I have been thinking about Kevin Rudd and Therese Rein’s recent difficulties and our expectations on the life partner of the Australian prime minister. I would like to think in this day and age the partner of the prime minister could be a successful and independent business person in his or her own right. However, the more I have thought about it, the more I think it very difficult generally, and in this case impossible.
First, however, the good news. I think it would be possible for Kevin Rudd to be Australia’s foreign minister, or even Australia’s defense minister, and for his wife run a job placement business that derives it largest share of income from the government. I think the declaration mechanisms for managing conflicts of interest in these circumstances are sufficient. And when employment services matters are discussed in Cabinet, it would not be too debilitating for Kevin to leave the room.
But if Kevin was the employment minister, there would be just too many conflicts of interest to contemplate. To begin with, there are a myriad of conflicts associated with policy design. If the Department of Employment recommended a funding parameter change, Kevin may know how that how that would affect his wife’s business or which parameter change would play to the competitive advantages of his wife’s business. If a Labor government was considering re-nationalising the employment services market (and I am not saying they would), would Kevin be an impartial minister? Specific funding decisions are no less vexed. How would staff of the department react — even if there was no hint of pressure from the minister — when the minister’s wife applies for funding?
At the heart of the conflict is the nature of marriage. I joked with my partner when we discussed this that the nature of marriage could be summarised as, “what’s yours is mine and what’s mine I am keeping”. While Therese may be the sole reason the company she founded has what some of the papers estimate as $180 million in net assets, Kevin is a beneficiary. If she sold up tomorrow, he would share a lovely retirement fund. By virtue of his marriage, Kevin has significant business interests in known policy area.
Furthermore, even if Kevin was absolutely scrupulous in his dealings as the hypothetical employment minister, the media would test and pressure him at every turn. At every media conference announcing a new policy, he would be asked how his wife’s company benefited from the decision. Furthermore, it would only be a matter of time before some spurious correlation was found and an impropriety alleged. It is simply not an environment a minister could work in.
As prime minister, the political testing and pressure would be even more intense. And not just on Kevin. Every one of Therese’s business decisions would be tested. She is just as newsworthy in the media’s quest to sell papers. Every disgruntled ex-employee would be interviewed. Cheque-book journalism would guarantee a constant stream of criticism. This criticism would not only be debilitating for Kevin as prime minister, it would harm Therese’s business interests as well.
In short, there are two core problems. The first relates to the potential for conflicts of interest, and the difficulties in avoiding the perceptions of a conflict. The second is the potential for spill-over embarrassments and ongoing media harassment for both partners. In this case, the roles of prime minister and business leader providing services to government cannot be accommodated successfully within the one marriage. As a consequence, the Rudds faced four options:
- Do nothing and have the conflicts, spill-over embarrassments and media harassment continue to impact negatively on both of their career aspirations
- Kevin gives up his aspirations to be Australia’s next prime minister
- Therese gives up her role as a successful and independent business person
- Kevin and Therese get a divorce
There were no “win-win” options here.
There is nothing new in this. Married couples across the nation routinely make joint decisions that favour one partner’s career or opportunities while reducing or limiting the opportunities or outcomes for the other partner. Life is like that. How many times have you heard stories like this: he wants the overseas posting, but she wants to stay with her job in Australia. If they travel, she will be out of the labour market for three years. If they stay, he is in a dead-end job, but her career will flourish. Because of the independent careers they have chosen, Kevin and Therese had no choice but to have one of those difficult family conversations.
Does this mean the partner of the prime minister must be unemployed? I don’t think so. There are many jobs where the conflicts of interest are minimal and where the potential for spill-over embarrassments are also minimal. If Therese were a school teacher, lawyer or doctor (for example) it would be possible for her to continue working after Kevin became prime minister. While the nature of marriage was part of the problem, so was the domain and scale of Therese’s business interests.