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John Barilaro inquiry as it happened: Former deputy premier appears at hearing; denies creating trade role for himself

Natassia Chrysanthos
Updated ,first published

The day in review

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That concludes the sixth day of hearings into John Barilaro’s controversial appointment to the New York trade role. These were the highlights:

  • Barilaro’s girlfriend and former staffer, Jennifer Lugsdin, was working as a media adviser at Investment NSW while the agency was advertising the New York trade role. Email chains show that Lugsdin was informed that then-trade minister Stuart Ayres wanted to readvertise the New York role through correspondence dated December 10, a week before the role was advertised. Agency boss Amy Brown said there were no records of her making a conflict of interest declaration.
  • Brown has told the inquiry that negotiations for the London-based trade commissioner role became “quite threatening” and that the candidate escalated salary concerns above her head and directly to the minister. She said the agent-general initially expected $800,000 to take on the role.
  • Former NSW premier Barry O’Farrell was the third person who provided Barilaro with a reference for the New York trade role. The other referees were Department of Regional NSW secretary Gary Barnes and ambassador to the United States Arthur Sinodinos.
  • Barilaro rejected “any suggestion of wrongdoing” and the suggestion he created the New York-based trade role for himself. “I refute any suggestions that I sought out any special treatment during the public service job process where an independent panel, on merit, put me forward as the preferred candidate,” he said. “I’m the victim, I’m not the perpetrator.”
  • He said he spoke to NSW Premier Dominic Perrottet, former trade minister Stuart Ayres and Treasurer Matt Kean before he applied on January 19. “At no point did anyone ever raise a concern about me applying for this role,” he said. He said the fact he was selected for the New York trade post by a public service panel – rather than his colleagues – gives him cover against “jobs for the boys” allegations.
  • But, in hindsight, he never would have applied for the role. “I wish I never had applied. If I knew what I knew now, I wouldn’t have walked into this shitshow. I’m going to use those terms, I’m sorry to say, because the trauma I’ve gone through over the last six to seven weeks has been significant,” he said.
  • Barilaro denied knowing about Gladys Berejiklian’s resignation in advance, when he was asked about being interviewed by the ICAC in private on September 10. “If we’re to believe your version of events, Mr Barilaro, we have to basically conclude that you’re one of the luckiest men in NSW politics,” Labor’s Daniel Mookhey said. “I will absolutely refute that disgusting slur and accusation,” Barilaro said. “You’re making me out to be corrupt.”

That’s all for today - I’m Natassia Chrysanthos signing off the blog.

We will be back on Friday, when the inquiry is set to resume.

Brown said London trade role negotiations were ‘quite threatening’

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Investment NSW boss Amy Brown has told the parliamentary inquiry that negotiations for the London-based trade commissioner role became “quite threatening” and that the candidate escalated salary concerns above her head and directly to the minister.

The inquiry is probing the appointment of John Barilaro to a New York trade role, but Labor is seeking to expand its remit to include other international postings including the London appointment.

Brown said she had a conversation with London agent-general Stephen Cartwright about his salary last October, while a senior lawyer from Investment NSW was on the phone. By this time, Dominic Perrottet had become premier.

She said it was during this conversation that Cartwright invoked the names of the deputy premier and premier while negotiating.

Department secretary Amy Brown gives evidence on Monday.Kate Geraghty

Former MPs Jodi McKay and Pru Goward interviewed for trade roles

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Investment NSW Amy Brown has confirmed reports that former Labor leader Jodi McKay and former Liberal minister Pru Goward were interviewed for trade commissioner roles as “late considerations”.

Brown said the deputy premier at the time, John Barilaro, called her in August last year to ask if he could refer the trade commissioner roles to other people. She said he could.

Former NSW opposition Leader Jodi McKay.Louise Kennerley

He then said two people would apply - McKay and Goward - and texted Brown their phone numbers. Brown called each of them to inform them of the process.

“I knew that I didn’t have to interview them, but I definitely thought that each of these individuals would be really interesting people to interview and that they would have something to say about the opportunities, so I was keen to include them on the list,” she told the inquiry.

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Perrottet’s staffer encouraged paying ‘private sector size salary’ for London role: Brown

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The chief of staff to then-treasurer Dominic Perrottet, Bran Black, told Investment NSW boss Amy Brown to consider paying a “private sector size salary” to the London agent-general applicant, the inquiry has heard.

Brown said she called the staffer with concerns about salary negotiations for the London role, for which the applicant expected $800,000.

