NSW Trade Minister Stuart Ayres resigns over John Barilaro New York scandal as Amy Brown gives evidence

Newly sacked NSW minister Stuart Ayres asked for the New York trade job to be “left vacant” in one of his first actions in the job.

NSW Premier Dominic Perrottet said his minister had to go. Picture: NewsWire / Monique Harmer

On the day Stuart Ayres resigned as NSW Trade Minister, one of his department heads revealed he had a much greater hand in selecting who should be the state’s New York trade envoy than he’d previously let on.

It was revealed the person Mr Ayres repeatedly backed for the job, John Barilaro, also took a keen interest in the role, lashing out after a public servant was initially chosen and sending a “flurry” of input via his office in the months before he quit as deputy premier.

“I got the impression from the deputy premier’s office that part of the motivation for (the role) going to cabinet to change the whole regime was there was a little bit of disappointment or distaste around the fact that a bureaucrat had been given such a high profile role,” Investment NSW chief executive Amy Brown told a parliamentary probe.

Ms Brown said Mr Ayres, contrary to his insistence otherwise, had not been at an “arm’s length” from the selection process.

Instead, she outlined a series of conversations where she said Mr Ayres had tried to influence her choice, including telling her he’d sent Mr Barilaro a job ad and praising him as suitable for the role.

“I remember getting a really early heads up. It was almost kind of in a jovial way, you know: ‘You’ll never guess who I just got a phone call from, Mr John Barilaro, he’s interested in the (job)’,” she said.

“He said, ‘I think he could be quite good’ … The sentiment of it was John Barilaro would have some attributes, positive attributes, that are relevant to the role.”

Mr Ayres resigned after Premier Dominic Perrottet was shown a draft report indicating Mr Ayres may have breached the ministers’ code of conduct in relation to the appointment of Mr Barilaro to the US job.

Investment NSW boss Amy Brown says John Barilaro’s office reacted with a ‘flurry of output’. Picture: NCA NewsWire / Gaye Gerard

Ms Brown was also asked about an NCA NewsWire report from Monday, revealing Mr Barilaro appeared to have padded his CV with a position as “director” of a board that didn’t actually exist.

She said she had not been aware of the issue before reading the news report.

Ms Brown said she assumed resumes which had been screened by an external recruitment company before landing on her desk could be trusted at face value.

“I think as a secretary running a recruitment process, it’s reasonable for me to be able to, when we’re paying a third party recruiter, it’s reasonable for me to be able to take people’s CVs on face value once they’ve been through the round one screening,” she said.

The external recruiter was paid $42,900 for the recruitment round where Mr Barilaro came up on top.

John Barilaro would have started the job in New York last month, but ended up giving it up. Picture: NCA NewsWire / Jeremy Piper

It was the second time Ms Brown gave evidence to the committee, and her new testimony came just an hour after Mr Ayres’ resignation was announced.

She revealed Mr Barilaro’s office asked for the selection process to be changed so that ministers would be in charge instead of public servants, within two weeks of selecting Jenny West for the role.

“Once I revealed the successful candidate (to the New York job), there was a flurry from the deputy premier’s office to have it changed,” she said.

Ms West was later told she would not be getting the job after all.

Ms Brown was shown an email sent by her chief of staff on October 12 last year which said Mr Ayres had told her he wanted the New York post “left vacant”.

“It was my decision,” she responded.

Mr Ayres’ resignation came after Mr Perrottet received a draft of a report from a separate investigation that he called for in June.

Stuart Ayres will no longer be trade minister. Picture: David Swift

“The issues in the review go directly to the engagement of the minister with the department secretary in respect of the recruitment process, so that raises questions in relation to the ministerial code of conduct,” Mr Perrottet said.

Mr Ayres denied any wrongdoing.

Reporters at the media conference repeatedly pressed Mr Perrottet to explain exactly what Mr Ayres was alleged to have done, but the Premier would not go into specifics.

The visibly flustered Premier used vague terms to describe the allegations.

“From what I have received in that draft report, there is no doubt that there are questions in relation to … questions raised, not findings, in relation to information … questions are raised in relation to whether or not there have been a breach of the ministerial code of conduct in those circumstances and on receipt of that information,” Mr Perrottet said.

“Mr Ayers believes that he was always acting within his ministerial responsibilities in relation to that process. He denies any wrongdoing.”

The Premier vowed to release the report publicly once he received the final version.

Mr Perrottet did not give any details on what the draft review had found. Picture: NCA NewsWire / Gaye Gerard

The internal review was called for by Mr Perrottet and headed by former public service commissioner Graeme Head.

Mr Ayres said he had also been shown the draft report on Tuesday night.

“Last night, I read a section of the independent review being conducted by Graeme Head. This section is relevant to my role as minister. It creates a question as to whether I breached the ministerial code of conduct,” Mr Ayres said in a statement.

“In my view, no such breach has occurred. However, I agree it is important that this matter is investigated appropriately and support the Premier’s decision to do so.

“I have always applied the highest levels of integrity in my conduct as a minister.”

Mr Ayres said he was stepping down as minister to “maintain the integrity of the cabinet”, but he would stay on as MP for Penrith.

Mr Ayres is also the deputy leader of the Liberal Party and will resign from that position as well.

A new deputy leader will be elected by Liberal MPs at a party room meeting next Tuesday.

The Premier has been under pressure. Picture: NCA NewsWire / Gaye Gerard

Mr Ayres has been under fire after documents emerged that appeared to contradict comments he’d made to parliament and the media.

Mr Ayres maintains he wasn’t involved in the recruitment process for the senior trade and investment commissioner job in the US, but emails released to parliament show he asked for a person to be added to a “short shortlist” of candidates.

He’s also told parliament there was never a “suitable candidate” for the job before Mr Barilaro was hired, maintaining that was true even though a briefing has emerged that shows he previously signed off on a woman as the ”successful candidate” for the role.

Mr Perrottet made the same statement to parliament, and documents have revealed he, too, was briefed on the selection of Ms West, a former Investment NSW bureaucrat, as the successful candidate.

Mr Ayres is the second NSW minister that’s been sacked in four days.

Mr Perrottet fired his Fair Trading and Small Business Minister Eleni Petinos on Sunday over allegations she ran an unsafe office.