Live: NSW Premier Mike Baird retires, Gladys Berejiklian to contest leadership

• 3:07pm

Greens take aim at Baird

NSW Greens MPs have issued a joint statement wishing the Premier well in retirement but condemning his decisions on biodiversity, lockout laws, greyhound racing, forced amalgamations, tree destruction, public education, privatisation and police powers. 

They took particular aim at the government's WestConnex project which has been met with widespread protests over forced aquisitions and environmental concerns. 

"The concerted community action against the Premier's dirty WestConnex tollroad certainly seems to have taken its toll on Mr Baird," they said in a statement.

"Opposition to this project is widespread and growing daily and whoever follows Baird as Premier should immediately set up an independent review to look at better options."

• 2:59pm

Why the NSW premier's departure is bad news for Malcolm Turnbull

Mike Baird has done a Steve Bracks, Malcolm Turnbull has lost a crucial ally and the Australian political landscape will be much poorer for the shock departure of the New South Wales premier. 

Baird joins the most exclusive club of Australian leaders: those who jump before their colleagues or the voters decide their time is up. The surprise is that he has done it so soon. 

No wonder South Australia's Labor Premier Jay Weatherill tweeted "say it aint so" as soon as he heard the news. Weatherill said Baird's advocacy within the Council of Australian Governments (COAG) would be a huge loss and he is dead right.

Read Michael Gordon's reasons for why the Premier's departure is bad news for the Prime Minister here. 

• 2:50pm

Skinner backs Gladys Berejiklian

NSW Health Minister Jillian Skinner has reportedly backed Treasurer Gladys Berejiklian to be the next premier of NSW. 

The veteran politician, who has been under pressure to hold onto her health portfolio in the looming reshuffle, told the Mosman Daily that she regarded herself as "a bit of a mentor for Gladys."

"I make no secret I am supporting Gladys Berejiklian, I always have done," Ms Skinner said.

"She's really got her head screwed on. She understands the importance of the economics of the state but also all of the things I'm involved in." 

Ms Skinner has also sent out a formal release welcoming new Federal Health Minister Greg Hunt since Mr Baird's resignation. 

A spokeswoman said the pair had a "commitment to work together".

• 2:32pm

The social media Premier

Poles and wires, light rail, WestConnex, they might be the signature infrastructure projects of the state's 44th Premier, but he's likely to also be remembered for his social media prowess. 

True to form, he found his way around the mainstream print and broadcast media on Thursday and straight into the social media feeds of his constituents. 

Here's a selection of a few of his other clangers or zingers, depending on which way you swing. 

Tweeting The Bachelor - a winner on most counts. 

• 2:18pm

Does Baird leave an education legacy?

NSW teachers have praised the Baird government's commitment to needs-based school funding, which often saw the Premier at loggerheads with his Liberal counterparts in Canberra. 

Mr Baird said his commitment to the Gillard Government's Gonski reforms as one of his proudest achievements during his time in office in his resignation on Thursday. 

The NSW Teachers Federation said Mr Baird should take pride in the extra resources that his government had directed towards the neediest students in the state.

"Teachers and Principals across NSW today acknowledge the fine work and legacy of Mr Baird and his Government in enabling opportunity and high standards for all school students and communities in the state stemming from their full policy commitment to Gonski funding," they said. 

While Mr Baird has earned the praise of teachers, state budget figures show that despite record total levels of school funding, the share directed to education has shrunk over the past decade. Education now makes up 21 per cent of total spending compared with 26 per cent in 2003.  

• 1:49pm

Day in review

Sean Nicholls, the Herald's state political editor, offers his thoughts on today's events from the orange carpet of Macquarie Street. (Excuse the few seconds of static at the start of this video.)

• 1:33pm

No comment

With leadership challenges in the air, just about every word out of the mouths of potential challengers is viewed as laden with significance, so too the things they do not say.

A spokesman for Planning Minister Rob Stokes has offered a 'no comment' when asked if he would be a candidate for the leadership when the party room convenes next week.

To be fair it's 2.30am where Mr Stokes is, in the United Kingdom. No response yet, too, to the same question from the office of Transport Minister Andrew Constance. 

• 1:28pm

View from the street

Andrew P Street offers a critical view of the Baird legacy. 

While the personal circumstances surrounding Baird's resignation are understandable – and here's genuinely and sincerely hoping that his father and sister's health battles are brief and successful – it's important to keep a clear eye on what Mike Baird's legacy has been for NSW generally and Sydney specifically. Because they have been huge.

• 1:13pm

Always a gentleman

The Brisbane Times' Felicity Caldwell reports:

Queensland Premier Annastacia Palaszczuk said Mike Baird was a gentleman.

"He has always treated me with respect, he has always spoke passionately about the issues that we have both championed," Ms Palaszczuk told reporters on Thursday.