“I think the initial basis for my phone call was [that a] salary that high for any public service role is ridiculous,” Brown said.

The inquiry also established that Brown was not allowed to pay someone that much money under the government sector employment act.

But Brown said she was encouraged to consider a higher salary.

London trade commissioner was expecting $800,000: Brown

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The state’s London-based trade commissioner initially expected $800,000 to take on the role, Investment NSW boss Amy Brown has told the inquiry.

Labor is probing the appointment of the London agent-general role as part of the inquiry and says that salary would have made the position the second-highest paid public servant in NSW.

Brown told the inquiry the appointment of Stephen Cartwright, the former chief executive of lobby group Business NSW, had featured “heightened” negotiations around pay.

Department secretary Amy Brown gives evidence for the third time.Kate Geraghty

Labor asked her why the process was complicated.

‘No records’ of Barilaro’s girlfriend having a conflict of interest declaration

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Investment NSW boss Amy Brown is now appearing before the parliamentary inquiry for the third time.

She is being asked about her agency’s employment of John Barilaro’s girlfriend and former staffer Jennifer Lugsdin.

Brown said Lugsdin was engaged via a contractor to start a contract appointment with Investment NSW on August 16, 2021.

John Barilaro’s girlfriend Jennifer Lugsdin.LinkedIn

Labor: Do you recall what Mr Barilaro said to you in relation to this?

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Barilaro’s girlfriend was media adviser at Investment NSW when trade job was advertised

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Former deputy premier John Barilaro was asked about his relationship with his girlfriend and former staffer Jennifer Lugsdin, who was working as a media adviser at Investment NSW while the agency was advertising the New York trade role.

The inquiry heard that Lugsdin was a media officer in Barilaro’s office, and that he called Investment NSW boss Amy Brown on her behalf to “put forward her credentials” for a job last year.

According to Lugsdin’s LinkedIn profile, she worked at Investment NSW on a contract between August and December.

Barilaro said he could not remember when that conversation with Brown took place. However, he said he was not in a relationship with Lugsdin at the time.

“I was not in a relationship with her while I was deputy premier or trade minister,” Barilaro said under questioning.

Barilaro rejects all elements of former staffer’s evidence

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Government MPs invited John Barilaro to respond to a statement tendered to the inquiry by his former chief of staff, Mark Connell.

Connell last month provided explosive written evidence to parliament claiming his ex-boss told him in 2019 he would create a position in New York to ensure he had a job to go to after he left politics.

The alleged conversation took place about April 2019, after Barilaro purportedly returned from a meeting with then-treasurer Dominic Perrottet and then-industry minister Stuart Ayres to discuss the restoration of the agent general position in the UK.

Connell alleged Barilaro said a New York trade post was: “the job for when I get the f--- out of this place”.

Barilaro has completely denied the allegations.

‘I’m the victim, I’m not the perpetrator’: Barilaro

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Inquiry chair Cate Faehrmann asks John Barilaro: “Can you see why the public is suspicious about this whole process?”

Barilaro: I absolutely understand. That is why I’m here today, voluntarily, to explain the process. It was a public service, independent process. Just because you’re a former member of parliament doesn’t exclude you.

Faehrmann: Did you have any concerns when you heard the Public Service Commissioner, for example, on Friday afternoon, saying that she wouldn’t have endorsed the selection panel report if she knew then what she knows now?

Barilaro: The reality is that I didn’t know any of that either. So just like the Public Service Commissioner, I didn’t know that there were those intersections, if that’s the word that was being used. I went into an independent process that a panel assessed me and offered me a job.

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‘You’re making me out to be corrupt’: Barilaro denies he planned to resign in October

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Labor’s Daniel Mookhey puts the following timeline to Barilaro:

  • September 10: Barilaro gives private evidence to the ICAC about then-premier Gladys Berejiklian.
  • September 16: Barilaro lodges cabinet submission to change trade role appointment process to ministerial decisions.
  • September 24: Barilaro tells a court he is intending to resign.
  • September 27: Cabinet agrees to Barilaro’s submission.
  • October 1: Berejiklian resigns.
  • October 4: Barilaro resigns.

“It does look like that that cabinet submission was being put forward urgently because you knew that at some point [Berejiklian] was likely to have to resign,” Mookhey says.

“If we’re to believe your version of events, Mr Barilaro, we have to basically conclude that you’re one of the luckiest men in NSW politics.”

Barilaro disagrees. “Actually, [I’m] the unluckiest man in NSW politics I’d argue, because of those series of events,” he says.

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