THE Department of Foreign Affairs and Trade is battling a policy paralysis in the minister's office.

Foreign Minister Stephen Smith has not appointed a chief of staff and after six months in office DFAT submissions are piling up on his desk.

One senior official said they had been advised Mr Smith was sitting on 47 submissions. Another said that even when files were sent back, many deferred making a decision and simply asked for more information.

Departmental officer Paul Grigson acted as adviser to Mr Smith after his appointment and Kate Callaghan took over as acting chief of staff on March 3.

A DFAT spokesman said the minister's office and the department were managing the paper flow well. He pointed out there had been a tripling in submissions to Mr Smith in the last three months compared with his predecessor Alexander Downer.

According another source the problem was not just that Mr Smith was indecisive. Policy decisions have to be cleared by the Prime Minister's office, which can add months to the decision making.

Officials fear Kevin Rudd appointed as Foreign Minister someone who hadn't held the portfolio in opposition so he could exercise greater control in an area he considers himself an expert.

Liberal senator Russell Trood said that in 1990 DFAT's operational budget represented 0.11 per cent of gross domestic product. Through the Howard years, it fell to 0.09 per cent and had now fallen to 0.07 per cent.

A case cited as an example of the paralysis is the delay in appointing a high commissioner to London to replace Richard Alston, the former Liberal minister who finished up in early February.

The source said morale had never been so low in the department. Officers were used to working late and on weekends but not if there were no results to show for it.

"Whatever you thought of Downer, he was comfortable and confident in the portfolio, he understood the department and knew how to make decisions and keep the paper flowing," the source said.

Opposition foreign affairs spokesman Andrew Robb said the paralysis had raised concerns in the region. "From my contact with a lot of ambassadors and representatives there has been a lot of wheel spinning but no decisions of substance, so a lot of countries in our region are left wondering where they stand," Mr Robb said.

"Even in China, despite the focus, the indecision on Chinese investment has left the Chinese wondering where they stand."

Source: Australian