Barry O'Farrell resignation: Treasurer Mike Baird set to become new NSW premier

Updated

The contenders Gladys Berejiklian and Mike Baird the likely contenders for the top job in NSW. Falling on his sword The Premier says he accepts his evidence to ICAC was wrong and he will therefore resign. How it happened After emphatically denying receiving an expensive bottle of wine as a gift, more evidence emerged. 20-year career Barry O'Farrell swept to power in 2011 with the biggest electoral margin in the state's history. ICAC explained The Independent Commission Against Corruption was born in 1988 - and quickly claimed its founder. The emphatic denial The Premier left no wiggle room, denying receiving the $3,000 bottle of Grange from an AWH executive.

New South Wales Treasurer Mike Baird is set to emerge as the state's next premier, following Barry O'Farrell's shock resignation yesterday.

Mr Baird met the other favourite for the job, Transport Minister Gladys Berejiklian, earlier this morning. They have released a statement confirming Ms Berejiklian will contest the deputy leadership.

Fair Trading Minister Anthony Roberts is also understood to be vying for deputy, while Community Services Minister Pru Goward ruled herself out of the running.

A parliamentary party meeting has been brought forward to this afternoon at 3:00pm (AEST) to formally accept Mr O'Farrell's resignation and elect a successor.

"We are contesting the leadership and deputy leadership of the NSW Liberal Party, with Mike Baird to become leader," the statement from Ms Berejiklian and Mr Baird said.

"We strongly encourage our colleagues to support this decision this afternoon."

Earlier, Mr Baird said he wanted to maintain the party's unity.

"Obviously it's a big decision, but this is a decision which is for the party room. It's one that is important that we all come together on," he said.

"Clearly unity has been a hallmark of what we had been about the past few years. We want to maintain that unity. It's important for the state, it's important for the Government."

Deputy Liberal leader Jill Skinner has announced she will stand down, following discussions with Ms Berejiklian.

"I will be strongly supporting Gladys as my replacement," Ms Skinner said in a statement this morning.

"She is an enormously talented minister who is making a huge contribution to the NSW Government.

"I commend both Mike Baird and Gladys Berejiklian for announcing their joint bid to contest the NSW Liberal Party leadership, thereby ensuring a seamless transition."

Having earlier announced she would run for the deputy leadership, Ms Goward this afternoon decided not to nominate for the position.

"My primary focus is the unity of the NSW Liberal Party, and the delivery of a stable, competent Government for the people of NSW," she said.

Mr Roberts is also keen for the deputy position but is being pressured to pull out and support the unity ticket.

O'Farrell resigns after giving ICAC testimony

Mr O'Farrell announced his shock resignation yesterday in the wake of a "massive memory fail" when giving evidence to the Independent Commission Against Corruption (ICAC) on Tuesday.

Mr O'Farrell denied receiving a $3,000 bottle of wine in 2011 from Australian Water Holdings (AWH) executive Nick Di Girolamo, and also said he had no recollection of a 28-second call made from his phone to Mr Di Girolamo around the time he was allegedly sent the wine.

But yesterday morning, ICAC heard that a handwritten note from Mr O'Farrell, thanking Mr Di Girolamo for the wine, had been uncovered.

A short time later, Mr O'Farrell called a media conference in which he announced his decision to step down.

"I do accept there is a thank you note signed by me, and as someone who believes in accountability, in responsibility, I accept the consequences of my action," he said.

Mr O'Farrell's resignation as Liberal leader will come into effect at today's partyroom meeting.

Greens raise questions over Di Girolamo board appointment

Amidst the turmoil, the NSW Greens have called on Mr Baird to explain the appointment of Mr Di Girolamo to the State Water Corporation board.

Documents obtained by Greens MP John Kaye show Mr Di Girolamo was ranked lowly when interviewed for another board position at the Sydney Ports Corporation.

Mr Di Girolamo was dismissed as not having relevant industry experience.

Dr Kaye claims Mr Di Girolamo was equally unsuited for the State Water Corporation Board.

"The State Water Corporation is about managing the state's massive irrigation dams," he said.

"It's a huge undertaking that needed finance and accounting or environmental water resource or agriculture and irrigation sector expertise.

"None of those expertises are held by Mr Di Girolamo."

A spokesman for Mr Baird says Mr Di Girolamo was appointed to the State Water board on merit by Cabinet, following the advice of an independent panel.

He says there's no evidence of "jobs for the boys" in the documents.

Yesterday, Mr Baird said he was "shocked" by Mr O'Farrell's resignation, given that he had done "an amazing job".

