After a year as premier and a decade of Labor in power, Jacinta Allan is aware of the risk of being perceived as a tired government by voters keen for a change.
That’s why, when the long-serving treasurer Tim Pallas resigned earlier this week, Allan saw an opportunity to conduct a major reset of her cabinet.
The resulting reshuffle was far broader than many had anticipated.
It rewarded several loyal MPs considered strong performers, demoted one who previously made headlines for the wrong reasons, and prioritised newer faces over those who climbed the ranks during the Daniel Andrews era.
As if to hammer the point home – Allan used the word “new” 10 times during the first 60 seconds of her press conference at government house on Thursday.
“This new team will drive the new energy and new ideas that will be backing in my priorities,” she said.
The key appointment was Jaclyn Symes, who will replace Pallas as treasurer, making her the first woman in Victoria to hold the position.
Considered a straight talker and one of Labor’s best performers, Symes will also take on the portfolios of industrial relations and regional development, while continuing her role as leader of the government in the upper house.
But Symes now has one of the toughest challenges in Victorian politics: to turn around the state’s finances and bring down debt, which is projected to reach $187.3bn by mid-2028.
Several MPs had described Treasury as a “poisoned chalice”, and few ministers had expressed any interest in stepping into the role.
“I’m under no illusions that it’s going to be easy,” Symes said on Thursday. “I like a challenge.”
She conceded she did not have the “economic credentials” of some former treasurers, but would spend the summer talking to experts and familiarising herself with the department.
“I will be a different treasurer. I will bring a different perspective,” Symes said.
Sonya Kilkenny will replace Symes’ as attorney general, and will keep her planning portfolio, while Gabrielle Williams has been appointed minister for transport infrastructure amid a series of budget blowouts on transport projects. However, Williams – who retains the public and active transport portfolio – will also oversee the opening of the Metro Tunnel and West Gate Tunnel in 2025.
The changes have led to a significant demotion for Danny Pearson, who previously looked after transport infrastructure and the Suburban Rail Loop. He has also lost his responsibilities for the Transport Accident Commission (TAC) and WorkSafe to deputy premier, Ben Carroll, although he picks up responsibility for economic growth and jobs, and finance.
According to some Labor sources, Pearson had refused to take the job as treasurer and lost other portfolios as a result – although Allan declined to answer questions about that on Thursday and denied that he had been demoted.
Other sources pointed to a series of issues during his time in the portfolios, including failing to declare a potential conflict of interest over his ownership of shares (for which he apologised maintaining he was not the decision maker in a 2021 process that awarded a bank a multimillion-dollar contract), union backlash to changes to Workcover and cost overruns on major projects.
But one MP close to Pearson said it made sense to align the two transport portfolios as Metro Tunnel nears completion. Another suggested he had shown an interest in becoming treasurer but felt it wasn’t the right time.
Other ministers have also lost some responsibilities, including Melissa Horne, whose gaming portfolio went to the corrections minister, Enver Erdogan, while Nick Staikos gets local government and consumer affairs after being elevated to cabinet.
When Pallas resigned on Monday, he said he was doing so to allow the government to “renew”.
It’s clear Allan has taken this advice, though whether the public will buy into the “new” government remains to be seen.
The opposition hasn’t, with Liberal MP Brad Rowswell telling reporters immediately after the swearing-in ceremony that it was a “new day”, with a “new treasurer,” but the “same tired Labor government”.
The same, however, could be said for the Liberal party, which tomorrow will meet yet again to discuss their former MP Moira Deeming’s future – which is likely to be seen as a challenge to John Pesutto’s authority as leader.
