Elliott has told his colleagues he will nominate against Kean, but won’t run if there are more than two candidates.
Late on Wednesday, the Prime Minister announced that three ministers will expand their portfolios following Ayres’ resignation.
Elliott, Henskens and Arts Minister Ben Franklin will take on Ayres’ portfolios from Friday.
Perrottet said the Department of Premier and Cabinet would conduct a further investigation into Ayres’ conduct. Asked whether a breach of the minister’s code should be referred to the anti-corruption commission, Perrottet said he was the “custodian” of the code, so it was appropriate for him to launch an investigation.
The prime minister said he did what he believed was right and did not bow to media or political pressure.
“I said from the beginning in relation to these matters that I would conduct an investigation, and that is exactly what I have done. I have [said] at every step of the process that I’m not going to do what’s politically expedient, I’m going to do what I think is right and right,” he said.
Ayres acknowledged the review had raised questions about whether he breached the ministerial code of conduct.
“In my view, no such breach has occurred. However, I agree that it is important that this matter is properly investigated and I support the Prime Minister’s decision to do so,” he said Ayres in a statement.
“To maintain the integrity of Cabinet, I have decided to step down as a Minister to allow the investigation to be completed… I will continue to serve my community as a passionate member for Penrith.”
Penrith is the second most at-risk seat for the Liberals, with a margin of just 1.3%.
While the inquiry has focused on Barilaro’s appointment to the New York post, Labor on Wednesday probed whether any other trade commissioners received special treatment and questioned the process that appointed Stephen Cartwright, the former chief executive of lobby group Business NSW, in London. business function based on last year.
Brown said the process was led by the NSW Treasury, but he knew Cartwright had been added to the process “late” and after another front-line candidate was deemed unsuitable.
“I got the impression that he [Cartwright] he felt he had a kind of elevated status,” Brown said. “When the negotiations got particularly difficult, he said, ‘I’ll just take it to the deputy prime minister or the prime minister.’
As a result of the contract negotiations, Cartwright was awarded a cost-of-living allowance of $112,000, far more than the next highest-paid commissioner. In comparison, Barilaro received $18,000 for living expenses in the US.
Brown told the parliamentary inquiry he felt Ayres was involved in Barilaro’s recruitment.
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“From my point of view, I was not far from the process. There were several points of intersection,” he said on Wednesday.
Ayres is the second minister to be forced out of cabinet in a harrowing week for the Perrottet government after Fair Trade Minister Eleni Petinos was sacked over bullying allegations. She has denied the allegations.
NSW Labor leader Chris Minns said Ayres’ resignation as minister and deputy leader of the Liberal Party was the right decision in the public interest.
Minns said there was now “clear evidence” Ayres misled the NSW parliament and was involved in the appointment of Barilaro.
He said the saga, which has now dragged on for seven weeks, is showing that “the cover-up here is probably worse than the crime”.
A spokesman for Investment NSW declined to comment on behalf of the agent-general and said it was continuing to assist both inquiries into Barilaro’s recruitment.
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