Ministerial staff are on notice that there is likely to be a major reshuffle whoever takes over.

The deputy Liberal leader's position may also be on the line.

Shadow treasurer Mike Daley says the Labor Party does not have a preference for who becomes the next NSW premier.

"The Opposition has a job to do to keep this government to account and we'll do that regardless of who's elected," he said.

O'Farrell tells ICAC note has not jogged his memory

Mr O'Farrell was recalled to ICAC on Wednesday afternoon to address the handwritten note and clarify what he told the inquiry on Tuesday.

He said that he still could not recall receiving the bottle, even after reading the note, which he confirmed was in his handwriting.

Mr O'Farrell said he does not remember taking possession of the bottle of Grange, which had a vintage dated from his birthday - May 24, 1959 - nor what had happened to it.

Courier documents were tendered to ICAC on Wednesday showing that the Grange turned up at Mr O'Farrell's home on April 20, 2011, and was left at the door as directed, but the Premier said that still did not jog his memory.

He apologised for misleading the inquiry in evidence on Tuesday.

Mr Di Girolamo also appeared before ICAC in the afternoon and denied leaking information about the bottle of wine to the media.

Counsel assisting the commission asked him how a Daily Telegraph journalist came to know about the wine before the commission did.

Mr Di Girolamo said he had only told his wife about the purchase.

ICAC alleges AWH lobbied Mr O'Farrell over an agreement with the state-owned Sydney Water to roll out water infrastructure.

AWH, linked to the family of disgraced former MP Eddie Obeid, is accused of corruptly billing Sydney Water for expenses and using the money for political donations, executive salaries and various other expenses.

On Tuesday, Mr Di Girolamo told the inquiry he sent Mr O'Farrell the wine in 2011 to congratulate him after his election win.

Abbott praises act of 'integrity' and 'honour'

Prime Minister Tony Abbott said Mr O'Farrell had demonstrated "integrity" by resigning over what he said was an innocent and inadvertent misleading of ICAC.

"We are seeing an act of integrity, an act of honour, the like of which we have rarely seen in Australian politics," he said.

"I admire him tremendously for this, although I deeply regret the necessity for it."

The Prime Minister said Mr O'Farrell's apparent memory lapse was understandable.

"If you're in public life, you meet lots of people; from time to time people give you things," he said.

"They might give you ties, they might give you pens, a bottle of wine and, sure, a bottle of Grange is pretty special, no doubt about that, but given that premiers and other senior politicians have very crowded, busy lives, I don't think it's reasonable to expect everything from some years ago to be front of mind."

NSW Education Minister Adrian Piccoli says he is shocked by the announcement, adding that the focus of ICAC should be disgraced former MP Eddie Obeid.

"Barry has to be one of the most honest and decent people I've ever met," he said.

"So we lose one of the best premiers we've had, over a $3,000 bottle of wine."

However, NSW Opposition Leader John Robertson said Wednesday's events were not "about a bottle of wine" but about how the NSW Liberal Government operates.

"We've seen a Liberal Government in NSW that has allowed donors and lobbyists to reach into the heart of public administration in this state," he said.

Profile: Barry O'Farrell Born in Melbourne in 1959.

His father's Army career meant the family moved around Australia, and he completed his education at St Johns College in Darwin.

Graduated from the Australian National University in Canberra with a Bachelor of Arts

Joined the Liberal Party in 1980

Worked for several federal and state Liberal politicians in the 1980-90s, including then federal Opposition Leader John Howard (1985)

Served as NSW state director of the Liberal Party in the 1990s

Elected to the NSW Parliament in 1995 in the seat of Northcott

Moved to the equally safe Sydney north shore seat of Ku-ring-gai in 1999 because of an electoral redistribution.

Elected NSW Opposition leader in April 2007, after challenging the incumbent Liberal leader Peter Debnam.

His rise to power coincided with his efforts to bring his weight under control. In 2003, he lost 40 kilograms.

Under his leadership, the Liberal Party won large swings in by-elections, including in the Labor strongholds of western Sydney.

Elected NSW Premier in the 2011 state election, thanks to the largest swing in any Australian general election since World War II.

He was sworn into office on March 28, 2011.

In office, he oversaw the creation of Infrastructure NSW; the capping of public servant wage rises to 2.5 per cent a year; and funding deals with the previous federal Labor government covering the National Disability Insurance Scheme and the Gonski national education reforms.

He has also stated his support for gay marriage.

Topics: government-and-politics, corruption, activism-and-lobbying, states-and-territories, nsw

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