Scott Morrison defends giving long-time staffer called 'Cronie' a $242,390 gig working for the National Bushfire Recovery Agency

Scott Morrison has defended the appointment of a long-time Liberal staffer nicknamed 'Cronie' to help the bushfire recovery agency.

Melbourne-based consultant Peter Crone was awarded a $137,000 contract with the National Bushfire Recovery Agency within the prime minister's department in January.

On May 11, the contract term was extended to June 2021 and the value was increased to $242,390.

Melbourne-based consultant Peter Crone was awarded a $137,000 contract with the National Bushfire Recovery Agency within the prime minister's department in January

At a Senate estimates hearing on Monday, bushfire agency boss Andrew Colvin said he had never heard of Mr Crone prior to his engagement and the Department of the Prime Minister and Cabinet was responsible for the contract.

On Tuesday, the department told a hearing Mr Crone was recommended by the prime minister's office.

The department said Mr Crone's contract was terminated mid-year, with his payments totalling $136,000 for six months work.

Mr Crone has been a political staffer for former prime minister John Howard and played a key role in Tony Abbott's commission of audit undertaken after the 2013 election.

The prime minister said Mr Crone had been employed 'in the appropriate way' and was eminently qualified as an economist

He has also advised Treasurer Josh Frydenberg.

Mr Crone declined to comment when contacted by AAP.

Labor deputy leader Richard Marles asked the prime minister in parliament why 'the bloke they all call Cronie' was given a job.

The prime minister said Mr Crone had been employed 'in the appropriate way' and was eminently qualified as an economist.

'His political views are a matter for him,' Mr Morrison said.

'If you are good at your job you'll get a job - that's how it works.'