"We don't agree on everything all of the time and of course I'm quite sure he's going to miss State of Origin.

"However, he's decided to spend more time with his family and I honestly wish him all the very best for his future."

• 1:04pm

Baird's economic legacy

​NSW is the fastest growing economy in the country with the lowest jobless rate, writes Jessica Irvine. But can Baird take the credit?

• 12:59pm

Keep Sydney Open farewells Baird

Keep Sydney Open, the anti-lockout law pressure group that mobilised thousands of protesters against Premier Baird last year, has wished the Premier well but said he was responsible for diminishing Sydney's "vibrancy". 

"We wish the Premier well. His commitment to the job during health crises in the Baird family is admirable and we wish only the best for them," said Tyson Koh. "We never hoped for Premier Baird's resignation, instead we hoped he would be a constructive partner who'd pursue smart policy that could make Sydney both vibrant and safe."

"Mike Baird never pursued that goal. While the greatest cities in the world continue to respect nightlife and enjoy innovative night time safety strategies, Mike Baird refused to consider these examples and instead believed only in the blunt instrument of a curfew." 

The so-called lockout laws were introduced by Mr Baird's predecessor, Barry O'Farrell. The Baird government relaxed the restrictions late last year. 

• 12:44pm

Gladys to stand

Gladys Berejiklian has confirmed she will be contesting the leadership when the Liberal party convenes next week, Fairfax has confirmed.  

It is unclear if there will be any challengers. 

• 12:42pm

Parting shot

Shooters, Fishers and Farmers MLC Robert Borsak has criticised Mr Baird on the way out. 

"Mike Baird's retirement is welcomed by the Shooters Fishers and Farmers Party," he said. "While we have generally supported this Government's mandate over the last few years, what we are now witnessing is the culmination of a number of very bad decisions.

"Those decisions relating to the sale of poles and wires which could have been handled differently, forced council amalgamations, the banning of the greyhound racing industry, and now the theft of crown lands in New South Wales is what has ultimately cost Mike Baird his job."

• 12:40pm

A contest for next premier?

So far it's been assumed that Treasurer Gladys Berejiklian will walk into the job as NSW's next Premier when the party room convenes for a spill of leadership positions next week.

But now former Liberal MP Ross Cameron is speculating that the vote could be contested.

When speculation that Mr Baird was planning to quit politics peaked late last year, amid the government's greyhound backdown, Mr Stokes, who is the Planning Minister, and Transport Minister Andrew Constance were named as other possible successors...

Mr Stokes' office has been contacted for comment but, as the tweet notes, he is overseas. 

• 12:33pm

New government a mouthful

Harriet Alexander reports that Deputy Leader John Barilaro is already pondering the finer details of working with Gladys Berejiklian: "I think the question will be, 'Can the media pronounce Berijiklian Barilaro government?'."
 

• 12:32pm

O'Farrell speaks

Barry O'Farrell, who resigned as Premier in April 2014, says his successor has left the state with a great legacy.

• 12:24pm

Business leaders bid a reluctant farewell

Clancy Yeates reports: Business leaders have been keen supporters of Mike Baird' s program of privatisation and infrastructure investment, and the tributes from the big end of town are starting to roll in.

Commonwealth Bank chief executive Ian Narev said in a statement that Baird was a "policy-driven leader."

"His clarity, willingness to plan for the long term and personal values have been excellent for business confidence," Mr Narev said.

"And the strength of the NSW economy is a reflection of his economic stewardship, first as Treasurer and then as Premier in partnership with Gladys Berejiklian."
 

• 12:15pm

Proud of you bro

Ms Baird is the Premier's sister.

• 12:00pm

Thank you, Mike

The Prime Minister, Malcolm Turnbull, has expanded on his earlier tweet with a statement farewelling Premier Mike Baird. 

Thank you, Mike, for your leadership of New South Wales.

Your state - our state - and the nation owe you a great debt.

You've restored the state's finances and you are building the infrastructure that sets New South Wales up for the 21st century economy.

You've played a great innings and we thank you for it.

You've opened your heart and explained why you are retiring all too soon.

We understand that and I want to wish you, on behalf of myself and Lucy, you and Kerryn and all your family the very best and the greatest success in the years ahead.

• 11:58am

No phone call

In a further clear sign that Macquarie Street was caught on the hop by Mike Baird's resignation, his deputy has told reporters he found out about the news the same way the public did. 

Deputy Premier John Barilaro only found out about Mr Baird's resignation through the media this morning, he told reporters including the SMH's Harriet Alexander. "I wasn't given a phone call," Mr Barilaro said. But he demurred at the suggestion that this showed a lack of respect. "That's a matter for Mr Baird."

Before he became the state's Deputy Premier late last year, Mr Barilaro was something of a rebel and a vocal opponent of some of Mr Baird's policies.