NSW premier Barry O'Farrell has just resigned over evidence he gave to the Independent Commission Against Corruption regarding a $3,000 bottle of wine. Follow it live ...
3.44pm AEST
My colleague Michael Safi is in Icac today and makes a salient point - O'Farrell is not suspected of acting corruptly. He writes:
The kerfuffle around this bottle of wine has done nothing to change the view of counsel assisting, Geoffrey Watson, SC, that Barry O'Farrell has not acted corruptly in his dealings with Australian Water Holdings.
"It's not been put to you by counsel assisting that you have acted in a corrupt way or given Australian Water Holdings any advantage. That's not been suggested to you," O'Farrell's lawyer, John Agius, SC, told the premier..
"It will not be suggested either," Watson interrupted.
"I'm indebted for that," Agius said.
3.33pm AEST
After Greiner's resignation, John Fahey took the premiership and was left with steering the ship for the rest of a very long fixed term until the 1995 election. It was a government that had all the difficulties that we saw in Julia Gillard's last term. Every mistake amplified, every step painstakingly negotiated. The bottom line was was Greiner's resignation - albeit based on a flawed finding - was the first crack in foundation. No more was that government considered a change in NSW culture, a new broom, a breath of fresh air. Whatever you want to call it. And with the Eight by Five slush fund Icac inquiry due to start at the end of this month, whoever wins the Liberal premiership will have to face similar issues.
Thanks for staying with me. Bridie Jabour is now taking over the blog.
3.16pm AEST
Let's do a little ancient history.
So long in the tooth am I, that I was covering NSW politics in the early 1990s when former Liberal premier Nick Greiner found himself in a hung parliament. He had won in a landslide in 1988 on a campaign to clean up NSW. As graduate of Harvard Business School, he set about attacking reforms like the economist he was. He was his own treasurer, which is pretty unusual in government terms. A little like John Hewson, he assumed everyone could see the sense in what he was doing.
Oh look, I think the circumstances are very different. I mean, in my case the ICAC actually wrote a report, made, I think objectively, a complete botch of it and the Supreme Court said that they'd made a botch of it. I think Barry's judgement is a very different matter. It's a political judgement. He gave some clear, very clear evidence yesterday which has shown to be wrong. I think - and he's a better political operator than I ever was - I think his judgement was that it was politically unsustainable. It wasn't about the bottle of wine and did he or didn't he. I don't think you can be shown to categorically misled ICAC, and then indeed the public, and then continue. So I think his judgement was political rather than, in a sense, going to substance of an ICAC finding, and indeed ICAC has said I think they're not seeking to make any adverse finding against him. So I think the circumstances are different.
2.44pm AEST
The Duke and Duchess of Cambridge - aka Kate and Wills - have just stepped off the plane. O'Farrell is not there. President of the Legislative Council, Don Harwin, has stepped in.
2.28pm AEST
There is a Mike for Premier twitter account, with two followers, well three after we followed him.
By the end of 2013, the NSW economy recorded the strongest annual demand growth of all the states for two consecutive quarters #nswpol
2.23pm AEST
As we take stock of the day, here is something worth remembering. Eddie Obeid has appeared at seven Icac hearings. He has been found to have acted corruptly, which caused such headaches for federal Labor at the beginning of the election campaign last year. This round up from Bridie Jabour last July.
The independent corruption watchdog has recommended that the former New South Wales Labor party powerbroker Eddie Obeid and former state energy minister Ian Macdonald be referred to prosecutors to consider criminal charges after it found they had acted corruptly. The Independent Commission Against Corruption (Icac) handed down its findings on Wednesday in three separate inquiries which examined corruption in the former NSW Labor government.
2.10pm AEST
More from Michael Safi down at Icac:
O'Farrell left the building via a private elevator, while outside Icac, small crowds had assembled hoping to catch a glimpse of the premier leaving the building.
2.06pm AEST
More good stuff from David Marr:
He was a big fan of Icac. He told me during the 2011 campaign that he
worried politicians didnt fear the commission enough:
We should be worried as we sign something or make a phone call even when we are being ethical that if I dont do this right I can be pinged.
2.04pm AEST
Barry OFarrell is not a bad man. But the politics of New South Wales are squalid. Not for the first time, a capable Liberal leader has been brought undone by the Independent Commission Against Corruption. The last was Nick Greiner a decade ago. What distinguishes the OFarrell disaster from any other before Icac is the oddly upmarket cause of his doom: a bottle of Grange.
1.59pm AEST
Twitter histories can be so dangerous...
@gabriellechan glass houses etc pic.twitter.com/KLeliBDojI
1.51pm AEST
Former Labor premier Bob Carr is saying that Icac is doing it job, notwithstanding his sympathy for O'Farrell.
