minister will be Kevin Rudd himself, a micromanager and 
former diplomat who was Labor's spokesperson for foreign 
policy. 
 
MCCALLUM