Barilaro fallout continues as Investment NSW gutted by government

The NSW government will reduce the head count at the agency that appointed John Barilaro to a plum New York trade posting by more than 25 per cent as it begins a review into the Department of Enterprise, Investment and Trade.

Internal documents obtained by the Herald show departmental plans to slash onshore staffing levels at Investment NSW, with executive and non-executive staff numbers falling by 75 employees to just 210 overall.

The agency was dragged into the spotlight in July last year after the Coalition appointed former deputy premier John Barilaro as the state’s trade envoy to the Americas, a prestigious position paying $500,000 a year.

The months-long saga and subsequent parliamentary inquiry embroiled the state government, forcing Investment NSW chief executive Amy Brown to step aside, and then-trade minister Stuart Ayres was forced to resign.

Former Investment NSW chief executive Amy Brown was forced to step aside during the Barilaro affair.Credit: Kate Geraghty

A department spokesman confirmed the proposed cuts were part of an agency restructure, saying impacted staff were being supported and efforts were being made to redeploy them across government.

“The department can confirm that a process of consultation on a proposed new structure for Investment NSW has begun to align resources with the priorities of the government,” the spokesman said.

“The department acknowledges the challenging nature of this change and will support impacted staff during this time of transition, including through redeployment across government where possible.”

An Investment NSW source speaking on the condition of anonymity to protect their identity said staff had been notified of the mass redundancy on Thursday, with all employees required to submit an expression of interest for the remaining roles.

The impact of the Barilaro affair on the agency’s credibility was significant, the source said, as they lamented the consequence of the job cuts on the state’s exporters and businesses supported by overseas investment in NSW.

Trade Minister Anoulack Chanthivong was contacted for comment but deferred questions to the department.

Trade Minister Anoulack Chanthivong has responsibility for Investment NSW.Credit: Chris Lane

A senior government source speaking on the condition of anonymity as they were unauthorised to speak publicly said the government was looking into a review of the department and its functions.

Despite being carved out of Treasury by the former government and established to appease Ayres, the source insisted there was no prospect of the department being dismantled.

Another 15 overseas-based roles have also been axed.

Then-opposition leader Chris Minns declared the senior trade and investment commissioner roles would be abolished if Labor was elected. Departmental briefings to Chanthivong in April reportedly failed to provide justification for the highly remunerated roles.

The state has four senior trade commissioners – Britain, North Asia, South-East Asia and China – currently serving until their contracts expire in April next year. Dedicated roles for the Americas and for India remain vacant and will not be filled.

But the Investment NSW cuts extend well beyond the six trade envoy roles.

Comprised predominately of less senior roles, eight executive positions will be made redundant under the proposed restructure. Non-executive headcount will be slimmed down by nearly 27 per cent, falling from 251 positions to 184, according to the agency’s internal documents.

The revelation comes just days after Treasurer Daniel Mookhey handed down the government’s first budget, which showed government funding for DEIT was cut by 10 per cent between 2022-23 and this financial year.

Investment NSW wasn’t the only agency facing the scalpel, with Destination NSW, the entity tasked with promoting tourism and events, also being hit with cuts to total revenue, with funding cut from $382 million in 2022-23 to $273 million in the budget.

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