A public inquiry will investigate the controversial appointment of a former Labor staffer to lead Australia's largest transport body.
But the ghost of former NSW Nationals leader and deputy premier John Barilaro will loom over the probe at the behest of Labor.
The state government on Wednesday said it would support the coalition's call for a parliamentary inquiry into Josh Murray's instalment as NSW's transport department secretary.
Labor has been under fire for weeks after the coalition questioned Mr Murray's qualifications for the role, claiming it was a case of "jobs for the boys".
Documents provided to parliament this month showed Transport Minister Jo Haylen's office requested Mr Murray be interviewed for the role after recruiters declined to shortlist him.
Roads Minister John Graham agreed senior government positions should be examined in a transparent manner.
But he asked MPs to ensure any inquiry also examined the appointment of National Party secretary Emma Watts as assistant NSW cross-border commissioner under Mr Barilaro's watch.
"If there's nothing to hide, let's examine these appointments," Mr Graham said.
But if Labor really had nothing to hide about Mr Murray, it wouldn't muddy the waters, opposition transport spokeswoman Natalie Ward said.
"It would be absolute agreement ... please let us show you what we've done happily to appoint our Labor mate," she said.
The upper house inquiry into both appointments was later established with crossbench support.
It is due to report back by November 30.
Labor leaders have furiously defended the choice of Mr Murray, saying it bears no comparison to Mr Barilaro's contentious and short-lived appointment to a $500,000-a-year trade ambassador role.
Opposition Leader Mark Speakman in question time accused Labor of giving Mr Murray special treatment in the recruitment process, including by alerting him to the public advertisement for the position.
"Special treatment? It's called the internet," Ms Haylen fired back.
"My office reasonably shared an advertisement that was publicly available with highly qualified, skilled people who they wanted to apply."
She also defended the decision to fill an independent seat on one of the transport secretary recruitment panels with former Iemma government minister Verity Firth.
The University of Technology Sydney pro-vice-chancellor replaced another former Labor minister, Carmel Tebbutt, who resigned for personal reasons.
Both women were eminently qualified to assess the candidates, Ms Haylen said.
The panel shortlisted Mr Murray and senior transport public servant Benedicte Colin, leading the transport minister to choose the Laing O'Rouke corporate affairs executive.
The whole process, costing about $125,000, was not essential as ministers have the power to hire and fire departmental secretaries as required.
