Premier Mike Baird is likely to be formally called to front a parliamentary inquiry into his contentious power privatisation plan, at which MPs plan to grill him over why an expert report on the proposal was altered following a phone call from his office.
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Mr Baird on Sunday refused to say if he would appear before the proposed inquiry, the findings of which will determine whether Fred Nile's Christian Democratic Party supports the government's signature re-election policy: part leasing the state's electricity "poles and wires". The government needs the CDP's votes to pass the plan through Parliament.
Reverend Nile would chair the inquiry's select committee, which has been expanded to nine members following complaints by the Greens that they had been excluded.
Four government MPs would sit on the proposed committee. Reverend Nile could form a majority with Labor, the Greens and the Shooters and Fishers Party – all of whom want Mr Baird to give evidence at the inquiry, including in relation to advice provided to the government by investment bank UBS.
During the election campaign. Mr Baird's office was accused of interfering in a UBS report that said the power transaction would be "bad for the budget".
After a phone call from the Premier's staff, UBS released a new version of the report more favourable to the government. The government and the bank insist the decision was made independently.
Reverend Nile said Mr Baird should front the inquiry in person.
"We can't force cabinet ministers to attend but I'm sure he can present the case for leasing the poles and wires, it would be his big opportunity," he said
"I think it's important to hear from him firsthand ... he's the architect of the whole thing and he should present his case to the committee."
Labor MP Adam Searle said Mr Baird should "absolutely" be asked about his office's dealings with UBS over the report, and Shooters and Fishers MP Robert Borsak said Mr Baird had "questions to answer" on the issue.
Asked if he would appear if invited, a spokeswoman for Mr Baird said "we deal with requests from parliamentary committees as they are received".
Meantime, the Australian Securities and Investments Commission has interviewed UBS Australia chief executive Matthew Grounds, and the firm's analyst David Leitch, after the report Mr Leitch co-authored was watered down.
ASIC said it would investigate UBS's decision to change its research report after the state opposition lodged a formal complaint.
It is understood that in the past fortnight, the corporate regulator has requested telephone records and emails, and also interviewed other UBS employees. Andrew Lilley, who co-authored the report, is likely to have been called, as is head of investment banking Guy Fowler and head of research Chris Williams.
Sources said ASIC's investigation has not involved anyone from the NSW Treasury or Mr Baird's office but instead focused solely on UBS. ASIC and UBS both declined to comment.
As one of the government's principal advisers, UBS is likely to make $10 million to $20 million from the sale.
ASIC is focused on whether UBS's investment banking division contacted the analysts to change the report, which could constitute a breach of the Corporations Act.
