(Transcript from World News Radio)
Mike Baird has been sworn in as the 44th Premier of New South Wales, becoming the sixth person to take the office in around nine years following the shock resignation of Barry O'Farrell.
Transport Minister Gladys Berejiklian has taken on the deputy leadership after her competition dropped out of the race.
Thea Cowie reports.
Ever since he was elected as the member for Manly in 2007, Mike Baird has been tipped to lead New South Wales.
News that makes sense
Your trusted source for staying up-to-date with the world around you. Get free daily news updates and analysis, straight to your inbox.
And shortly after his seventh political anniversary, that prediction has come to pass with Mr Baird elected unopposed.
"Firstly can I say, it is an honour to lead New South Wales. And the Liberal Party in this State. It is a privilege, and it is something I take with deep humility and respect. Listen, much has been said in recent days about integrity in government and I say this, Barry O'Farrell is a man of integrity. The Liberals and national Government is a Government of integrity."
The 45-year-old former banking executive, surfing buddy of Prime Minister Tony Abbott, and one-time would-be Anglican minister takes over from Barry O'Farrell.
Mr O'Farrell stood down after giving misleading evidence to the Independent Commission Against Corruption about a $3000 bottle of wine.
In an apparent attempt to avoid a damaging ballot and preserve Liberal unity, Mr Baird and Ms Berejiklian elected to go to the party room on a joint ticket.
Ms Berejiklian says party is beginning under Mr Baird's leadership as it plans to continue.
"This is today a sign that we will continue as a party to have the unity, discipline and focus that got us to Government, that allowed us to rebuild this State and will allow us to work forward. The people of New South Wales are crying out for us to continue that legacy, and today is a new generation and under Mike's leadership, we will do that."
Earlier Health Minister Jillian Skinner earlier stepped down from the deputy leadership role, saying she was hoping for a "seamless transition" and Community Services Minister Pru Goward pulled out of the race hours before the party room meeting.
One of the Premier's toughest tasks will be maintaining factional harmony and ensuring the government maintains a united front ahead of next year's election.
Former state political editor with the Sun Herald, Alex Mitchell, says that's something Mr O'Farrell excelled at.
"The Liberal Party in New South Wales is chronically divided between so-called wets - that's the so-called left, the middle, and the right. The problem for the Liberal Party is always how do you control those hidden factions and get them united? And so it opens, potentially, a can of worms. The first job will be unity - unity within the Liberal Party and unity with the Nationals. And that's one thing Barry O'Farrell did - he kept that coalition front and centre of his politics."
Premier Baird is already facing renewed questioning over his relationship with Australian Water Holdings chief executive Nick Di Girolamo who gifted Barry O'Farrell the bottle of wine which led to his resignation as Premier.
"This will be my last sort of answer on this: as a Treasurer I'm on public record on how often I have met with him - there's two meetings that I have had, and it is on public record. So if you are saying to me, am I going to take decisions in the interests of the state, that is exactly what I'm going to do. I'm interested in good policy, in the interests of the communities, I have been given the privilege today of representing, and that's the end of the story."
But the newly sworn-in Premier acknowledges there is community concern about fund raising, donations and lobbyists which the government will seek to address.
The change in leadership is also expected to see a change in the government's legislative agenda.
Mr Baird is a strong advocate of privatising the state's assets and outsourcing.
Labor Opposition leader John Robertson is already on the attack.
"As Treasurer, Mike Baird unleashed a wave of privatisation. We saw our ports privatised, we have seen electricity generators privatised, we have seen our water assets privatised by Mike Baird. And, most recently, we saw his attempts to privatise Macquarie Generation, despite the ACCC saying the sale of Macquarie Generation to AGL would push prices up for customers, Mike Baird chose to proceed anyway. And now, the Liberals are proposing to remove price controls from electricity retailers."
A Cabinet reshuffle is expected shortly after Easter, with most of the front bench expected to change.
Premier Baird says Barry O'Farrell intends to stay on as the member for Ku-ring-gai.
But one thing that will stay the same is the Deputy Premiership.
Nationals leader Andrew Stoner will retain the position under the Coalition agreement and has welcomed Mr Baird's elevation, praising the Treasurer for delivering 13-billion dollars worth of regional infrastructure.
Meanwhile, Barry O'Farrell's resignation could have political ramifications well beyond the state's boundaries.
There are now questions about the future of former federal government front-bencher Arthur Sinodinos who's stood aside as Assistant Tresurer while the ICAC investigates his role as chairman of Australian Water Holdings.
Director of the Transnational Research Institute on Corruption at the Australian National University, Dr Adam Graycar says when it comes to the prospect of Senator Sinodinos returning to the frontbench, the stakes are high.
"If it's found that Arthur Sinodinos has been lacking in integrity and in good judgement then the Prime Minister shouldn't have him back. We want our ministers to be exemplars. If Arthur Sinodinos is to return to the frontbench on would expect that he would have a better understanding of the processes that he's involved with, he shouldn't hand around with people that are of dubious character and he should pay a bit more attention to detail."

