The Opposition has called on the Prime Minister to sack assistant minister for manufacturing Senator Tim Ayres over the appointment of his former colleague to two government board positions in the Industry portfolio set to pay more than $300,000.
Mr Ayres has denied there was a conflict of interest and insisted Cabinet processes were followed for the appointment of his manufacturing union colleague Glenn Thompson to the National Reconstruction Fund (NRF) board and Rail Industry Innovation Council last year.
The assistant minister was backed by the head of the Industry department, who said there was no clear evidence of a conflict.
Mr Thompson, who is the Australian Manufacturing Workers’ Union assistant national secretary, was a late addition to the NRF board in October, when it had already been operating for a month. Its other members had been appointed more than two months earlier.
NRF board members receive $63,690 annually. Appointments are the responsibility of Industry and Science minister Ed Husic and Finance minister Katy Gallagher, but need the sign off of federal Cabinet. Mr Ayres is in the outer ministry.
Under repeated questioning at Senate Estimates on Thursday, Mr Ayres declined to say if he had discussed the appointment of Mr Thompson to the NRF board with other ministers, but insisted the Cabinet process had been followed.
Mr Husic was also responsible for the carriage through Cabinet of Mr Thompson\’s appointment to the Rail Industry Innovation Council last year, having received recommendations from the Industry department.
But Industry officials have confirmed that Mr Ayres had been involved in the preparation of potential candidates. He is responsible for the Albanese government’s domestic rail manufacturing revival agenda.
Mr Thompson will be paid $11,980 for this board position.
Mr Ayres confirmed he has known Mr Thompson for a “long time” and has worked with him. He also served as an alternate director for Mr Thompson on the CBUS Board in 2008. Mr Ayres said he did not accept director fees for the role but may have received superannuation benefits.
No conflicts of interest were declared to the Industry department about the rail council appointment by Mr Ayres or Mr Husic.
Mr Ayres on Thursday said “there is no relationship between any of these events. There is no possible conflict.”
Industry secretary Meghan Quinn said she was confident about the appointment process.
“On the basis of the evidence before me and the process that was undertaken, it’s not clear to me that there was a conflict of interest she said on Thursday evening.
The Coalition has seized on the alleged conflict, demanding that Mr Ayres, who is subject to the ministerial code, step down.
A joint media release from shadow Industry minister Sussan Ley and Coalition senator Hollie Hughes said “it appears Senator Ayres has returned the favour and played an instrumental role in the appointment of Thompson to two plum government postings within his portfolio”.
“There is a conflict of interest here and yet Minister Ayres has confirmed he did not declare any conflicts of interest in the appointments of Mr Thompson,” the statement said.
“On face value, this is a clear breach of the Ministerial Standards and Assistant Minister Ayres should be sacked by the Prime Minister.”