He says he has forgotten what gifts were declared on his pecuniary interests register but suggested you declare everything unless it is well below the threshhold.
I wish he and Rosemary all the luck in the world...They should know there is much to enjoy in life even if you have been forced out because of circumstances.
It is debauched ethos of mateship and factional solidarity linked to fundraising on both sides.
My god, you have to have them when you appear in Icac.
1.27pm AEST
Labor leader John Robertson is holding a press conference.
Today is an insight into how the Liberal Party operates in government.
1.09pm AEST
Here are the specific questions to Abbott which got up his nose.
Q: Prime Minister, do you trust this government the state government which is proving to be corrupt, to deliver your major infrastructure plans?
That, if I may say so, is an entirely unjustified smear. Let me not mince my words, madam, an entirely unjustified smear and frankly, I think you should withdraw that and apologise because there is no evidence whatsoever for that. Can you please tell me what your evidence for that is?
No, please, Ive asked what the evidence for that statement was and none has been forthcoming.
Ok, well without wanting to get into an argument with the media, what you have just said is very different from the accusation, the statement, that you earlier made and we need to have decent standards in this country. We need to have decent standards from the media, if I may say so, as well as decent standards from politicians. Now, Ive asked for questions on Badgerys Creek, we will get onto the other subject. But on Badgerys Creek and today's road announcement, yes, I have absolute confidence that this is a rock solid partnership between the Commonwealth and the New South Wales Government and we will deliver. These roads will be built and because the detailed design work has already been done on the Bringelly Road upgrade, I am confident that work will start on that well before the end of the year.
1.05pm AEST
Here are some of the questions to Abbott on O'Farrell's resignation.
Why are you so confident that he inadvertently misled the ICAC yesterday and would you remember drinking a bottle of Grange from your birth year?
I don't believe I ever have drunk a bottle of Grange from my birth year.
Look, I can't be sure, but I don't believe that I ever have. This is the thing if you're in public life, you meet lots of people. From time to time people give you things. They might give you ties, they might give you pens, they might give you 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 its reasonable to expect everything from some years ago to be front of mind."
12.59pm AEST
In Icac, the premier, who will step down next week, said that he had forgotten about the gift in the tumult that followed his election win in March 2011.
A death in the family played a part, he said. He added that coming to office was an interesting and extraordinary circumstance, and that his office was overwhelmed with the volume of work that victory brings.
12.58pm AEST
The Gladys for Premier Facebook page has begun with 63 likes at this point. The transport minister was O'Farrell's favourite minister.
12.52pm AEST
Watson pressed O'Farrell on the enduring mystery of what became of the bottle of wine that has sensationally brought down the NSW premier.
"Have you got any idea what could have happened to the wine?" he asked
"No," O'Farrell replied.
"It would be a very unusual bottle to open over a spag bol on a Friday night, you'd agree," Watson said.
"I cannot speculate," O'Farrell replied.
12.51pm AEST
Remember yesterday the commission was presented evidence by Direct Couriers, the company who delivered the wine, that the 1959 bottle of Penfolds Grange had been delivered to O'Farrell's unattended Roseville home on 20 April, and was left on the porch.
12.50pm AEST
OFarrell said the early days of his government were frantic and he was sent a number of gifts and cards.
It was an avalanche of letters and emails and one or two small gifts, including smaller value bottles of wine, he said.
12.49pm AEST
Nonetheless, O'Farrell maintained that the wine had done nothing to sway his treatment of Australian Water Holdings and the public-private partnership it sought.
The fact is that the records show that dealing with AWH were done appropriately, done on the basis of departmental advice, OFarrell said.
12.49pm AEST
In Icac a chastened O'Farrell, far from the man who on Wednesday joked with Watson and regaled the room with the details of his rigorous gym schedule, apologised to the commission.
I am sorry commissioner that info I gave to this commission yesterday has proven to be inaccurate.
12.47pm AEST
From Michael Safi in Icac:
I certainly tried to give accurate evidence the best of my recollection, OFarrell said.
12.46pm AEST
Nick Greiner is asked, given its only managed to claim two Liberal scalps, do you ever regret setting up the Icac?
No I don't. I understand when these things happen, people argue about the particular behaviours. Are the public hearings necessary? Are they show trials more inclined to be trying to change public ideas... I think practically every state now has a version of Icac so I have no regrets about it. Sometimes Icac makes mistakes. Icac has flesh and blood lawyers working there. Sometimes they make errors of judgement but I don't think you should throw the baby out with the bathwater. It think it is clear the institution is important.
12.39pm AEST
Barry O'Farrell is reportedly still greeting the royals, Kate and William when they arrive this afternoon.
12.33pm AEST
Nick Greiner is on the ABC saying O'Farrell has "behaved properly and honourably".
