‘Emphatic exoneration:’ Stuart Ayres cleared of wrongdoing in review of Barilaro US trade post

Former trade minister Stuart Ayres could return to NSW cabinet after a review probing his involvement in John Barilaro’s appointment to a US trade post cleared him of wrongdoing.

The review by high-profile barrister Bruce McClintock,SC,found Ayres complied with the ministerial code of conduct in relation to the former deputy premier’s appointment.

Stuart Ayres resigned as trade minister over his role in the recruitment process.

Stuart Ayres resigned as trade minister over his role in the recruitment process.Dominic Lorrimer

“There is no basis for any conclusion that Mr Ayres breached[the code] by directing or requesting any person to act contrary to the law or any of the other matters referred to,” McClintock found.

In a statement on Monday,Ayres said the report was an “emphatic exoneration” and “unequivocally clear” in finding he acted lawfully and honestly.

Ayres was forced to resign from cabinet and as deputy Liberal leader early last month after a review by former public service commission Graeme Head raised questions over Ayres’ role in Barilaro’s appointment to the New York trade post.

Premier Dominic Perrottet is yet to comment on the McClintock findings,only releasing a statement announcing the report had been published on Monday.

The premier previously said he believed Ayres did not conduct himself at arm’s length from the trade appointment,based on the findings of the Head report. But last week Perrottet suggestedthe door remained open to Ayres returning to his cabinet once he had read the McClintock review.

Asked to rule out Ayres returning to cabinet,the premier last week said,“No,I’m not,” adding that he would make a decision “down the track”.

“There are always opportunities to come back and serve in the NSW government in different ways,”Perrottet said last Thursday.

Ayres’ role in the appointment of Barilaro came under heavy scrutiny amid the release of a cache of internal documents revealing he stayed close to the recruitment led by Department of Enterprise,Investment and Trade Secretary Amy Brown,including developing a candidate shortlist.

Head’s review found Barilaro’s recruitment was not conducted at arm’s length from government. He also found Brown factored in the preference of Ayres,despite never being directed to do so,consulting him on advertising the role,candidate shortlists and arranging a meeting between him and a candidate.

That triggered the McClintock inquiry to determine whether Ayres breached the ministerial code of conduct and raised concerns about possible failures of ethical conduct.

McClintock’s eight-page advice to NSW Governor Margaret Beazley relied on the findings of the Head review as well as cabinet documents and transcripts from the ongoing upper house inquiry into the trade job saga. McClintock also interviewed Ayres for the report on September 1.

“On Mr Head’s specific findings,Mr Ayres acted honestly and in what he considered to be the public interest and therefore there is no breach[of the code of conduct],” McClintock wrote.

He said that,accepting Head’s finding that the process was not conducted at “arm’s length” did not establish a breach of the code by Ayres and said some form of close daily contact would be expected between a minister and the secretary of his department – Brown.

McClintock referred to Head’s finding that the process lacked a “specific and transparent” mechanism for reasonably consulting the minister.

“This suggests to me that the failure,if it be such,was one of process not substance,” McClintock’s advice said.

The barrister also considered any potential conflicts of interest,finding no evidence that Ayres had a conflict of interest in relation to Barilaro’s appointment,beyond their association through parliament.

“There does not appear to have been any other relationship or connection between two men. They were certainly not friends,” McClintock said.

“The mere fact of simultaneous membership of cabinet and parliament in the past ... does not have the potential to influence a minister in relation to a decision or action as referred to in[the code of conduct].”

Ayres has consistently denied any wrongdoing and maintained he remained at arm’s length from the public service process. He has insisted Brown was the final decision-maker at all times,arguing McClintock had also supported this.

“Mr McClintock also makes clear...that the public service was independent of me and under no special duty or obligation to appoint Mr Barilaro,” he said in his statement on Monday.

“As the premier described it to me after I was presented with a copy of the report,“it is an emphatic exoneration”.”

The fallout has engulfed the Perrottet government since the former deputy premier was announced as the US trade commissioner in June. Barilaro has since withdrawn from the position,while a long-running upper house inquiry continues to examine the appointment.

The parliamentary probe has also turned its attention to the recruitment of UK Agent-General Stephen Cartwright.

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Lucy Cormack is a journalist for The Sydney Morning Herald and The Age,based in Dubai.

Alexandra Smith is the State Political Editor of The Sydney Morning Herald.

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