NSW Liberals choose Matt Kean as deputy leader following Stuart Ayres’ departure

NSW Premier Dominic Perrottet has addressed the growing scandal around his former deputy – but there was one question he refused to answer.

The NSW Premier has acknowledged the process by which a powerful former colleague was appointed to a lucrative trade job in New York was “flawed and disappointing”.

Dominic Perrottet faced a barrage of questions from reporters on Tuesday about ex-deputy premier John Barilaro’s appointment as senior trade and investment commissioner in New York.

Shortly afterwards, Mr Perrottet announced the appointment would spark yet another inquiry: a legal review looking into whether recently departed trade minister Stuart Ayres violated the ministerial rule book during his alleged involvement in the Barilaro scandal.

The day before, Mr Barilaro told a separate inquiry run by MPs that he had let Mr Perrottet know about his desire to apply and the Premier had responded he should “go for it”.

NSW Premier Dominic Perrottet faced a barrage of questions about John Barilaro. Picture: NCA NewsWire / David Swift

Mr Perrottet did not deny he said those words but refused to discuss the comment further.

“It was a passing comment,” he said as he left the press conference at the state’s parliament house.

However, Mr Perrottet admitted he wished he had acted differently and said he regretted that the recruitment process wasn’t up to standards.

“The process was flawed,” he said.

“I think the whole situation has been incredibly disappointing, particularly from my perspective because I understand and appreciate the importance of these roles.

“I think John said yesterday that he wished he didn't apply, and obviously if I had my time again, I would have asked him not to do it, but you need to understand it was a passing comment.”

Dominic Perrottet will have Matt Kean as his new second in command inside the NSW Liberal Party. Picture: NCA NewsWire / David Swift

Shortly after Mr Perrottet left the press conference, his office issued a written statement declaring senior barrister Bruce McClintock SC would lead a legal review looking at whether Mr Ayres complied with the ministerial code of conduct in relation to the New York appointment.

“I will recommend that the Governor appoint Mr Bruce McClintock SC to conduct a legal review,” Mr Perrottet said in the statement.

“The review will be conducted under Letters Patent issued by the Governor. The findings of Mr McClintock’s review will be made public once it is completed.”

Mr Ayres left the cabinet last week after a draft finding from a separate review instigated by the Premier found he may have broken the rules in his dealings with public servants working on the New York recruitment.

The Penrith MP also stepped down as deputy Liberal leader.

Earlier on Tuesday the NSW Treasurer was chosen as Mr Ayres’ replacement for the largely ceremonial position.

Mr Kean ran unopposed and won without a ballot.

The party’s whip declared the choice to reporters in a 30-second press conference shortly after 10am.

“I‘m happy to announce there’s only one candidate stood for election, the new deputy leader of the parliamentary Liberal Party was elected unopposed,” Wollondilly MP Nathaniel Smith said.

Treasurer Matt Kean was chosen as the NSW Liberal Party’s No.2.

Under the NSW Coalition agreement, the deputy premier is the Nationals leader and that person acts as premier when Dominic Perrottet is away.

That means the position as deputy Liberal leader has little practical effect.

Transport Minister David Elliott had previously said he would run for the position but told a radio station on Monday that Mr Perrottet had asked him not to.

“I have just been in touch with the Premier today and in accordance with his wishes I don’t think I will be putting my name forward tomorrow,” Mr Elliott said.

“It’s quite clear that we need some healing in the Liberal Party at the moment and Dominic said to me he would prefer not to have a ballot.

“Yes I’m disappointed, yes I have had to eat humble pie, yes I have had to say to the Premier ‘yep you’re the boss’.”