It's clearly not a plus for the Liberal Party...There are good candidates, the Labor party in NSW is beyond help and in March next year, whoever the premier is will get re-elected.
12.26pm AEST
12.23pm AEST
Barry O'Farrell is in the witness box. He has against suggested Australian Water Holdings got no favours from his government. AWH did sign a contract with Sydney Water but O'Farrell said it was done at arms length from government.
Remember Australia Water Holdings is being investigated by Icac for billing taxpayer-owned Sydney Water while it was carrying out water and sewage contracts around Sydney. Eddie Obeid was an investor, a fact Liberal senator Arthur Sinodonis has said he did not know when he signed up as a director of AWH.
12.16pm AEST
From Bridie Jabour:
Barry OFarrell has cut himself out of future entitlements as a former premier having introduced reforms that do not award perks unless a New South Wales premier has served for five years.
12.14pm AEST
All this is a nightmare for the NSW Liberal Party, which still has not appointed a state director since Mark Needham resigned last November.
Apparently there is not a long list of candidates...
12.02pm AEST
If NSW treasurer Mike Baird and the member for Manly takes the premiership, he is considered free from factional taints and is considered most likely to reduce the influence of lobbyists in the NSW Liberal Party.
His electorate crosses over with the prime minister's electorate of Warringah and they are surfing buddies apparently. We may well have Manly ruling in NSW and nationally.
11.55am AEST
Barry O'Farrell's whole career has been devoted to becoming premier. Just like Arthur Sinodinos devoted his career to a life in politics, first as John Howard's chief of staff and then as a senator. Both careers are now effectively over.
11.52am AEST
Barry O'Farrell has been called back to Icac right now to give further evidence.
11.52am AEST
Here is just a small taste of the influence of lobbyists in the NSW Liberal branch, notwithstanding Tony Abbott's move in his first Cabinet meeting to remove so-called third party lobbyists from the Liberal Party.
11.49am AEST
More Ross Cameron encapsulated the influence of lobbyists on Sky:
Ordinary people look at it and ask how different is the Liberal party from the Labor party of Eddie Obeid...I am not saying there is an equivalence, but it forces us to answer this question, but the Liberal party in NSW in particular...has question about the influence of lobbyists.
11.46am AEST
The irony of course is that the Liberals came to power because NSW Labor was so on the nose with voters. The most consistently sensational evidence from Icac has been around former Labor member Eddie Obeid and the influence he wielded in the NSW Labor government to feather his own nest. But when the government changed, that NSW disease began to infect the NSW Liberal Party and Obeid joined Liberal Party lobbyists to hitch his wagon to the O'Farrell government.
O'Farrell came up to the leadership of the NSW parliamentary party through his position of state director of the organisation. He knew the faction system intimately and was considered a centre candidate, walking the line through the right and the left.
11.35am AEST
More in Barry O'Farrell's words:
Firstly the evidence I gave to Icac yesterday was evidence to the best of my knowledge, I believed it to be truthful.
It's important that citizens deal with the police, deal with the courts and deal with watchdogs like Icac in a truthful fashion.
11.21am AEST
Barry O'Farrell and his wife Rosemary were due to join Tony Abbott to meet the royals this afternoon.
Twitter wit begins:
There's your headline: RT " @mattjpwns WALKING THE PLONK"
11.16am AEST
More from Lenore Taylor:
In public life you meet people, and from time to time they give you things, they might give you ties, they might give you pens...sure a bottle of grange is pretty special.
11.14am AEST
11.06am AEST
Remember Icac is responsible for the downfall of a previous premier, also Liberal, and also ironically considered as a bit of a clean skin. That would be Nick Greiner. More on the history shortly.
11.05am AEST
From Bridie Jabour:
Who will be the next premier of New South Wales?
11.03am AEST
O'Farrell's announcement came as a complete shock to everyone, even his most senior ministers, including the premier's likely successor and treasurer Mike Baird. Baird's staff said they were in shock.
11.02am AEST
Abbott was speaking at a press conference at which he was supposed to jointly announce the federal-state package of infrastructure to support the Badgerys Creek airport, with Barry O'Farrell.
10.59am AEST
From Lenore Taylor:
Tony Abbott praised Barry OFarrell saying the premier had innocently, inadvertently misled Icac and had taken the utterly honourable step of resigning as premier.
10.57am AEST
Barry O'Farrell has just resigned over his evidence to Icac, in which he said he did not receive a gift of a 1959 bottle of Penfolds Grange Hermitage from the head of Australian Water Holdings, Nick Di Girolamo. This morning the Icac has been a shown a note in which he thanked Di Girolamo for the bottle of wine.
I cant recall or explain what happened.
I do accept that there is a thank you note signed by me and as someone who believes in accountability and responsibility, I accept the consequences of my actions.
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