“The feeling was that John Barilaro would have had some attributes, positive attributes, that are relevant to the role,” Brown said of a conversation in which Mr. Ayres told him the former deputy would apply for the position. “It had some weight,” he said.
The senior official said Mr Ayres had not exercised “undue” influence over the role, but acknowledged there was never any doubt that Mr Barilaro, who had the job application sent to him a text message from Mr. Ayres, would be the short list.
“It was never your opinion that John Barilaro wasn’t shortlisted?” asked the leader of the opposition upper house, Penny Sharpe.
“That’s fair,” replied Mrs. Brown.
Abrupt exit
Wednesday morning’s events and Ayres’ abrupt departure came as Perrottet sought to end the peer jobs crisis that has dogged his government for two months and blighted his election hopes.
It also came just two days after the Prime Minister fired Small Business Minister Eleni Petinos over claims she intimidated and belittled staff.
Perrottet had initially insisted on waiting for former head of the public service, Graeme Head, to complete a review of the recruitment process before making any decisions. But his hand was forced on Monday night as questions about Mr Ayres’ involvement and frustration among his cabinet colleagues threatened to destabilize the leadership.
A draft of the review of Mr. Head challenged Mr. Ayres who kept his distance from Investment NSW’s deliberations on recruitment for the US trading post.
“The information that has come to light in the review clearly shows that the process was not independent,” Perrottet said. “Although I have not received the full report, I have seen an excerpt from the draft report belonging to Mr. Ayres and have made the appropriate decision.”
Mr Ayres denied all allegations of wrongdoing in a statement on Wednesday.
“In my view, no such breach has occurred,” he said. “I have always applied the highest levels of integrity in my conduct as a minister.”
The Department of Premier and Cabinet will now conduct a review, the third prompted by Barilaro’s appointment, into whether Ayres breached the ministerial code of conduct during his interactions with Investment NSW as senior trade and investment commissioner.
Barilaro stepped down at the end of June amid intense criticism of the peer jobs, saying it had become “untenable” to take on the role that had become a “distraction” for the government.
Revealing documents
Although Mr Ayres claims the department adhered to all standard protocols during recruitment, secret documents revealed that a candidate report for Mr Barilaro was altered and his scores improved. Another email showed Mr Ayres added a name to a “short” list.
Members of the selection panel have told The Australian Financial Review they “felt used” by the process.
Meanwhile, the Prime Minister insists a first round of recruitment for the role failed to produce a “suitable candidate”, despite documents showing he was informed when a former civil servant, Jenny West, was given the role in August from last year A month later, the offer was rescinded by Ms Brown, who allegedly told Ms West the job was a “gift” for someone else.
Privately, the Liberals are optimistic that Mr. Ayres’ departure is enough to end the debacle. But some cabinet colleagues are concerned there are still more documents to come that could implicate the prime minister.
Others believe the long-running problem has irreparably damaged the Coalition’s electoral hopes and sidelined members the party relies on to form the backbone of its re-election efforts.
Mr Perrottet has not said which section of the ministerial code of conduct Mr Ayres’ alleged breach relates to, only that it relates to the level of interaction Mr Ayres had with the department over the recruitment process.
He said Mr Ayres denied doing anything wrong or breaching any ministerial directives and intended to continue as MP for Penrith.
“Mr. Ayres denies any wrongdoing … he denies any wrongdoing. But the questions that have come up through the report make it very clear, in my view, and according to Mr. Ayres, that there is a possible breach of the code of ministerial conduct.
“He denies any wrongdoing. I get the point about [his claims he kept an] part of the distance process. He has a different view in relation to his commitment to the process.”
In a heated press conference, the prime minister defended his decision to stand by the senior MP as the debacle has dragged on for two months and derailed major announcements, including Perrottet’s first budget as premier and a high-profile trade mission across the region.
Mr. Ayres’ portfolios would be reassigned and the election of a new deputy chief would take place in the next party room.