Dominic Perrottet seals deal to replace Gladys Berejiklian as NSW premier

Dominic Perrottet is set to become NSW premier after a deal with the Liberal Party’s moderate faction that will elevate Stuart Ayres to deputy leader.

Dominic Perrottet says ‘this is a time of challenge in our state but I have complete hope and optimism that NSW is in a very good place’. Picture:Richard Dobson

Dominic Perrottet is set to become the next NSW premier after securing a deal with the Liberal Party’s moderate faction that would elevate Jobs Minister Stuart Ayres to the position of deputy leader.

Mr Perrottet, 39, hails from the party’s conservative wing and was expected to face a challenge from Planning Minister Rob Stokes for the leadership at a Tuesday vote.

Supporters of Mr Perrottet, who is one of the highest-profile politicians in the country to push for a rapid relaxation of Covid-19 restrictions, said on Sunday he had secured a majority of caucus votes.

The Liberal Party leadership was thrown open on Friday when Premier Gladys Berejiklian said she would resign and leave parliament after the corruption watchdog confirmed it would investigate her for a “breach of public trust”.

As part of the deal to make Mr Perrottet the next leader, moderate faction powerbroker Matt Kean, currently Energy Minister, will be promoted to treasurer.

“I’m part of a team that has one focus and that is to look after every person across this state,” Mr Perrottet said on Sunday.

“I know that this is a time of challenge in our state but I have complete hope and optimism that NSW is in a very good place.

“We believe this is a team that will provide stability, unity and ­experience and continue the great work of Gladys Berejiklian.”

Mr Stokes has not withdrawn from the leadership contest after publicly outlining his intention to run on Friday. He did not respond to a request for comment.

“Rob Stokes is not just a friend, he’s an incredibly talented member of our team. We promote competition,” Mr Perrottet said. “I don’t want to pre-empt the situation we are in at the moment.

“If we are successful, we will work through these issues,” he said. “I am completely focused, and have been as this time as Treasurer, on keeping people safe, that we keep people in jobs, and we keep businesses open. More importantly for many families across the state, we get kids back to school as soon as possible.”

Stuart Ayers, left, is poised to be deputy premier under Dominic Perrottet. Picture: Jane Dempster

Another potential candidate, Attorney-General Mark Speakman, ruled himself out on Sunday.

“I’m humbled by the unsolicited support of many colleagues who encouraged me to nominate as leader,” he said, after federal ­officials and elements of the NSW Centre-Right faction urged him to run against Mr Perrottet.

“I’ve decided that the best interests of the people of NSW are served by ensuring as much continuity and stability as possible when we move into the recovery stage of the state’s biggest crisis since World War II,” he said.

“I’ll therefore not be nominating for the leadership position, but I’ll continue to work hard to support the people of NSW through a strong Coalition government.”

Liberal MPs aligned with the Centre-Right, a group of nine led by Police Minister David Elliott, have been reluctant to support Mr Perrottet for factional reasons.

Some of that opposition ­appeared to fade after the intervention of former prime minister John Howard, who told Sky News that Mr Perrottet was “the best person to take over the helm”.

Weekend negotiations, however, centred on which moderate-aligned cabinet minister would run as Mr Perrottet’s deputy on the joint ticket, a position originally expected to have gone to ­either Mr Kean or Mr Stokes.

The Weekend Australian reported that there was some disquiet among moderate faction figures about the speed with which Mr Stokes announced his intention to run for the leadership, hours after Ms Berejiklian said she would quit.

The new leader faces at least two by-elections, one in Ms Berejiklian’s seat of Willoughby and another in the south coast electorate of Bega held by Transport Minister Andrew Constance.

On Sunday, Mr Constance said he would quit by the end of the year and nominate for the federal electorate of Gilmore.

He declined to publicly back Mr Perrottet or Mr Stokes, but said both were qualified and ­“incredible people and good ­ministers … I’ve been in parliament for almost 20 years and I haven’t seen a leadership ballot. If the partyroom has a ballot, so be it, but I’d urge stability.”

Mr Ayres, the partner of Foreign Minister Marise Payne, said he and Mr Perrottet represented “a leadership ticket that everyone across NSW can support”.

“I know Dominic Perrottet is the right person to lead NSW out of this pandemic, to reopen our economy, get people back in jobs and keep ever single person in our community safe,” Mr Ayres said.

Gladys Berejiklian on Friday became the third NSW leader to be forced from office by the Independent Commission Against Corruption. Picture: Jeremy Piper

The Penrith MP, who holds his electorate on a slim margin, had canvassed support for his own leadership tilt on Friday.

It was a ticket that was being supported by Mr Kean, the most senior figure in the party’s moderate faction, Mr Perrottet said.

“Matt Kean is a very important part of this team and has endorsed this ticket to be put forward to the party on Tuesday,” he said.

As Treasurer, Mr Perrottet has been a keen supporter of taxation reform. Last November he said the state would begin work to replace stamp duty with an annual land tax on new property transactions.

He has also repeatedly raised concerns about how the GST was divided among states, describing West Australian Premier Mark McGowan as the “Gollum of Australian politics” in September after WA posted a budget surplus.

Ms Berejiklian on Friday became the third NSW leader to be forced from office by the Independent Commission Against Corruption, following Barry O’Farrell in 2014 and Nick Greiner in 1992.

She will appear before a public hearing of the ICAC inquiry on October 18 in relation to grants awarded to entities in Wagga Wagga, the electorate once held by former Liberal MP Daryl ­Maguire, her secret partner.

The relationship became public in October 2020 after Ms Berejiklian was called as a witness to the inquiry, known as Operation Keppel. Mr Maguire had already resigned after a separate ICAC investigation heard recordings of him discussing potential “dividends” with developers.

Since that time, Mr Maguire has been implicated in allegations in relation to an illegal visas scheme and for trying to broker favourable deals with developers.

Despite her intention to resign, Ms Berejik­lian has denied any wrongdoing.