Investment NSW CEO and Department of Enterprise, Investment and Trade (DEIT) Secretary Amy Brown has told a parliamentary inquiry she was influenced "to a degree" by proposed changes to the hiring process, which made the role a ministerial appointment.
"I thought it prudent to have a degree of confidence that appointees will be capable of transitioning into a ministerial appointment regime if the change was eventually implemented," she said on Wednesday.
"In my view, it did not amount to undue influence because at all times I felt that the decision was mine," Ms Brown told the upper house inquiry.
Premier Dominic Perrottet announced on Wednesday Trade Minister Stuart Ayres had resigned his ministry and Liberal deputy leader positions, following a draft of the government's review into how Mr Barilaro got the New York-based job.
"The issues in the review go directly to the engagement of Mr Ayres with a department secretary in respect to the recruitment process," Mr Perrottet said.
"It raises questions in respect to the ministerial code of conduct."
Mr Ayres does not believe he has breached the ministerial code of conduct.
"However, I agree it is important that this matter is investigated appropriately and support the premier's decision to do so," he said in a statement.
An October 2021 email from Ms Brown's office, tabled at the inquiry and dated a week after Mr Ayres took over from Mr Barilaro as trade minister, said he had indicated he wanted the New York role left vacant "for now".
"It seems as though that was a minister's decision," Labor committee member Daniel Mookhey said.
"It was my decision but it very much took into account the views of the minister," Ms Brown replied.
She began her evidence by saying she was distressed that previous evidence she had given to the inquiry in private had been leaked to the media, adding "it was a serious breach of trust".
"That evidence was sensitive and my intention was to protect the professional reputation of the individuals discussed," Ms Brown said.
She repeated some of her leaked evidence regarding senior Investment NSW staffer Jenny West, saying she had been dumped as a candidate after reaching the late stages of the recruitment process due to "performance issues" Ms Brown believed would make her unsuitable for an overseas posting.
Government members on the committee questioned whether Ms West may have had an advantage in her application as she was involved in the recruitment process through her role in Investment NSW.
Ms Brown denied using the word "present" to describe the role in a conversation when she told Ms West the job was no longer hers.
"That's not accurate," she said.
She said she phoned Ms West "with my friend hat on".
"I was trying to make her feel better.
"I would have expressed a level of disillusionment around the fact that these positions were now to be handed out by politicians," Ms Brown said.
"I question the accuracy of her file noting and I also have a particular taste in my mouth around the fact that she file notes (on) people after personal conversations and sends it to lawyers that I didn't know she'd engaged," Ms Brown said.
The department's general counsel Chris Carr previously told the inquiry he would not have used the word "horrified" to describe her situation in another conversation Ms West took a file note of and revealed to the inquiry.
Ms Brown was asked whether it appeared Ms West's recollections had been inaccurate.
"There's a theme," she said.
Mr Barilaro later stood down from the job, saying it had become untenable.
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