NSW Health Minister rejects calls for resignation over newborn's death after Sydney hospital gas line blunder

NSW Health Minister Jillian Skinner has rejected calls for her resignation over the death of a baby at a Sydney hospital, it was likely caused by an incorrectly installed gas line.

ABC reports Ms Skinner said the hospital and gas company BOC were responsible for ensuring the gas lines linked to the tragedy worked correctly.

"I will not be resigning," she said.

"If it was found that there was total negligence, something that I personally could have prevented, that might be when I would say I'll resign but I'm not convinced that that's the case in this situation."

Baby John Ghanem died shortly after being born on July 13 at Bankstown-Lidcombe Hospital but his parents only learned on Saturday that he was mistakenly given nitrous oxide, commonly known as laughing gas, instead of oxygen.

His family says he survived less than an hour.

Ms Skinner said the coroner, gas company BOC and health authorities would be investigating the death of one baby and a second case in which another newborn was given nitrous oxide instead of oxygen but survived.

Mother Sonya Ghanem says hospital staff told her she needed a caesarean section and that when she woke up from the anaesthetic she learned her baby had died.

"I said 'I want to see him'. (I was) just looking at him, shaking," she told media.

"'Wake up', I would tell him, `wake up, wake up. What did they do to you'."

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Mrs Ghanem says she left the hospital holding an empty baby capsule instead of her son.

"I came empty handed thinking I would hold my newborn, but no," she said.

Another baby born at the hospital in June was also mistakenly given nitrous oxide and remains in a critical condition.

Health experts fear that baby is likely to suffer long-term effects.

Ms Skinner has apologised.

"I've described it as a devastating error. That is what it is. Short and simple," she told reporters in Sydney on Tuesday.

"I have asked for every newly commissioned operating theatre over the last five years to be checked, and that's been done."

The faulty operating theatre has been closed and the coroner will investigate baby John's death.

The error was discovered last Thursday when a paediatrician raised concerns.

Initially it was thought that an oxygen machine was incorrectly installed and certified by gas supplier BOC Limited in July 2015.

But Ms Skinner says the fault occurred via a gas line, not a cylinder.

"I am assured that there are no other instances such as this," she said.

Ms Skinner also defended her decision to attend Monday night's Helpmann awards at Sydney's Lyric Theatre as news broke about the baby's death.

"That was a long-standing arrangement, I was representing the NSW government," she said.

"I spoke to the health officials in my office the minute I went in and the minute I came out of those awards."

NSW Opposition Leader Luke Foley called on Premier Mike Baird to dump Ms Skinner.

"Rather than reaching out to the family, rather than being available to the families to speak with them, rather than putting herself at the availability of the families affected ... she frocks up and goes to the theatre," he said.

An independent investigation chaired by an obstetrician will be conducted into Southwest Sydney Local Health District while BOC Limited will conduct its own inquiry.