Get all your news in one place.
100’s of premium titles.
One app.
Start reading
ABC News
ABC News
Business

'Some of them just come here and relax': The $600,000 NSW job few knew about, until now

They're not used to the spotlight. 

But, the controversy surrounding former NSW deputy premier John Barilaro's appointment to, and subsequent withdrawal from, a highly paid New York trade job changed all that. 

Now, NSW's suite of overseas trade roles is under scrutiny, and could be scrapped after the looming state election. 

So what do NSW's six representatives to the world actually do? And, do the lucrative positions represent any value for money?

Yesterday was the first time the public got any indication of what the London-based Agent-General Stephen Cartwright, who is on a $600,000 salary, has achieved. 

Investment NSW managing director Kylie Bell told a budget estimates hearing at Macquarie Street Mr Cartwright hadn't closed any investment deals in the six months he had been in London. 

However, she said he had 12 businesses in the "pipeline" and had helped five NSW companies make export sales. 

"In the last 12 months the focus has very much been focused on exports [because] with borders closed, attracting international investment has been quite difficult," Ms Bell told estimates.

On top of the Agent-General, there are five Senior Trade and Investment Commissioners (STICS) representing NSW in the Americas, India and the Middle East, Greater China, North Asia and South-East Asia. 

The STICs all earn about $500,000 a year — that's more than the Premier, who earns about $416,000. 

Ms Bell told budget estimates she would provide breakdowns of what each of those STICS had achieved in the next 21 days. 

Neither Ms Bell or the Department of Enterprise have explained what the Key Performance Indicators (KPIs) are for these lucrative roles.

The ABC also asked the department for specific examples of trade or investment pathways opened up by the STICs but none were provided by deadline.

The STICs were created by former premier Gladys Berejiklian in 2019 as part of a Global NSW strategy that aims to double the value of NSW's exports from $96 billion to $200 billion by 2031. 

The STICs are in addition to trade and investment directors, regional business managers and federal government Austrade staff. 

The announcement came after concerns NSW was underdone in the global trade sphere. 

Apart from Tasmania, NSW was the only state without a UK-based Agent-General at the time. 

While Victoria had more than 100 trade and investment officials offshore, NSW had just 20, according to NSW Trade Minister Alister Henskens. 

Queensland still outnumbers NSW, with 12 trade commissioners across the world — the highest of any state and territory. 

Mr Henskens said this meant NSW had to step things up. 

"New South Wales has the most diverse, dynamic economy in our nation. We cannot allow the other states to be outplaying us offshore and it's important we have senior leadership in these offshore offices," he told budget estimates yesterday. 

"I think it's very important, given that one in five jobs in NSW is off the back of international trade to ensure that we have an appropriate international presence to advance the economic interests of NSW." 

George Brandis, who finished up as Australia's High Commissioner to the UK in April, said NSW could lose out on big money without these postings.

"Particularly for example when we're talking about very big defence contracts that could be coming down the pipelines, there's intense competition amongst the states for those big contracts," he said. 

He says it's particularly important to have an Agent-General in a "protocol conscious" region like the UK as they are granted greater access than a standard trade commissioner. 

"Part of this role is elevating the profile of your state in a competitive and busy market like London." 

His predecessor, Alexander Downer, believes the STICS "probably" do a useful job but what they deliver for the state depends on the person in each region. 

"Some of them just come here and relax," he said. 

"The challenge for them is to network with people and some are very good at that and some are absolutely hopeless." 

He said a good commissioner would be spruiking the advantages of investing in NSW to private equity firms and hedge fund managers while also helping NSW businesses with trade connections. 

"Your average Hunter Valley winery could do well overseas but how would they find the distributors and importers for their wine? That's where a trade commissioner could be a help." 

Although the Northern Territory saves money by having its three trade commissioners based on Australian soil, Mr Downer doesn't think the fly-in fly-out approach would work for NSW. 

A total of $128 million (over four years to 2025) has been dedicated to the Global NSW strategy, with budgets of around $3 million and $4 million allocated for each office last financial year. 

The New York office, which Mr Barilaro was bound for before withdrawing from the posting in June, cost $905,000 to fit out and has a $130,000 annual lease. 

For Mr Cartwright in London, taxpayers are forking out $101,000 for his rent (in place of a cost of living fund) and covering his fringe benefits tax of about $100,000 per year. 

No other STICs are having their rent paid, but Mr Henskens says Queensland and Western Australia do the same for their UK Agent-Generals. 

"It's important we meet the market and attract the right talent," Mr Henskens told budget estimates. 

While Queensland's 12 trade commissioners are on average salaries of $240,000, the salaries for their UK Agent-General and China commissioner are kept confidential. 

A spokesperson for Queensland's Trade Minister gave many examples of how commissioners had delivered results. 

For example, commissioners in Singapore, UK and New Zealand helped a Cairns banana company expand overseas, the Indian commissioner helped put Queensland wine in an Indian hotel chain, and the Hong Kong commissioner convinced a biotech company to stay in Queensland instead of moving to Victoria. 

Processes are again different in South Australia, which employs market representatives rather than trade commissioners, who have facilitated 170 successful trade outcomes, providing an extra $450 million of investment into SA. 

The Middle East and North Africa team recently assisted a South Australian medical device company to win a distribution partnership worth an estimated $8 million, a spokesperson said. 

In Victoria, there are five commissioners and one Agent-General, Tasmania has four "trade advocates" and Western Australia has four commissioners and one Agent-General. 

Former Labor federal foreign minister and NSW premier Bob Carr says the NSW approach of having STICs is "naive". 

"These are just representational posts … they give stump speeches then spend the rest of their time going to social gatherings, shaking hands and exchanging cards.

"I'm just angry with how much taxpayers' money is being blown away on this naive approach." 

Mr Carr believes the same trade outcomes would come from flying in and out. 

"Having an office in New York to do the rounds every year to go to them and say' do you have any plans for expansion'?

"Forget it, they're aware we exist, they are aware we are an option." 

NSW Labor has pledged to abolish all the STICs if it wins the state election next March. 

Opposition Leader Chris Minns said the jobs don't "pass the pub test" and the state could not afford to keep paying the salaries. 

However, a vote for the Coalition government will be a vote to keep these jobs.

"The missions will continue to be in place because they are fulfilling an important role," Mr Henskens said. 

Sign up to read this article
Read news from 100’s of titles, curated specifically for you.
Already a member? Sign in here
Related Stories
Top stories on inkl right now
One subscription that gives you access to news from hundreds of sites
Already a member? Sign in here
Our Picks
Fourteen days free
Download the app
One app. One membership.
100+ trusted global sources.