$905,000 paid for fit out of trade commissioner's NYC office, inquiry told

Investment NSW was ordered to “unwind” the job contract of “a great candidate” for trade commissioner to New York before John Barilaro was hired for the lucrative role, parliament has heard.

Investment NSW was ordered by the NSW cabinet to “unwind” the job contract of “a great candidate” for the role of NSW’s trade commissioner to New York before John Barilaro was hired for the lucrative role, parliament heard.

Under the posting, Mr Barilaro’s US living allowance will be $16,000 and a fit out of the Investment NSW New York office costed $905,000, the inquiry was told.

The “preferred candidate”, understood to be public servant Jenny West, was dropped by Investment NSW chief executive Amy Brown after a “decision of government”.

The revelations were unveiled in a public accountability hearing into the former Deputy Premier’s appointment to the role.

She made it clear on multiple occasions that Mr Barilaro did not himself ask her to pull the contract from Ms West but said his office had previously sought advice on whether a trade commissioner role could be appointed by a ministerial appointment.

Amy Brown, Secretary, Department of Enterprise, Investment and Trade, and Chief Executive Officer, Investment NSW. Picture: Dan Himbrechts

“A decision was made by the government, and I had visibility of that decision,” she said.

“I did not have a conversation with Mr Barilaro about the decision of government.”

Ms Brown said Mr Barilaro’s then Adviser previously contacted her to ask about the “mechanisms” through which Senior Trade and Investment Commissioners (STICS) are appointed.

“In the first instance I was asked what is the mechanism by which senior trade and investment commissioners are employed? And I explained that they were public service employees under the GCE Act,” she told the public accountability hearing.

“And then I was asked what are the mechanisms by which they could be employed including ministerial appointments.”

In her opening statement, Ms Brown reiterated earlier comments from Premier Dominic Perrottet and Trade Minister Stuart Ayres that Mr Barilaro’s appointment was made by her.

ALPs Daniel Mookhey pictured asking questions at a budget estimates hearing. Picture: Damian Shaw

“Informal opinion of the responsible minister is often sought and how a candidate presents themselves to the minister is considered however final determination rests with me,” she said.

“Since August 2021 no formal approval of any minister or the premier has been sought prior to the appointment of STICs.”

However, Ms Brown said Mr Ayres had “casually” informed her that Mr Barilaro might apply for the role prior to his official application — he did not do this with any of the other candidates.

She also added that she was concerned that Mr Barilaro and his office in his former role had “veto rights” over who she appointed to the STIC roles.

Despite intense questioning from Labor MLCs Daniel Mookhey and Penny Sharpe, Ms Brown refused to disclose who in government told her to pull the offer saying she needed advice on whether it was a “cabinet in confidence” matter.

Ms Brown said she personally contacted Jenny West and pulled the offer after having previously congratulated her on the posting.

She maintained that a delay in the contract due to complex tax issues contributed to her dropping Ms West from the role.

Former NSW deputy premier John Barilaro leaving ICAC in Sydney. Picture: Adam Yip

“12th August 2021, a verbal offer was made to the candidate … (But) there were quite significant tax structuring issues that occurred … I wasn’t in a position to put a contract on the table until that was resolved,” she said.

“We did have a great candidate from the first round … (but) it seemed like a foolish thing to do in light of the fact that it will be months before we could actually appoint someone.”

Ms Brown said Ms West became “upset” when she was told about a “policy change” which would make STICs subject to ministerial appointments.

“She was extremely upset about that, understandably so. And so to me, the fact that we couldn’t appoint anyone for some period of time, and the fact that she was very unhappy with the arrangement and government, the whole situation felt quite irreconcilable.”

Ms Brown said she was “accountable” to Mr Barilaro in his previous role in the government but defended her decision to be on the recruitment panel that hired him.

“Saying I reported to him mischaracterises the relationship between the agency head and a portfolio minister. I was accountable to him in his role as Minister for Trade and Industry. I did not derive a personal benefit in making the appointment,” she said.

The inquiry also heard Mr Barilaro had a formal offer for the job and substantive negotiations began from May 23.

He is due to start the job in New York on July 12 and would be there if he gets a visa in time by a “miracle”.

If Mr Barilaro is terminated from the role within the probation period until October 12, he would be entitled to one week’s pay.

STAGGERING COST OF BARILARO’S US SAGA

Taxpayers have forked out thousands of dollars on the appointment of John Barilaro as NSW’s trade commissioner to the US — a decision that has triggered two inquiries amid raging criticism.

Invoices seen by The Daily Telegraph show at least $60,000 was spent on the first round of recruitment with a second round likely to have cost a similar amount — only for the former deputy premier to take over the plum role.

Another $15,000 was spent on national and international advertising costs according to the documents while the cost of a second round of advertising is not yet known.

Mr Barilaro’s appointment to the job has prompted a parliamentary inquiry, which began on Wednesday, and a review by the Department of Premier and Cabinet.

On Tuesday, Premier Dominic Perrottet said the public service was “apolitical” and he did not wish to provide a “running commentary” while the inquiries took place.

John Barilaro and Sue Chrysanthou arriving at the Federal Court, Sydney. Picture: James Gourley

But Mr Perrottet admitted for the first time he knew Mr Barilaro was applying for the job and the pair had discussed the topic at a social event.

“I speak to people socially all the time and there’s always an interest in people saying ‘I’m interested in this’ and ‘I’m interested in that’,” Mr Perrottet said.

“From my position it was an independent process.”

Advice provided by the parliament to NSW Labor estimated that a single day of a parliamentary inquiry costs about $14,000 to run.

The staggering bill of the fiasco doesn’t include the cost of the second inquiry being run by the DPC or a 38 week payout that John Barilaro could be entitled to if he is pulled out of the role.

Mr Barilaro was appointed as NSW’s trade commissioner to New York. Picture: Gaye Gerard

The Telegraph put the costs to the Premier’s office but did not receive details of the unknown figures.

Labor MLC Penny Sharp said the “ill-considered appointment” would continue to hurt the wallet of taxpayers.

“If the Premier and his ministers had followed a transparent process, taxpayers would have someone … doing the job,” she said.

“The cost of this ill-considered appointment will continue to grow with taxpayers forced to foot the bill.”

A spokesman for Investment NSW said: “Investment NSW is assisting the Department of Premier and Cabinet and NSW Legislative Council Inquiry in reviews of the Senior Trade and Investment Commissioner Americas recruitment process, and as such is not appropriate to make any further comment.”