Minister overboard, Dominic Perrottet in race to steady the ship

Dominic Perrottet is fighting to stop a full-scale meltdown of his government after deputy Liberal leader Stuart Ayres became the second minister in a week forced from office.

Dominic Perrottet says he has always taken responsibility and will not make decisions based on ‘political pressure’. Picture: Gaye Gerard

Dominic Perrottet is fighting to stop a full-scale meltdown of his government after deputy Liberal leader Stuart Ayres became the second minister in a week forced from office.

The NSW Premier acted on Wednesday in a bid to cauterise his government’s bleeding over the appointment of former deputy premier John Barilaro as the state’s New York trade commissioner, prompting factional moves on the deputy leadership.

Four days after the Premier sacked small business minister Eleni Petinos over allegations of bullying, Mr Ayres resigned over concerns that the appointment of Mr Barilaro was not done at “arm’s length” from government and he may have breached the ministerial code of conduct.

Government MPs were backing Mr Perrottet to stay as leader, but questions remain within the party about how much damage he can sustain from ongoing scandals and the continuing factional divisions within the NSW Liberals.

Mr Perrottet on Wednesday launched a defence of his government against MPs who felt he took too long to get rid of Mr Ayres and that he had been treated differently to Ms Petinos.

Citing his moves to remove ­former minister Gareth Ward from parliament over historical sex charges and former Liberal MP John Sidoti once ICAC found him corrupt, the Premier said he had always taken responsibility and would not make decisions based on “political pressure”.

“I’m not here to make decisions that are politically expedient. I’m in this job to make decisions that are right,” he said in Sydney.

Former NSW trade minister Stuart Ayres leaving his western Sydney home in Mulgoa on Wednesday. Picture: David Swift

“With respect to the member for Kiama (Mr Ward), when I had information (of charges against him), I sought to have (him) ­ removed from the government.

“Once information came to light from the ICAC, I made that decision in relation to (moving) a suspension motion for Mr Sidoti. I’ve taken responsibility in every one of those four occasions … I have a moral and ethical framework in which I make decisions; the moment I start making decisions over media or political pressure, I shouldn’t be in this job.”

With Mr Ayres’ vacating the deputy’s position, Treasurer Matt Kean – a moderate faction powerbroker – was firming as clear favourite to replace him when caucus meets on Tuesday.

Moves to replace Mr Ayres came as a NSW parliamentary inquiry into the New York trade post affair revealed he had run Mr Barilaro’s appointment past senior members of government during a strategy meeting in early May, with none raising objections.

Mr Barilaro gave up the post in July amid the growing scandal around his appointment.

The Premier said an excerpt of a draft government review into the Barilaro appointment, undertaken by senior public servant Graeme Head, raised concerns that Mr Ayres may have breached the ministerial code and made his position untenable.

“It’s very clear from the excerpts I have seen of the review that the process was not at arm’s length,” he said, adding that a further investigation would seek to determine definitively whether Mr Ayres had breached the code of conduct.

While Mr Ayres said he did not believe a breach had occurred, he conceded the matter needed to be investigated and he had resigned to “maintain the integrity” of the cabinet. He will remain as the member for Penrith.

Nearly eight months from the March state election, the Barilaro affair will fester while the upper house inquiry continues to probe the appointment.

Investment NSW chief Amy Brown gave evidence to the inquiry that she did not believe Mr Ayres was at “arm’s length” during the recruitment process for the posting eventually awarded to Mr Barilaro, saying there were “multiple intersection points”.

On the deputy leaderships front, Mr Kean was on Wednesday looking increasingly likely.

After holding a factional phone hook-up, senior members of the government’s conservative faction said the bloc was likely to back him as deputy in the name of stability and continuity, despite being diametrically ­opposed to him ideologically.

Moderate support, however, was split into two camps, one behind Mr Kean, one backing Metropolitan Roads Minister Natalie Ward and Infrastructure Minister Rob Stokes. Transport Minister David Elliott from the centre-right faction was also expected to throw his hat in the ring for the deputy position.