An "immensely disappointed" Mr Barnett was blunt in his first public comments on the affair. Troy Buswell fronts the media to admit a four-month affair with Greens MP Adele Carles. Credit:Chalpat Sonti "The issues with Troy go back some time," he said, referring to two misleading expense claims lodged by Mr Buswell last year. "I made the point [then] to Troy, you have no lives left. You cannot make any more mistakes." While the relationship between Mr Buswell and Ms Carles was a personal matter, "Troy's actions in relation to the use of his government entitlements in this matter is unacceptable".

While sometimes errors were made in expense forms there was some "pre-thought" in Mr Buswell's actions, Mr Barnett said. Confession ... Fremantle MLA Adele Carles. "As a result, this morning I informed the Treasurer that I believed his position as Treasurer and minister was now untenable. Troy offered me his resignation, which I accepted. This was the appropriate course of action." Mr Buswell revealed he had used ministerial cars three times to go to meet Ms Carles, as well as spending an extra night in Albany ahead of official duties there. Both those had not been repaid. The pair also met in Canberra after a ministerial council meeting, before travelling to Sydney for two days. Mr Buswell said he paid for that part of the trip himself.

Mr Barnett said "the exercise at Albany does raise questions" about Mr Buswell's use of ministerial privileges. This morning I informed the Treasurer that I believed his position as Treasurer and Minister was now untenable. Despite Mr Buswell's past indiscretions, Mr Barnett said he did not regret giving him another chance. "He was enthusiastic and good at his job and he's lost the job he loved." Mr Barnett said Public Sector Commissioner Mal Wauchope would review the use of entitlements by Mr Buswell and Ms Carles.

Mr Buswell said today he would "do everything required" to help the investigation. "I hope that I can continue to make a contribution to government from the backbench and to represent the constituents of Vasse," he said. "I would also like to apologise to the Premier, my ministerial colleagues, parliamentary colleagues, Liberal Party colleagues, staff, Liberal Party supporters and the constituents of Vasse." Mr Barnett outlined Mr Buswell's fate at a press conference, two days after news broke of Mr Buswell's affair with Ms Carles. The Premier said he found out about the misuse of entitlements yesterday through his chief-of-staff, before Mr Buswell confessed publicly.

However, he did not blame Mr Buswell for not telling him personally. "I think Troy was going through a very difficult time last week, emotionally, and his primary concern was his family." He allowed Mr Buswell to speak publicly yesterday and then have time to come to his decision. "There's no doubt Troy is an extremely talented person, but his personal conduct on a number of instances has let him down." The affair and its effects were the reasons Mr Buswell did not attend the Council of Australian Governments meeting held to discuss the federal government's health reforms in Canberra last week, but his presence would have made little difference, Mr Barnett said.

The Premier admitted the saga was "a blow to the government". "It is a setback, it is a setback that we we will deal with and deal with in a professional way ... Troy was a very key part of the government. It's now up to others to step up." "Troy's a friend, he remains a friend. He has however showed very poor judgement and he has paid a very high price." Opposition leader Eric Ripper said Mr Barnett was left with no other choice but to dump his controversial Treasurer, who had "form" on misappropriating taxpayer funds following revelations he had lodged a $240 expenses claim for staying at his own house in Perth. But he said Ms Carles should not escape scrutiny for her role in the affair. He said serious doubt had been cast on her voting record, especially since she abstained on a vote to investigate Mr Buswell's expenses claim.

Mr Ripper also called on the Corruption and Crime Commission to oversee the Wauchope investigation, saying an inquiry could not be independent if simply carried out by the Public Service Commissioner, who was answerable to Mr Barnett. He said the Premier had talked about openness and accountability being the hallmarks of his government, but had yet to finalise a ministerial code of conduct and had resisted the Opposition's efforts to obtain documents through the Freedom of Information process. Mr Barnett will take on the Treasury portfolio in the short term, including delivering the budget on May 20. The cabinet signed off on the budget last week, so most of the work has been done. However, Mr Barnett conceded that being Premier and Treasurer was not ideal and he would look to make a permanent appointment later this year.

While he did not rule out Mr Buswell returning to Cabinet, he would remain on the outer "for the forseeable future". "The changes I've indicated are designed to cause minimum disruption," Mr Barnett said. Nedlands MLA Bill Marmion has been promoted to the Cabinet to take on Mr Buswell's portfolios of Commerce, Science and Innovation, and Housing and Works. Helen Morton will become Parliamentary Secretary to the Premier, Treasurer and State Development Minister. Taxpayer funds abused in affair Yesterday, Mr Buswell fronted a media pack to say he was "truly sorry" for the four-month affair, but he would not resign from his Cabinet post.

Mr Buswell broke his silence after Ms Carles revealed that the pair had recently broken off their relationship. He admitted using ministerial privileges, and taxpayers' money, to arrange secret liaisons with Ms Carles. Mr Buswell said he would pay back the cost of those meetings, which he estimated could be between $200 and $300.

He said he did not want the affair to become public, because of the effect it might have on his wife, Margaret, who it is understood has already thrown Mr Buswell out of the family home. However, he refused to answer when asked if he would have repaid the money had it remained private. Ms Carles said she "at no time" misused any of her parliamentary entitlements. She paid for the trip to Canberra and Sydney, and claimed for one night in Albany when she went there "to tour the Albany Wind Farm and to discuss renewable energy options for the electorate of Fremantle". However she did not lodge any claim for the Thursday night she spent with Mr Buswell.

