In June it emerged former-deputy premier John Barilaro was appointed to a $500,000 tax-payer position in New York, just weeks after resigning.

An ongoing parliamentary inquiry suggests this role was initially offered to a senior civil servant, before being withdrawn and given to Mr Barilaro.

"It's just demonstrative of the nepotism and cronyism that exists at the higher levels of government - especially this government," Mr Donato said.

"Jobs for your mates, jobs for the boys ... Unfortunately positions are not being filled on merit, they're being filled on who you know."

The inquiry suggests deputy Liberal leader Stuart Ayres may have been central to the intervention, and this morning the minister fell on his sword.

Mr Donato welcomed the resignation. "Clearly [Mr Ayres] has got his fingerprints all over this, despite what he is claiming," he said.

"This is something that he has interfered with ... mislead the Parliament in question time, but more importantly misled the public.

"[The public servant] had been selected fairly and squarely through an independent selection process and then the rules seem to have changed.

"[Mr Barilaro] wasn't the best candidate ... had it not been for the involvement of Minister Ayres, he wouldn't have got selected for the job."

To read more stories, download the Central Western Daily news app in the Apple Store or Google Play.