Labor vows to fight for release of documents, saying lack of transparency could set a precedent for Coalition government

The Treasury has decided to keep its advice to new treasurer Joe Hockey secret, despite the same document having been released in part after the 2007 and 2010 elections.

Treasury has advised that the “blue book” – one of two documents prepared during an election campaign by each department for each of its possible incoming ministers – will not be released under freedom of information laws.

In 2007 the Seven network obtained the “red book” from several departments prepared for the incoming Rudd government under freedom of information.

Subsequently the now finance minister, senator Mathias Cormann, congratulated the secretary of the finance department for releasing the red book.

“Talking about the red book I just first want to congratulate on your decision to release it. I assume that that followed an FOI request, did it?,” senator Cormann said during a Senate estimates hearing.

In 2010, when both major parties were negotiating with the crossbench to try to form a government, both the blue and the red books were posted – in a redacted form – on the Treasury’s website.

But Treasury now assesses that releasing its blue book prepared for Hockey would “inhibit the Treasury’s ability to provide effective and comprehensive briefs in the future”.

The shadow treasurer, Chris Bowen – one of the parties who had requested the blue book under FOI – described the decision as “outrageous” and said Labor would “fight it all the way”.

He said Treasury had only a few weeks ago written to him advising him of what the charges would be for release of the documents – a stance that has apparently been reversed to a blanket refusal to release anything at all.

“This is a major departure away from the premium put on transparency by Labor’s FOI reforms. The treasury clearly outlined the public interest reasons for it releasing the red book after the 2010 election. Those reasons have not changed,” Bowen said.

He said Hockey could decide to release the document if he chose to do so, but feared that the decision by Treasury would set a precedent for the release of all advice to the new Coalition government.

In its decision rejecting the application for FOI release of the blue book, Treasury argues it is “amongst the most important and highly confidential documents produced by the department” and if confidentiality cannot be assured, the advice provided might be less frank and less useful.

The Treasury “decision maker” states “incoming government briefs provide a department’s frank and honest advice on policy priorities and challenges facing a new government and are critical to ensuring a smooth transition from one government to another.

“Each brief is prepared specifically as a communication limited to a specific audience – the minister. Were it known that the brief would be disclosed publicly under FOI, there is a risk that the quality and value of the brief would be compromised and it would be of less value to the minister.”

The decision-maker said the release of the brief could also impede “the establishment of an effective working relationship between the treasury and the treasurer”.

“The need to develop a trusting relationship is particularly important in the early days of a new government, to set the tone for the future working relationship of the whole department,” the decision maker writes.

In 2010 the Treasury red book told the incoming Labor government that Australians had already paid a "high price" for the emissions trading scheme delay and advised it to set up an emissions trading scheme as soon as possible.

The blue book told a prospective incoming Coalition government that even Australia's minimum emissions reduction target of 5% by 2020, supported by both main parties, "cannot be achieved without a carbon price unless damaging economic and budget impacts are to be imposed" and that the Coalition’s "Direct Action" climate policy would be more expensive than a "market-based mechanism".