Buswell pleads for forgiveness Mr Buswell said he would be seeking professional help for his indiscretions and asked for forgiveness from his family, parliamentary colleagues and Ms Carles' family. "I would like to offer my sincerest, most heartfelt apologies for all those who have been hurt by these events," he said. "I would particularly like to apologise to my wife and boys. My lack of judgement in this matter has disappointed a great number of people who have stood behind me. "Good, decent, hard-working people who have offered me their unflinching support feel let down."

Mr Buswell refused to confirm whether or not he had personally told Mr Barnett that he had spent taxpayers' money during the affair. "My understanding is that the Premier's office is fully aware of those matters," he said. But when pressed on why would he not tell Mr Barnett about the misuse of taxpayer funds, he said "the Premier has been away on his (Toodyay) farm". The pair discussed the affair "a while back", and Mr Barnett had expressed "his extreme disappointment with me for my actions". Mr Buswell acknowledged it was Mr Barnett's prerogative to sack him, should he so wish, but he wanted to remain as Treasurer to deliver the May 20 state budget.

He would not be drawn into comparisons with more than 40 doctors and nurses sacked last month after fraudulent salary packaging claims, instead claiming some had kept their jobs. "I acknowledge what I've done is wrong, I will be repaying the money." Mr Buswell refused to say whether he was still living with his wife, or whether he believed he could save his marriage. However, he said "I can give an unequivocal no" when asked if Ms Carles had voted with the government on various bills because of the affair. Ms Carles had contacted him after releasing a statement on Saturday, and he in turn told her he would speak today.

Carles confesses to affair Ms Carles, 41, who is married with three daughters, confessed to the "brief" affair on Sunday. Mr Buswell, 44, is also married, with two sons. He is reported to have moved out of the home he shared with Margaret last week and is believed to be living with Energy Minister Peter Collier. Both Ms Carles and Mr Buswell laid low over the weekend after news of the affair broke. Mr Buswell cancelled plans to attend the Anzac Day service in his home town of Busselton yesterday, and refused to comment when approached by media, while Ms Carles is believed to be in the Margaret River area.

"It is with deep regret that I acknowledge having an affair with the Treasurer, Troy Buswell," Ms Carles was quoted as saying. "It lasted several months and it is over now. "I could attempt to portray myself as the vulnerable one who was taken advantage of. However, this is simply not true. "We made a mutual, albeit stupid, decision as two consenting adults. "To my constituents in Fremantle, I apologise."

She told Greens MPs about the affair last week. It is understood they told her to make it public. Track record counted against Buswell

Edith Cowan University and Curtin University political analyst Harry Phillips said Mr Barnett had no option but to seek Mr Buswell's resignation. "But Troy Buswell beat that by reading the play," Dr Phillips said. "It's a blow for the government. Most people regard (Mr Buswell) as a very capable treasurer and politician."

Mr Buswell would now have to prove himself again on the back bench in the next 18 months in order to be readmitted to cabinet in future, Dr Phillips said. "He will probably have to show the Premier - who is a great supporter of him - that he has tried to amend his ways." Mr Barnett had also made the right move by taking over the Treasury portfolio. "He may not know the micro-details, but he would know the dimensions of the state budget," Dr Phillips said. Because of the scandal, Ms Carles would find it difficult to retain Fremantle at the next election, Dr Phillips said.

She defeated Labor candidate - and former Fremantle mayor - Peter Tagliaferri to win a by-election last year. Mr Tagliaferri has declined to comment on the latest matter. Greens back Carles Greens leader Giz Watson commended her parliamentary colleague on coming forward about her relationship with the former Liberal leader. "Adele has had the courage to say that she is an equal partner in this brief relationship that they have had," Ms Watson told Radio 6PR. "She's not trying to stick the blame to Mr Buswell alone."

Ms Watson said she had briefed Mr Barnett about the affair and said the matter was deeply distressing for all involved. "All of us, all the branch members of parliament, including Adele to her full credit, have agreed to make a statement and to end any kind of rumour and speculation in this regard," she said. "There are consequences and there is a lot of distress around these matters. All I can say is that I again thank Adele for having the guts to come out and make a statement.



"It's obviously a matter for the party to consider, but I would give my personal support to Adele in this very difficult time.



"Be mindful that if hurtful things are said, both these families have children and they are completely innocent in this process." Careers spent in the spotlight Mr Buswell resigned as leader of the WA Liberal Party in August 2008 after revelations of inappropriate behaviour came to light.

He admitted sniffing the chair of a female staff member, and snapping a Labor staffer's bra. He was replaced by Barnett, but was handed the powerful Treasury and Commerce portfolios after the shock 2008 state election result, which saw Labor dumped from power. Ms Carles became the first member of the WA Greens ever elected to the WA Legislative Assembly when she won a by-election for the seat of Fremantle in May 2009. The seat had long been a Labor stronghold, held by former powerbroker Jim McGinty. Loading

Ms Carles ran a strong campaign against Mr McGinty in the 2008 election, narrowly missing out on toppling the incumbent. However, she went one better after Mr McGinty announced he was quitting politics following the election loss. - with Lance White